Tim Cook on Defending Marketshare, Product Pipeline 'Chock Full', Apple TV Growth

[ifij775]

Apple just did a refresh of almost every product and a delay in macs left Cook looking like an idiot during the conference call.
There just wasn't anything spectacular profit wise to make up for bad execution. Refreshing the MBA and Mac Pro won't help either. If their TV product isn't a success, I think Apple will need years to recover investor sentiment.

[tekstud]

Originally Posted by WilliamLondon

If you're not a gamer and you have a Kindle (which I agree is better than the iPad mini as well as full sized iPad both versions for reading eBooks, though none are horrible), and you already own a retina iPad, I'm curious to know why you'd want a mini. I'm not being difficult, I'm merely just curious to know what the retina mini would be better at providing than the devices you already own (which are all fantastic, btw!).

For me, the form factor was the biggest and main reason to get a mini over a full sized iPad, so I'm just curious to know why people who don't choose it today with current resolution would choose it tomorrow simply because the resolution of the screen had suddenly improved. I admit I'm completely ignorant in this regard.

Because 85-90% of what I use my ipad3 is for reading- newspapers, mags, emails, websites, twitter, etc. I've always wanted all that in a smaller form factor because of the increased portability and the weight in particular. Easier to put in a nap sack, and ride a bike with, etc.
With the resolution as it s now- I can do without. Again I bought one, tried it out then returned it. No regrets.
PS- My number one rule is never by a first gen Apple product. The 2nd always is a major improvement- exponentially.

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Originally Posted by ifij775

Apple just did a refresh of almost every product and a delay in macs left Cook looking like an idiot during the conference call.
There just wasn't anything spectacular profit wise to make up for bad execution. Refreshing the MBA and Mac Pro won't help either. If their TV product isn't a success, I think Apple will need years to recover investor sentiment.

The delay in an iMac processor upgrade this year and a half was particularly awful.

[1Alec1]

Originally Posted by Zerilos

When did the market ask for a 7" tablet? Fact is the mini outsold every 7" on the market by a long shot.

Apple's competitors definitely believed that the market asked for a 7" tablet. They all made 7" tablets. What the market asks for and what you should sell are different things.

To name a very extreme example: Imagine if you went back to 1800 and marketed a Honda Civic. That's not what the market asked for, but it would sell. Apple sells stuff that people used to not know they wanted.

[tmroper]

A Mac Pro would count as both incredible and new at this point.

As for things like tweaks to battery life and screen resolutions and sizes, they don't count as either any more--however welcome they may be. People who care about such things seem to be getting tired with "new and exciting" that's really, "same, only better."

[charlituna]

Originally Posted by Squilly

Biggest lie ever.

I disagree. If it was a lie then they would be making cheap iPhones etc.

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Originally Posted by mrsir2009

+1. The whole point of a company is to make profit

And yet they had some $13 billion in profit which was double Google etc in the same quarter.

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Originally Posted by macs4nw

Cook's continued asserting of "intense interest" in the APPLE TV somehow makes me think that APPLE expects some type of breakthru with that whole endeavor some time in the foreseeable future. Why else would he keep bringing it up, thereby raising expectations, and setting himself up for disappointing everyone.

Not really share how his vague 'we haven't forgotten ' comments can be seen as raising expectations since he keeps saying the same nothing over and over

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Originally Posted by Nunyabinez

. It's going to take some real finessing or arm twisting to pull another iTunes like move on the TV/movie/cable industry.

If Tim Cook pulled off such a move, despite many saying only Steve could do it, I can only imagine how many heads would explode

[Lancer]

I just want to know WHERE IS MY new iMac?

Ordered it Dec 1st, top line 27" with upgrades and 8 weeks later NOTHING!

[maxosx]

I like Tim, but his refrain "Pipeline is Chock Full" better be true.

Googles got the X phone that's sounding better by the day. Samsung has a plethora of new models about ready, so Apple better get with it.

[Macman45]

Originally Posted by Squilly

We're working on some incredible stuff. The pipeline is chock full. We feel great about what we've got in store.


"Incredible"

Not really....More products = more revenue....I'm sure that this years WWDC is going to present us with all kinds of different iPhones / iPads / ipad mini's etc. etc. Flash the cash.

Not interested in revenue?

Yeah

Right

[The Phazer]

Originally Posted by maxosx

I like Tim, but his refrain "Pipeline is Chock Full" better be true.

And yet iOS is stagnating.

[PlatinuM195]

What I don't understand is, should Apple be listening to so-called market demand for ideas on where to proceed (bigger screens etc.)?

