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Apple CEO Tim Cook on Android growth: 'Success is not making the most' - Page 2
Beginning at 24:30, listen to Cook at the Goldman Sachs conference. He uses the example of how Apple responded to repeated requests for a low-cost Macintosh when answering questions about a low cost iPhone:
http://events.apple.com.edgesuite.net/13qpijbvpiqefjbgewrifhbvefqpihbdfv2/event/index.html
"Frankly, we worked on this [sub $500 Macintosh]. But we concluded that we couldn't do a great product, and so we didn't. What did we do?...instead we invented the iPad."
Macs start at $999, iPads now start at $329. If this is an indication of where Apple's going with the low cost iPhone, we might be seeing an alternative communication device, one that doesn't look like an iPhone and something that starts at a fraction of the least-expensive iPhone.
Whatever form this communication device takes - iPhone nano or iWatch,
whatever - It's pretty clear that Apple's working to answer cries for a low cost iPhone the way they addressed previous challenges.
As a shareholder I'm not worried, but I am anxious to see where they're headed here, as the opportunity in emerging and developing markets is colossal.
They have to innovate faster. They have to turn new phones and tablets faster. They are well behind their competition. Only thing that is saving them is that they have so many people "pregnant" embedded into their ecosystem that people are currently unwilling to switch. But, that day is slowly waning. They also need to come up with new products. ....They "milk" slight changes now like they will change your life. Siri is a perfect example. Yeah, it is neat, but most people stop using it after a while. There maps thing is embracing. Steve would have handled that whole thing differently. They need to go faster.
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I think this is a GREAT strategy. Really and truly, just BRILLIANT!
1) Tell your shareholders you don't give a **** about how many items you sell, to let them know you really could care less if the share price tanks.
2) Let the other guys/Samsungs run you down in ads.
3( Let them take away your market share.
Have it be an EXACT repeat of Windows eating Mac's lunch back in the day. Let Android gain the majority of share so that developers will go to them.
I know what you'll say: Yes, yes, we at Apple are getting devoured by the competish. They're out advertising us, outselling us, and expanding exponentially to developing markets while we're not.
BUT we can say proudly that we have a quality product. And by the way shareholders, if you thought you were getting more of our cash, suck it.
Author of The Fuel Injection Bible
Author of The Fuel Injection Bible

They have to innovate faster. They have to turn new phones and tablets faster. They are well behind their competition. Only thing that is saving them is that they have so many people "pregnant" embedded into their ecosystem that people are currently unwilling to switch. But, that day is slowly waning. They also need to come up with new products. ....They "milk" slight changes now like they will change your life. Siri is a perfect example. Yeah, it is neat, but most people stop using it after a while. There maps thing is embracing. Steve would have handled that whole thing differently. They need to go faster.
.
Yeah because they went so fast when Steve was around. I mean 6 years between iPod and iPhone. I've never seen such fast innovation.
Look at the game tape. Apple's NEVER been that company. Look at the scoreboard: Last quarter Apple sold more iPhone 5's than Samsung sold Galaxy S IIIs. Apple also sold more iPhone 4 than Samsung sold Galaxy S IIIs. They have competition, yes, but this isn't a new phenomenon.
Broadly speaking, Apple's major achievements over the past 30 years include Macintosh, iPod, iPhone, iPad. Four major product lines in three decades. The last three of which came in the last decade. Let that sink in.
Within those product categories, Apple's never churned out updates to their products. In fact, the iPhone and iPad have broken Apple's typical product refresh rates, giving customer a new choice twice a year at most. Previously, we often waited a year or more for a refresh.
Apple says this all the time, they're not in this to cash in. They're in this to make the best products they can make. They're in this for the long term. Changing that culture means changing the company. It's not going to happen.

