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Did Apple’s Tim Cook call the entry-level Android market “junk” in this latest interview?

When rumors about the iPhone 5C first began to swirl, it was believed Apple would aim to bring a device that the masses could afford. What actually happened, though, was Apple introducing an iPhone at a starting MSRP of $100.

It’s cheaper than the starting MSRP for Apple’s main flagship line, but not exactly the “free” that many were hoping for. Perhaps expectations were set too high. The off-contract price doesn’t help matters either, as Apple is still pricing the iPhone 5C as a premium device in that area.

So what’s the big deal? Bloomberg Businessweek sat down with Tim Cook, Apple’s latest CEO, to find out their thinking behind the iPhone 5C. In the interview, Cook revealed that their goal wasn’t to introduce a phone for the “junk market” that those “other guys” are trying to capture, but to provide a premium device at a price tag that a lot more people are comfortable with.

iphone-5c-1

Wait, what? If we didn’t know any better, we’d swear Tim Cook just tried to take a nasty jab at Android. That wouldn’t be that surprising, of course, considering the tongue-in-cheek shots they took at Android during their iPhone 5S and iPhone 5C event over a week ago.

It’s not news that Apple doesn’t like Android, but it does bring up an interesting point: should the entry-level market really be regarded as “junk?” That may have been an appropriate description at one point, but more and more OEMs are beginning to introduce affordable phones that actually hold their own in areas of performance, usability and user experience. Should companies avoid providing smartphone experiences to people who can’t otherwise afford to buy a smartphone?

Apple says no, but with a twist. When asked if it was difficult to create something new, head of software Craig Federighi responded: “New? New is easy. Right is hard.” He has a point, though you have to wonder whether Apple is simply making excuses for an increasingly stagnant pace in innovation. It’s an area the company has been scrutinized most heavily for within the past 2 years, with Android accelerating at a pace that even Google is having a tough enough time keeping up with.

Apple-logo1

Apple’s supposed strategy with the iPhone 5C seems a tad silly, then. If their sole goal was to introduce a product that could be sold at $100, why didn’t they just discount the previous iteration of the iPhone every year like they’ve always done? Instead of “replacing” the iPhone 5 with the iPhone 5C, why not just discount it? It sounds silly because it’s likely the case that isn’t their strategy at all.

By introducing a “lower cost” option alongside the more premium offering, Apple is basically splitting its business up into two segments and getting people to buy lesser devices while still making them feel new. It also helps preserve the idea that the iPhone is a premium line — instead of suggesting people go with iPhone’s previous iteration as a way to get a “cheap iPhone,” they will instead present you with an actual cheap iPhone, thus making the shiny, new feeling of the latest iPhone last even longer.

It would be fine if Apple’s pricing accurately reflected that message, but it doesn’t, and most people with a clue can see right through that. We’ll definitely be keeping a close eye on the guys in Cupertino to see if they were right all along, but we’re quite a bit of ways away from seeing how this new strategy holds up.




  • Dean Politis

    The iPhone 5C may be cheaper than the IPhone 5S, but it is more expensive than many premium phones. while looking cheap.

  • stolnheartdealr

    They just put a ‘new’ iPhone in the same price range they used to sell last year’s model at and calling it ‘new’ is even a stretch considering the 5C is just the 5 repackaged with cheaper materials and a better camera, so without splitting hairs it IS last year’s model. They haven’t changed up their pricing structure at all.

    • Unorthodox

      I’ve heard one Apple “evangelist” on the radio, who said people perceive refreshed looks as new. The sad thing is that I sort of agree – majority of iSoccerMoms and iHousewifes never knew their phone’s specs anyways, so a colored plastic case will mean a “brand new” phone for them.

      • stolnheartdealr

        Very much agreed. Apple is an expert at this. It’s why they can sell their iPhones and iPads generations behind current Android tech and make huge profit. Nothing makes it into their hardware if it isn’t easily usable and functionally useful to the masses. I consider NFC a feature every phone I own going forward should have, yet I’ve never used it once.

        • Unorthodox

          Just recalled a former colleague of mine. When asked what was the new car she bought, she replied – “White!”.

  • TalkingMoose

    It’s just Cook’s way of trying to keep the illusion of the iPhone as a status symbol alive. He’s trying to convince people that they’re still cool even if they have the crappy colored iPhone, while assuring his “premium” customers that having their white and gold phones will still set them apart for the unwashed.

    The iPhone is only a status symbol among those obsessed with iPhones. The rest are either more impressed with the best technology or (the vast majority) don’t get impressed by what phone you have.

    • Dean Politis

      I think most people buy an iPhone because they think it makes them trendy or cool. The iPhone is a nice phone, but it is way overpriced for what you get – small screen, no NFC. Except for the processor, the iPhone would be categorized as a midrange phone on Android.

  • rabidhunter

    Ha, I got a DROID Mini, for $39.99 on contract (regular price $99). I have a nicer screen, more functionality, and Kevlar. It can run circles around the i5c any day. I dare anybody to call the DROID Mini junk.

    • Dean Politis

      The DROID Mini is junk. I just said that because you dared me.

      • rabidhunter

        Ha, I bet you’re the type that walks into a store and pushes every button because it says to… :-)

  • B. Lee Drake

    The 5C was made so that people could show off having a new iPhone. Thus the bright, vibrant colors. Apple is marketing to human nature.

    • Dean Politis

      Can you customize it like the Moto X? No. Customization is premium. Ugly colors are not.

    • rabidhunter

      Oh, and don’t forget those ugly Crock/Dalek hon cases.

      • Dean Politis

        Daleks are cool. Those cases are ugly.

