Apple COO Discusses iPhone Exclusivity, SDK, and Unlocking
Apple's COO, Timothy Cook, delivered a question and answer session at the Goldman Sachs Investment Symposium yesterday, and touched on a number of interesting topics. Differing notes available at MacNN, Appleinsider and iPhoneAtlas.
Of interest, Cook answers why Apple hasn't offered an unlocked version of the iPhone. He states that multi-carrier offerings were impractical at launch. For the U.S. market, this would require a CDMA and GSM version of the iPhone. In the end, they felt it was impractical to try to satisfy every carrier and every user. Still, he states that Apple is "not married to any business model" and instead, they're "married to ... shipping the best phones in the world."
When asked about the possibility of Apple expanding into even more areas with new product lines, Cook feels anything is possible, but that each product choice is made carefully since "for everything we do, we know me make a choice not to do something else. We may or may not add some over time, we'll see."
Regarding iPod reaching a saturation point, Cook points out that 40% of iPods are still being sold to those who don't already own an iPod and suggests that slower iPod sales are a reflection of the economy than necessarily sales saturation.
He again describes the iPod Touch as the "first mainstream WiFi portable platform" and also describes the iPhone as a "platform not a product", and states that the upcoming SDK will "broaden the platform more, to the point where the only limit will be peoples imagination." Cook stopped short when asked about when the first 3rd party apps would appear, not wanting to take away any element of surprise from next week's event.
Finally on iPhone Unlocking, Cook acknowledges the problem but states he "look[s] at this 'problem' with a little bit of a smile. Having people stepping over each other for the phone isnt a bad thing. He goes on to state that the best way for Apple to fight back is to offer the iPhone in more countries.
A Quicktime stream of the talk is available from Apple.
Of interest, Cook answers why Apple hasn't offered an unlocked version of the iPhone. He states that multi-carrier offerings were impractical at launch. For the U.S. market, this would require a CDMA and GSM version of the iPhone. In the end, they felt it was impractical to try to satisfy every carrier and every user. Still, he states that Apple is "not married to any business model" and instead, they're "married to ... shipping the best phones in the world."
When asked about the possibility of Apple expanding into even more areas with new product lines, Cook feels anything is possible, but that each product choice is made carefully since "for everything we do, we know me make a choice not to do something else. We may or may not add some over time, we'll see."
Regarding iPod reaching a saturation point, Cook points out that 40% of iPods are still being sold to those who don't already own an iPod and suggests that slower iPod sales are a reflection of the economy than necessarily sales saturation.
He again describes the iPod Touch as the "first mainstream WiFi portable platform" and also describes the iPhone as a "platform not a product", and states that the upcoming SDK will "broaden the platform more, to the point where the only limit will be peoples imagination." Cook stopped short when asked about when the first 3rd party apps would appear, not wanting to take away any element of surprise from next week's event.
Finally on iPhone Unlocking, Cook acknowledges the problem but states he "look[s] at this 'problem' with a little bit of a smile. Having people stepping over each other for the phone isnt a bad thing. He goes on to state that the best way for Apple to fight back is to offer the iPhone in more countries.
A Quicktime stream of the talk is available from Apple.
Top Rated Comments
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52 months ago
He goes on to state that the best way for Apple to fight back is to offer the iPhone in more countries.
Exactly. It would be great if I could buy iPhone officially in Poland, without the
need to use all those hacks/jailbreaks.
52 months ago
He goes on to state that the best way for Apple to fight back is to offer the iPhone in more countries.
Bloody idiot - the best way to fight back is to offer the iPhone NOT CONTRACT LOCKED TO ONE CARRIER.
Why is he so scared of admitting the truth and admit the reason they're locked is so they can have carriers have massive contracts and Apple can skim a percentage from it.
Doug
52 months ago
very interesting. I was expecting to be irritated by this after reading the portion in which he tries to claim that they would need a CDMA version to offer an unlocked iPhone in the US. On the other hand, It's certainly true that they wouldn't have been able to make the profits they have made and continue to make on the iPhone. I think the current model is acceptable, especially in light of the last portion of this article, which made me smile--that Apple is not concerned about unlockers, viewing their existence as a very good indication that they need to make locked iPhones available to a lot more countries. I think that's fair, and sounds good in light of the recent state of jailbreaking and unlocking.
52 months ago
Bloody idiot - the best way to fight back is to offer the iPhone NOT CONTRACT LOCKED TO ONE CARRIER.
Doug
Too right - what does he know about running a business? Why don't these guys ask people on Internet discussion forums on how to run multi-billion dollar companies?
Steve
52 months ago
The really interesting part is still: He again describes the iPod Touch as the "first mainstream WiFi portable platform" and also describes the iPhone as a "platform not a product", and states that the upcoming SDK will "broaden the platform more, to the point where the only limit will be people’s imagination."
Now we've had several people, including Steve, use these terms.
Color me intrigued.......:)
Now we've had several people, including Steve, use these terms.
Color me intrigued.......:)
52 months ago
i agree, mobile devices should come open for the user to decide what carrier best neets their needs, what would happen if a chinese carrier offered bedrock low prices and put AT&T out of buisness, that would be a big waste of a large stockpile of iphones, if apple threw its weight around it could have every carrier scrambling to make their service iphone compatible instead of sticking to one in fear that you wont be able to support so many carrier qwerks. the future will be like this, and cell service will be universally compatible. apple shuold work with the fcc to build a device which would appeal to every carrier and set a standard for carriers to meet. do not underestimate the power of the i-wave and the furry of its crest in the next generation.
52 months ago
Bloody idiot - the best way to fight back is to offer the iPhone NOT CONTRACT LOCKED TO ONE CARRIER.
Why is he so scared of admitting the truth and admit the reason they're locked is so they can have carriers have massive contracts and Apple can skim a percentage from it.
Doug
I agree. I'm convinced that Apple would have easily cleared the 10 million mark if they sold it unlocked. As it stands they are limiting hugely the amount of potential customers.
In related news, O2 are having a press release for the iPhone here in Ireland today, with March 14th being the day it goes on sale. The Tariffs are going to ensure I don't get one.
52 months ago
If apple want to keep trying harder to prevent unlocks then so be it, i just with they would accept that unlocked users are users too, and should not be cut out of SKDs and any other updates.
it would be very sad if we needed to be 'legit' iPhone owners to get SKD apps.
if apple put out a press release saying "we are going to keep making unlocking harder, but to those who have already unlocked, welcome aboard, we are going to stop making it difficult for you"
i would invest in apple today!
it would be very sad if we needed to be 'legit' iPhone owners to get SKD apps.
if apple put out a press release saying "we are going to keep making unlocking harder, but to those who have already unlocked, welcome aboard, we are going to stop making it difficult for you"
i would invest in apple today!
52 months ago
Wow. He answered a lot of questions differently than what you see most people from apple do. Bravo. Some good answers. When you think about it...selling the iPhone unlocked, people's phone bills would be crazzzzy with all the internet it uses. Not many contracts have unlimited data usage.
52 months ago
I found this interesting,though I don't quite understand their non multi-carrier argument. They say they want to provide users with the best phone - fine... Just create GSM version of the phone and offer it to every GSM carrier out there. Whats the problem?!!!
He should say, its the carrier sharing revenue they are interested in... we all know that.
I wonder if Apple really see the phone unlocking as a real problem, rather than just an annoyance.
He should say, its the carrier sharing revenue they are interested in... we all know that.
I wonder if Apple really see the phone unlocking as a real problem, rather than just an annoyance.
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