Apple CEO Tim Cook 'The Smartphone Market is Very Healthy'

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Jul 31, 2018.

  1. MacRumors macrumors bot

    MacRumors

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    During today's earnings call covering the third fiscal quarter of 2018, Apple CEO Tim Cook was questioned about the health of the smartphone market and the impact the company's choice to offer low-cost battery replacements might have on replacement cycles.

    In response, Cook said that he believes the smartphone market is "very healthy. "It's the best market to be in for someone in the business that we're in," said Cook. "Whether it grows one percent or two percent or five percent or six percent or 10 percent or shrinks one or two percent, it's a great market because it's just huge."

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    iPhone revenue, Cook pointed out, was up 20 percent during the quarter compared to the third quarter of 2017, and Apple has seen mid-single digit growth averages on a weekly sales basis and double-digit growth on an ASP basis. Apple sold a total of 41.3 million iPhones during the quarter, bringing in revenue of nearly $30 billion. The iPhone X continued to be the most popular iPhone during the quarter.

    Cook said that he does believe replacement cycles are lengthening, and he says the "major catalyst" for that has been the fact that subsidized plans have become a much smaller percentage of total sales around the world. Apple's goal is to make great products to encourage customers to purchase new devices.
    In a separate response given to a question about Apple's focus on the home, Cook shared additional comments about the importance of smartphones. "The smartphone has become the repository that goes across the whole of your life, not something meant for a portion of it," he said. He went on to explain that Apple is focused on a number of areas with its product lineup -- home, work, the time between, health, and more. "We're focused on all of those things."

    In terms of the battery replacement program that has seen Apple offering $29 iPhone battery replacements since the beginning of the year, Cook reiterated a statement he made back in February during an earlier earnings call. Apple, he said, has never done an internal analysis on how many people bought a battery compared to purchasing a new phone because it wasn't a factor in the decision.

    "It was never about that for us," said Cook. "It was about doing something great for the user. Treat users and customers well and you have a good business over time. That's how we look at that."

    Article Link: Apple CEO Tim Cook 'The Smartphone Market is Very Healthy'
     
  2. Superhappytree macrumors 6502a

    Superhappytree

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    ..... for now. Can’t rely on that money train forever Timmy. We’ll see if Apple really is still innovative in the future.
     
  3. KJL3000, Jul 31, 2018
    Last edited: Jul 31, 2018

    KJL3000 macrumors 6502

    KJL3000

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    Sorry, Tim, but all Apple is doing right now is relying mostly on their success before Steve was gone. The iPhone X is a good phone, but it’s not a revolution. It’s an iPhone. At a ridiculous price point. The Mac has almost been forgotten, the MacBook Pro for example has lost many features like MagSafe, indicator light, mostly all ports and everything is soldered and glued together... why? What is the benefit for the user? I don’t get it. Removing features is not an improvement just by doing so! Also the price is a joke. The touch bar is a nice gimmick, but it’s not optional so I have to buy this piece of emoji display ****. The keyboard... worst typing on an Apple keyboard, ever. The HomePod is an overpriced speaker with a very sad Siri that still feels like in beta and the price is a joke, again. I could go on and on, but the point is: Apple is still earning the fruits of their success from the past, but it won’t last forever. There is nothing innovative anymore, just minor upgrades at premium prices. Correct me if I’m wrong, but to me, Apple is going down, in all it’s shiny glory. Money won’t rescue them.
     
  4. blacktape242 macrumors 68000

    blacktape242

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    its easy to predict what the new phones are going to be this year thats for sure. at some point you will have to do something groundbreaking.
     
  5. MattMJB0188 macrumors 68000

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    Smartphones need to die. How is it everyone and their mother has one? All these things have done is make people more lazy and stupid by and enabled so many car accidents.
     
  6. Superhappytree macrumors 6502a

    Superhappytree

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    I agree with you that smartphones can be bad (overuse being the main culprit), but you’re kind of preaching to the wrong choir here.
     
  7. entropyfl macrumors regular

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    My phone replacement cycles are lengthening mainly because the newer models have gotten so expensive and it feels wasteful to upgrade for the sake of upgrading.

    I'm currently on a iPhone 6s plus 128 gig and it works fine. sure the camera isn't as good as the latest models but it does everything else well.
     
