After facing criticism over higher-than-expected pricing of the new iPhone 5C, Apple CEO Tim Cook has defended the company’s strategy, saying there’s plenty of room to grow and retain its profits in the high-end handset market. Following the introduction of the company’s mid-range iPhone 5C and flagship iPhone 5S, Cook was joined by Apple Design Chief, Jony Ive and Head of Software, Craig Federighi in speaking with Bloomberg for its latest cover story. The three executives exude confidence in the interview with Cook saying that his company’s share price doesn’t affect his mood.
Cook noted that the trend toward cheaper electronics isn’t a new one, having occurred previously with VCRs, DVD players, cameras and even PCs. Now it seems to be occurring again with tablets and smartphones with Cook saying he doesn’t feel compelled to take Apple down that same path. He mentioned the following regarding the topic:
There's always a large junk part of the market. We're not in the junk business.
Fortunately, both of these markets are so big, and there's so many people that care and want a great experience from their phone or tablet, that Apple can have a really good business.
In his response, Cook said his company never had any interest in selling a low-cost iPhone. Instead, he said the purpose of the iPhone 5C was to offer a “great phone and provide a great experience” at a lower cost than the flagship iPhone 5S.
Both Federighi and Ive who were also featured in the exclusive Bloomberg interview revealed that their desks at Apple are a one-minute walk away from one another. Both executives were assigned larger roles in the company last year as part of a corporate shakeup that was designed to increase collaboration among the company’s different departments. Ive stressed how Apple spends a great deal of time focusing on the smallest of details, which is something that consumers end up appreciating when they purchase a premium product, rather than cheap alternative. According to Ive:
I do think that we sense when somebody has cared. And one thing that is incontrovertible is how much we've cared.