Apple CEO confronts Android market share

"Winning has never been about having the most"

As would be expected from a true grilling of Apple's CEO, the D11 conference saw Tim Cook answer some difficult questions about Android's huge growth in the mobile marketplace. With Google's mobile OS hitting 90% market share in some countries, Apple may have never had more competition.

When asked if he's consciously aware of Android's rise, Cook responded aggressively:

Do I look at that? Of course, I don't have my head stuck in the sand. But for us, winning has never been about having the most. 

Instead, Cook backs up Apple's age-old philosophy of quality over quantity, an ethos that ironically saw them crash and burn after Steve Jobs spent $20,000,000 on a purpose-built Macintosh factory:

Arguably, we make the best PC, but we don't make the most. We made the best music player, and we wound up making the most -- but we didn't initially. We make the best phone, but we don't make the most.

Apple's head went on to cite usage statistics to throw a different viewpoint on the matter, citing NetApp figures that show that 59% of worldwide mobile web traffic emanates from iOS devices. Cook also discussed an e-commerce study that showed the iPad drives twice as many sales as all Android devices combined -- both smartphones and tablets. This could be viewed as a big evasion of the question, but Cupertino doesn't appear phased by the exponential growth at this point.

You can watch the full interview with Tim Cook at the D11 conference below:

Source: AllThingsD via Engadget | Image via 9to5Mac

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google by giving away everything, will never generate non ad-revenue. they have essentially ensured a cap on their growth. scroogled themselves in other words.

I'm a MS fan but I often wonder what the market would look like if you went into Att or Verizon and saw 30 models of the iPhone or for that matter windows phone. What would the market be like then?

Personally, i don't know how NetApp collect his information and if this information could be used globally.

Highest customer satisfaction, most usable, best build quality from a company with the best shareholder yield, best quarterly earnings, best R&D department?

benbuffone said,
Highest customer satisfaction, most usable, best build quality from a company with the best shareholder yield, best quarterly earnings, best R&D department?

Highest customer satisfaction means NOTHING, it is just marketing stunt. Instead, values such :returned device, failed devices and such should count.
And for the rest of parameters, it depends in the quality of the product. However, since we don't know how many products fails then, we are not sure about the quality of the product.

benbuffone said,
Highest customer satisfaction, most usable, best build quality from a company with the best shareholder yield, best quarterly earnings, best R&D department?

most usable, really?
I will give one of the best build quality not "the best".

benbuffone said,
Highest customer satisfaction, most usable, best build quality from a company with the best shareholder yield, best quarterly earnings, best R&D department?

What does 'shareholder yield and quarterly earnings' have to do with the quality of a device?

Brony said,

Highest customer satisfaction means NOTHING, it is just marketing stunt. Instead, values such :returned device, failed devices and such should count.
And for the rest of parameters, it depends in the quality of the product. However, since we don't know how many products fails then, we are not sure about the quality of the product.

In some cases we do. Here is a fact. in 2009 a study was done as to the most reliable laptop - its old but relevant - http://cdn3.mos.techradar.futu...iability%20chart-580-90.jpg

Here is my summation. Apple who at the time was selling about 2M Macs per quarter, only had a 1% better score vs Dell who was selling at the time about 10M computers behind HPO who was selling at the time about 12M per quarter.

Even if APple is considered more reliable vs Dell in the graph, it simply means Dell has more reliable product on the market PERIOD. Question...how is it that Apple who sells 5x's less hardware as Dell at the time, not have a much higher reliability score?

Look at the winner, ASUS. Asus at the time was selling about 1M computers per quarter. As you can see that the reliability went up. Fact in production usually mean the following...the lower the production the higher the quality tends to be. But this is not the case for Apple. The reality is that even tho HP and Dell had a worse reliability score, because they product far more hardware, they have more reliable product in usage.

And here is another way to look....Apple was selling 2M computers, yet 17% of them were junk vs Dell selling 10M and 18% being junk. Even tho 18% of 10M is higher than 17% of 2M, Dell still has way more reliable computers being used.

If the quality of the Mac was so great, then as a reliable product the percentage should be below 10% in my opinion or even less. So what about iPhone?

Even tho APple doesn;t have return numbers, I can certainly give you a heads up. The company I work for repairs PC's for Apple, Dell and HP. Two years ago we also got into cellphone repair. We repair phones for Apple, Motorola and Samsung. In both cases I can say as a fact we get for more broken and non-working product for Apple them all of the rest.

