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More from Tim Cook: Asked about selling a cheaper iPhone, Cook asserts Apple (AAPL -0.9%)...

More from Tim Cook: Asked about selling a cheaper iPhone, Cook asserts Apple (AAPL -0.9%) wouldn't release anything it doesn't consider a "great product." Asked about a bigger iPhone, he argues many features matter besides display size. But he didn't seem to rule one out either, stating Apple won't comment on future products rather than dismissing the concept. Cook's criticism of OLED brightness and color saturation has led Universal Display (PANL -4.9%) to spike lower. (live blog)
Comments (34)
  • Apple will not disclose any new information to anybody. That is in their DNA. So what is Tim Cook is saying is already public information.
    12 Feb 2013, 11:19 AM Reply Like
  • Actually, I listed to the conference, and disagree with this assessment - although most media outlets are reporting his comments similarly.


    When Cook was asked about cheaper iPhones, he made 2 seemingly contradictory comparisons. He talked about AAPL's attempt to make a cheap Mac; he said they ultimately decided it was not possible without turning out a crappy product and degrading the Mac line. He also talked about how the iPod was originally $100s of dollars, and now you can get one for $49 - all while NOT compromising their standards.


    Overall, I think he was illustrating that AAPL will do what it can to make cheaper products as long as they can do it without degrading the AAPL sense of product quality and standards. I think with the comp to the iPod line he most certainly did NOT rule out a cheap iPhone, just set it up as a slow evolution where the line of offerings changes over time and broadens.
    12 Feb 2013, 11:36 AM Reply Like
  • What Cook was saying about the cheaper iPod was that they changed the product so it was actually better when used in certain situations instead of trying to just make a cheaper version of their premium product. They did this with the iPod nano where people could by that version for $49 and also buy the iPod Touch for $300. He said the iPad was their "cheaper Mac". It didn't compromise the experience (and, my words, their margins). So my guess is they are working on a cheaper iPhone but it won't look like the current one. Maybe it will be the iWatch?
    12 Feb 2013, 01:19 PM Reply Like
  • Another thing that is being mis-represented in some of the press:


    Cook called Einhorn's LAWSUIT a silly sideshow. Basically commenting that whether they issue preferred shares or not is not at issue in the suit. He noted that they would go to shareholders if they ever wanted to issue such shares (and as such leaving exclusive control with the board is moot). He indicating the are carefully considering how to return cash to shareholders.


    For some reason, I just read an article on another website indicating the Cook called Einhorn's whole plan a "silly sideshow" which was not implied by the phrasing of his comments. He actually commented that Einhorn's plan was "creative" or "clever" (I can't remember which).
    12 Feb 2013, 11:41 AM Reply Like
  • I give up. All news- and non-events- interpreted as bad. This is all about style- Tim Cook's- and not substance.
    12 Feb 2013, 12:11 PM Reply Like
  • I would not worry too much. There were lot of speculators in Apple stock. Almost everybody got drown. Few lefts. I can see nothing but high from this point.
    12 Feb 2013, 12:13 PM Reply Like
  • I don't think it was so much his style but the Apple policy of controlling when new product information is given out. I think that should change. The world is demanding some statement about their direction even if it is sketchy. The stock went down because Cook wouldn't commit to a cheaper iPhone or larger one.
    12 Feb 2013, 01:14 PM Reply Like
  • In the past Apple went down several times when Steve Job was there. But Apple never commented because of that. This stock will be in $1000 with no time.
    12 Feb 2013, 02:09 PM Reply Like
  • I see apple just acquired an oled engineer away from lg
    12 Feb 2013, 12:15 PM Reply Like
  • donw by $9 now while the market is up, thank you iCook
    12 Feb 2013, 12:22 PM Reply Like
  • Compared to many of his peers, the guy is a really poor communicator.
    12 Feb 2013, 01:56 PM Reply Like
  • TC doesn't have the big pump up of Benioff and that is refreshing..the statement he made about innovation at all time high is a great sign....
    12 Feb 2013, 02:08 PM Reply Like
  • Did you really think that ICook was going to cave into Enhorn's demands today?
    12 Feb 2013, 12:43 PM Reply Like
  • Tim Cook did mention something very important but I don't think the analysts picked up on it. Apple is building out its global infrastructure so it can deliver more product. Right now this is critical. It includes:


    --releasing product in more than 100 countries at the same time
    --providing services--app store, iTunes everywhere
    --upgrading users around the world
    --having retail stores everywhere


    These, plus managing their supply chain so they will have the amount of product they need will enable them to meet the growing demand. And the demand is growing because the market is growing, in part because the middle-class is growing around the world, from 1.8 billion today to 3.2 billion by 2020.
    12 Feb 2013, 01:11 PM Reply Like
  • and the tablet will over-take the PC over the next few years so they need tablet capacity for existing middle class!
    12 Feb 2013, 01:16 PM Reply Like
  • Apple products are the standard of excellence. This can not be overstated. Samsung ads for their products reference Apple.
    12 Feb 2013, 01:22 PM Reply Like
  • If the market listened to Cook instead of all these armchair "innovators" called financial analysts who understand little to nothing about great product innovation, an aspirational brand and marketing success, the stock price would not be where it is now.