I think that Apple should be more flexible. A much less expensive phone is needed around the world, and possibly, even here. They might also need to figure out a way to have a less expensive 8" tablet.
In addition, they've got to adopt more strategies towards the market. Avertising is small when compared to Samsung. $14 billion in total for Samsung last year compared to about $1 billion for Apple. It's aking a big part of the difference in sales.
For those who believe that marketshare is worthless, I'll say that it's not. As the market shifts, so do developers. This isn't speculation, it's fact.
I'd also like to see Macbook Airs at $899. Mini's at $599, and iMac's at $999. Except for Air's, they've been there before. There's no reason why they can't be there again.
So in other words...you want Apple to be in the race to the bottom which is exactly what they have never done and sounds like they'll never do. Apple can't be everything to everyone, everywhere.
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I think the "less expensive phone" is a red herring of sorts.
They already have lots of products that are affordable for almost every person in every category and country, even if those products are last years products. These products aren't "phones" only because a simple piece of software (which is what a "phone" has become) isn't available on them. This is because of the carriers and the way they conduct their business, not Apple.
If Apple could simply put phone software of some kind on *all* of their products, there would no longer be a need for a cheaper "phone."
This is what everyone was expecting them to do when they came out with the iPhone and for the next few seasons after that, but so far they've failed to do so and failed to convince the carriers that this is a good idea. Apple just needs to step up to the plate and start fighting for the consumer in the horribly corrupt cell carrier market. They really should have bought something like Skype instead of giving it to Microsoft to kill.
"Phones" are rapidly becoming old news and will soon be irrelevant if only the carriers can be either evaded or gotten onboard in this rather obvious and inevitable evolution.
Mass producing cheap phones is an idea from the 1990's. I would rather Apple look to the future as is their wont, and evade the whole question of a cheap "phone" altogether. They need to get behind the idea that everything could be a phone and that data is data, whether it's "minutes" or movies. Why (the f*ck), should I have to have a phone in my pocket, just to connect my tablet to the network when like many people today, I don't even receive phone calls? Why do I have to sit through an explanation of a complicated phone contract every time I upgrade my phone when absolutely none of the details of minutes and long-distance and all that other "phone crap" matters to me at all?
They need to cannibalise the iPhone to move forward.
They need to make everything a phone, which will ironically make the "phone" disappear altogether.
As long as it doesn't look like this.

I think this is a GREAT strategy. Really and truly, just BRILLIANT!
1) Tell your shareholders you don't give a **** about how many items you sell, to let them know you really could care less if the share price tanks.
2) Let the other guys/Samsungs run you down in ads.
3( Let them take away your market share.
Have it be an EXACT repeat of Windows eating Mac's lunch back in the day. Let Android gain the majority of share so that developers will go to them.
I know what you'll say: Yes, yes, we at Apple are getting devoured by the competish. They're out advertising us, outselling us, and expanding exponentially to developing markets while we're not.
BUT we can say proudly that we have a quality product. And by the way shareholders, if you thought you were getting more of our cash, suck it.
When did Cook say he doesn't care if the stock price tanks? Honestly right now Apple could announce a cure for cancer and the stock would tank.
and if Apple announced more share buy backs or a bigger dividend we'd be told that's what companies do when they're out of ideas and don't know how to innovate anymore.

Look at the game tape. Apple's NEVER been that company. Look at the scoreboard: Last quarter Apple sold more iPhone 5's than Samsung sold Galaxy S IIIs. Apple also sold more iPhone 4 than Samsung sold Galaxy S IIIs. They have competition, yes, but this isn't a new phenomenon.
Broadly speaking, Apple's major achievements over the past 30 years include Macintosh, iPod, iPhone, iPad. Four major product lines in three decades. The last three of which came in the last decade. Let that sink in.
Within those product categories, Apple's never churned out updates to their products. In fact, the iPhone and iPad have broken Apple's typical product refresh rates, giving customer a new choice twice a year at most. Previously, we often waited a year or more for a refresh.
Apple says this all the time, they're not in this to cash in. They're in this to make the best products they can make. They're in this for the long term. Changing that culture means changing the company. It's not going to happen.
"They are well behind their competition..."
"... They "milk" slight changes now like they will change your life."
Those comments didn't require a response other than a mad cacophony of laughter.

They have to innovate faster. They have to turn new phones and tablets faster. They are well behind their competition. Only thing that is saving them is that they have so many people "pregnant" embedded into their ecosystem that people are currently unwilling to switch. But, that day is slowly waning. They also need to come up with new products. ....They "milk" slight changes now like they will change your life. Siri is a perfect example. Yeah, it is neat, but most people stop using it after a while. There maps thing is embracing. Steve would have handled that whole thing differently. They need to go faster.
.
I'd like you to explain how Apple is "so far behind their competition"? You can only innovate so fast. Its not about getting something out just to get it out. I think you need to get it mostly right when you release it. Apple can't afford to release absolute crap.
Mac Mini (Mid 2011) 2.5 GHz Core i5
120 GB SSD/500 GB HD/8 GB RAM
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Mac Mini (Mid 2011) 2.5 GHz Core i5
120 GB SSD/500 GB HD/8 GB RAM
AMD Radeon HD 6630M 256 MB
Yeah, all they have to do is tweak the 3GS or 4 design to keep costs low with the same user experience. They could probably sell a 3GS speced device for < $200 no-contract.

