Apple bosses interviewed: 'We're not in the junk business... new is easy, right is hard'
0. phoneArena 19 Sep 2013, 09:09 posted on
In an extremely rare complete interview session, the CEO Tim Cook, alongside lead designer Jony Ive, and the newly promoted software chief Craig Federighi, the who-is-who of Apple, sit down to talk shop with Bloomberg reporters...
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19. roldefol (Posts: 2855; Member since: 28 Jan 2011)
At least when Steve Jobs spoke in hype and hyperbole, it was done with such conviction that you couldn't help but admire the guy. These guys are just ignoring the questions.
25. Slammer (Posts: 721; Member since: 03 Jun 2010)
--- 'We're not in the junk business"---
I don't believe anyone said you were. However, to tell 80% of the world that uses android that you are not, harbors arrogance that only serves up your own pride. The rest us have a different opinion on what we find junk.
28. roldefol (Posts: 2855; Member since: 28 Jan 2011)
He basically didn't answer the question. Nobody suggested that the 5c should be cheap, only that it should be value priced. A price tag of $550 ($650 for 32 GB) is not affordable. Everyone was expecting the price to be significantly lower than the 5S, and it's not. But there's plenty of space to play in between "junk" and "not affordable", and that's where the competition has made a killing.
42. McLTE (Posts: 612; Member since: 18 Oct 2011)
It boils down to one thing.. Apple priced the 5c where they did because people will flock to the store and buy it.
They are riding on the fact that they can release ANYTHING and put almost any price on it and Apple fans will fawn over it and throw their kids' college funds at it for purchase!
They said.. "hmm.. profits are shrinking, what to do? I know! People will buy anything we make, and Samsung is doing well with their plastic phones.. so lets do one of those! It'll be great!"
74. duder52 (Posts: 27; Member since: 14 Jun 2013)
"We never had an objective to sell a low-cost phone. Our primary objective is to sell a great phone and provide a great experience, and we figured out a way to do it at a lower cost.... " he forgot to include "and to not have to pass the savings onto our customers"
26. rawbow (Posts: 394; Member since: 30 Mar 2012)
Apple does do things right. I don't really like unfinished gimmicky features to say the least.
46. dorianb (Posts: 325; Member since: 24 Oct 2012)
Maps (unfinished or tested poorly @ launch)
Siri (how long was it classified beta?)
Everything comes in cycles.
RIM(BB) rose & fell.
I like android & really want Win8 to get more market share. I'm also not so obtuse to not realize android will stop innovating. Lose market share, & the possibility of a
2.Win(choose a #)
3.Some OS not yet created
60. rawbow (Posts: 394; Member since: 30 Mar 2012)
so what? to quote android>> you have the option of a good app ( Google Maps)
Siri being in Beta for such a long time shows how Apple feels should be an end product. Even on Beta, it was at the helm. With iOS 7 , it's just about awesome.
While everything comes in cycles, one should not be caught day dreaming about what could be rather than what it is in the present.
100. willard12 (Posts: 489; Member since: 04 Jul 2012)
And yet, they make millions on apple care. How do you explain the death grip? Much like his daughter, Steve Jobs denied it and then admitted later and handed you a case to fix a problem they said didn't exist. Google doesn't give maps all of the features on ios. But, you destroyed your own point of apple getting things right all the time by saying that when they get it wrong you can still turn to google to save you.
27. Kishin (Posts: 466; Member since: 30 May 2013)
I think they are going to start over with iPhone 6 and innovate once again starting with Touch ID
31. clevername (Posts: 1401; Member since: 11 Jul 2008)
In principal, that philosophy is a good one. "don't do something if you can't do it right" is the basic theme here. The problem with that philosophy is that in business it does sell products very well. Yes they have loyalists, and so does everyone else. They shouldn't be the ones apple tries to sell to.
To get the new customers, which are mostly using android, you need to be able to woo them away. The great user interface, snappy responsiveness, and "it just works" characteristics of IOS aren't enough anymore. Android has closed that gap to the point where it is nearly indistinguishable.
they need new features. And no, not tacked on half-@ssed features. The "S" part of the iPhone life cycle is a good idea. It can give apple time to create and perfect new and innovative features for the next device. If done right they can give themselves 2 years to perfect new features while releasing an incremental upgrade in the "S" line to satisfy the masses.
The problem is that apple hasn't done that. Improving specs like a bigger screen and better camera like the iPhone 5 did isn't innovation. Neither is adding a little more ram or a faster chipset.
Apple should take this year to do at least 1 new innovative thing. And after the iPhone 6 is released, they need to spend the next 2 years working on several truly great and innovative features. Thats enough time to perfect an idea. And when its time to release the 6s just release an improved version.
33. Taters (Posts: 2104; Member since: 28 Jan 2013)
Apple is like the worse company in the world at providing value to their customers and total hypocrites.
