Apple Inc. (AAPL) CEO Shrugs Off Criticism And Low-Cost Phones

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Apple Inc. (NASDAQ:AAPL) has been taking a lot of heat lately. The iPhone maker has faced a lot of criticism thanks to competition from Android-based phones. Much of this criticism lies in the fact that Apple has yet to take over the Chinese smartphone market, which is currently dominated by cheaper low-end phones. The competition doesn’t stop there, though—Apple Inc. (NASDAQ:AAPL) faces stiff competition from high-end phones from Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) and HTC Corp (TPE:2498). It’s evident that the iPhone isn’t the only smartphone worth buying.

Apple’s CEO Tim Cook stays positive

Apple Inc. (NASDAQ:AAPL)’s current chief executive officer Tim Cook is a smart man. He took over the plum position from the late (and legendary) Steve Jobs back in 2011, and everyone’s been watching him since he took over. He knows not to let all the negativity affect him. He explained, “I don’t feel euphoric on the up, and I don’t slit my wrists when it goes down. I have ridden the roller coaster too many times for that.” When asked about the rise of low-cost manufacturers, he’s equally even-tempered. “It happens in every market I’ve seen,” he says. “It happens in all consumer electronics, from cameras to PCs to tablets to phones to—in the old world—VCRs and DVDs. I can’t think of a single consumer electronics market it doesn’t happen in.”

Cook also doesn’t worry about the pricing strategy. He said, “There’s always a large junk part of the market. We’re not in the junk business.”

“Budget” iPhone 5C is anything but cheap

The “budget” iPhone 5C is a relative bargain at $99, but it’s certainly anything but cheap. The unsubsidized price for the phone is $550, that’s just $100 less than the iPhone 5S. It’s also got many of the high-end features you would expect from an Apple phone. Cook goes on to talk about how they want to cater to the market that wants more from their phone.

Cook wasn’t the only executive to share his thoughts on the iPhone and future of Apple Inc. (NASDAQ:AAPL). Jonathan Ive (chief designer) and Craig Federighi (software lead) also had much to say about the company. The executives, who have worked together for years, admit that they’ve never really talked about their roles before. They then talk about the successes of collaboration. They even go as far as talking about how they worked together to correct the blurred background effect on iOS 7.

Ive and Federighi don’t listen to the reports which claim Apple Inc. (NASDAQ:AAPL) lacks innovations. The executives went on to explain the innovative new features and the integration behind all of it.

In the end, Cook isn’t really concerned about market shares. He understands that people buy Android phones but they actually use iPhones. And that’s all that matters.


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