CEO Tim Cook: Yesterday, we brought you a news story centered around Apple Inc. (NASDAQ:AAPL) CEO Tim Cook and his conversation at the Goldman Sachs’ Technology and Internet Conference. That story touched on the company’s approach to its cash hoard. It can be read in its entirety here.
Today, we are going to touch on money once again but this time around it has more to do with the pricing of Apple Inc. (NASDAQ:AAPL) devices. During the same conference, Cook was asked how the Cupertino-based company is going to deal with customers who are unable to afford the price associated with the current iPhone.
AppleInsider did a great job grabbing some of his quotes, and here is how Cook got started:
“This is a popular question. […] We wouldn’t do anything we wouldn’t consider a great product. There are other companies that do that, and that’s just not who we are.”
Before we go any further, let’s revisit that quote. What Cook is saying is simple: regardless of price, the company is not willing to lower its quality standards in any way, shape, or form. He also makes note that this is something the competition often does.
He then goes on to discuss pricing for the Apple Inc. (NASDAQ:AAPL) iPhone 4 and iPhone 4S:
“If you look at what we’ve done to appeal to people who are more price sensitive, we lowered the price for iPhone 4 and iPhone 4S, and in the December quarter, we didn’t have enough supply of iPhone 4, so it surprised us as to the level of demand we had for it.”
Cook also made special note that the cost of Apple devices have the tendency to naturally decrease over time. He backed up this claim by discussing how an iPod shuffle can be purchased today for $49, but how the original iPod had a much higher price tag.