Apple CEO Tim Cook refused to rule out producing a less expensive iPhone during an interview at the Goldman Sachs Technology and Internet Conference today. Cook pointed to the iPod as an example of where Apple had managed to make a a more affordable version of a product while making it ‘great.’
In a wide-ranging interview, which also covered acquisitions, Apple’s cash balance, and the recent legal action brought by shareholder Greenlight Securities (‘a sideshow,’ said Cook), the CEO also pointed out that it had made the iPhone 4 and 4S cheaper and that it hadn’t been able to make enough of the former to keep up with demand. And he cited the example of the iPad as answer for people who had been asking for a cheaper Mac. In other words, Apple might make a more affordable iPhone, but not necessarily in the way many might expect.
Commenting on the prospect of an iPhone with a larger screen, the subject of much recent speculation, Cook also refused to rule it out, but pointed out that Apple didn’t compete on specification lists and that larger screen smartphones use OLED on which ‘the color saturation is awful.’
It’s clear where Cook believes Apple’s biggest opportunity lies. During the interview, he described the iPad as ‘magical’ and later said: ‘I think the tablet market will be huge. It is a huge opportunity for Apple. It’s one of those areas that show what I mentioned earlier, of software, hardware, and services being integrated, and creating an experience that’s jaw-dropping. I think it’s huge.’