One example - many schools here in Chicago use Macs. We get lots of broken ones for being sat on, dropped and more. We get other laptops with similar breaks. But they are easier to fix. Hinge assemblies for most laptops cost us less than $5.00. If you break the hinge assemble on a Mac, it requires replacing the case which cost us $200 each and we charge $300 with the labor each. Look how many other computers we can fix with a similar break for $300 vs one Mac.

Phone repairs? In one month, we received over 5000 iPhone 4's and 4S with broken back panels. The panels cost us $10 each and we sold them for $15.00+ $5.00 labor. We received no other device with busted battery doors. We also received a combined total of less than 500 phones with crack front screens, yet we receive over 1000 iPhone per month with cracked digitizers. Moist phone makers fuse the digitizer to the LCD, which actually helps them not break when drop. Apple doesn't do this. They use glue which doesn't absorb the shock of a drop which causes the digitizer to break.

Damaged cases? iPhone from the 3GS forward come in in high numbers, while Samsung devices are at the very bottom. This month alone we repaired a full total of 350 Samsung Galaxy devices vs having already replaced cases for nearly 2000 iPhones. We hired 200 workers just this month to help handle and work with Apple hardware only when our shop originally had 130 people too handle everything.

The iPhone 5 has been the only recent Apple device to not have huge repair numbers.

iPad numbers are through the roof. We repair over 5000 iPad consistently on average per month for the same problem, busted digitizers. This compared to the Note 10.1, the XOOM and others where this repair is more rare.

We have partners with several companies like ABT and many resellers on eBay and more to repair mostly Apple devices which make up more than 80% of our total workload.

When people claim Apple devices are premium an so great and they don;t have problems, its is because they are not the people who have to fix them when they come in. I can tell you, we refurbish a lot of devices. Devices where we are replacing the logic booards that contain 16GB and 32GB of nand to the ones with 8GB and selling them to Sprint and ATT and other carriers to be used as prepay device. We at the end of last year shipped over 200,000 total devices overseas to developing countries. Forty percent of those devices were from Apple. They were product we couldn't repair and had to be sent back to Foxconn to be melted down and used to build new devices.

Apple products alone garnered us with 3 times our original business in just 1 years time. We went from a small company making about $2M per year to making $8M last year with Apple being out biggest customer for repairs and refurbs.

From a Single PC OEM, we get more stuff from Dell and HP because that is what most of what our business customers use. But once we started contracting schools, especially well funded school, Macs have just about taken over our pc repair guys. We dedicated 50% of or original staff to the Macs simply because they take longer to repair do to cases being in shorter supply. In many cases, we have to directly order and pay overseas companies like Foxconn to supply us with cases which takes as long as a month to receive which creates more backlog.

So yes I question Tim's definition of best. iPhone isn't the best phone. It is ONE of the best. The Mac isnt the best computer, it is ONE of the best.

BajiRav said,

most usable, really?
I will give one of the best build quality not "the best".
Using metal as a case makes it FEEL great, but that doesn't make it great.
Metal cases have pros and cons like plastic ones do. The downside to metal is as the chips heat up the metal gets equally as hot making devices less comfortable to hold vs plastic cases. Metal interferes with reception which is why they have to put the bands on the phones for the antennas to help try to improve reception and we all saw what happened with the iPhone 4. This isn't a problem on plastic phones.

As far as the aluminum? It comes in different grades. Very low grade aluminum is used for things like soda cans. Very thin, very easy to bend and damage compared to high grades. According to the spec, the aluminum used on iPhone is actually only slightly higher than what is used on cases. Its simply cut thicker.

Unlike Poly-Carbonate which is 300 times stronger than plastic. Poly-carbonate is said to be plastic but in fact it is not. Plastic is actually very soft. Much like what you see for bags used at grocey stores or water bottles. Poly-carbonate is a polymer based chemical which is an "industrial" strength material. It is actually harder and more resilient than the plastic used on car bumpers.

What Samsung does that makes it feel cheap compared to Lumia is, the fact that Samsung uses a modular design for the phone, which means the pieces get a thinner cut vs the Lumia which is thicker and heavier because the material is cut from a block. Whoever when it comes to phone repair, the Galaxy devices actually receive a much higher score because the pieces being modular are held with screws making it easier to disassemble and repair, which also makes the repair cheaper.