    • Nick V

      Actually, I believe they were trying to go back to he iMac G3 and see if the color option was still viable. The iPhone 5c is laughable at best. Maybe the plastic is a little better, but never the less, Apple has chosen bigger profits over their customer loyalty.

  • stang6790

    I think they are making the 5C different because a lot of people would just buy the old model since there are few physical changes going from 5 to 5S. By doing this if you want to look like you have the latest you have to buy the S.

    • Drew M

      Yes, but the 5C says “I’m to cheap to buy a 5S”. At least with last year’s model available, no one could tell if someone paid through the nose on launch day, or a bargain price when it dropped down a tier. This reminds me of a guy I once knew who bragged about driving an Acura because he had a Integra. “Open your eyes”, I told him, “it’s an economy car.”

  • DavidVarghese

    Lol okay Cook. The Nexus 4 can still run circles around the iPhone 5Crud, and it’s significantly cheaper. Apple chose to release the 5Crud because of the other “junk” phones taking up Apple’s market space, and for Cook to say that other cheaper priced phones are junk shows Apple’s arrogance. It also shows that iSheeps are willing to buy any crud Apple churns out.

    • Drew M

      Nothing touches the Nexus line for premium value. Even the “mini” lines for Samsung and HTC are great subsidized phones.

  • guitarist5122

    it’s ok, whether he likes to admit it or not, his decisions are heavily influenced by android. Thus he has brought forth the ipad mini, the larger screen iphone 5, the less expensive plastic iphone5c, and ios7

  • Phill_S

    Err, he is right but made the wrong decision with this information.

    Much of the entry level smartphone market – ie the $300 or less off contract stuff – is junk. It is low res screens, slow processors, a gig of ram if you are lucky and you better hope you get Jellybean out of the box cos it is never getting an OTA upgrade.

    Where he is wrong is thinking the low cost market has to remain junk. You cant tell me they couldnt have sold the 5c at $300 off contract or free on contract and make a small profit. The big fixed cost of setting up the production lines were all paid by the 5 so you only need to add in the plastic body line and its variable costs from then on.

    What Apple could have done is what us Android users should have been hoping they would do for two years in the flagship lines – raise the bar in quality and value for money. The 5c at $300 off contract would have forced Samsung to raise its game instead of pumping out those mediocre Galaxy Y and Ace phones and bring at least GS3 specs at that price point.

    At this point my advice to people buying a phone is either buy a flagship, or at least stretch to a midrange, today or buy a second hand flagship from last year. That is a sign that entry level smartphones are junk.

    • John Toxworthy

      Not true. Many phones like the GS2 can be had for reasonable prices and provide a quality experience.

      • Nick V

        But the GS2 was a flagship a long time ago. Today, not so much. In fact, can you call a GS2 a midrange at this point?

      • John Toxworthy

        The S2 is around $200 and still a good phone; I didn’t say the S2 was recently introduced.

  • JaswinderSinghJammu

    I heard next apple product is iturd…lots of apple fans are lining up for it

    • https://plus.google.com/108596272537415356460/posts Jason Farrell

      a polished iturd. delectable. … for me to poop on.

  • xc

    My parents finally got smartphones this year. Considering their needs, they didn’t want anything too expensive. So they got free-on-contract phones that they liked after trying a few on Verizon. They could have gotten a free iPhone 4, but the free Android phones offered LTE, among other things, and had newer hardware. They’ve been fine w/ their “junk” phones, considering they mostly use them for taking picture, texts, email, weather, etc. I know they’ve been fine because I haven’t had any major requests for “tech support” since they set their phones up … and that’s saying a lot for my parents and technology!

    • TimmyB44

      xc, I did the EXACT same thing for my parents earlier this year. Got them the Pantech Discover (with a sweet “Easy Mode”), and they are both rocking. And, get this: they actually know how to tether (including turning on and off), so they are pushing out their pc and laptop through their phones! If anyone thinks Android is too tough for the old folks, xc and I would beg to differ! :)

      • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

        Heh… my 78 year old mother didn’t want to even LOOK at the iPhones. She’s sporting a S3. She also rocks a Asus Transformer.

  • Phill_S

    Also the reason Apple dropped in share price right after the announcement is that the market doesnt want Apple to continue the same strategy selling last year’s model at a discount, just in a different shell. They expected “junk” because there is a huge developing market in China and India that Apple has very little share of, and it is falling, and investors are worried that if they dont increase their share rapidly they will be shut out entirely as consumers become reluctant to shift due to brand loyalty and the need to start over investing in new apps on a new app market (which further increases the phones price in a noticeable way).

    Saying Apple isnt in “the junk business” and ignoring a huge marketshare of potential sales and with it potential profits – plus the benefit of funneling consumers up to the flagship line later down the road – is a sign of extremely short sighted strategising.

    • https://plus.google.com/108596272537415356460/posts Jason Farrell

      Yeah, I was actually hoping the 5C would be more “junky”, since a true low cost iphone would’ve been a bigger boost to T-Mobile (and TMUS)

  • babymeowmix

    I’m not really surprised to see Tim Cook be so dismissive of the low and mid-range cell phone market. They’ve always been about selling at a premium and they’re probably going to resist dropping any prices for as long as possible. If Apple’s stock keeps going down, I’m sure we’ll see him singing a different tune before too long.

    • Drew M

      While Apple turns their nose up at India and Asia, Android manufactures local to these regions are carving up the market. I think the window of opportunity is closing fast for Apple to respond, and I doubt they will have much success capturing marketshare back once it’s mostly lost. They’re already having difficulty competing in the crowded “premium” market–their home turf. At some point soon, they will have to be willing to shed their status and make budget devices, or become relegated to a niche product.