  8. catportal macrumors regular

    catportal

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    What do you want him to say? Cellphones are done, apple is finished?
     
  9. TimmeyCook Suspended

    TimmeyCook

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    #9
    Just because Samsung just confirmed that the S9 was a flop, doesn't mean the whole industry is bad.

    Samsung apologists are desperate and that shows.

    It's not only Apple demonstrating that, other brands are all growing well, Huawei, Xiaomi, Vivo/OnePlus, etc. in fact, they are demonstrating it even better.
     
  10. FFR macrumors 68040

    FFR

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    I knew it.

    Some many posters claimed iPhone sales are mostly subsidized. Guess they were wrong consumers are paying full price for the iPhone.
     
  11. TimmeyCook Suspended

    TimmeyCook

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    I agree, cars should be banned so we don't ever get car accidents.

    Choo-choo it's train time again!
     
  12. thadoggfather, Jul 31, 2018
    Last edited: Jul 31, 2018

    thadoggfather macrumors G4

    thadoggfather

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    Water is wet too

    Tim ‘isn’t proud’ of the smartphone zombie phenomenon effect on society, but yet, the smartphone *market* itself is very healthy

    Go figure :p
     
  13. RedGala macrumors regular

    RedGala

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    Dude it's been 7 years since Steve Jobs died. Give everyone a break.
     
  14. Superhappytree, Jul 31, 2018
    Last edited: Jul 31, 2018

    Superhappytree macrumors 6502a

    Superhappytree

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    Exactly. It’s been 7 years. Give everyone a break? I didn’t even mention Steve’s name. But if you want me to go there look at the last 7 years of Steve’s life from 2004-2011:

    - iPod Classic, iPod Nano, iPhone, MacBook Air, Unibody MacBook Pro’s, iPad, Siri, iCloud

    Now Tim Cook’s 7 years at Apple (only counting new product categories/services for both here or redesigned products that feel completely new):

    - Apple Watch, AirPods, redesigned MacBook, HomePod, Apple Music...

    I think I know who had the real innovation of the two.
     
  15. B4U macrumors 68000

    B4U

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    The market may be healthy, but what about its users?
     
  16. MattMJB0188 macrumors 68000

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    NO, just the idiots that drive them.
     
  17. femike macrumors 6502

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    Sadly so much for the macs then. I guess they will still be needed to make iPhone/iPad apps.
     
  18. Sasparilla macrumors 65816

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  19. Williesleg macrumors regular

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    The Apple board really has to fire the Cook.
    Imagine making all that cash like Timmy does with no results, just coasting...such a shame.
     
  20. Squeak825 macrumors 6502

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    That is the best sarcastic response I have seen on here in a while.
     
  21. ghostface147 macrumors 68030

    ghostface147

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    #21
    Like what?
     
  22. Michael Goff macrumors G5

    Michael Goff

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    It always works well when you bet against Apple...
     
  23. Elwe macrumors regular

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    This is not negative . . . this is great for you (you spend less money) and for the environment (making electronics has an environmental impact). While it may not be as great for Apple, it is still pretty good (growing services revenue).

    For those of us who do want to upgrade, we do see meaningful feature upgrades and are willing/able to pay the price. So it is great for us.

    I see nothing negative here.
     
  24. threesixty360 macrumors 6502

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    #24
    The thing is Apple know they can’t compete on price so they push for higher margins and differentiation. People laughed at 1000 dollar iPhone but it worked. Having the iPhone 8 there actually just tips people over the edge into the X price territory. Another hundred dollars or so and you get the best they have to offer. Apple is learning well from the fashion game.

    The thing is that the android phone market is about to become a blood bath. The best phone in the android space sells at roughly half the price of the iPhone X. That’s only going to get lower as android companies battle over what little margin is left. How does Samsung go toe to toe with Apples iPhone X at the 900-1000 dollar price when pixel and one plus are selling at 500?

    It’s going to be a blood bath as that war heats up. I’m not sure samsungs phone business is going to survive this one. Most of their margins must have been made from their flagship phone.
     
  25. vipergts2207 macrumors 68000

    vipergts2207

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    #25
    Yup. I’ve upgraded every 2 years since my 3GS. If Apple insists on $1000+ flagship phones, I’ll go to a 3 year upgrade cycle with a battery replacement at year 1.5. That price is unreasonable for every two years. They’ll net less money that way too.
     

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