Apple Inc. (AAPL) CEO Tim Cook Isn’t Interested In Junk

Apple Inc. (AAPL) CEO Tim Cook Isn’t Interested In Junk
ElisaRiva / Pixabay

Apple Inc. (NASDAQ:AAPL) CEO Tim Cook defended the iPhone 5C in an interview with Bloomberg, explaining that the company has never been interested in producing cheap electronics.

Play Quizzes 4

Apple Inc. (AAPL) CEO Tim Cook Isn’t Interested In Junk

Apple is not in junk business

“There’s always a large junk part of the market,” Cook said. “We’re not in the junk business.”

Exodus Point Outperforms As Rates Trading Profits Jump [Exclusive]

Value Bin Default RatesMichael Gelband’s Exodus Point launched in 2018 with $8.5 billion in assets. Expectations were high that the former Millennium Management executive would be able to take the skills he had learned at Izzy Englander’s hedge fund and replicate its performance, after a decade of running its fixed income business. The fund looks to be proving Read More

A lot of the speculation about the iPhone 5C coming in at $400 or even less was based on the idea that Apple Inc. (NASDAQ:AAPL) wanted to compete with Google Inc (NASDAQ:GOOG)’s Android OS over the entire mobile market, but Apple Inc. (NASDAQ:AAPL) has never competed with budget brands in the past, and there was never any reason to assume that it would start now.

Apple’s product pricing

Apple Inc. (NASDAQ:AAPL)’s offer has always been a well-designed, trendy product for a hefty premium. iPods, MacBooks, and iPhones are all expensive relative to the competition, but people buy them anyways. Even when the company was struggling in the 1990s, it never wavered from its strategy of producing premium computers, and maintained a following among graphic designers and artists.

It’s true that Android is taking larger and larger chunks of the total mobile market, but that includes the mid-to-low end that Apple Inc. (NASDAQ:AAPL) frankly doesn’t care about. Cook says that he wants to “compete like crazy” for high-end customers, and that he isn’t worried about low-end electronics or day-to-day changes in stock price.

Apple’s strategy for phone and tablet market

“Fortunately, both of these markets are so big, and there’s so many people that care and want a great experience from their phone or tablet, that Apple Inc. (NASDAQ:AAPL) can have a really good business,” he said. As one of the most profitable companies in the world, it’s hard to argue that the strategy hasn’t worked, and recent comparisons in the media with Kodak and other failed IT firms seem overblown.

Apple Inc. (NASDAQ:AAPL)’s Head of Design Jony Ive, and Software Chief Craig Federighi, also took part in the interview, and Ive told Bloomberg that it’s Apple Inc. (NASDAQ:AAPL)’s relentless attention to detail that convinces people to spend more on their products and that inspires such strong brand loyalty. “I do think that we sense when somebody has cared,” Ive said. “And one thing that is incontrovertible is how much we’ve cared.

Updated on

Michael has a Bachelor's Degree in mathematics and physics from Boston University and Master's Degree in physics from University of California, San Diego. He has worked as an editor and writer for several magazines. Prior to his career in journalism, Michael Worked in the Peace Corps teaching math and science in South Africa.
Previous article Emerging markets lead world stocks rally
Next article David Tepper Says Fed’s ‘No Taper’ Positive For Markets

No posts to display