    Larger screen, cheaper iPhone these are all side issues. Why should Apple start being a copy cat company instead of the copied leader it is now? Just because others have a slightly larger screen or a cheaper phone doesn't mean Apple has to compete there on price? If they start, the same analysts who ask for those products will then criticize them for margin dilution. Apple management should continue to focus on introducing insanely great products. The rest takes care of itself.
    12 Feb 2013, 02:08 PM Reply Like
  • exactly, Rolls Royce did not have to copy Ford. People who like and can afford Rolls Royce will go and buy it. Same goes with Apple products vs other products.
    12 Feb 2013, 02:16 PM Reply Like
  • Rolle Royce failed and got parted out to German auto manufacturers..... the Rolls brand to one and Bentley to another (VW?)
    12 Feb 2013, 02:23 PM Reply Like
  • Totally agree
    12 Feb 2013, 11:20 PM Reply Like
  • Apple has peaked. Without any evolution, what follows a peak is a slide. No new products, and the standard 6 month cycle has grown stale. SJ was so much more important to this company that people thought.
    12 Feb 2013, 02:12 PM Reply Like
  • That's not what either the sales figures or profit figures show though is it?
    12 Feb 2013, 02:24 PM Reply Like
  • People who claim Apple "has no new products" are liars, simply put. They have zero idea what Apple wil put out because Apple is super secretive for good reason and never tells. If they did, Samdung would get to work copying it and rush it to market. Apple will not pre-announce product releases. period. never have never will, and why anyone would expect that or read anything into it is just dishonest.


    Also, since Apple is spending tens of billions on R+D, obviosly they are coming out with new products. The iWatch is an exciting new thing publicized yesterday (though not by Apple) and there are many other possibilities. Plus, what he said about a cheap iPhone simply means, will not sacrifice quality so it can't be that cheap. Just maybe cheaper.


    On today's drop, all it is is another stellar buying opportunity created by sheer stupidity of investment world or traders. Absolutely nothing negative came out of today's speech, and there were positives. Cook again does not pre-announce, but he did say they were going to give back more money to investors, in so many words, and that will probably be a rather large dividend hike in the next two weeks. But who knows? Again, since Apple never shows its cards, any reading into this by bears is just stupid. also, anyone interested in making big profits quickly and safely should be buying all the shares they can afford today. At this rock bottom price, below book value by a huge margin, and only 3x cash, there is no risk in buying AAPL. The risk is shorting it or missing out on its inevitable moonshot type rise. All we need is a series of catalysts and we will be rewarded soon, or just as soon as Apple is ready.
    12 Feb 2013, 02:50 PM Reply Like
  • Apple won't announce a new product until it announces one.


    No one thought there would be an iPod when Apple was selling computers.


    No one thought there would be an iPhone when it was selling iPods.


    No one thought there would be an iPad when it was selling iPhones.


    Apple doesn't pre-announce products, so at any time in its history you could have said, "no new products" and you would have been wrong every time.


    Jobs didn't announce a new product every year. The average time was 4 years, and it has only been 3. In between thre were many incremental changes, as now.
    12 Feb 2013, 04:13 PM Reply Like
  • Apple is not spending tens of billionson R+D. There budget for R+D is only 1 billion which is less than samsung by many orders of magnitude.
    12 Feb 2013, 04:20 PM Reply Like
  • First of all, R&D is 3.4Billion. The 1B was a recently annoounced increase. still less than Samsung. but so what?


    Apple doesn't need to spend as much on R&D to innovate. This is not a guess, it is fact: all of apple's products have been launched at lower R&D levels than today. Right? i mean, if your implicit premise and argument is correct -- that how much Apple spends on R&D is realted to innovation and they spend little, so no innovation -- than there should never have been a iPod, Iphone or iPad because their R&D was so low back then, much lower than now, and that other companies that spent more should have innovated. So your premise and argument is wrong.