I think this is a GREAT strategy. Really and truly, just BRILLIANT!
1) Tell your shareholders you don't give a **** about how many items you sell, to let them know you really could care less if the share price tanks.
2) Let the other guys/Samsungs run you down in ads.
3( Let them take away your market share.
Have it be an EXACT repeat of Windows eating Mac's lunch back in the day. Let Android gain the majority of share so that developers will go to them.
I know what you'll say: Yes, yes, we at Apple are getting devoured by the competish. They're out advertising us, outselling us, and expanding exponentially to developing markets while we're not.
BUT we can say proudly that we have a quality product. And by the way shareholders, if you thought you were getting more of our cash, suck it.
Even Steve Jobs has stated more than a few times they aren't interested in market share numbers. This is only something "experts" are interested in. If Apple wanted to be #1 in market share all the time they could be in the race to the bottom with a cheap phone, tablet, Mac, etc. This isn't anything new.
Quite honestly, Apple should just do their own thing and I too wouldn't really care what shareholders want. Shareholders are only out for their own best interests...just like these so called "experts" who think they know what people want from Apple better than Apple does.
As I've stated before, I wish Apple could just go private and do their own thing. I know this will never happen for financial and legal reasons but I wish it would happen.
Mac Mini (Mid 2011) 2.5 GHz Core i5
120 GB SSD/500 GB HD/8 GB RAM
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Mac Mini (Mid 2011) 2.5 GHz Core i5
120 GB SSD/500 GB HD/8 GB RAM
AMD Radeon HD 6630M 256 MB
Brilliant but...
Challenging.
I do agree. This has been an argument for BlackBerry purchasing QNX. So, argue that BlackBerry believes that they can create an entire ecosystem of every device in the world connected by QNX.
"Siri is a perfect example. Yeah, it is neat, but most people stop using it after a while."
No need to comment to this. Statements like this require supporting data, in my opinion.
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"Just because something is deemed the law doesn't make it just" - SolipsismX
"Just because something is deemed the law doesn't make it just" - SolipsismX
Steve is no longer with us so we don't know what his opinion would be now. Just as in life your perspective changes as you get older. All the rich people already have smartphones. Do you just want to sell them another one every two years or do you change your focus to match the changing times? It's all well and good to say you are not interested in market share so long as you already have a decent slice of the pie, but if the share starts to decline, eventually you will reach a tipping point where market share REALLY matters. They don't need to be obsessed with market share but to be completely disinterested I think is a mistake. China is the new battle ground, and although they have a rising middle class there is definitely a need for a cheaper phone for their masses. The older version iPhones are not a good fit for the Chinese as they don't even work on the country's largest carrier. A smaller less expensive, less full featured iPhone would be a huge hit in the developing world.
Life is too short to drink bad coffee.
Life is too short to drink bad coffee.
I'm hoping Apple's current leadership is careful not to repeat these mistakes.
Right now, the only thing that's preventing most developers to release cool new stuff on Android first is the market fragmentation, but that's not going to last forever. You better believe that Google is working very hard on addressing this problem.
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Then we have a contradiction in terms. With 69% of the mobile profits, Apple is acknowledging a finite resource: Profits. Growing and diluting their profit margins to pamper to an idea that this finite resource will manifest into orders of more profit and thus make these shareholders even larger sums of money is a mathematical fallacy.
By putting this falsehood of cheap phones == market share == profits to rest for the embedded world of computing Apple is steering its course and being true to its founder's vision. The same vision that created all of this success.
Investors have raised the stock back up past 450 by close.
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Steve is no longer with us so we don't know what his opinion would be now. Just as in life your perspective changes as you get older. All the rich people already have smartphones. Do you just want to sell them another one every two years or do you change your focus to match the changing times? It's all well and good to say you are not interested in market share so long as you already have a decent slice of the pie, but if the share starts to decline, eventually you will reach a tipping point where market share REALLY matters. They don't need to be obsessed with market share but to be completely disinterested I think is a mistake. China is the new battle ground, and although they have a rising middle class there is definitely a need for a cheaper phone for their masses. The older version iPhones are not a good fit for the Chinese as they don't even work on the country's largest carrier. A smaller less expensive, less full featured iPhone would be a huge hit in the developing world.
Then you're less astute than you get yourself credit for being. Steve has kept the same vision since he founded Apple. Quality products will drive healthy profits allowing Apple to continue innovating and pushing the boundaries of the information industrial revolution. Apple was Steve's chance to drive this through in a balanced, more pragmatic approach, while not compromising on quality and vision. NeXT was the experiment to push the boundaries too far. Apple today is the culmination of focused innovation in a few key areas to maturity and then use that collective experience to drive new markets while continuing the mature markets.

