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Tim Cook on iPhone XS: People Want the Most Innovative Phone Possible and 'It's Not Cheap to Do That'
Roberts asked Cook about the cost of the iPhone XS and iPhone XS Max line, the latter of which is Apple's most expensive iPhone to date at $1,449 for the 512GB model. Cook explained that monthly payment plans provided by carriers help make the cost of the iPhones easier to digest.
He pointed out that all of the technology included in the iPhone, replacing previous separate gadgets like MP3 players and digital cameras, requires each smartphone to be priced at a premium. Cook also mentioned Apple's aim to "serve everyone," which he mentioned in an interview last week.
Roberts: "One model starts at almost $1,100, are you afraid that a group of people are being priced out?"Cook then discussed the tariff situation, explaining that while the iPhone is assembled in China, parts of the device come from all over the world, including the United States.
Cook: "Well we want to make an iPhone for everyone, that's always been our objective and we've got several iPhones in the line and they go down to materially lower. But if you look at this phone, it's the most advanced iPhone we've ever done.
The way most people pay for these...they do a deal with a carrier and they pay so much per month, so if you look at even the phone that's priced over $1,000, most people pay $30 a month for it, so that's about $1 a day. And so if you look at it, the phone has replaced your digital camera...it's replaced your video camera, it's replaced your music player, it's replaced all of these different devices. And so arguably the product is really important and we found people want to have the most innovative product available, and...it's not cheap to do that."
The iPhone is assembled in China, but the parts come from everywhere. Including the United States, you know, the glass comes from Kentucky, there are chips that come from the U.S., and of course the research and development is all done in the United States.In regards to potential blowback from the Chinese government on this tariff exemption, and how this could impact consumers, Cook says he's optimistic that the U.S. and China will sort the situation out.
So, I don't want to speak for them, but I think they looked at this and said that it's not really great for the United States to put a tariff on those type of products.
"And so we do that in terms of creating jobs, we've created 2 million jobs in America. We want to create even more, we're investing $350 billion in the country over the next five years and we're starting up facilities in a number of different places. We're really proud of that contribution, but we want to do more.You can visit Good Morning America's Twitter account to watch the full interview, which also includes a discussion of the iPhone XS camera, Memoji, the Apple Watch Series 4's ECG monitor, fall detection, and more.
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