Tim Cook’s Apple isn’t worried about The China Problem: ‘We’re not in the junk business’

Tim Cook’s Apple isn’t worried about The China Problem: ‘We’re not in the junk business’Ten days ago, Apple stunned the world by failing to deliver a truly “budget” iPhone, something that was only ever promised by know-it-all analysts and rumourmongers.

The theory is that Apple should be trying to a) push into China, and b) pre-empt the imminent global invasion by cheap Chinese manufacturers with something more affordable, but Tim Cook isn’t bothered. Heck, there’s a market for “junk” and premium stuff.

As it is, Apple has introduced the plastic-cased iPhone 5C, which is cheaper than the new iPhone 5S, but by no means cheap.

But as I’ve mentioned before, I don’t understand why everyone thinks Apple should go down the cheap phone route. They’re a manufacturer of high-end products. There’s no £250 MacBook, and there probably never will be.

Similarly, no one is demanding a wallet-friendly car from Lamborghini, or three-for-£10 tops from Gucci.

Selling low-end phones for little profit simply isn’t what Apple is about, and Tim Cook reiterates that notion in a lengthy interview with Bloomberg Businessweek.

“There’s always a large junk part of the market,” begins Cook. “We’re not in the junk business. There’s a segment of the market that really wants a product that does a lot for them, and I want to compete like crazy for those customers.

“I’m not going to lose sleep over that other market, because it’s just not who we are. 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 their tablet, that Apple can have a really good business.”

Interesting stuff. For lots more, including the warning that “to not innovate is to die” (with Nokia serving as a stark reminder), the suggestion that "Everybody is trying to adopt Apple’s strategy", and not forgetting the obligatory poke at Android fragmentation, hit the blue words above. Good read.

Read more about: Apple iPhone 5cApple iPhone 5siOS

Add a comment
5 comments

Dougal1709  Sep. 20, 2013 at 16:49

So what's the point of the 5C then? Who is it aimed at?

mightyforest  Sep. 20, 2013 at 20:28

same people as the 5s? gullible people :)

dz1  Sep. 20, 2013 at 23:17

It would have been smarter of the author if he had said these things before the release of the iphone 5c. Where was your great insight then?

Stelph  Sep. 20, 2013 at 23:30

So what's the point of the 5C then? Who is it aimed at?

The same people as the 4s was aimed at after the 5 came out. Essentially apple want to keep offering a second device that is $100 cheaper than the top of the range model but had an issue with the current 5 because it would cost about the same to make as a 5S, so they created the 5c which replaces a lot of the metal with plastic, thereby reducing the cost and thereby increasing the margin

Remember the 4s was still selling well while the 5 was out, there's still a market for a slightly cheaper iOS device

lcurdie / MOD  Sep. 20, 2013 at 23:52

It would have been smarter of the author if he had said these things before the release of the iphone 5c. Where was your great insight then?

Thanks for your comment, dz1. I wrote an article in mid-July (two months before the launch of the iPhone 5C) titled Four phones that might never happen, and one of those was:

Budget iPhone

This one is all the rage at the moment, as Apple threatens to unleash a ton of iProducts on the world in the second half of 2013. Yep, it’s the budget iPhone with its plastic shell.

Again, we come back to why? Apple has a reputation for selling premium products. Remember the wallet-friendly £200 MacBook? Me neither. That’s because it never happened.

One theory is that the budget iPhone would help Apple gain more smartphone OS market share, but what do those figures mean anyway? The profit on low-end phones is minimal at best, and it’s not like emerging markets have a ton of cash lying around to spend on apps.

We’ll stick £50 on ‘Not happening’ please.

Email:

You don't need an account to comment. Just enter your email address. We'll keep it private.

Comment: