Tim Cook Says Apple Products 'Change the World' and Aren't Priced Just 'For the Rich'

[deany]

To be fair Tim, most non-rich people (what ever that is) own a new iPhone via a monthly plan with cell companies, or scrimp and save up.
My understanding after credit check the iPhone only becomes owned by the buyer on last payment.
For £45 approx over 24 months many many folks would not be able to afford iPhone otherwise.

Ironically enough if you lived in Europe or USA and wanted the new Xiaomi Mi Mix 2 you'd have to pay cash as monthly instalments with cell company not available.
So Xiaomi owners are "the rich"!!

 

[Hexley]

When Apple releases an iPhone for $50 then I will believe him.

But Apple's strategy of selling to the top 1 billion consumers rather than servicing the bottom 6.5 billion consumer only makes good business sense

 

[Wowereit]

Well it's not high margin. I wouldn't use that word. There's a lot of companies that have much higher margins.

Maybe it's not compared to entirely different industries.
Compared to the direct competition Apple's margins are astronomically high.

There is nothing wrong about this. People can decide if they want to buy their products for a given price or not.
But directly lying to their faces about it?

 

[Mr. Dee]

When you live a certain life as Tim and Phil, your lifestyle and wealth becomes distorted. This does not only apply to someone like Kim Khardashian or Ivanka Trump or Bill Gates. I for instance, don't know what its like to live on $1 per day, but thats the life for many in impoverished nations around the world. When I pay $6 for a burger for lunch, that is sometimes a persons monthly income somewhere else: Cuba, Venezuela, parts of Africa or the Middle East.

Tim Cook is basically out of touch because he doesn't understand or never understood what the sacrifices are to purchase an iPhone for many. This guy who has been exceptionally successful most of his adult life, worked at IBM, Compaq and Apple.

So, $1000 to Tim Cook is like $100 dollars to you and me. Its a negligible purchase in some cases. I have the funds to buy the iPhone X right now, but the point is, I don't think its right for me to spend that money just because its innovative.

That said, if you can afford it and want it, it shouldn't be a guilty pleasure either.

 

[drewyboy]

Old out of touch Timmy. You've been in your SV bubble for too long.

 

[Kaibelf]

Why does Apple always make stupid statements like this when their ridiculous prices are questioned? Phil responded with something along the lines of we're paying for the experience, not the product. Whatever that means.

Why are the prices ridiculous? They price it at the most they can that the market will bear for maximum demand and sell-through. Any for-profit company has that same goal. It would be ridiculous if they weren't able to sell bajillions of units at the prices they ask.

As for the experience, it's no different than going to a concert, movie, or football game. Are you playing the instruments? Are you in the game? Nah, you're just paying what many would consider a ridiculous price to watch someone else do something for a couple hours. But to THOSE consumers, there's value, and for Apple's customers, there's value in the iOS and MacOS experience.

 

[crescentmoon]

Really Tim.... you think that 1000.00 for an iphone is within everybody's reach....

 

[840quadra]

Pricing is tough to call anything but mid to high end consumer. That being said, my gateway into modern Apple products came in the form of 2nd hand devices for the first few years. What is nice is their licensing model for software even on older equipment.

 

[Kaibelf]

Old out of touch Timmy. You've been in your SV bubble for too long.

Yeah Apple's collapsing and on the verge of bankruptcy because he's not catering to the Dollar General crowd.

 

[UL2RA]

Such a stupid statement. Is it wrong for Apple to have customer segmentation? Every businesses in the world do that.
And what's with people complaining about a $1k iPhone? In many countries, some iPhone configs are that expensive already (due to import duties, etc). And the starting price of iPhone 8 will still be $649. If you have to go in debt just to buy a phone, then you have a different set of issues of your own, not Apple's fault.

Cue in the people complaining how expensive 99c a month of iCloud is.

Yes in some countries it's already that price. And now that price will be even higher, so that's not really an argument.

 

[justperry]

Huge price hikes for MacBook Pros, an iPhone that exceeds $1k ( rumoured ), iPads getting more expensive.

Apple could reduce their margins by 25% and still make a lot of profit on each unit.

They could, there's one problem is though, would the shareholders agree!

 

[Kaibelf]

Really Tim.... you think that 1000.00 for an iphone is within everybody's reach....

Really Crescentmoon.... you think that 1000.00 is the only price point for all the Apple phone options....

It's like complaining that Ford makes a cheap set of cars, but the top end ones cost more, and therefore they should ALL be one cheap price despite any and all variations because some people who can't afford the top end models have hurt feelings that they have to buy something cheaper.