  • jessez93

    lol these types of articles continue to drum up the whole nerd war of android v apple.
    who cares??

    • http://google.com/+derekross Derek Ross

      Top men.

  • https://plus.google.com/108596272537415356460/posts Jason Farrell

    Snobs gonna be snobby.

  • Major_Pita

    “junk market” that those “other guys” are trying to capture?? Is Cook referring to India, China, the balance of Southeast Asia, The Philippines, Malaysia, Africa and South America (apologies to those missed)? Cook sounds like one of the High Lords referring to the colonies….

  • John Toxworthy

    Shareholders realize that Tim Cook is off his rocker.
    .
    Selling 500 million phones to China, India, USA etc at only $50 profit still = $25 Billion in lost profit. You can keep a premium line and still sell to budget consumers.

  • dgarra

    There is a massive junk market of Android phones. The iPhone 5C at $99 is not a great deal, it’s last years model in a new case, it is in effect the same thing they do with every iteration of the iPhone.

    The biggest piece of bullshit out there is we’re talking about subsidized phones when we should be talking about the actual cost of them, not some BS “upgrade offer” price.

  • NuLLnVoiD

    They’re paying a $100 for last year’s phone with a bigger screen cuz ya now that extra row of icons is totally revolutionary.

  • Nathan Bryant

    The iPhone is overpriced for what it is anyways and that’s a known fact. They market for money and not actually furthering their experience. The 5C is a colored version of the previous 5. Color options are a ad now so they took advantage of it. Apple waits to see what’s popping and tending and then market off of it. Can they truly innovate? Probably. But they don’t. They just mainstream to keep relevant. Nothing about their phone is mind blowing. Solid handset overall. But nothing about it is all that. They’re stuck in the past. But what have they done since the first iPhone? Not much honestly. The biggest change since then was the new design for the iPhone 4. Even then the experience was mostly the same just on a better screen and package. Since then there biggest change was a visual change for iOS 7. But is te overall experience and functionality that much different from what previous iOS users could do before? Not at all. That’s static. Not dynamic. The most dynamic thing they have is their entry wallpapers that move around in iOS 7. They’re catchup. I don’t expect them to blow everyone’s mind with tech that’s not there yet, but they aren’t furthering their name at all. You can come with two exact copies of an iPhone 5 and say it’s the new one and people out in the streets will not know the difference. They’ll fall into that placebo category calling it faster. Screen is better. Just ignorant to the whole thing. The only thing that makes Android look all over the place is the fragmentation between skinned devices. But if you look at the origin of the nexus line, all is good. Premium devices and good prices. The camera could be a little better and hopefully the nexus 5 reflects that. All in all both are great ecosystems but apples band camp is a bunch of bull when they speak.

    • shooter50

      Nice post until you got to the Nexus part. Walk through a mall and ask 10 people what a Nexus is and all you’ll get is blank stares. These are usually decent phones, but hardly cutting edge. The screen on the nexus 4 was an embarrassment compared to some other phones. Dim and not great resolution. I understand, you get what you pay for, but to call this a premium phone is a real stretch.

      • Younanomous

        Honestly, the screen was my only gripe with the Nexus 4, but even then it was only with viewing angle. The build quality is solid and I love the design. Peopls’ lack of knowledge of the Nexus is due to Google’s handling of offering the phone and carriers refusing to market the phones at all. I feel like Google is headed in the right direction, but I’d imagine we’ll have to wait for the Nexus 6 to see any mainstream penetration (though who knows what they’ll do marketing wise with the Nexus 5). Alternatively, a lot of people know what the Nexus 7 is because they push it and there are ads for it always playing on TV with that “How to give a speech” commercial.

        • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

          How about the battery life?

  • Kyle

    Let’s be honest until like a year ago, the entry level market for android was awful junk. Look at the cheaper phones at prepair companies. Only recently they have they been any good from what I’ve seen.

    • Younanomous

      But that’s what happens in all technology. As the parts become cheaper, so do the phones and so now low-end phones are where high end phones were 3-4 years ago.

  • Brian Menius

    I can’t wait until Cyanogen gets their loader working for iJunk. You’ll hear a large explosion on Infinite Loop as the collective Apple head explodes.

    … that is, assuming their graphic shown yesterday implies that they’re looking to push Cyanogen to phones not natively running Android.

  • Go Hawkeyes

    I’d say the billions of dollars in profit this “junk” market has provided for the likes of Samsung, LG, HTC, etc. would beg to differ with Cook’s opinions on the market.

    • Younanomous

      The problem is that Apple CAN’T enter the low-end market because they would tarnish their brand image. People idolize Apple as the Merceds/Cadillac/Lexus of phones and computers. If they enter the low end market, people will realize that Apple is nothing but brand image.

      • Go Hawkeyes

        Oh I couldn’t agree with you more. Apple doesn’t sell products. They sell the perception of a certain lifestyle. They’d be shooting themselves in the foot if they actually entered the lower priced market. Instead they continue to take a lower end product and sell it in the higher end market. To follow your lead, that is exactly what Lexus does. They dress up a Toyota and sell it for more. In the end you’re left with an overpriced Toyota and a few people think you’re special.

  • David Narada Brown

    DAMN! They just called entry level consumers the “junk Market”. I mean, i for one love a phone with high end specs and all, but everyone doesnt have the same needs. To call people who dont require quad core processors and 1080p screens the “junk market” is very insulting. Some truly cant afford the price of these phones and im sure they appreciate having affordable options. This is definitely an area where apple has lost and will continue to lose market share. But if his comments are any indicator, Apple simply doesnt care!

    • joseph mcfadden

      David – honestly, apple doesn’t care about the people who cannot afford their devices. well, they do care about one group of people that cannot afford their devices; those people who make them for a wage of $4400 a year.

    • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

      Can any Apple owner afford a 1080p screen? Apparently they can’t because the 5S ain’t.

  • Scott Tompkins

    And this is why AAPL will remain in the crapper for the foreseeable future… Investors were expecting a device that could compete in emerging markets, and they introduced a phone that could not. $100 USD is a small fortune in many parts of the world.

    The “free” subsidized 4S is no competitor to a free Galaxy S3.

  • joseph mcfadden

    “It’s not news that Apple doesn’t like Android” thats hilarious…apple should LOVE android since android was created before the iphone and before ios and apple copied nearly every aspect of it. … especially ios 7 … and this isn’t just me, i’m basically just repeating what i have read from many reviews.

    • jason98

      Typical fandroid in his/her delusions:
      How about the facts:

      • http://www.phandroid.com Quentyn Kennemer

        I like the point this chart is trying to make, but that is a convoluted mess to look at.

      • Dean Politis

        The true innovation of Apple was never the phone. The iPhone hardware was not original. There were other touch screen phones. The iPhone looked very much like the LG Prada.

        Apple’s true innovation was the AppStore. It was similar what they did with the iPod and its true innovation – iTunes.

        • John Toxworthy

          iTunes was not really an innovation but rather a reaction to file sharing services like Napster.

          • Dean Politis

            iTunes allowed organization as well as downloading.

          • chuck30

            Reaction or innovation. Itunes changed the music industry did it not?

      • John Toxworthy

        There are numerous phones not included in the chart that contradict iPhone ‘being the first’. Shocking that Apple fans would ignore them.

      • stolnheartdealr

        A ‘logical’ evolution of hardware isn’t patentable (though it slips through sometimes) so the fact that touchscreens became more prominent part of phone design as they became better and cheaper isn’t ‘innovation’ it’s logical. Let’s face it back when keyboards were prominent on phones the touchscreens had terrible sensitivity, they were a pain to use.

        • John Toxworthy

          Agreed. The term ‘innovation’ is widely thrown around in technology when they really mean ‘natural progression.’

      • Younanomous

        So because the iPhone made it to market first Android copied it? Your own chart shows the Google-Android project started at roughly the same time as the iPhone’s development; that’s of course ingoring that the Android startup company started working on the Android OS back in 03. The iPhone was not truly ready when it launched in 07, no App store and no 3G when others phones had the feature months prior.

      • Nicholas Kaioken Caljean

        android was developing on touchscreens in the same timeframe (2007) as iphone release. your argument is invalid…

      • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

        Your “proof” looks like a manifesto of the Unibomber.

  • Ryan Stewart

    I really dont care at all since I wont be owning an Iphone, Ive always had the higher end Android phones and been quite happy. However, I do look forward to what the argument is now for the guys who worship the company as justification for their superiority.
    First it was: Apple sells more phones than all of Android.
    Then: Well Android is only more popular because there are thousands of models (aka choice) and multiple makers
    Then: Its only because they give them away, but then cam the two year old iphone free on contract.
    Then: Well its one manufacturer selling one model, but then along came the Galaxy S4.
    Then finally it was that Androids were all cheap plastic crap, well now we have the 5c.

    • Jason

      Classic, simply classic :-)

  • Christopher Robert

    I can’t wait till Tim Cook eats those words with a side of Nexus 5.

    • Jason

      It will be funny when the new Nexus 5 comes out, has a lot more power and features, and still cost less than their low end phone (unlocked).

    • Younanomous

      I’m remaining skeptical, while the LG G2 the Nexus 5 will likely be based on is great, I’m still not 100% sold on it. Though I have no doubt it’ll be the best phone within its price range by a long shot.

  • Dan

    I don’t really care what he (or fanboys) thinks. I moved from Apple to a highend Android phone last year, and I feel it is a step up. I can do more with my phone than I ever dreamed of doing with my iPhone.

  • Djones109622

    I haven’t read the whole article but I do agree that the Entry Level Market is “junk” as he put it.
    You’ve just got to at phones like the Samsung Galaxy Y as proof of Junk phones

  • Necrobain

    I find it hilarious that the company that is famous for waiting to see what everyone else does, then tweaks that design and claims that they created it, has the gall to claim they are innovators. The sad part is that they actually believe it.

    • Younanomous

      The sadder part is the general public believes it too. I think iPhones are great overall phones with solid build quality, but innovative they are not.

      • Necrobain

        Well said

  • http://repairmannow.com James R

    About 2 years ago I got my mom an Android phone, it was a mid to high end one. She loved it and used it all the time. When it came time for an upgrade she did not talk to me and went with an iPhone 5… She hates it and can’t wait to go back to an Android phone. She liked android so much she got the new Nexus 7 as soon as it came out to replace her iPad.

    I am 30, so my mom is not that young at all and has problems with a lot of tech. Bit she likes how much better android worked and how she can customize it to her likings.

  • draiko

    He did and it is.

    Even the most die-hard Android fan would agree that a good portion of low-cost Android hardware is absolute trash.

    That does not justify the insane pricing for the iPhone 5C, though.

    I’ve already encountered some die-hard Apple fans who do not agree that the 5C is a total rip off.

    • veccster

      You (and Tim Cook) define that level of phones as “trash” or “junk” because you are higher-level users that demand better specs. With that comes higher costs – even when subsidized.

