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Tim Cook: 'never fear cannibalization' and Apple's pipeline is 'chock full of incredible stuff'

Posted: , by Daniel P.

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Tim Cook: 'never fear cannibalization' and Apple's pipeline is 'chock full of incredible stuff'
Apple's CEO Tim Cook took to the airwaves yesterday to shed some light on the future vision of the company, after a record quarter but disappointing guidance made Wall Street's jumpy investors even more jittery, prompting huge stock selloff after hours.

Still, the gist of Tim Cook's comments was that the company doesn't really care about revenue for the "revenue's sake," but is rather positioning itself for providing the best products considering the current market conditions.

That's the usual pep talk you'd expect a CEO to grease investors with during a conference call, but when it comes from a company with close to $140 billion in cash and cash equivalents, one ought to listen what Tim Cook's opinion is on questions that trouble investors. 

On the concern about the iPad mini introduction, which inevitably brought down Apple's gross margins, like every new product, including the iPhone 5, does, investors added the fear that the smaller, cheaper iPad will be "cannibalizing" Apple's own larger iPad sales, somewhat omitting that Apple's bread-and-butter is the iPhone, not the iPads, Macs or any other line, which don't contribute much to the net profit anyway. Even so, Tim cook felt obliged to comment:

I see cannibalization as a huge opportunity for us. Our core philosophy is to never fear cannibalization. If we don’t do it, someone else will. We know that iPhone has cannibalized some of our iPod business. That doesn’t worry us. We know that iPad will cannibalize some Macs. But that’s not a concern. 

On iPad in particular, we have the mother of all opportunities because the Windows market is much, much larger than the Mac market. It is clear that it is already cannibalizing some. I still believe the tablet market will be larger than the PC market at some point. You can see by the growth in tablets and pressure on PCs that those lines are beginning to converge...

If somebody buys an iPad mini or an iPad, if it’s their first Apple product, a percentage of these people wind up buying another type of Apple product. If you remember what we had termed the halo effect for the iPod with the Mac, we’re very confident that will happen with the iPad as well.


As for the future direction of the company, which, by the way, just reported more than $13 billion of net profit for a single quarter, Tim Cook gave the obligatory optimistic view, saying that this year's portfolio will be "chock full" of "incredible stuff, "reiterating that "the most important thing to Apple is to make the best products in the world that enrich customers' lives." A nice timeline of what we can reasonably expect from Apple during 2013 can be seen in the graph below.

Tim Cook: 'never fear cannibalization' and Apple's pipeline is 'chock full of incredible stuff'

33 Comments
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posted on 24 Jan 2013, 04:55 26

1. andro. (Posts: 1957; Member since: 16 Sep 2011)


He's essentially saying he knows all apple products are pretty much the exact same device with different screen sizes,and that if Ifans buy one they more than likely will buy them all. Its like pokemon.

posted on 24 Jan 2013, 05:18 11

4. MeoCao (unregistered)


"incredible stuffs" by Cook's standard: according to him 340ppi Retina is the best beating 440ppi screens of Android.

I guess he thinks that take anything, slap Apple's logo on it and the thing instantly becomes "incredible".

posted on 24 Jan 2013, 13:42 1

25. phonemirer (Posts: 111; Member since: 07 Dec 2012)


wasnt it 326 or something like that ?? anyway , it will be very difficult take down apple, it is just too rich and there are a lot of mind closed ifans

posted on 24 Jan 2013, 07:21 2

9. darkkjedii (Posts: 11770; Member since: 05 Feb 2011)


Wow u should b a CEO.

posted on 24 Jan 2013, 12:45 1

23. appleDOESNT.com (Posts: 443; Member since: 19 Nov 2011)


Chock full? really? to the company that was a blip on nobody's radar from the 70's-00's, a couple of 1 hitters, 4 total useful products and 3 of them are basically the same in different sizes. Sorry Cook, your leader is dead, and apple is scrambling to remain relevant.. which you are losing and fast.

posted on 24 Jan 2013, 08:02 8

12. jsdechavez (Posts: 708; Member since: 20 Jul 2012)


...means I'm no longer buying Apple products. They update it too soon. Apple is no longer cool.

posted on 24 Jan 2013, 04:56 9

2. kainy (Posts: 165; Member since: 10 Aug 2011)


incredible stuff like iPhone 4s and iPhone 5? huh

posted on 24 Jan 2013, 06:46 14

8. blingblingthing (Posts: 436; Member since: 23 Oct 2012)


Yes. The headphone jack is now at the bottom baby. Game over.

posted on 24 Jan 2013, 10:12 5

15. wumberpeb (Posts: 437; Member since: 14 Mar 2011)


Mind: blown...

posted on 24 Jan 2013, 11:32 2

18. InspectorGadget80 (Posts: 6565; Member since: 26 Mar 2011)


Iph5s multi color phones?

posted on 24 Jan 2013, 05:03 6

3. MC1123 (Posts: 1242; Member since: 12 Nov 2012)


i wish the rumor of the 3 iPhone is true.. but then again this is apple, only releasing one device in a year....

but that would be nice.. taller iPhone (4.3-4.5" would be nice but i guess 4.8" will be the trend now since all the android phones are now at 5" and other platform are pressured by this so 4.8 with very thin bezel it a +)

taller iPhone and 4" polycarbonate iPhone for emerging market!