    As for Samsung, it is a conglomerate that not only sells finisjhed products like phones and refrigerators but components, and a lot of its R&D is spent on those components, which are bought by companies like Apple. Apple is an end-user consumer tech company. Samsung isn't only that, so a comparison of Samsung's R&D to Apple's will not yield information meanigful to the area where Apple and Samsung compete, which is on the end product side.
    12 Feb 2013, 05:23 PM Reply Like
  • "..Apple is super secretive for good reason and never tells. If they did, Samdung would get to work copying it and rush it to market."


    Tell us why Samsung would copy AAPL's current inferior phone products? I think your view of AAPL products clings to the AAPL of 3 years ago, back then I was Long AAPL too, it's not a personal attack on you, just another investors opinion, just like yours. Time to step back and re-evaluate.


    I bought AAPL years ago and got rid of it at $680 and now only watch the stock as pure entertainiment. I will wait to see what true innovation AAPL comes up with before I go long again, and then it will likely be as a value play based on yield and entry price. If I miss it, well, I would say that would suck, except it's hard to complain when playing with the houses money.
    13 Feb 2013, 04:51 AM Reply Like
  • Go out and ask Ferrari, Bentley, MBZ...or Rolex to build a cheaper product. Try talking to Samsung's CEO and see how much "real" information about their product ideas you get. Everybody wants it Right Now in this immediate gratification world! Cook and Crew should plod along creating infrastructure and quality products at their own timing and reasonable pace...and Yes, reward the shareholders!!!
    Long APPL! Long Term!
    12 Feb 2013, 02:49 PM Reply Like
  • Also, anyone who claims "Apple is going down" is a liar. Again,m since they have zero idea what is going on inside the vault at Apple, they have no idea about anything. and since this stock is so outrageously undervalued from any factual fundamental perspective (even asssuming zero growth which is the worst case scenario and extremely unrealistic and unlikely) unless Wall Street makes no sense at all (which is hasnt for months now on AAPL, but that will change) APPLE should soon shoot up and keep shooting up to get back to where it started to fall, at 700 where it is still undervalued.
    The only real question is how soon and what ar the catalysts? Could be any day now and possible catalysts are many but impossible to predict beyond the liklihood of a generous dividend hike in the near term. That alone might spark the retracement, at ldesast back to 550. Future product announcements and performance will take care of the rest. and a China mobile deal could spike this stock 100 points. It is likley too, Cook has alfready told us he expects China to soon be their biggest market. That cannot be true with a major China Mobile deal. So expect it to happen. Bottomline, sometime soon AAPL will rocket. Nobody knows when and why though until it happens.
    12 Feb 2013, 03:00 PM Reply Like
  • And then when the NEW Latest and Greatest comes down the AAPL pipeline, what sayeth you all yea nay-sayers? Cheaper? that would be the preceeding products. Larger? only if it is practical. Creative? a given. Better? Without saying so. Innovative? Of course!
    12 Feb 2013, 03:42 PM Reply Like
  • Goldman conference this morning was "much ado about nothing." Nothing will change while he's in charge. "Secrecy" is instilled in their DNA, and recently their fiscal "stupidity" about reallocating their cash hoard has become immutable. Einhorn is absolutely correct, it's all about the money sitting gathering 1 1/2 percent. When rates rise, their long term holdings will be crushed.
    12 Feb 2013, 03:50 PM Reply Like
  • Today was for the shorts. Let's be realistic, the shorties and hedge crooks have a field day when Cook does public stuff. They know they can cram the share price down our throats and we have to eat it. It's their "Apple game" and the stock and we longs are their f'ing ping pong ball. So today means nothing except the opportunity for the above mentioned a-holes to have their fun. Live with it until there's a stock split or some real news that catches these jerks of guard. I hope they all get caught big and choke on it.
    12 Feb 2013, 04:37 PM Reply Like
  • tim was talking like defending his performance when asked by his boss. he has never spoken on behalf of apple in an authoritative tone.


    tim needs to go away, he is not gifted enough to be a visionary leader. he has been trapped in a hole, and he is working hard to dig it deeper.


    apple does have problem by not competing head-on with its competitors (watch chinese phone vendors, I know Huawei too well, believe me, they can do more damage than the koreans)


    Tim is wrong by ignoring the competition.


    Tim said a while ago that he did not know why competition was that weak, ie why HP could not get its tablet off the ground. This shows he does not have a clue why apple is so successful.


    If tim is to lead apple for a decade, he will have no clue how apple under his control fails miserably either.


    this leads us to think why steve put tim in the job after him. Does steve wanted a leader or just an implementer? Jobs could have seeded the failure into apple's DNA...
    12 Feb 2013, 07:29 PM Reply Like
  • Is Tim Cook short AAPL?
    13 Feb 2013, 04:55 AM Reply Like
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