Tim Cook Believes That Apple Products Are Not Priced for the Rich, but Instead ‘Change the World’
Apple has always been fired with barrages of criticism, with people believing that the company charges exorbitant prices for its products. With the rumored price of the iPhone X starting at $900, that criticism is sure to break through another ceiling. However, Tim Cook is not phased by such remarks because, in the latest interview, the CEO of Apple believes that the price of the company’s products radiate the value they bring to customers. In short, he says that its products change the world and are not for the rich.
Tim Cook Does Not Believe in the Term ‘High Margin’ - Believes a Lot of Companies Are Charging Much Higher Prices for Products and Not Giving Value in Return
Tim Cook sat down for an interview with executive editor Adam Lashinsky and said that Apple changes the world through the products it creates.
“I think the No. 1 way Apple changes the world is through our products. We make products for people that are tools to enable them to do things that they couldn’t otherwise do—to enable them to create or learn or teach or play. Or do something really wonderful.”
In the end, Cook disagreed with Lashinsky’s statements about Apple creating products to get higher margins in return.
“Well it's not high margin. I wouldn't use that word. There's a lot of companies that have much higher margins. We price for the value of our products. And we try to make the very best products. And that means we don't make commodity kind of products. And we don't disparage people that do; it's a fine business model. But it's not the business that we're in.
But if you look across our product lines, you can buy an iPad today for under $300. You can buy an iPhone, depending upon which one you select, for in that same kind of ballpark. And so these are not for the rich. We obviously wouldn't have over a billion products that are in our active installed base if we were making them for the rich because that's a sizable number no matter who's looking at the numbers.”
To be fair, Apple’s mobile devices would not be used in the billions had the company only priced it for the 1 percent, and that is really saying something.
Do you still think Apple is on a mission to charge higher margins for its products? Tell us your thoughts down in the comments.
News Source: Fortune