Tim Cook
Tim Cook

It turns out, Apple never set out to make the iPhone 5C a low-cost phone to compete internationally with lower-priced phones that dominate most of the developing smartphone market.

According to a new interview with Tim Cook, Jonathan Ive and Craig Federighi in Bloomberg Businessweek, Apple sees itself as the Ferrari or Porsche of the smartphone market, and is perfectly happy to cede the low end to other companies.

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

That shouldn’t be a surprising message coming from an Apple CEO, considering the company’s history of remaining uncompromising on price and design, even when Windows was dominating the PC market. As it turns out, it seems the rest of the smartphone industry may be coming around to at least one part of Apple’s business model.

When asked about Microsoft’s Nokia acquisition, Cook said that it was validating to see Apple’s competitors adopting its model of handling software and hardware in-house, rather than licensing an operating system out to OEMs.

“We’re not looking for external validation of our strategy, but I think it does suggest that there’s a lot of copying, kind of, on the strategy and that people have recognized that importance,” Cook told Bloomberg.

As of press time, Apple’s stock is up $8.20, or 1.7 percent, following a long slide over the past week following the iPhone 5C and 5S announcement.

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Comments

  • Guest

    Thank you, Tim. Your leadership at One Infinite Loop has encouraged your best employees to leave, your best customers to buy their ‘phones from Samsung, and your erstwhile business partners to cease their monogamous relationship with Apple. You have disrupted Apple’s image as an innovator, releasing incremental upgrades to existing products while abandoning new and industry-changing ideas like iTV (expected to come out in 2011, it’s now delayed indefinitely) and iWatch (cloned by four A-list companies, Apple’s entree into the wearable compu market is no longer expected). Your cannibalizing efforts have not earned you new customers — you cite this as a point of pride, but where is the pride in getting the same customer to pay $330 for an iPad mini when he otherwise would have paid $500 for a regular pad?

    You may not make “junk,” Tim, but what have you made? A laughingstock of America’s once-most-advanced tech company, you have made!

    To remedy this, I’d like to propose that you return Apple’s compensation monies and resign your post effective within the next year. The world cannot stomach 12 more years of ineffectual leadership at another tech giant.

    • DwayneBozie

      For what it’s worth, I’m still waiting for the Macbook made in America, that employes Americans, and pays taxes related to labor investment in the US.

      I guess I’m holding my breath.

      • Ryan Parrish

        Do you mean the new Mac Pro? They said “later this year” That probably means December.

    • Out For Justice

      Microsoft Troll…

      • http://ClaussConcept.com Jason Gerard Clauss

        Apple fanboy…

  • Guest

    Sorry, this entire article sounds like an Apple press release. Apple’s problem is that it’s do unbelievably arrogant that it fails to acknowledge others have not met, and in some cases exceeded, its quality bar. They’re just content to do that at normal hardware margins, not Apple’s historically outrageous one. But it’s good of Tim to confirm that Apple has lost its dominance of smartphones and given up any hope of trying to recover that. Instead it will be a niche player, like it was with Mac.

    • Out For Justice

      Great article! Apple stands behind their developers and their customers. You just sound jealous!!!

      • Guest

        Jealous? Hardly. Just moved on to Android devices, like many other former Apple users.

      • teabaghater

        what thats your line?? Ha

  • Guest

    Not sure he understands his analogy to the automotive world. He’s stating that Apple is owned by one of the worst production quality companies or that they are owned by one of the largest companies in the world that produces product in every market at every price point.

  • byebyemicrosoft

    Must be break time at microsoft with all their employees commenting on this post…

    • Guest

      Nope, never worked there. Also use an iPod touch, iPad gen 1, Galaxy S4 and a MacBook Pro. So really I’m more of an Apple user…

    • Guest

      Still trolling, huh?

  • DwayneBozie

    I’m still waiting for the VAPORWARE Macbook, which is made in America, creates American Jobs, and the company that pays taxes owed.

    • MinustwentyIQ

      Taxes that aren’t applicable aren’t “owed”.

    • Ryan Parrish

      Do you mean the new Mac Pro? They said “later this year”, which probably means December.

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