 

[UL2RA]

Why are the prices ridiculous? They price it at the most they can that the market will bear for maximum demand and sell-through. Any for-profit company has that same goal. It would be ridiculous if they weren't able to sell bajillions of units at the prices they ask.

As for the experience, it's no different than going to a concert, movie, or football game. Are you playing the instruments? Are you in the game? Nah, you're just paying what many would consider a ridiculous price to watch someone else do something for a couple hours. But to THOSE consumers, there's value, and for Apple's customers, there's value in the iOS and MacOS experience.

There's nothing complicated about this. They're price gouging to see how much they can get away with. It might be a good idea to pick a better thing to defend than price gouging.

 

[arkitect]

Tim Cook Says Apple Products 'Change the World' and Aren't Priced Just 'For the Rich'

1. Yes, their iPod and iPhone changed the world.

2. But increasingly Apple products are getting to be "for the rich" or at least the very well off.

Nothing wrong with that, but denying it is a bit "rich", pardon the pun.

 

[drewyboy]

Yeah Apple's collapsing and on the verge of bankruptcy because he's not catering to the Dollar General crowd.

Never said anything of the sort. Apparently you didn't even read the title.

Tim Cook Says Apple Products 'Change the World' and Aren't Priced Just 'For the Rich'

That last part is just a flat out lie. No question about it.

 

[MH01]

Also announces a cheaper 8 and 8 Plus!

I suspect the iphone 8 and 8 plus will be the same price as today, and the X higher.

There will be no price cuts.

 

[Brian Clifford]

I am slowly warming to Tim Cook as he clearly has so many qualities on a Human level. But, these kind of corporate perspective suggestions he has to make from time to time I really do find dislikeable. But, that's part of his position in the Company, I suppose.

 

[Michaelgtrusa]

Many products are for the rich.

 

[Kaibelf]

There's nothing complicated about this. They're price gouging to see how much they can get away with. It might be a good idea to pick a better thing to defend than price gouging.

Price gouging is when you radically raise prices on something to take advantage of a situation like a natural disaster, famine, etc. No one owes you or anyone else a top of the line SMARTPHONE. If you can't afford something, buy something you can afford. If you choose to use credit on something you can't afford in cash, then live with your decision, like all adults. Apple doesn't owe you, me, or anyone else a $30 phone.

 

[zombierunner]

and here's iPhone X starting at £1000.

 

[Dave245]

When you live a certain life as Tim and Phil, your lifestyle and wealth becomes distorted. This does not only apply to someone like Kim Khardashian or Ivanka Trump or Bill Gates. I for instance, don't know what its like to live on $1 per day, but thats the life for many in impoverished nations around the world. When I pay $6 for a burger for lunch, that is sometimes a persons monthly income somewhere else: Cuba, Venezuela, parts of Africa or the Middle East.

Tim Cook is basically out of touch because he doesn't understand or never understood what the sacrifices are to purchase an iPhone for many. This guy who has been exceptionally successful most of his adult life, worked at IBM, Compaq and Apple.

So, $1000 to Tim Cook is like $100 dollars to you and me. Its a negligible purchase in some cases. I have the funds to buy the iPhone X right now, but the point is, I don't think its right for me to spend that money just because its innovative.

That said, if you can afford it and want it, it shouldn't be a guilty pleasure either.

You have to be exaggerating about people living on £1 a day. I get your sentiment tho but Tim Cook actually comes from a modest back ground and not a rich one. When you think about it Apple products really aren't that expensive for example spending a couple of grand on a Mac that will last you many years doesn't work out that much really, the next iPhone will be accompanied by the iPhone X but don't forget that there will be a cheaper 8 and 8 Plus.

 

[deany]

and here's iPhone X starting at £1000.

Yes and £380 or 38% is pure profit thank you very much.

 

[MH01]

Really Crescentmoon.... you think that 1000.00 is the only price point for all the Apple phone options....

It's like complaining that Ford makes a cheap set of cars, but the top end ones cost more, and therefore they should ALL be one cheap price despite any and all variations because some people who can't afford the top end models have hurt feelings that they have to buy something cheaper.

Ford does make cheap models, Apple does not. Poor analogy.

Its like someone explaining that they had to hit rock bottom and buy a BMW......a poor mans car.......

 

[cardfan]

One could say carrier plans are for the rich as well. Many go paycheck to paycheck struggling to pay for these things while piling up debt. I've learned to just laugh at these kind of people. You can't help the stupid. As a CPA, these are the ones I have to send to H&R block as my clients have to meet certain criteria.

 

[kingalexthe1st]

Can everyone please stop referring to the Western World as 'The World'. Apple haven't changed Saudi Arabia, Sudan, Antarctica or a whole host of other countries.