Were the iPhone and iOS a culmination of ideas that people wanted? From what I remember, if Apple had listened to the market they would have made some on-screen click wheel UI.

[bigpics]

Originally Posted by -jc

He said revenue, not profit.

And what he says is right - Apple could make a ton more revenue / market share (but not profit) if they were as willing as other companies to forego good products and just produce as many different things as they could.

There's always temptation for a company with a hard-won reputation for quality products to go after the low-hanging fruit by badging a bunch of whatever products people buy because of the nameplate. Some of it is products still at high prices, but which don't really meet the standards for usefulness their best ones do and so would've been better unreleased. Another is to go downmarket and sell cheap versions of existing lines.

Investors and others put pressure for "growth, growth, growth," and within companies ambitious people want to expand their divisions to advance their own interests.

I remember the steep erosion in the aura of quality that used to surround Sony when they began selling "value-priced" audio and video gear, e.g., $10 ear buds with cables that would break in a week. Real junk that depreciated their brand image, and therefore the value of the brand itself.

Both have worked to restore the prestige of their brands in specific categories, e.g., both have highly-rated cameras these days. But neither badge truly evokes the sense of something special across the board they had before they sold out.

The worst thing Apple could do is enter "a race to the bottom of the barrel," however profitable it might be in the short run.

All their strategic efforts are best aimed out continually inventing new products "people never knew they needed" until they were unveiled at a keynote....

[irnchriz]

We would be right to worry if there had been no manufacturing issues with the iMacs (you couldn't get one for weeks, and even now its restricted supply) and if they had sold less iPhones/iPads.

Profit down? Of course, to expect any company to continue to operate as if it is outside of the current downturn in world trade would be fanciful. It is staggering that Apple has managed to do as much business as it has over the last 18 months without taking a huge hit to its profits. All this goes to show is that Apple are not bulletproof and to have thought otherwise is to kid yourself.

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Originally Posted by The Phazer

And yet iOS is stagnating.

Seeing as it doesn't seem to bother the increasing millions of buyers each quarter that would seem a mute point.

[GermanyChris]

What else is super duper supposed to say..

"Ok guy's we're out of ideas"

[I WAS the one]

The most important thing to Apple is to make the best products in the world. We aren't interested in revenue for revenue's sake. We could put the Apple brand on a lot of things and sell a lot more stuff. We only want to make the best products. We've been able to build market share and have a great track record with iPod of doing different products at different price points. I wouldn't view those as mutually exclusive as some might. We're focused on making great products that enrich lives.

That's the Apple I love. I really Hope This is as Real as it was for Steve Jobs.

[Nightarchaon]

i would say the "Halo" effect is dropping like a lead balloon,

The iPhone was the first "modern apple" device i bought, this lead to a macbook pro, an Apple TV, iMac and Time Capsule..and then an iPhone 3G and 3Gs, and iPad.

However, this is where the "Halo" ended, i have since moved to an Android phone, because the iPhones are just not providing me with the battery life i need to last a day away from a charger, my next desktop upgrade will be a PC (using my Existing iMac as a thunderbolt display) Because the current sealed iMacs prevent HDD maintenance without the use of a heat gun and are now too risky to open, and my next tablet/laptop is going to be a Microsoft Surface "pro" on which i can run iTunes and all my windows apps, such as full office etc, making the Macbook and iPad obsolete.

Halo effect ? Tim your Halo is tarnishing quicker than you think

oh and "Pipeline is Chock Full" means we are tweaking iOS a bit, changing a few fonts slightly, and calling them new "features"

[hackjo]

Originally Posted by mrsir2009

+1. The whole point of a company is to make profit

Wrong. The point of a company is to create something of value for customers in exchange for money. Making profit is a result of getting that right.

Tim is absolutely right to assert that it is about making the best products as that is the purpose of the company. The profit is the result they want to obtain from doing that right.

[Nightarchaon]

Originally Posted by hackjo

Wrong. The point of a company is to create something of value for customers in exchange for money. Making profit is a result of getting that right.

Tim is absolutely right to assert that it is about making the best products as that is the purpose of the company. The profit is the result they want to obtain from doing that right.

Apple, like all other companies, wants to make the cheapest possible product, and sell it to you for the greatest profit, what, however, apple has managed to do is invest in a pretty shell for its products that add a perceived value to the consumer, the components are still the same components you get in your Dells or HPs or Samsungs or Acers , but they are in a case that makes them LOOK well built.

Net result, Apple can charge a LOT more and sell you the same goods you can buy elsewhere, cheaper, because you want to own the shiny shell.

Apple gets a LOT more profit per unit, still selling the same innards as its competitors.

Kudos for apple for playing the system well.

[SeanR1]

Deleted, never mind.