      But to someone that is happy with a phone that does the most basic computing, those phones are not “junk”. They are low-cost options that satisfy their needs. That doesn’t make the hardware junky.

      • draiko

        Some low end android devices are trash and struggle while attempting the most basic of functions (ie making a phone call).

        Others have terrible build quality issues.

        • Nicholas Kaioken Caljean

          whether the product is “junky” or not, in a professional interview I think it’s disgusting to call a whole class of consumers and a whole class of developers (and their work) “junk”. But that’s the image they want to portray. “Higher end, social status, we’re better than you” Apple.

          • draiko

            I disagree. If something is bad, holding back criticism is just going to do more damage in the long run.

            If the dialer on a low end smartphone crashes 50% of the time, it should be called junk. Nobody should tolerate that level of trash.

          • Nicholas Kaioken Caljean

            if that’s how much money some1 wants to spend on a phone then they should be able to spend that much money on a phone. and u get what you pay for. if you want t to work better pay more. Why would we eliminate options?

            also, the newer “low end” phones have gotten much better. Most of them are on cheaper networks for people with less money. In this day and age its important to be moderately connected to get a job/better job. No1 really uses a landline anymore anyway. So eliminating the lower end phones would result in many people in an even tougher work environment. I like that my operating system caters to those people, not just the rich.

        • Younanomous

          Your key words being some. When my Nexus One kicked the bucket after 3 years thanks to a charging issue, I bought a ZTE Concorde for $100 off-contract and loved it because it was able to do most of what I needed (even if it was slower than I’d prefer) and it had amazing build quality, battery life (lasted over 3 days on average), and good call quality. Yes, there are shitty low-end phones out there, but Tim Cook brushed them all off as trash because he simply doesn’t no any better. I highly doubt he’s had any experience with phones that aren’t cutting edge or close to it. I’m rocking a Nexus 4 now and love it to death, but I keep the ZTE just in case. Still had a charge of over 50% after 6 months!

  • Greg

    Yet their IOS 7 looks like it’s 1/2 Android LOL

    • Tony Lai

      I told my coworkers who have iPhones that the new iOS 7 is just a water downed android with v-tech toy-like icons. They agreed.

      • Younanomous

        An iPhone user agreed to a negative criticism of iOS?

        • Lou_Sasshole

          Surprisingly a lot of them do, but they’re usually stuck in contracts so they can’t do much other than be envious of Android users until their contract is up.

        • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

          There are so many people in love-hate relationships with Apple it’s not eve funny. I had one guy so whipped that he reminded me of a girl who couldn’t leave her verbally abusive boyfriend. And when his contract came up, he was literally ashamed to tell me that he bought the 4S. I’m not kidding. I had to console the guy, telling him that Android just wasn’t for everyone. It was sad.

  • Hassan AL Hammadi

    Just let iphone5s user protect thier fingers.

  • shooter50

    Yes, there are some pretty crappy Android phones, but not everyone can afford top of the line. What Tim Cook is missing is that no matter how crappy an Android phone a person buys, he is buying into the Android ecosystem and that is a lost customer for Apple. So he can bluster all he wants, but if he were innovative enough to offer a budget iPhone, alot more customers would be tying themselves to the ever so slow and annoying Itunes.
    Cook is hearing the footsteps and realizes Apple has lost its lead in innovation.

    • jason98

      Another example of fandroid delusions:
      Most of the android phones are used as FEATURE phone – which in turn means they are not part of the ecosystem:

      http://www.businessinsider.com/the-iphone-dominates-mobile-web-traffic-in-the-us-2013-9

      Google makes 2x more money from iOS traffic then from Android despite of 1:4 install base.

      • Nicholas Kaioken Caljean

        1) feature phone is just using the old terminology for what is now low to mid-range smart phones. there’s no reason to separate them. that doesn’t make any sense.

        2) so android users get online, do whatever they need to do, get off, and go back to their daily lives. ios users are engulfed, doing more unnecessary bs, and are always connected. is that really a good thing? from a business angle maybe. I like not having to be entrenched and self absorbed in my phone. its a tool, not my life.

      • ntegrit

        I believe that shooter50′s point was that anyone buying into Android (whether they actually play in the ecosystem or not) is a customer lost to Apple.

    • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

      I wanna hug you for bashing iTunes. I really do.

  • Hien Nguyen

    Who cares, it’s Tim’s COCK

  • CGS

    iOS is entry level regardless of how expensive it is.

  • samagon

    meh, who cares? Tim Cook gonna do what Tim Cook gonna do, it doesn’t make my phone any less than an iPhone, and it doesn’t make the iPhone any better than it actually is.

    • jason98

      Right… Who cares when iPhone 5s will run a webapp 2x+ faster than Galaxy S4:
      Or who cares if 5s will run it for 1.5x longer.

      • dgarra

        Nobody cares about Sunspider, at all. Battery life says the HTC One X is the way to go apparently (not in my experience but ok)

        • jason98

          Ok, if you do not like Sunspider, here is the results of a favorite Google’s benchmark:

          • dgarra

            Well it’s not showing up, but Benchmarks in general are pretty worthless at this point.

          • Younanomous

            That’s the benefit of having a closed system. Anandtech had a great podcast covering the inherent problems with benchmark tests and how company tweak their phones to do well in tests to hide real world results. Samsung got into a bit of hot water for their claimed core clock frequences since 99% of the time the core was clocked way under the spec sheet. The iPhone also has the added advantage of a smaller and lower resolution screen, so it doesn’t have to work as hard. And honestly, is anyone going to notice a 150 llisecond different in how fast a webpage loads?

          • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

            Plus, it’s (The iPhone) running the mobile equivalent of Windows 3.1

          • phor11

            Wait, so a new phone that’s not even available yet beats a 5 month old phone by 2x in benchmarks??? GET OUTTA TOWN! NO way…
            *throws wallet at computer screen*

          • Max

            I really don’t care about the iPhones benchmarks anymore. They don’t matter really, with a tiny non HD screen and a locked down OS. Does not appeal.

      • danny byun

        yes because benchmarks so accurately represent the real world

      • BELIEVEinMYTH

        Benchmarks from something that seems to heavily favor anything Apple is laughable at best.

  • Rodrigo
  • dealspaaji

    “junk market” thats what they want to capture thats why they priced iphone 5c at $99……..but still fails

    • Younanomous

      With respect to Apple, I have no doubt they’ll make a killiong the 5c because people love colors and most American have no concept or are scared of off-contract plans.At the very least, people will be happy that they can get a new iPhone that isn’t simply last year’s model with a price drop.

      • Matt V

        You do realize that the iPhone 5c isn’t a new iPhone? It’s exactly last years iPhone wrapped in a cheap plastic case instead of the nice aluminum one. That’s actually a worse bargain than getting the iPhone 5 at a reduced price.

  • Caffiend

    Well then, if the Nexus 4 is “Junk” then I’m about the happiest trash collector in the history of the profession.

    • phor11

      Indeed.
      Even better, I think we’re about to see yet another “Junk” phone at half the price of the 5[c] coming in the next month or so. Horray for “Junk” phones!

  • CharlieTX

    Apple’s arrogance seems to know no bounds. Thee are a lot of people in this world that cannot afford Apple’s high prices, and manage the money they do have with care and diligence.

    • Younanomous

      Without outright saying it, Apple tells people that can’t afford their phones to look elsewhere. There’s nothing with that as car and clothing companies do that already, my problem with Apple is that they make it seem like their phone is for everyone when it really isn’t. The reason I have loved Android and PC over anything Apple has always been choice. If I’m on a budget, I can buy a cheaper phone that runs Adnroid or a cheaper PC that runs window; at the same time, if money’s not an issue, I can buy an Android phone that can meet or exceed what an iPhone can do or a PC that can put any Mac to shame.

      • Gideon Waxfarb

        If people are hesitant about buying an iOS device, I don’t think Apple really cares if they go for a budget Android device instead. Why? Because many of them suck so much ass, they probably do more to sell iOS devices than Apple’s entire marketing department.

    • guest

      forget developing countries how many US citizens would be able to afford iphone without subsidies?

  • Dragonscourgex

    I would have to disagree with what all 3 of them said in the interview. They made the iPhone 5c which is pretty much an iPhone 5. But, it cost them less to make. But, now they are charging the same price point they would have if they just kept the iPhone 5. So, now they are making a bigger profit off of iPhone 5c sales then if they would have just kept selling the iPhone 5.

  • Tony Lai

    New iOS 7 = a water downed android with v-tech toy-like icons.

    • http://www.facebook.com/lucyparanormal Daniel Tiberius

      I didn’t want to believe this but my friend showed me their multitasking screen last night and wow dude. Just like ours.

  • TheScienceEnthusiast1130

    Hypocritical much, “Apple Incorporated”?

  • Tomato88

    Some presidential candidate not long ago made a similar statement about 47%, and he ended up remaining as “some presidential candidate.” I hope he knows that.

  • remiqaine

    So where is this “cheap premium device”…. All i see is last year’s phones in plastic…….

    • phor11

      Even worse, it’s last year’s phone in plastic at the same price they historically have sold last year’s phone at anyway.

      It’s completely absurd.
      He’s not doing people a favor, he’s trying to rip them off even harder.

  • androidica

    Its good to see Google has self control unlike Apple who cannot control its tongue.

    • phatmanXXL [16,000+ posts]

      Android arose to #1 without the childish mud slinging and petty lawsuits. Apple needs to learn this.

  • Brian Fowler

    Rich guy doesn’t care about citizens of lower economic class… News at 11.

  • ArmageddonX

    Apple is running scared. We all know companies like Apple only lash out when they feel threatened.

    • chuck30

      With 9 milion in sales in the frist 3 days I dont think apple is going anywhere.

  • http://www.twitter.com/OtisFeelgood1 OtisFeelgood

    I find this funny because in my opinion iPhone 5S = entry level Android.

    • BELIEVEinMYTH

      Been sayin that for years. The first Android phone the G1 is equal to the modern iPhone.

      • Ed Carney

        So the G1 is better than the Galaxy S4? Since S4 is slower than 5S by a mile? http://www.anandtech.com

        • BELIEVEinMYTH

          The only 2 phones i was comparing were the G1 and iPhone whatever. I never said the G1 was better than the GS4. Learn to read. On that note the S4 puts anything crApple makes to shame, so does my current phone the HTC ONE.

        • FuckTheWorld

          But you know what?? Apple REGULATES EVERYTHING on that iPhone and within their marketplace and ecosystem so you can’t actually take advantage of ANY of that power… I love my Macbook but after that, Apple can kiss my ass..

  • HeatFan954

    I was thinking the same thing for their iPhone 5S and 5C. Can I get my thoughts published in an editorial or opinion section of a newspaper? Actually, online is better. I am one of the few that actually has a newspaper lying about at home.

  • Endoverend

    I still can’t quite get my head around why people think the price of an on-contract phone is so important.

    You’re going to enter a contract that will cost a total of $2155 (e.g. $200 phone, $35 activation, $80/month * 24 months). You can save $100 by purchasing a cheap phone.

