Apple CEO Tim Cook Says No One Uses Android Smartphones, Nokia Failed to Innovate
September 19, 2013 12:03 PM
comment(s) - last by
Federighi, Cook, and Ive
Cook, Jony Ive and Craig Federighi talk about the new iPhones, market share and the competition
Only a week after the big
iPhone 5S/5C reveal
and a day before their launch,
CEO Tim Cook says he isn't worried about iPhone market share, and even managed to throw a few stones at the likes of Nokia and Google's Android.
Sam Grobart sat down with Cook to talk about Apple's place in the mobile market, and whether Cook is worried that competitors like Android will continue gaining market share in various areas as Apple continues to offer luxury-priced phones that appeal to only certain markets.
“There’s always a large junk part of the market,” said Cook during the interview. “We’re not in the junk business. There’s a segment of the market that really wants a product that does a lot for them, and I want to compete like crazy for those customers. I’m not going to lose sleep over that other market, because it’s just not who we are. Fortunately, both of these markets are so big, and there’s so many people that care and want a great experience from their phone or their tablet, that Apple can have a really good business.”
Apple recently announced the expected high-end iPhone 5S, which has a starting unsubsidized price of $650. The iPhone 5C, which was believed to be a budget version of the iPhone for emerging markets like China, was expected
to be priced at a "budget" range
. However, its unsubsidized price is only $100 less than the 5S.
While Apple is working hard to make deals with China Unicom, China Telecom and China Mobile, many wondered if Apple would be able to sell to this market considering the still-high price of the iPhone 5C.
“We never had an objective to sell a low-cost phone,” said Cook. “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.”
Google's Android is a good example of an operating system that spans both high and low end smartphones, offering a vast price range for those looking to shop on either side of the spectrum. This gives Android the ability to reach various markets, and continue gaining market share. In fact, IDC said nearly 80 percent of the world’s smartphones run Android. It also said the average unsubsidized price for a smartphone fell from $450 to $375 last year.
But Cook brushes this off, saying that customers tend to buy Android devices and dump them in a drawer while an iPhone is the smartphone they truly use.
“Does a unit of market share matter if it’s not being used? For us, it matters that people use our products. We really want to enrich people’s lives, and you can’t enrich somebody’s life if the product is in the drawer.”
Cook added that he doesn't see Android as just one entity competing against Apple. Rather, the operating system is so fragmented that many users are running versions as old as Gingerbread from three years ago.
Here's a breakdown: About 45 percent of Android users are on Jelly Bean, the latest version of Android, while 31 percent are still on Gingerbread and 22 percent are on Ice Cream Sandwich. Apple says 93 percent of its users were on iOS 6 at the end of June.
“And so by the time they exit, they’re using an operating system that’s three or four years old," said Cook. "That would be like me right now having in my pocket iOS 3. I can’t imagine it.”
Apple's idea is that having one company work on both the hardware and the software makes a big difference when it comes to user experience, instead of Google's method where Android is given out to various hardware manufacturers like Samsung.
Jony Ive (senior vice president of Design at Apple) and Craig Federighi (senior vice president of Software Engineering at Apple) -- who also took part in the interview -- agreed that the new iPhones marry hardware and software better than other smartphones. And while the iPhone doesn't receive new OS versions or updates as often as Android, they said that Apple doesn't just push out new features for the sake of having them; they take the time to perfect them, and make them better than anyone else.
“New? New is easy. Right is hard,” said Federighi.
Cook also addressed the Apple/Microsoft comparison of the 1990s, where Microsoft licensed its Windows operating system to hardware makers like Dell and Hewlett-Packard while Apple only used its operating system on its own Mac hardware line. This allowed Microsoft to gain a ton of market share at that time while Apple's plummeted, and many wonder if Apple is making the same mistake in its competition with Android.
Speaking of Microsoft, Cook said the recent $7.2 billion purchase of Nokia's devices and services unit shows that more companies are trying to follow Apple's lead. He also took a jab at Nokia, saying that it's failure to innovate led to its end as a mobile leader.
“Everybody is trying to adopt Apple’s strategy,” said Cook. “We’re not looking for external validation of our strategy, but I think it does suggest that there’s a lot of copying, kind of, on the strategy and that people have recognized that importance.
"I think [Nokia] is a reminder to everyone in business that you have to keep innovating and that to not innovate is to die.”
The iPhone 5S and iPhone 5C hit store shelves tomorrow, and while iPhone market share sits below that of Android and
Apple stock has taken a dive
since its $700+ high last September, Cook believes that the company is doing the right thing.
This article is over a month old, voting and posting comments is disabled
9/20/2013 5:29:02 PM
Search for my name and read my other post. Android generates nearly twice as much web traffic as iOS does. The aphorism that iOS has more market share comes from measurements of unique visitors each month, not actual web traffic volume.
In other words, iOS' share of unique visitors is inflated by millions of iOS users who occasionally browse the web. The people who do heavy web browsing are mostly on Android. Android has roughly half the number of people who browse that iOS does (that part of the aphorism is true - most Android users never browse the web). But those people browsing with Android generate nearly twice the web traffic of iOS despite having only half as many people.
"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs
Apple Gets Four Major Stock Downgrades After iPhone Event
September 11, 2013, 12:39 PM
Apple Announces $99 iPhone 5C, iPhone 5S with 64-bit A7 Processor and "Touch ID"
September 10, 2013, 1:15 PM
Apple Starts Battery Replacement Program for “Very Small Percentage" of iPhone 5 Smartphones
August 23, 2014, 8:28 AM
No Free Play Day for You! Microsoft Says Apparent Promotion was an Error
August 22, 2014, 2:50 PM
BlackBerry Passport to Feature Snapdragon 800 Processor, 3,450 mAh Battery
August 22, 2014, 2:05 PM
Moto X+1 Press Renders Leak, New Images Show Schematics for 4.7", 5.5" iPhone 6
August 22, 2014, 9:52 AM
BlackBerry’s Latest "Plug" for its Passport Smartphone: Displaying Sharp X-rays for Doctors
August 21, 2014, 4:49 PM
Sprint Introduces $60 Unlimited Plan, Touts $20/Month Costs Savings Versus T-Mobile
August 21, 2014, 2:05 PM
Most Popular Articles
Apple Scores Patents, Preps New Reversible USB Plug for iPhone 6 Connector
August 18, 2014, 1:32 PM
New AMD Fusion-Based Laptop From HP to Pack a Punch at $199
August 18, 2014, 4:13 PM
BlackBerry Reinvents Itself, Prepares for Potential Smartphone-Free Future
August 18, 2014, 7:51 PM
New Photos Show “Assembled” iPhone 6, Protruding Camera Ring
August 20, 2014, 2:32 PM
Lumia 830 Gets Major Upgrades Including New 20.1 Megapixel Toshiba Sensor
August 15, 2014, 6:00 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information