[phillipduran]

Originally Posted by mrsir2009

+1. The whole point of a company is to make profit

You're projecting your views towards others and assuming they think how you think. Your comment only tells us about you, not about Apple.

While they will make money on the product lines they choose to develop, the goal is not to make money, but to make a good product. This shows in the quality of the products they produce. How is it that you don't see that? All you need to do is go pick up some Android phones and you will see the difference between a company that is profit focused and one that is quality focused. You will see the same thing in the entire Apple product line. Compare them to the competition and you'll see who is focused on making YOU a good product.

Profit focused companies don't use the kind of packaging that Apple uses. Profit focused companies don't use the quality of components that Apple uses. Just look at the quality of your iPhone charger compared to other cheap chargers. They could get by with less but choose not to. Why would they do that?

[Nunyabinez]

Originally Posted by Nightarchaon

Apple, like all other companies, wants to make the cheapest possible product, and sell it to you for the greatest profit, what, however, apple has managed to do is invest in a pretty shell for its products that add a perceived value to the consumer, the components are still the same components you get in your Dells or HPs or Samsungs or Acers , but they are in a case that makes them LOOK well built.

Net result, Apple can charge a LOT more and sell you the same goods you can buy elsewhere, cheaper, because you want to own the shiny shell.

Apple gets a LOT more profit per unit, still selling the same innards as its competitors.

Kudos for apple for playing the system well.

I have a 2008 MBP that is still going strong while my wife's Dell and my daughter's ACER have both long ago taken a dump. And you are incorrect that it's the same components as other computers. They may source from some of the same companies (Intel, Qulacom, etc.) but if you really think that the internal build quality of a Mac is the same as other PC vendors, then you clearly have never actually owned a Mac.

[r00b3n]

Apple has always tried to dictate to everyone what they wanted and needed. They started the consumer device revolution, but now it seem people really want and need what they want and need and not what Apple tells them. Cook at least seems at little more flexible than Jobs was, I hope he continues to listen to people. There has to be a balance. I hope that Apple will finally release a desktop mini tower system for instance. Make it expandable and make it affordable and you will sell millions of them.

[sexiewasd]

I love how everyone obsesses over what Apple is doing with their hardware, and what they think Apple needs to do with their hardware. The hardware is under control. There is nothing that Apple needs to do that can't be done, and is probably already planned for in the near future. The software, both iOS and OS X are both in the midst of quite large changes with a great push behind iCloud and match. That is exactly what Apple needs to do, and it also happens to be what they are doing. The only other really big thing that needs changing is a restructuring of the iTunes content distribution system. They need a subscription based service to compete against other services like Pandora and Netflix because at this moment iTunes is not price competitive. Amazon just announced free digital downloads of physical music purchases. That is a huge threat to Apple's grasp on your content library. All that Apple needs to do to remain the market leader is to polish up the Apple TV and announce iTunes content subscriptions, That also happens to be the hardest thing for Apple to pull off right now, because in order for Apple to near match Netflix on price and beat them on content availability they need to have the media industry by the short and curlies. It's going to be a slow and very carefully played game to position themselves to a place where they can put enough pressure on the industry to break it's current death grip on content distribution, but I think if you watch close enough you will start to see Apple make the right plays.

[flux73]

Originally Posted by The Phazer

And yet iOS is stagnating.

Are you saying the user base isn't growing?

[Nightarchaon]

Originally Posted by Nunyabinez

I have a 2008 MBP that is still going strong while my wife's Dell and my daughter's ACER have both long ago taken a dump. And you are incorrect that it's the same components as other computers. They may source from some of the same companies (Intel, Qulacom, etc.) but if you really think that the internal build quality of a Mac is the same as other PC vendors, then you clearly have never actually owned a Mac.

if you think that a macs build quality is superior, then you need your head examined, its made from the same parts, sourced at the same locations as everyone else, this is why when a problem hits, say, vGPU , it effects everyone using that component, apple included, or capacitors like in the PSU on the 1st ten timecapsules. Or the HDD recall because other than custom firmware and connection the HDD is still the same as everyone else buys, Apple is using the same parts to build the insides of the MBP (my 2008 is still going strong too, after it went in for a GPU fix), i have since replaced the PSU which failed, the HDD which failed, and the DVD drive i replaced with a HDD because it also failed, but i never use it anyway so more storage space was a bonus.

you should check iFixits tear downs, and look at the component listing, its all off the shelf stuff you can find in everyone else systems,

[Bwinski]

Tim Cook on Defending Marketshare, Product Pipeline ‘Chock Full’,. Apple TV Growth.

Stockholders say - PROVE IT.