Apple CEO Tim Cook on Android growth: 'Success is not making the most'

Posted:
in iPhone edited January 2014
Apple could easily make the most products in a category, but that wouldn't be good for the company, Chief Executive Tim Cook told shareholders on Wednesday.

Campus


Cook was asked during the question-and-answer session of his company's annual shareholder meeting what he plans to do about Android's explosive growth in the smartphone business. But "success is not making the most," Cook said.

Tim Cook


The CEO told shareholders that his company could press "a button or two" that would have Apple make the most products in a particular category. But that "wouldn't be good for Apple," he said.

Some market watchers have continuously called on Apple to expand the iPhone lineup to appeal to more customers. Some believe Apple needs to make a cheaper iPhone that could be sold contract-free in developing countries like China, as well as a large-screen iPhone to compete with popular devices like Samsung's Galaxy Note series.

But while some investors are concerned about market share, Apple has historically focused on maintaining its high margins with products like the iPhone. Though Samsung's overall handset sales exceed Apple, the iPhone maker collected a whopping 69 percent of handset industry profits last year.

Cook also noted on Wednesday that Apple's iOS mobile platform is on "a lot more tablets" than Google's Android is. While Android has grown exponentially on smartphones, through multiple carriers and manufacturers, Google's mobile platform has not had the same success in the tablet market, where Apple's iPad is dominant.
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Comments

  • Reply 1 of 201
    Sounds good
  • Reply 2 of 201
    melgrossmelgross Posts: 31,656member
    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.
  • Reply 3 of 201
    Now can you stop asking for an iPhone for the masses at the low end?! It will not happen.
  • Reply 4 of 201
    but that's not what shareholders want to hear.. they only care about making more money.
  • Reply 5 of 201

    Quote:

    Originally Posted by melgross View Post



    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.


     


    This is /s correct? You do realize Apple is one of the larges companies in the world with over $140 Billion in cash reserves, correct? 


     


    Why do people continually think Apple needs to go cheaper? Apple never has, never will, it is not their way of doing business. 


     


    The better question is why do I keep replying to utter nonsense! 

  • Reply 6 of 201


    Originally Posted by melgross View Post

    Mini's at $599…


     


    You mean $499?

  • Reply 7 of 201

    Quote:

    Originally Posted by netrox View Post



    but that's not what shareholders want to hear.. they only care about making more money.


     


    Then you should have sold at $700 and invested elsewhere. 

  • Reply 8 of 201
    Arrogance
  • Reply 9 of 201
    jungmarkjungmark Posts: 6,687member
    melgross wrote: »
    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.

    If you want to play the Market Share game, compare Android to iOS and not just the iPhone.

    Sammy advertises because everyone knows about the iPhone. You're also forgetting about product placement in tv shows and movies in addition to free advertising from celebrities/athletes using the iDevice in public.
  • Reply 10 of 201

    Quote:

    Originally Posted by rsdofny View Post



    Arrogance


     


    The fact that (some) shareholders and others want to change Apple from what has made them successful to other business model that havs failed or is failing? Yes, I agree, how arrogant! 

  • Reply 11 of 201
    melgross wrote: »
    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.
    Dude, every time apple releases a new device the previous devices become very cheap while maintaing it's long life & quality. It's already done. It is a poor strategy for apple to make a cheaper iPhone & waste of resources.
  • Reply 12 of 201


    Originally Posted by rsdofny View Post

    Arrogance


     


    Is claiming you don't copy, getting caught, and continuing to do it, stating others are copying.

  • Reply 13 of 201
    melgross wrote: »
    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.


    MacBook Air is available at $999 which is very competitive
    MacMinis start at $599
    iMac is a real outlier at $1299

    I don't mind as long as they continue to push the envelope. I would like to see 802.11ac this year on every device.


    I think the market could be very interesting if Samsung is successful with their operating system. If Samsung separates themselves from Android the market would essentially be split into three fairly even parts.
  • Reply 14 of 201

    Quote:

    Originally Posted by melgross View Post



    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.


     


    Possibly your first post I would have to disagree with Melgross!


     


    Apple do not need a cheap phone to address developing markets. Developing markets (such as China and other parts of Asia) have a rapidly growing middle class that can and will afford an iPhone. 


    Though I do agree that Apple should spend a bit more on advertising.

  • Reply 15 of 201
    I think selling a "cheaper" iPhone (or iPad or iAnything) is a mistake. Apple has enjoyed great growth and even greater margins because it is perceived as a premium product. In-laws in China all want iPhones or iPads because of that and because they are a bit of a status symbol. If Apple began selling a cheaper alternative, it'll take away a bit of that 'premium' feel. That, in turn, will have repercussions on the more expensive phones (if it's perceived as no different than all the other phone vendors out there, why buy an iPhone?)

    Apple makes beautiful, high-quality gadgets that are higher-than-average in cost. That's its thing. It shouldn't try to compete on the basis of price - because it can't! Unlike Samsung, Apple doesn't even manufacture its own products - so how can it compete with the former on the basis of price?

    Stick to your knittings, I say. Keep making beautiful, high-quality products. Just remember to always add new products to maintain growth.
  • Reply 16 of 201

    Quote:

    Originally Posted by MacBook Pro View Post



    would like to see 802.11ac this year on every device.

     


     


    YES 802.11ac would be really nice : ) 

  • Reply 17 of 201
    YES 802.11ac would be really nice : ) 
    Hey guys, what is 802.11ac?
  • Reply 18 of 201
    mstonemstone Posts: 11,510member


    I think Apple will eventually release a larger and a smaller iPhone. Probably three models would be ideal. They did it with iPod and also iPad so why not for iPhone? For me I would stick with the current size but I think a smaller (cheaper) phone would be a hot seller and some people would like a slightly larger screen than what we currently have. Not a huge screen just a tad bigger.


     


    The dev tools just need to be able to effortlessly export different screen resolutions to avoid fragmentation.


     


    I suspect Tim's comments are misdirection. The buttons have already been pushed.

  • Reply 19 of 201


    Originally Posted by WontonParmesan View Post

    Hey guys, what is 802.11ac?


     


    The next step in Wi-Fi speed, range, and bandwidth increases. 

  • Reply 20 of 201
    The next step in Wi-Fi speed, range, and bandwidth increases. 
    Thanks for the link. So max speed 1Gbps not bad.
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