So Samsung not only has the best selling phones,they also have the easiest phones to fix, just as easy to use, are full of features which is where the money really needs to go.

Apple does nothing but talk. Theer phones are so far behind. That apple doesn't impliment stuff until they can make it nice for the user is all fanboi hallucinations. The reason Apple doesn't gove all those features is because they produce one phone per year and if they gave you all that cool stuff right now, they wouldn't have anything to give you with the next model. They are simply milking the platform just like Nintendo and Sega did in the 80's and early 90's. PC's were already 32bit yet these guys started with 8bit and slowly milked everyone to death to get to better stuff.

full support for Tim from my side - and i back that up by being a shareholder as well as product user.

thoroughly enjoy the utility and worry-free nature of the apple ecosystem/walled garden.

Packet1009 said,
full support for Tim from my side - and i back that up by being a shareholder as well as product user.

thoroughly enjoy the utility and worry-free nature of the apple ecosystem/walled garden.

I don't have any worries using Windows and Android. Freedom doesn't have worries because I make them be that way. I don;t need anyone to hold my hand.

Apple's walled garden is for people who are lazy and don;t want to think for themselves.
You know the old saying, "think long; think wrong". Apple products take the thinking out the equation. Its like those books lady's like to read. Those love novels. Its all written in 6th grade English and it is nothing but mush for the mind.

iOS is so boring, because everything is done for you as if you are in 6th grade. I graduated from school a very long time ago. My hand holding years are over. Its so nice that Bill Gates and others understand that we need to be able to make decisions for ourselves...after all that is what makes us human and why we are above the animals. Well at least most of us.

Glad he is so positive and as the CEO, he needs to be. But best? Just opinions really.

I agree, quality over quantity but sometimes, you have both. There are a lot of quality Androids out there and Android happens to have the most market share at the moment. Same thing with their music player.

So Cook is defining the useability of tablets by how much the user is buying online... very interesting. I can think of tens of very exiting, productive and useful tablet-operations which do NOT involve buying something online. So much about a reality-check desperately needed by Apple.

wv@gt said,
This is nothing new, you could almost compare Android as the Windows of the mobile market.
Exactly...but its beyond almost. It is exactly what it is.

Sometimes I wonder what is the point of asking questions to people that can only give one possible answer. I guess that it is good to actually hear them say the answer.

"Tim, how do you feel about where Apple stands today?"

"Tim, is Apple in trouble from Android?"

"Tim, how do you feel about where Apple is going?"

"Tim, does Apple pay enough taxes?"

ir0nw0lf said,
"Arguably, we make the best PC"

Oh yeah, quite arguable.

For those who have used PC's all their life and switched to Mac ... yes. They do. For those who have used PC's all their life and become fanboys ... yes, they do, but those people will never know because they're stuck in their rut

Spirit Dave said,

For those who have used PC's all their life and switched to Mac ... yes. They do. For those who have used PC's all their life and become fanboys ... yes, they do, but those people will never know because they're stuck in their rut

Are you always Jonny on the spot when you see or hear anything negative about apple? LOL

Spirit Dave said,

For those who have used PC's all their life and switched to Mac ... yes.

Yea, sorry. I know people who have to use Macs for their jobs and they do not like them and they prefer a PC. So its just opinions and depends on the person.

Chanthu said,
Ha.Just checked you profile and I see that you are a mac, iphone and ipad user. And you are most active in "Mac Discussion and Support".

Just saying...

What point does this make other than you are similarly biased?

Spirit Dave said,

For those who have used PC's all their life and switched to Mac ... yes. They do. For those who have used PC's all their life and become fanboys ... yes, they do, but those people will never know because they're stuck in their rut

Go buy a brand new top tier iMac, load Battlefield 3 (after you install Windows) and crank the settings to max. Tell me how it plays. Oh yeah but no yeah they make the best PCs no yeah no.

Open Minded said,
Go buy a brand new top tier iMac, load Battlefield 3 (after you install Windows) and crank the settings to max. Tell me how it plays. Oh yeah but no yeah they make the best PCs no yeah no.

Pretty sure even Cook would agree that a Mac is not the best device to pick if you're a hardcore gamer…And arguably the software - meaning OS X - is part of making the best PC in Apple's case (as they see it).

Open Minded said,

Go buy a brand new top tier iMac, load Battlefield 3 (after you install Windows) and crank the settings to max. Tell me how it plays. Oh yeah but no yeah they make the best PCs no yeah no.