They have to innovate faster. They have to turn new phones and tablets faster. They are well behind their competition. Only thing that is saving them is that they have so many people "pregnant" embedded into their ecosystem that people are currently unwilling to switch. But, that day is slowly waning. They also need to come up with new products. ....They "milk" slight changes now like they will change your life. Siri is a perfect example. Yeah, it is neat, but most people stop using it after a while. There maps thing is embracing. Steve would have handled that whole thing differently. They need to go faster.
.
The sheer amount of stupidity in that post literally gave me a headache. What "competition" are they behind, exactly? Please, jump ship now and spare us more of your concern-trolling whining.
"There maps thing is embracing"
No, what's "embracing" is the sheer amount of spelling and grammatical errors in those 5 words. How do people like you not get banned?

I think that Apple should be more flexible. A much less expensive phone is needed around the world, and possibly, even here. They might also need to figure out a way to have a less expensive 8" tablet.
In addition, they've got to adopt more strategies towards the market. Avertising is small when compared to Samsung. $14 billion in total for Samsung last year compared to about $1 billion for Apple. It's aking a big part of the difference in sales.
For those who believe that marketshare is worthless, I'll say that it's not. As the market shifts, so do developers. This isn't speculation, it's fact.
I'd also like to see Macbook Airs at $899. Mini's at $599, and iMac's at $999. Except for Air's, they've been there before. There's no reason why they can't be there again.
And yet iOS has the developers and the profits. This is not like the PC vs Mac comparisons back in the day. They have a lot of markets hare, just not the majority.

Then you're less astute than you get yourself credit for being. Steve has kept the same vision since he founded Apple. Quality products will drive healthy profits allowing Apple to continue innovating and pushing the boundaries of the information industrial revolution. Apple was Steve's chance to drive this through in a balanced, more pragmatic approach, while not compromising on quality and vision. NeXT was the experiment to push the boundaries too far. Apple today is the culmination of focused innovation in a few key areas to maturity and then use that collective experience to drive new markets while continuing the mature markets.
I think times have changed. Traditionally Apple has always targeted the economically well off market segment. My Mac II fx cost nearly $10k after adding a hard drive, monitor and some RAM. I also had one of the very first cell phones which cost north of $3k. Today even the guy who begs on the freeway ramp with a God Bless sign has a cell phone.
Life is too short to drink bad coffee.
Life is too short to drink bad coffee.
13 billion in profit the last quarter is why everything is so wonderful. All else is due to speculation and outside forces. If it ain't broke. ..

They have to innovate faster. They have to turn new phones and tablets faster. They are well behind their competition. Only thing that is saving them is that they have so many people "pregnant" embedded into their ecosystem that people are currently unwilling to switch. But, that day is slowly waning. They also need to come up with new products. ....They "milk" slight changes now like they will change your life. Siri is a perfect example. Yeah, it is neat, but most people stop using it after a while. There maps thing is embracing. Steve would have handled that whole thing differently. They need to go faster.
.
I knew you weren't serious when I saw the "Steve wouldn't have done that" comment.
Who cares about the stock price...unless you're a shareholder. Apple is doomed!
Mac Mini (Mid 2011) 2.5 GHz Core i5
120 GB SSD/500 GB HD/8 GB RAM
AMD Radeon HD 6630M 256 MB
Mac Mini (Mid 2011) 2.5 GHz Core i5
120 GB SSD/500 GB HD/8 GB RAM
AMD Radeon HD 6630M 256 MB

A iPhone "Nano" would, at some point, perhaps not be a bad idea but at the moment "the iPhone maker collected a whopping 69 percent of handset industry profits last year." and the recently noted success of the 3Gs (!!) let alone the 4, 4s and the 5 all speak to the current inventory being quite nice, thanyouverymuch.
An iPhone Nano?
Be careful...you've just opened yourself up to angry/passionate responses of: race to the bottom, Apple doesn't do cheap, if it's not a full iOS it's stupid, cannibalization, low margins! damnit! Leave feature phones to the Samscum of the earth!
Many don't realize that new form factors, like an iPhone nano (feature-like phone), iWatch, etc...are a redefinition of Apple and doesn't have to mean a cheap, money losing business strategy.