We are not in the junk business so we can't sell a low priced iPhone. Please. If the iPhone 5c ran Android 4.2 with an IOS skin it would perform much much worse than the $299 Xperia SP. Slap a high PPI screen on a Nokia Lumia 520 and that is pretty much on par w the iPhone 5 C and they sell that for $199. In fact, slap IOS on any mid range Android and they are roughly on par. I find it amusing that the richest company in the world cannot sell a low cost iPhone when their software, which they already recuperated the costs of designing 100 fold, is the ONLY excuse they have to charge a premium.
The iPhone 5c IS the junk that they say that they don't make, its just marketed like it is not and Apple idiots just take their word for it.
Also about Apple innovation and other companies just adding features before they are ready. ROFL. Apple can't even not rehash if they tried. The iPhone 5c is new body and old internals and the 5s is an old body and new internals. How about new body and new internals every year like your competitors? Lol
And if they want ton talk about new features added just for the sake of adding them to make them look better. Siri and Apple maps. Two of the biggest useless fail features ever. Lol I am pretty sure 3D fly over maps and transparencies are less useful than anything LG and Samsung can come up with.
48. Napalm_3nema (Posts: 571; Member since: 14 Jun 2013)
Someone hasn't had his nap today. It physically hurts you that the 5s and 5c reviews have been so good, and the 5s destroyed every Android handset in benchmarks, doesn't it? You poor thing. There, there, it will be all better soon.
61. jb4674 (Posts: 108; Member since: 05 Apr 2013)
What factual information do you have to base your claim that the 5s and the 5c have "destroyed every Android handset in benchmarks"? The Xperia Z1 and the S4/Note 3 would eat the iPhone and spit it out in pieces. Notwidthstanding the fact that the Z1 and the N3 haven't been released in the US (that I know of), you're simply building up more rumors rather than facts.
IMO, Apple should concentrate on developing its IOS OS for different types of handsets and selling it for profit for those people that would like to use a Galaxy S4 (for example) with IOS instead of Android. If they did that, Apple would certainly entice people back into their realm and, at that point, you could run all types of benchmarks you would want and see who would come on top.
70. Taters (Posts: 2104; Member since: 28 Jan 2013)
He doesn't. In fact, the Anandtech article, which was the most biased selection is benchmarking I have ever seen has the iPhone 5 beating the 5s in some benchmarks.
34. dragonscourgex (Posts: 307; Member since: 16 Jan 2012)
Did they hold their noses in the air while they gave the interview?
39. Samsungadroidrules (Posts: 104; Member since: 28 Jul 2013)
Come on Apple. You Guys know that You didn't innovate After iPhone 4. You can't Blame LG, Samsung or HTC for beating your @ss in the market nowadays. Hahaha Pooor Crappple. I wonder who are the Normal People who's going to buy those Cheap Plastic Girly Looking iPhone 5C. hahaha
45. frydaexiii (Posts: 1144; Member since: 01 Dec 2011)
"Our primary objective is to sell a great phone and provide a great experience, and we figured out a way to do it at a lower cost.... " Yeah, lower cost for them, but same cost for customers
iPhone 5C everybody!
49. dexter_jdr (Posts: 890; Member since: 28 Jun 2012)
sooooooooooo.. will apple make a new trend/feature with finger print scanners?
like how nokia did with NFC and OIS
53. Googler (Posts: 813; Member since: 10 Jun 2013)
First thing that struck me before even reading the article was the picture, these guys are old. Ive is somewhat younger but where's the new blood and fresh ideas?
After reading the article, it seems like they talk out both sides of their mouth on certain issues.
89. -box- (Posts: 3537; Member since: 04 Jan 2012)
I'm not surprised that middle-aged white guys seem greatly out-of-touch and double-talk out of their lower sphincters.
54. good2great (Posts: 1022; Member since: 22 Feb 2012)
i thought it was a pretty good interview at least we know:
- they wont make a "cheap" phone to compete in the mid ranged segment
- they aren't concerned about market share as much but more focused on profit margin
- they would rather spend time on one feature than push out a list of new innovative ones
I'm glad they aren't in the junk business and are arrogant... the iPhone's most criticism is about "STATUS" so their attitude fits perfectly.
if you dont like their views... well buy an android. lol
Keep on moving forward APPL!
58. Taters (Posts: 2104; Member since: 28 Jan 2013)
IPhone 5c junk priced like it is premium is the most fitting logo.
62. ilia1986 (unregistered)
New is easy, Right is Android. :)
63. jb4674 (Posts: 108; Member since: 05 Apr 2013)
Apple and its Execs = Arrogant and full of themselves
Apple still thinks like IBM used to back in the day: We're IBM, if you don't like it, get something else...
if Apple wanted to continue innovating, they should sell IOS for different types of phones for a price, which would include updates for x amount of years. Setting the minimum hardware requirements for those of the previous generation iPhone to begin with and allow the customer to roll back updates in case the phone doesn't respond well.
Charge 80-100 bucks for this and they'll make a bundle selling their OS to other hardware device owners.
