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.