Tim Cook on iPhone XS: People Want the Most Innovative Phone Possible and 'It's Not Cheap to Do That'

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In an interview with Good Morning America's Robin Roberts this morning, Apple CEO Tim Cook discussed the new iPhone XS, XS Max, Apple Watch, and the recent exemption of some Apple's products from President Trump's proposed tariff on Chinese goods.


Roberts asked Cook about the cost of the iPhone XS and iPhone XS Max line, the latter of which is Apple's most expensive iPhone to date at $1,449 for the 512GB model. Cook explained that monthly payment plans provided by carriers help make the cost of the iPhones easier to digest.

He pointed out that all of the technology included in the iPhone, replacing previous separate gadgets like MP3 players and digital cameras, requires each smartphone to be priced at a premium. Cook also mentioned Apple's aim to "serve everyone," which he mentioned in an interview last week.
Roberts: "One model starts at almost $1,100, are you afraid that a group of people are being priced out?"

Cook: "Well we want to make an iPhone for everyone, that's always been our objective and we've got several iPhones in the line and they go down to materially lower. But if you look at this phone, it's the most advanced iPhone we've ever done.

The way most people pay for these...they do a deal with a carrier and they pay so much per month, so if you look at even the phone that's priced over $1,000, most people pay $30 a month for it, so that's about $1 a day. And so if you look at it, the phone has replaced your digital camera...it's replaced your video camera, it's replaced your music player, it's replaced all of these different devices. And so arguably the product is really important and we found people want to have the most innovative product available, and...it's not cheap to do that."
Cook then discussed the tariff situation, explaining that while the iPhone is assembled in China, parts of the device come from all over the world, including the United States.
The iPhone is assembled in China, but the parts come from everywhere. Including the United States, you know, the glass comes from Kentucky, there are chips that come from the U.S., and of course the research and development is all done in the United States.

So, I don't want to speak for them, but I think they looked at this and said that it's not really great for the United States to put a tariff on those type of products.
In regards to potential blowback from the Chinese government on this tariff exemption, and how this could impact consumers, Cook says he's optimistic that the U.S. and China will sort the situation out.

FULL INTERVIEW: @RobinRoberts is with @tim_cook to talk about the brand new iPhone and Apple Watch--plus they love the new Memoji feature. https://t.co/0wZJnpowI9 pic.twitter.com/BpDyoANSES - Good Morning America (@GMA) September 18, 2018
The topic then moved onto the company's record trillion dollar valuation, which it hit in early August, making it the world's only trillion dollar publicly traded company in terms of market capitalization. Cook says that, from his point of view, Apple "could only have been created in America," and as such he and his executives feel a responsibility to help the country thrive, including creating jobs and encouraging coding in public schools.
"And so we do that in terms of creating jobs, we've created 2 million jobs in America. We want to create even more, we're investing $350 billion in the country over the next five years and we're starting up facilities in a number of different places. We're really proud of that contribution, but we want to do more.
You can visit Good Morning America's Twitter account to watch the full interview, which also includes a discussion of the iPhone XS camera, Memoji, the Apple Watch Series 4's ECG monitor, fall detection, and more.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Tim Cook on iPhone XS: People Want the Most Innovative Phone Possible and 'It's Not Cheap to Do That'
 
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0008652

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Feb 23, 2010
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The world doesn’t only revolve around the U.S., I don’t have a 30$ monthly deal with my carrier nor do I get the iPhone upgrade program.

I would also love to hear his reasoning behind the inflated pricing in Europe. Even if I add a 20% tax on the dollar prices, the difference is noticeable.

Moreover, even though I could buy it I simply won’t. I cannot connect it to a screen and keyboard/mouse and magically have a Mac. It is still a phone with an ok camera (compared to a compact camera) that softens the details way too much.
 

78Bandit

macrumors 6502a
Jun 13, 2009
659
1,188
Here is a view of Apple by Seth Godin from his article about three types of companies. One focusing on profit, one focusing on difficulty, and one focusing on important. Guess which one Apple is?

"Apple became the first company to be worth a trillion dollars. They did that by spending five years single-mindedly focusing on doing profitable work. They’ve consistently pushed themselves toward high margin luxury goods and avoided just about everything else. Belying their first two decades, when they focused on breakthrough work that was difficult and perhaps important, nothing they’ve done recently has been either. Tim Cook made a promise to the shareholders and he kept it."
 

KJL3000

macrumors 6502
Oct 13, 2010
312
671
Is Tim actually explaining the higher prices today with built-in gadgets like camera and music player (without headphone jack, btw)?? This was a valid argument 10 years ago. Now it’s obviously a very lame excuse for justifying insane prices.

LOL
 
Last edited:

Nozuka

macrumors 68020
Jul 3, 2012
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The way most people pay for these...they do a deal with a carrier and they pay so much per month, so if you look at even the phone that's priced over $1,000, most people pay $30 a month for it, so that's about $1 a day. And so if you look at it, the phone has replaced your digital camera...it's replaced your video camera, it's replaced your music player, it's replaced all of these different devices. And so arguably the product is really important and we found people want to have the most innovative product available, and...it's not cheap to do that.

I knew that was their reasoning behind increasing the price... now he just confirmed it.
These payment plans are the only reason apple is able to charge prices like that and still sell many phones.
 

tkermit

macrumors 68040
Feb 20, 2004
3,450
2,490
And so if you look at it, the phone has replaced your digital camera...it's replaced your video camera, it's replaced your music player, it's replaced all of these different devices. And so arguably the product is really important and we found people want to have the most innovative product available, and...it's not cheap to do that
You could do all of that 10 years ago already, when iPhones were generally much cheaper. As far as I can see, there's no mention of the innovation that would justify the recent price increase.
 

Brenster

macrumors 6502a
Jul 7, 2008
643
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Given that less people are on the yearly or every other year upgrade cycle now, I can understand the price and capability of a new highest end iPhone is priced as it is.

Would I like it to be cheaper? Sure. Is it going to be? No. Are there cheaper iphones? Yes, from the Xr down to the now entry level 7.

Related but not the same: my Mother’a old hand-me-down 2007 era MacBook finally gave up the ghost last year. She asked to the price of a cheap MacBook. £899.

Complaining bitterly she went down to PC World and bought a HP stream 11 as ‘it will be good enough for what I need it for’. Cue several weeks of bitter complaining about UI differences from her old Mac, performance, keyboard and trackpad deficiencies.

She bought a new MacBook Air not long after. And she’s now happy that she can do what she wants to do without issues.

TL,DR: if you want the BMW experience, pay the BMW ticket price.

Not to mention that if even the iPhone 7 entry model is too expensive, there’s a healthy second hand market for iPhones (at least in the U.K. via CEX etc)
 

obiwan

macrumors 6502
Jun 7, 2004
351
876
I can't see how Apple's aim to 'serve everyone' has been fulfilled. I need a headphone jack, a phone I can fit in my pocket, touch ID, and one that is kinder to my wallet. You are not serving my needs as an Apple customer. You just killed that phone off, and replaced last years premium model at a more expensive price. That's not exactly 'serving everyone' then, is it?
 
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