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Despite expectations, Apple has failed to create an affordable iPhone handset; the iPhone 5C costs just $100 less than fully-fledged iPhone 5S and is unlikely to become truly popular in developed countries. Tim Cook, chief executive of Apple, does not seem to be concerned about this fact and claims that the company needs to concentrate on its profitability, not just market share.

The market of smartphones is growing rapidly these days. Sales of Apple iPhone are also escalating, but at a pace that is well below that of the market. By contrast, the popularity of Google Android, the main rival of Apple’s iOS platform that powers both iPhone and iPad, is increasing rapidly, just like its adoption by the end-users. The reason for strong growth of Android is simple: devices on its base are very affordable and can serve almost every customer in almost every market segment. Many believed that the iPhone 5C was supposed to compete against those mainstream Android-based smartphones, but as it turns out, it will just continue to be a high-end device.

“There’s always a large junk part of the market. We are not in the junk business. The upper end of the industry justifies its higher prices with greater value. There is 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 am not going to lose sleep over that other market, because it is just not who we are. Fortunately, both of these markets are so big, and there is so many people that care and want a great experience from their phone or their tablet, that Apple can have a really good business,” said Tim Cook in an interview with Bloomberg BusinessWeek magazine.

To date, over a billion of Google Android-based devices have been sold. Apple is not far behind as sales of iOS-based devices will cross 700 million mark either in September or early in October. The main problem for Apple is that the popularity of Android is growing faster than the adoption of the iOS.

Perhaps, many investors and market observers will be discouraged by Mr. Cook’s unwillingness to address fast growing market of inexpensive smart devices. But maybe Apple’s team has idea how to address higher-end market segments and broaden the lineup of expensive devices?

Tags: Apple, iPhone, iOS, iPad, Business

Discussion

Comments currently: 10
Discussion started: 09/20/13 08:43:54 PM
Latest comment: 09/24/13 06:03:16 PM
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[1-7]

1. 
What a joke... Apple is in the Chinese slave Biz for sure.
3 3 [Posted by: beenthere  | Date: 09/20/13 08:43:54 PM]
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2. 
Oh, the hypocrisy! The iPhone 5c looks like junk but costs premium, and he talks about Junk Business. Junk business is what Apple is doing for more than 4 years now, releasing same phone, but with different names and colors. Pathetic.
5 1 [Posted by: TAViX  | Date: 09/20/13 09:37:18 PM]
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- collapse thread

 
Overpricing is always true when someone khm. "some sharks holding stocks" desperately need some money milking product to keep on with projected earnings for current year.

Why nobody did actually compare disastrous sales of washed out product like iphone 5 over same but still overhyped iphone 4 which has terrible birth when apple assembled it with crap materials before term "gorilla glass" is invented just for them, and that sliht idiotic problems with reception. Yet still it was sold better than craptastic iphone 5. So apple start to milk on "some lets call product" that even applebraniacs marked as entry level product assembled w/ cheap components not even on level with ip5 but overpriced as it should be. Apple is in idiotic bubble that some profit-bloggers which false glorifying rotten products pumping when its reach same falling point in last two years as RIM did before them in 2007. Simply it's crap for brainwashed people.

Apple should came up with motto for whole iphone 5 line "Nobody here (in rotten apple) thinks you're dumb idiots using our nothin' special product but pleaae buy our new product is available before all competition" (by pushing all these slaves that just work overtime just to keep on with overpumped stock prices of failing products

Interesting how Anton didnt mark this article with its wand?
The new flagship promises higher performance, a new blended product <strikeout>micro-architecture</strikeout as well as hefty profits into the pocket of money-losing rotten Apple <strikeout>AMD</strikeout>.
0 0 [Posted by: OmegaHuman  | Date: 09/24/13 05:59:26 PM]
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3. 
Apple's stock will be worth junk if it doesn't pick up its act soon.
3 0 [Posted by: linuxlowdown  | Date: 09/20/13 11:04:56 PM]
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4. 
Mr Cook just means that the C in iPhone 5C stands for Color and not Cheap.
1 0 [Posted by: BernardP  | Date: 09/21/13 05:09:39 AM]
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5. 
I think he has confused cheap, with inexpensive....
They've made a cheap phone, but retained the cost.
2 0 [Posted by: caring1  | Date: 09/21/13 10:00:11 AM]
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- collapse thread

 
Exactly ... money milking for shareholders. Something nasty giants like Intel and Apple can afford these days. Well as long there are enough drooling stupid people to buy it. So they can aford hidden payof for profit-bloggers that boost their name.
0 0 [Posted by: OmegaHuman  | Date: 09/24/13 06:03:16 PM]
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6. 
"We don't know how to make a $500 PC that isn't crap", but they do know how to make a $300 PC with a $1000 price tag
2 0 [Posted by: mjv1121  | Date: 09/21/13 10:55:21 PM]
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7. 
Cook is a disaster. Apple needs to get rid of him and find a leader who actually LISTENS to their customers.
1 1 [Posted by: beck2448  | Date: 09/22/13 03:59:56 PM]
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[1-7]

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