Apple CEO Tim Cook 'The Smartphone Market is Very Healthy'

During today's earnings call covering the third fiscal quarter of 2018, Apple CEO Tim Cook was questioned about the health of the smartphone market and the impact the company's choice to offer low-cost battery replacements might have on replacement cycles.

In response, Cook said that he believes the smartphone market is "very healthy. "It's the best market to be in for someone in the business that we're in," said Cook. "Whether it grows one percent or two percent or five percent or six percent or 10 percent or shrinks one or two percent, it's a great market because it's just huge."

iphone x quad
iPhone revenue, Cook pointed out, was up 20 percent during the quarter compared to the third quarter of 2017, and Apple has seen mid-single digit growth averages on a weekly sales basis and double-digit growth on an ASP basis. Apple sold a total of 41.3 million iPhones during the quarter, bringing in revenue of nearly $30 billion. The iPhone X continued to be the most popular iPhone during the quarter.

Cook said that he does believe replacement cycles are lengthening, and he says the "major catalyst" for that has been the fact that subsidized plans have become a much smaller percentage of total sales around the world. Apple's goal is to make great products to encourage customers to purchase new devices.

I think for us, the thing we always have to do is come out with a really great, innovative product. I think iPhone X shows that when you deliver that, there's enough people out there that will like that, and it can be a really great business.

In a separate response given to a question about Apple's focus on the home, Cook shared additional comments about the importance of smartphones. "The smartphone has become the repository that goes across the whole of your life, not something meant for a portion of it," he said. He went on to explain that Apple is focused on a number of areas with its product lineup -- home, work, the time between, health, and more. "We're focused on all of those things."

In terms of the battery replacement program that has seen Apple offering $29 iPhone battery replacements since the beginning of the year, Cook reiterated a statement he made back in February during an earlier earnings call. Apple, he said, has never done an internal analysis on how many people bought a battery compared to purchasing a new phone because it wasn't a factor in the decision.

"It was never about that for us," said Cook. "It was about doing something great for the user. Treat users and customers well and you have a good business over time. That's how we look at that."

Related Forum: iPhone

Top Rated Comments

KJL3000 Avatar
36 months ago
Sorry, Tim, but all Apple is doing right now is relying mostly on their success before Steve was gone. The iPhone X is a good phone, but it’s not a revolution. It’s an iPhone. At a ridiculous price point. The Mac has almost been forgotten, the MacBook Pro for example has lost many features like MagSafe, indicator light, mostly all ports and everything is soldered and glued together... why? What is the benefit for the user? I don’t get it. Removing features is not an improvement just by doing so! Also the price is a joke. The touch bar is a nice gimmick, but it’s not optional so I have to buy this piece of emoji display ****. The keyboard... worst typing on an Apple keyboard, ever. The HomePod is an overpriced speaker with a very sad Siri that still feels like in beta and the price is a joke, again. I could go on and on, but the point is: Apple is still earning the fruits of their success from the past, but it won’t last forever. There is nothing innovative anymore, just minor upgrades at premium prices. Correct me if I’m wrong, but to me, Apple is going down, in all it’s shiny glory. Money won’t rescue them.
Score: 26 Votes (Like | Disagree)
entropyfl Avatar
36 months ago
My phone replacement cycles are lengthening mainly because the newer models have gotten so expensive and it feels wasteful to upgrade for the sake of upgrading.

I'm currently on a iPhone 6s plus 128 gig and it works fine. sure the camera isn't as good as the latest models but it does everything else well.
Score: 11 Votes (Like | Disagree)
RedGala Avatar
36 months ago
..... for now. Can’t rely on that money train forever Timmy. We’ll see if Apple really is still innovative in the future.
Dude it's been 7 years since Steve Jobs died. Give everyone a break.
Score: 11 Votes (Like | Disagree)
Superhappytree Avatar
36 months ago
..... for now. Can’t rely on that money train forever Timmy. We’ll see if Apple really is still innovative in the future.
Score: 9 Votes (Like | Disagree)
MattMJB0188 Avatar
36 months ago
Smartphones need to die. How is it everyone and their mother has one? All these things have done is make people more lazy and stupid by and enabled so many car accidents.
Score: 7 Votes (Like | Disagree)
Wide opeN Avatar
36 months ago
Yup. I’ve upgraded every 2 years since my 3GS. If Apple insists on $1000+ flagship phones, I’ll go to a 3 year upgrade cycle with a battery replacement at year 1.5. That price is unreasonable for every two years. They’ll net less money that way too.
This is me... Heck, I'm proposing every 5 years for me and my other 4 lines. I will not be made to think a $1000 phone is necessary.
Score: 6 Votes (Like | Disagree)

Top Stories

tile sticker e1570533758981

Tile CEO: 'We Welcome Competition From Apple, But We Think It Needs to Be Fair'