66. Cha7520 (Posts: 195; Member since: 31 Oct 2010)
LOL..I can't wait until the JUNK phone NEXUS 5 comes out! I predict Google is going to sell this JUNK phone at $299 and $349 off contract and it will be Sold out in a day and sell over 1,000,000 of these JUNK handsets! LOL. The mentality of Apple will be the death of them! LOVIN IT!
67. kabhijeet.16 (Posts: 519; Member since: 05 Dec 2012)
That is why Apple only has 25% market share coz they don't care about "that" market. And selling overpriced devices has nothing to do with "profit margin".... May be Apple thinks there are more rich people in the world than poor/middle class people?
And who's Apple calling junk? May be these arrogant & ignorant people have not seen Sony &HTC phones. How good & classy they are... specially HTC who have always produced most beautiful design of devices & a different design everytime. Apple has been producing the same design since forever..
You can say whatever you want Apple, but its clear now that you're only target is to get hard earned money of consumers by making a fool of them.....
68. Troysyx (Posts: 99; Member since: 30 Jul 2012)
"...new is easy, right is hard", that's what people with no new ideas say...
72. softfurryanus (banned) (Posts: 232; Member since: 09 Jul 2013)
Too careless and confident.... be careful Apple, that may come back to you.
73. amilcarmz86 (Posts: 95; Member since: 09 Jul 2013)
apple is going down like blackberry, just wait 2 years.... ;)
77. Legnaldo (Posts: 26; Member since: 17 Oct 2011)
Increasing margin while also increasing the customer experience is good business. Increasing margin while your customers know whole handedly you are making more money off of them, with no real added benefit; is bad business. No one expects apple to sell "junk" because they have built their company around "premium" product and feel. What is expected is that they will always take steps forward in their products not a step back. How can you sell a product made of the same materials you have convinced your customers is subpar and expect them to pay a premium for it so that you can line your pockets further.
As technology matures the price to produce said technology decreases. This is why with each new iteration of iOS devices; the old iOS devices decrease in price but maintain the same build and quality. To decrease the build quality of a previous device in order to make more money at the expense of your customers is foolish. You can only pull the whole over someones eyes before so long before they start to figure it out.
On a related note. Im still waiting to see how long before people start getting annoyed that their is still a $100 price difference between storage capacities in not just apple phones many non expandable devices. This price was necessary in 2007 when the production cost between those capacities was relatively large but its 2013 and it only costs the manufacturer pennies on the dollar for these differences but the customers are still expected to pay a $100 difference. How is that justifiable?
80. roldefol (Posts: 2855; Member since: 28 Jan 2011)
As pertains to iPhones, people may get annoyed at the $100 price difference for storage, but in the end, they grit their teeth and pay up. If you want an iPhone, you'll pay for an iPhone. If you want a 32 GB or 64 GB, you pay for it. It's not fair, and I think customers know they're being gouged, but they want what they want and they're willing to pay because it's the iPhone.
And because they can still get away with it, Apple has no incentive to change its pricing structure.
81. Legnaldo (Posts: 26; Member since: 17 Oct 2011)
+1 for the truth. Its such an unfortunate reality though....*sigh*....
90. jb4674 (Posts: 108; Member since: 05 Apr 2013)
I agree with you. However, I believe customers ultimately have the power to make or break Apple by refusing to assimilate to their pricing structure because there are competitive devices out there that cost much less and deliver a similar or better experience.
On a side note, take a look at the ridiculous shape of the new Mac Pro. Apple has lost its edge so much that they're basically ripping design ideas from companies like Dyson thinking they'll sell.
This thing is so ugly that it looks like a trash can!
97. Legnaldo (Posts: 26; Member since: 17 Oct 2011)
That is one ugly mother. You werent kidding!
102. KashAli (Posts: 102; Member since: 01 Apr 2013)
All of you Die Apple Engineers ripping us off always one quote "twice as fast" just for that £550 no chance already regret buying iPhone 4S battery life is crap on all iPhones they always change after few weeks Apple always change from 8 hours to 6 hours battery life just to get more buyer. Apple game is over you greedy pricks. Galaxy S4 great phone. Go To HEll!
107. dspkblympkbl (Posts: 44; Member since: 23 May 2013)
I just read the 5s benchmark article, I was really impressed how they managed to outperform the quad-core phones with a dual core...that's quite a feat by anyone's standards.
The ipad 4 is my first ios device since the colored screen iPods, so I really don't see the big deal about changing the ui on ios7, if io6 was fine to begin with. "If it ain't broke, don't fix it" All it did was name my experience as a user a nightmare. I might have said this in a previous post, in the lead up to the new ios my apps were freezing and crashing like crazy, and thought the update would fix the problem...turns out that many apps don't have the ios7 versions yet, so the problem now is worse.
Jobs would not have yielded, I don't think, to a new ui. So yes, I think these guys may be feeling the heat.