Apple's CEO Tim Cook doesn't see the high-end smartphone market as saturated yet

Apple's CEO Tim Cook doesn't see the high-end smartphone market as saturated yet
In the quarterly earnings call after Apple's financial results announcement, CEO Tim Cook took to answer various analyst questions, and a pretty telling quote slip from him then.

Apparently he doesn't think “that the higher end, if you will, of the smartphone market is at its peak. I don’t believe that but we will see and we will report our result as we go along." Apple's iPhone sales of 22 million are certainly impressive for a flagship phone about to be replaced soon, and lend credence to Tim Cook's views about the current market situation.

Still, that doesn't stop the company from planning about the upcoming midrange market share war, judging from the eventual launch of a budget iPhone model that is expected in the fall. This way Apple will have covered all but the most entry level of price points, and the eventual saturation and flagship fatigue will be offset by a burgeoning midrange market that is growing in leaps and bounds.

via Neowin

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9 Comments

1. darkkjedii

Posts: 30875; Member since: Feb 05, 2011

Cook knows his stuff, listen to the man.

4. aditya.k

Posts: 496; Member since: Mar 10, 2013

Yup! Or else the food might have a very bad taste! :P

2. ilia1986 unregistered

As long as people continue to buy the iPhone - it will never be in its peak.

3. Googler

Posts: 813; Member since: Jun 10, 2013

He's right, there's still plenty of room and growth to occur. What might be different though are customer expectations. As we demand more from our phones, and with economies being what they are, high pricing will have to change so more people can afford better phones.

5. smallworld

Posts: 517; Member since: Jul 13, 2012

Who even said that the high end market was saturated ? If it was then Samsung and Apple wouldn't be selling millions of their premium smartphones. Those dumb analysts must be behind this again...

6. androidfanboy

Posts: 162; Member since: Jun 24, 2013

Apple has peaked

7. quakan

Posts: 1418; Member since: Mar 02, 2011

Nope.

8. McLTE

Posts: 922; Member since: Oct 18, 2011

It all depends on what the carriers are going to do, especially in the US. In the US, as long as we can get a subsidized Top of the line phone for $200 on contract, most people will gobble up the latest and greatest. With carriers moving away from subsidies, all of a sudden these premium phones will cost $600 and be out of reach for the vast majority of the users out there. What will then happen is people will instead buy the mid range phones, which will hopefully cost somewhere in the $300 range. There is going to be a huge shift in the next several years. The low to mid range phone segment is going to EXPLODE. People won't be able to afford the premium phones anyway more.. so they will look to the budget models.

9. shamataa

Posts: 257; Member since: Dec 07, 2011

wow it can never be peaked. He clealy isn't very looking in a long term technoolgy. Technology can never be peaked therefore smartphones both high and low can never be peaked. Tim cook is an idiot.

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