Tuesday May 4, 2021 9:51 am PDT by
Just after Apple announced its AirTags, Tile CEO CJ Prober relayed his concerns about competing with Apple in the tracking space, and said that Tile would ask Congress to investigate Apple's business practices specific to Find My and item trackers. Prober this week did an interview with Bloomberg, where he further expanded on Tile's complaints about Apple and why he feels that Tile is...
apple watch ecg

Apple Watch Likely to Gain Blood Pressure, Blood Glucose, and Blood Alcohol Monitoring

Monday May 3, 2021 4:03 am PDT by
The Apple Watch may gain the ability to measure blood pressure, blood glucose, and blood alcohol levels, according to newly-revealed information about one of Apple's chosen business partners. Apple has been revealed to be the largest customer of the British electronics start-up Rockley Photonics, The Telegraph reports. Rockley Photonics has developed non-invasive optical sensors for...
signal instagram ads3

Signal Shares the Instagram Ads Facebook Doesn't Want You to See

Wednesday May 5, 2021 1:29 am PDT by
Encrypted messaging app Signal has had a series of Instagram ads blocked from the social media platform, after it attempted to show users how much data the Facebook-owned company collects about them and how it's used to push targeted ads. In a blog post, Signal described how it generated the ads to show users why they were seeing them, simply by declaring upfront the information that the...
fortnite apple logo 2

Epic CEO Tim Sweeney Admits App Store's 30% Cut Is Similar to Consoles, Would Have Accepted Special Deal With Apple

Tuesday May 4, 2021 1:54 pm PDT by
Apple's legal battle with Epic Games is continuing on, and during the second day of the trial, Epic Games' CEO Tim Sweeney continued his testimony against Apple. Sweeney was grilled by Apple's lawyers, and made several points seemingly favorable to Apple. In addition to mentioning how he prefers Apple's iPhone and values Apple's privacy policies that he's aiming to dismantle, Sweeney...
snapchat dark mode

Snapchat Rolls Out Dark Mode on iOS

Wednesday May 5, 2021 1:17 am PDT by
Nearly two years following the release of iOS and iPadOS 13, which included native, built-in, and systemwide dark mode, Snapchat, one of the world's most prominent social media networks, has finally rolled out a dark mode theme for iOS users. Snapchat began testing a dark mode theme of its app design late last year with a small group of iOS users. Now, Snapchat says that as of this week, it...
maxresdefault

Hands-On With Brydge's 12.9-Inch iPad Pro Keyboard With Trackpad

Tuesday May 4, 2021 11:48 am PDT by
Brydge has been making keyboards for Apple's iPads for years now, and the newest model, the Brydge 12.9 MAX+, is compatible with the third, fourth, and fifth-generation iPad Pro models, so it works even with the new mini-LED iPad Pro. Subscribe to the MacRumors YouTube channel for more videos. In our latest YouTube video, we checked out the new Brydge 12.9 MAX+ to see if it's a viable...
iphone 13 pro max dummy notch

iPhone 13 Pro Max Dummy Model Depicts Smaller Notch

Tuesday May 4, 2021 1:08 pm PDT by
Apple's iPhone 13 models are expected to feature a slimmed down notch, marking the first major change to the TrueDepth camera system since it was introduced in the 2017 iPhone X. We're still months away from the launch of the iPhone 13, but Lewis Hilsenteger of Unbox Therapy managed to get an iPhone 13 Pro Max dummy model that represents what we can expect from the new 2021 device. Dummy...
Flat 2021 MacBook Pro Mockup Feature 1

Mini-LED Display Production Improving for Redesigned MacBook Pro Models Later This Year

Monday May 3, 2021 8:33 am PDT by
Apple supplier TSMT, a key vendor involved in the production of mini-LED displays in the newly announced 12.9-inch iPad Pro, has been able to address technical challenges for the production of mini-LED displays to be used in the upcoming 14 and 16-inch redesigned MacBook Pro models. As reported by DigiTimes, TSMT had initially been facing production constraints with the circuit board and...
netflix sign up

Apple Discussed 'Punitive Measures' Against Netflix for Dropping In-App Purchases

Wednesday May 5, 2021 11:03 am PDT by
As the Epic Games v. Apple trial progresses into its third day, Apple's internal documents and communications with various companies are continuing to surface, giving us some insight into the dealings that Apple has had around the App Store. Back in December 2018, Netflix stopped offering in-app subscription options for new or resubscribing members and instead began requiring them to sign up ...
airtags

AirTag Owners Bemoan Inability to Let Others Track Their Items Via Family Sharing

Tuesday May 4, 2021 5:12 am PDT by
Apple's new AirTag item trackers have been making their way into the hands of customers since Friday, and while the company has tried to describe the ways that they can be used to find lost items, many users are still surprised and disappointed to learn that the location of an AirTag can't be shared with other family members. On the face of it, sharing the location of an AirTag via Apple's...