I think times have changed. Traditionally Apple has always targeted the economically well off market segment. My Mac II fx cost nearly $10k after adding a hard drive, monitor and some RAM. I also had one of the very first cell phones which cost north of $3k. Today even the guy who begs on the freeway ramp with a God Bless sign has a cell phone.
This doesn't mean Apple needs to make a phone for someone who can't afford it. All you did was show that technology gets cheaper over time, but thats still doesn't mean Apple needs to make a cheaper device, Mac, etc. So I guess by you're thinking, Apple needs to take the Dell approach. Lets just make something as cheap as possible so we can get our products into as many hands as we can. That worked out very well didn't it?
Mac Mini (Mid 2011) 2.5 GHz Core i5
120 GB SSD/500 GB HD/8 GB RAM
AMD Radeon HD 6630M 256 MB
Mac Mini (Mid 2011) 2.5 GHz Core i5
120 GB SSD/500 GB HD/8 GB RAM
AMD Radeon HD 6630M 256 MB
I did not know that Samsung push out the Galaxy line up every month.
http://en.wikipedia.org/wiki/Samsung_Galaxy
I know choice is a good thing but that is too much for consumer to consume. Now imagine if Apple would go that route and release different version of iphone and ipad from low-end, mid-range, and high-end version every month there would be an outrage and lawsuit.
Indeed making the most is not the only metric, or the most important metric of success. But it would be wrong to say success is not making the most.
Lest we forget, Apple also plays the numbers game, or rather did play it, when it makes sense. They repeatedly cite their superior market share in tablets, # of the apps available, # of downloads, amount of app-derived revenue paid out to developers. Not that long ago, they too reported activation numbers regularly, and openly questioned Android activation numbers. That stopped when the evidence wasn't in their favor. So, IMO, it's a bit hollow to poo-poo the numbers game.
Having said this, Apple is still in great shape. But to dismiss Samsung's surge would be pure hubris, just as it would be foolish of Samsung to start uncorking the champagne. We are in the early part of the first quarter in this game.

Even Steve Jobs has stated more than a few times they aren't interested in market share numbers. This is only something "experts" are interested in. If Apple wanted to be #1 in market share all the time they could be in the race to the bottom with a cheap phone, tablet, Mac, etc. This isn't anything new.
Quite honestly, Apple should just do their own thing and I too wouldn't really care what shareholders want. Shareholders are only out for their own best interests...just like these so called "experts" who think they know what people want from Apple better than Apple does.
As I've stated before, I wish Apple could just go private and do their own thing. I know this will never happen for financial and legal reasons but I wish it would happen.
Nicely put. The obsession with market share is an old argument that people have made for decades regarding Apple and their business. Now more than ever, market share is relatively unimportant to Apple. It is however, VERY important to the "experts" and the masses because that is all they understand. They are simpletons, but Apple should be careful here. Damage can be done to the brand via drops in stock price. The share price has fallen mostly because of rumor and emotions prevalent among the market share freaks. The "experts" issue way out of whack estimates (guesses) as to how Apple should perform. Apple doesn't meet those crazy guesses and poof, share price tanks.
I agree, find a way to go private and be done with all this BS.


They have to innovate faster. They have to turn new phones and tablets faster. They are well behind their competition. Only thing that is saving them is that they have so many people "pregnant" embedded into their ecosystem that people are currently unwilling to switch. But, that day is slowly waning. They also need to come up with new products. ....They "milk" slight changes now like they will change your life. Siri is a perfect example. Yeah, it is neat, but most people stop using it after a while. There maps thing is embracing. Steve would have handled that whole thing differently. They need to go faster.
.
I'd like you to explain how Apple is "so far behind their competition"? You can only innovate so fast. Its not about getting something out just to get it out. I think you need to get it mostly right when you release it. Apple can't afford to release absolute crap.
Sometimes you've just got to let go on totally moronic posts...... just let it hang there.
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