    After the contract is over, the premium phone will likely be worth $100 more than the cheap phone.

    If saving money is important, buy a Nexus device and run it on T-Mobile.

    • Logan

      Preach brother. #holo.

    • http://www.facebook.com/profile.php?id=100003386080045 John doe

      For some its a hard concept to get.

    • rustygh

      Or straight talk. Yup good point!

  • dizel123

    “most people with a clue” doesn’t describe the iSheep

  • indio7777

    1 – These phones look like something from Mattel. Really, Apple?
    2 – Cook’s comments drip with disdain for non-wealthy people in developing countries.

    Either that, or he’s too dumb to understand the huge market for those folks in developing countries.

    • Ed Carney

      Does Porche or BMW or Tiffany disdain poor people because they don’t make a 10K porche or sell Cubic Zirconia?

      • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

        What do those companies have to do with Tim Cook? Your analogy is as weak as your brain.

      • impulse101

        Yeah but Apple is no Porche. They make outdated crap for tech illiterate morons. They sell Yugo’s at Porche prices and you idiots fall for it and we laugh at you.

  • Ed Carney

    Android is junk sorry! That is why Google is going with Chome OS which will be closed and not open, just like IOS…

    • Lou_Sasshole

      What a moron.

    • shect213

      Do you you know how retarded that sounds? Thats like Apple giving up on IOS because they want to work on Mac. I can go up to 5 people and ask them if they know what Chrome os is and perhaps only 1 person would say yes. If i ask 10 people what Android is all of them will say yes.

  • Ed Carney

    You people do realize Google is going away from Android right? Chrome OS will be closed like IOS…

    • Lou_Sasshole

      No it won’t and you have absolutely no evidence to back that up. See yourself removed from this site.

      • josh nolan

        There is also evidence of samsung which is obviously perty big in the googley eyes of android fags i mean fans sorry typo and they are testing their own os… I loved. The note and think the note 3 will be phone of the year but they will eventually al close up… Itunes store made 4x androids app store last year and at the end of the day its about $$$ or else samsung wouldnt hAve rushed out that turd galaxy gear

        • Lou_Sasshole

          Yeah it is about the $$$ and the fact that Samsung makes a ton of money off their android, sales means they don’t abandon it, if you believe that you’re incredibly gullible. Oh and if you’re going to use sales figures at least cite current numbers, the Play Store will surpass Apple’s pretty soon.

        • perfectalpha

          Play Store is catching up quick…and it isn’t even making twice as much as the Play Store anymore. At the rate it’s going, it will be equal and once Apple is passed, they’re not going to catch up or come back. They will forever be behind. That is the reality of the situation.

          http://bgr.com/2013/09/20/google-play-app-revenue-ios-august/

  • Lou_Sasshole

    Tim Cook should be punched in the d*ck.

    • Ulfredsson The Vanquisher

      Soooo, we should punch him in the face then?
      (9*-*)-D

  • Marco Simone

    Apple is desperate! They came out with a cheap crap iPhone 5c to try and compete with cheaper phones. They are doing prodders in China. They are trying so hard to get MARKET SHARE in China.

    Apple is on the road to failure.

    • Lou_Sasshole

      What’s worse is that in some markets like here in Australia the 5C is gonna cost over 1k just to buy it outright.

  • sloppybones

    A golden turd is still a turd Apple.

  • Max

    Apple is really painting themselves into a corner with the iPhone. Technology these days isn’t expensive. The chinese can prove that easily. There is no way Apple can compete with phones half the price that still packs an OS and hardware that can do anything you’d like. They can’t just release a CHEAP cheap iPhone because that’s going to make them look as sellouts. The brand Apple is very important to Apple.

  • nycplayboy78

    GIRL!!! Sit down somewhere….

  • josh nolan

    Lol everyone calls iphone folks but there are some hardcore android people on here…. They need a nick name since the way they are talking on here sounds like they are performing service as if you do not agree with them you are stupid… So maybe android bitches? Best i got its early… Saw the play store got that sonic racing game and twitter 5.0 beta… Iphone is on 5.13 and that sonic game was out like a year ago like most of you need too lol jk lets keep it light they are just phones man calm the funk down

    • Lou_Sasshole

      What’s wrong? None of these comments are false nor are they fanboyish. Your favourite CEO made a stupid comment, at least be objective instead of blindly following. Such comments deserve such replies. And please this isn’t 2010 and version numbers don’t mean anything when comparing apps on different OSs.

      • josh nolan

        Samsung exec prefers apple at home so what lol… Versions do androids been on 4 for quite a while now for their OS

        • Lou_Sasshole

          Well no the version numbers really don’t matter much, do a some google searching.

      • josh nolan

        When im bored at work and feel loke messing with people i post comments because i know u will always have ur panties in a bunch if someone questions your android lol its a phone man i like both of mine but they are just that .., outdated in 6mos … Thanks again for todays laugh… See u tomorrow same phag-time…same phag-channel

        • Lou_Sasshole

          You give yourself too much credit lol but that’s ok, this kind of reply is always a cop out when someone can’t defend their point.

          • josh nolan

            I don’t think you get it i’ve made my point I control you a day and you can’t resist making a comment that you cannot resist a comment made you just have to reply my point is is a reality check and looking away your life is that I don’t really care about phones I have two of them and two tablets Android and iPhone

          • josh nolan

            But everyone has to have a passion… In reality competition phones is good that’s how we the consumers will get the best one it’s called capitalism

          • josh nolan

            But yes definitely bitching about phones is definitely the most important thing in the world

          • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

            Having a nice convo with yourself?