but apple should still need to make the iOS with something new and have that "WOWWWWW" factor!

posted on 24 Jan 2013, 05:48 2

5. drnggaj33 (Posts: 127; Member since: 29 Feb 2012)


the same ios again maybe diffrent style no new hardwear zzzzzzzz!!!!!!!! apple customers are getting tired of it i see it all the time i worked for vzw and now att ...what they need to do is update the ios they will i have a feeling they're gonna add widgets like the andriod phones to try and step up plus find a way to close all apps at one time not one by one but thats it

posted on 24 Jan 2013, 05:53 5

6. martinlosha (unregistered)


Tim Cook really needs to take his d**k out of his Mouth ...

posted on 24 Jan 2013, 09:15 1

13. darac (Posts: 2156; Member since: 17 Oct 2011)


Lol, you summoned it perfectly

posted on 24 Jan 2013, 06:28 1

7. jove39 (Posts: 1298; Member since: 18 Oct 2011)


Hmmm...I thought Incredible stuff means...new devices...but its just annual refresh of existing devices!

posted on 24 Jan 2013, 07:23 2

10. darkkjedii (Posts: 11770; Member since: 05 Feb 2011)


Looking forward to apples 2013. Should b some pretty cool devices released.

posted on 24 Jan 2013, 08:01

11. tech23 (Posts: 10; Member since: 22 Dec 2012)


iphone 5s with better map

posted on 24 Jan 2013, 09:18 3

14. darac (Posts: 2156; Member since: 17 Oct 2011)


Depends mostly on the iOS 7, I'd say.
Apart from that, the MacBook Air with retina should indeed be worth looking forward to

posted on 24 Jan 2013, 10:22 1

16. drnggaj33 (Posts: 127; Member since: 29 Feb 2012)


ios7 gonna add widgets and one button kill switch to kill all apps zzzzz really think bout the same stuff over and over again blowing money fast

posted on 24 Jan 2013, 12:05 1

20. EclipseGSX (Posts: 1608; Member since: 18 Oct 2011)


You mean like the same damn things they have been doing for the past 5-6 years? Same look, minor spec bump so people think they are getting an "upgrade" with next to no changes to iOS except maybe adding some stuff Android already has LOL

posted on 24 Jan 2013, 12:36

21. Droiddoes (unregistered)


Based on what? Their stellar history of releasing basically the exact same thing year after year?

Fool.

posted on 24 Jan 2013, 13:18

24. lyndon420 (Posts: 1761; Member since: 11 Jul 2012)


What kind of 'devices' are you hoping to see from them this year?

posted on 24 Jan 2013, 11:31 2

17. InspectorGadget80 (Posts: 6565; Member since: 26 Mar 2011)


Their stuff all the same

posted on 24 Jan 2013, 11:58 3

19. Aeires (unregistered)


Poor Tim, essentially Apple is doing everything right and they still get beat on. Maybe one day they'll realize the constant lawsuits were a bad idea.

posted on 24 Jan 2013, 12:37

22. Droiddoes (unregistered)


I hope not, their strategy of "sue sue sue" last year cost them big. LMFAO at their stock price yesterday. Let them keep on how they are and they'll be dead in a few years. I cannot wait.

posted on 24 Jan 2013, 15:19

26. tryingHARD (Posts: 64; Member since: 31 Dec 2012)


whatever you say lossers! apple will always be on top. android will always be second. i will always buy apple. android is just really annoying! you know why? because of fandroids like you! i would like android but due to your s**theadedness, i will always hate it! poor company, dragged down by mouthful of losser fandroids! hahahaha! i have all apple products! i always laugh at people with plastic phones! hahahahaha

posted on 24 Jan 2013, 16:19 1

27. srgonu (Posts: 51; Member since: 13 Feb 2012)


keep "tryingHARD" to convince yourself. You are the loser not enjoying better Mobile OS.. no one cares.

posted on 24 Jan 2013, 18:07 1

28. miguel6632 (Posts: 21; Member since: 25 May 2012)


are you relly trully happy with the same phone over and over again

posted on 24 Jan 2013, 20:59

32. networkdood (Posts: 6273; Member since: 31 Mar 2010)


Miguel, there is a sucker born every minute....APPLE's new motto for iphone 5S, XL MATH, and ipad min 2, and ipad 5.

posted on 24 Jan 2013, 20:59

31. networkdood (Posts: 6273; Member since: 31 Mar 2010)


Wow, such an unintelligent argument...hating a phone because of perceived fans' actions...such a sorry life...

posted on 26 Jan 2013, 02:18

33. tryingHARD (Posts: 64; Member since: 31 Dec 2012)


then say it to yourself! dont make non sense "apple so old, apple is junk" comments! cause your making yourselves look so looser! yes i do hate android because of people like you! if you stop complaining and accept the fact that apple is apple, and plastic is plastic, i would try android. but since then, i will always hate and laugh at it. PLASTIC! hahahaha

posted on 24 Jan 2013, 19:07

29. dc0321 (Posts: 22; Member since: 21 Nov 2012)


yoyo wakeup tryingtogetHARD

posted on 24 Jan 2013, 20:58

30. networkdood (Posts: 6273; Member since: 31 Mar 2010)


Apple has become stagnant with its software builds. Why would APPLE ever change if silly AMERICANS keep on buying it up...if I were APPLE, I would laughing all the way to my bank.

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