Tim Cook Defends Apple’s Market Strategy

Transcript:

BY EVAN THOMAS The iPhone 5c — the more affordable of Apple’s latest offerings — still isn’t as inexpensive as some analysts had hoped it would be. Apple CEO Tim Cook gave an interview with Businessweek, published Thursday. His message to the disappointed Apple-watchers? Sorry. “There’s always a large junk part of the market. We’re not in the junk business,” he said. “I’m not going to lose sleep over that other market, because it’s just not who we are.” (Via Businessweek) Cook said it was never Apple’s objective to compete with the lower end of the smartphone market. Instead, he wanted to continue focusing Apple’s efforts on an experience that retained the quality and polish Apple is known for. (Via Apple) Analysts and investors had expected a mid-range device to appeal to emerging markets like China. When the 5c was revealed to be only a hundred bucks cheaper than the new top-end 5s, Apple’s stock faltered. (Via DailyFinance) At $549 off-contract, the 5c is still largely unaffordable in countries like China, which doesn’t get the subsidies of carriers to help offset the price of phones. Instead, VentureBeat says, it costs close to a month’s salary for the average chinese citizen. (Via VentureBeat) Cook also talked on threats to Apple’s business from other sectors, including Microsoft’s hardware business and Android’s reach across the mobile software space. Cook pointed to Microsoft’s recent acquisition of Nokia as an example of how competitors are trying to emulate Apple’s top-down strategy — controlling both its software and the hardware it runs on. “Everybody is trying to adopt Apple’s strategy. … I think it does suggest that there’s a lot of copying, kind of, on the strategy and that people have recognized that importance.” (Via Softpedia) But Cook suggested making the most of that strategy is easier said than done. That’s why he doesn’t consider Android a threat to Apple’s mobile momentum. He said Android is so fragmented and out of date that everyone from developers to end users lose out. People can quickly end up using software that’s several years old. (Via Android Developers) “That would be like me right now having in my pocket iOS 3. I can’t imagine it.”

Get the Strategies

Get the latest posts delivered to your inbox for free.

Posted by Ian

Ian has marketed for some of the world's best-known brands like Hewlett-Packard, Ryder, Force Factor, and CIT Bank. His content has been downloaded 50,000+ times and viewed by over 90% of the Fortune 500. His marketing has been featured in Forbes, Inc. Magazine, Adweek, Business Insider, Seeking Alpha, Tech Crunch, Y Combinator, and Lifehacker. With over 10 startups under his belt, Ian's been described as a serial entrepreneur— a badge he wears with pride. Ian's a published author and musician and when he's not obsessively testing the next marketing idea, he can be found hanging out with family and friends north of Boston.