          • josh nolan

            Well im talking with your wife here but her mouth is full right now. ;^)

          • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

            She told me it wasn’t even big enough to use as a toothpick. Something about you being hung like a caterpillar.

          • josh nolan

            Took u like 3 days to come up with that…frankly i expected better

          • Lou_Sasshole

            Lol relax man, I made one comment and you go on a little rant because you fail at trolling. You should’ve tried to stay on track or just not reply. Oh well, have a nice day pole smoker ;-)

        • Carolina C.

          If a guy pulls out an iPhone on a first date, it would be a serious let down. I want a tech savvy man, not an idiot who spends his money on brands and design. If that’s what I wanted I would date a soccer-wife.

  • josh nolan

    Ok guys fan boys and phagboys time to turn off the tv and the computer no need to whack to your phones any more the sun is coming up its gonna be a nice day time to move out of your parents house and get a real job guys…

  • Elliot Kotis

    iPhone 5C = Cheap quality, not cheap price
    Nexus 4 = Entry level price, amazing quality
    I think Tim Cook is an idiot.

  • arpitkanstiya

    Tim Cook is a retard and his organization is full of retards.

  • josh nolan

    Check craigslist look how many people want to trade an s4 for an iphone 5 and will throw in cash l

    • Tony Salcido

      Uh, I just checked the craigslist in my city and most trades were either from iPhone 5 people looking to trade for an S4, or people looking to trade down to an iPhone 5 PLUS the person with the 5 paying them about $75 in cash, which makes sense.

  • saltyzip

    This pure snobbery is why I hate Apple.

  • Dan Fryling

    With the 5c priced at $723 in China they can expect zero market share. Tim Cook is trapped in Jobs’s reality distortion field.

  • pr0xidian

    There are some really good affordable android phones. T-Mobile has a few lg phones 300$ or less that have dual core processors and 1gb of ram. They hold their own. Not to mention the nexus 4. Apple has its head up its own *$&

  • WhatAJerk

    Tim Cook is neither a visionary nor a tech guy, he is just a operations guy. He knows how to wring money out of customers and how to squeeze more work from slave labor of China. I wonder if he sleeps well at night. This guy reminds me of a snobblish British Lord

  • endinyal

    Tim Cook labeled the low-end market properly. If anything, “junk” is an understatement. I’d label it as “trash”.

    Apple phones have the highest resale values (at least 50%) more than any Android phone. Apple doesn’t leave leave their users out in the cold six months after an OS update like most Android companies do. Heck, even the iPhone four which came out in 2010 can still be upgraded to the latest OS. Let’s see a joe-consumer try doing that on their 3+ year old Android device. The amount of landfill being used up by junk phones is staggering. Android makers want you to buy the next phone when a new OS comes out. So out with your 6-month-old “junk” phone, and in with the next new one, rinse and repeat. What a waste of valuable resources.

    The really sad part is that you guys know that to be true, yet take offense when some big-league guy (Tim Cook) puts it out there front-and-center. Demand better from Android makers, and expect the “you get what you pay for” line when people complain after buying that junk phone. Think about it.

    • phatmanXXL [16,000+ posts]

      Ask the 4S users how they’re enjoying iOS 7, Android phones from 2010 are just as functional and pack more features than any iPhone on the market.

    • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

      Hmm… my wife’s Epic Touch is running Jellybean with all functionality. How’s that 4S running? Oh yeah… crippled. I’m hearing all over the place from everyone I know how bad iOS 7 is on their legacy devices. Sure, you might have a good resale price, but that’s just a layover from Jobs skill as a salesman.

      • rustygh

        Any time I see someone mention jobs, skill, salesman I have to vote up. In that area he was brilliant!

        • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

          Absolutely. There’s no way in Hell I’ll ever sell that man short. He was a consummate salesman. I’m glad he never went into politics, since he was such a flaming liberal :D

    • reznorfan0

      Old phones may get the latest os update, but with half of the new features disabled because it’s old hardware. Making your point moot. How’s that fingerprint scanner on that 4s treating you? …oh. Well, at least you have some new icons to look at.

    • Rob Schoenfeld

      You’re an ass-clown. Just because you have erotic fantasies about Tim Cook doesn’t mean anyone else wants to know about it.

    • http://www.dealspaaji.com/ dealspaaji

      1. iphone 5 is not available…are those owing it are not apple users(as you said”Apple doesn’t leave leave their users out in the cold six months”)……
      2.iphone 4 lags with the update……..its better to not to give update ratter than leave the ohone lag and hanged
      3. 4 and 4s does not support many of the new features of ios7..as they lack the required hardware

    • Prasad Tiruvalluri

      iPhones are junk phones. Who buys it unless it is discounted by carriers? Do you see Apple ahead in any market where there are no subsidies? Good for Apple they are fading and on their way out.. Pls mind the door while going out..

    • guest

      Did you buy iPhone or got it cheap under subsidy. If subsidy then its junk as well :)

  • NardVa

    People are actually buying the 5c like it’s a new device. Do people even realize it’s last years Iphone 5 with a colored back?

  • DJ Lawless One™

    Pretty sure it is a jab at Samsung.

    Galaxy mini anyone?

  • Carolina C.

    Pathetic attempt.

  • Joshua Martin

    Lol, not even people on a tight budget or people with low-income can access their so-called “cheap” alternative. Let’s face it, the only thing the iPhone 5C is cheap for is Apple, not the consumer. The MSRP of the phone’s value, depreciated after a year, is the same as it would have been with any other former flagship.

    The tactical switch from aluminum to plastic will help ensure Apple further increases their profit margins.