Go and buy a PC that can play Battlefield 3, that's not a fat chunk of plastic - oh, does that not exist?

benbuffone said,

Go and buy a PC that can play Battlefield 3, that's not a fat chunk of plastic - oh, does that not exist?

Aaaand we're back to form over function.

benbuffone said,

Go and buy a PC that can play Battlefield 3, that's not a fat chunk of plastic - oh, does that not exist?


how is that even relevant to what he posted?

benbuffone said,

Go and buy a PC that can play Battlefield 3, that's not a fat chunk of plastic - oh, does that not exist?

Is that a joke or just stupid?

ir0nw0lf said,
"Arguably, we make the best PC"

Oh yeah, quite arguable.

OMG, a CEO of a company states that their product is the best in his opinion! What is the world coming too!!!!

Get off it, really.

CSharp. said,

Pretty sure even Cook would agree that a Mac is not the best device to pick if you're a hardcore gamer…And arguably the software - meaning OS X - is part of making the best PC in Apple's case (as they see it).
Yes that may be true in words, but for what a Mac costs, a Windows PC shouldn't be able to beat it in anything. Price doesn;t mean its better or worse.
What Macs suck at is what PC excel at. They offer more for less price through competition. If Apple allowed OS X on another brand of PC, Apple would be put out of business because we could get an OS X based PC for $800. That is why when Jobs came back, he took Apple's money and bought out all the licensing on Mac OS from other brands because the other brands were running Apple out of business.

Apple has basically used mind meld in all the fanboi simpletons. They have you believing price somehow make sit better and metal as well.

For $250,000 a Ferrari will get you looks, get you an equally expensive girlfriend. The cons, you will spend more money on gas for short trips, have more expensive costly repairs when it breaks and a car you have to baby to enjoy. This versus buying something like a Jeep Cherokee fully loaded for about $50k and i can take it offroad, climb mountain and actually be rough. To each his own....right? They all have pros and cons...but cheaper options have way more pros.

The starting price of a Mac is equal in hardware to a Windows PC that cost almost 40% less. Yet the mac is limited in applications, with accessories and peripherals.

How does paying $1700 for a box of limitation sis better than paying $1200 for complete flexibility.

How you fans and Cook define best is as distorted as a tv without an antenna.

TechieXP said,
If Apple allowed OS X on another brand of PC, Apple would be put out of business

Well...nowadays their Mac business actually only makes up a small part of their overall revenue, but, yes, that certainly wouldn't be a good idea from a business perspective.

Spirit Dave said,

For those who have used PC's all their life and switched to Mac ... yes. They do. For those who have used PC's all their life and become fanboys ... yes, they do, but those people will never know because they're stuck in their rut

riveting tale chap, I use OSX and Windows on regular basis, cause my company develops games for iOS. And having a hackintosh at home from past 3 years, i was never able to convince myself switching permanently to OSX, it just lacks stuff, it has eye candy but stands nothing against windows when it comes to choice and functionality.

simrat said,
i was never able to convince myself switching permanently to OSX, it just lacks stuff .

To each their own opinion, and, like I said before, the Mac is not the best device for every use case, but a generalizing comment like "it just lacks stuff" is not very convincing, especially considering there's a fully POSIX-compliant UNIX under the hood...Personally, nowadays, I feel far more restricted when I'm in Windows than when I'm on OS X. "It just lacks stuff."

CSharp. said,

To each their own opinion, and, like I said before, the Mac is not the best device for every use case, but a generalizing comment like "it just lacks stuff" is not very convincing, especially considering there's a fully POSIX-compliant UNIX under the hood...Personally, nowadays, I feel far more restricted when I'm in Windows than when I'm on OS X. "It just lacks stuff."
If you actually feel restricted using Windows, than you're using it wrong.

Hurricane Andrew said,
"We make the most phone, but we don't make the most."

Please tell me that was a typo and not the actual quote...

Was a typo I watched it and he didn't say that.

Neu B said,
Why so defensive if they don't care.

His response was utterly not defensive one bit. He has no need to be. Did you even watch or are you just reading the quote with your imagination making him sound defensive? lol

Spirit Dave said,

His response was utterly not defensive one bit. He has no need to be. Did you even watch or are you just reading the quote with your imagination making him sound defensive? lol

Why so defensive, dude? See what I did there?

Neu B said,
Look up the word care in a dictionary. Multiple meanings.

Wow. What a great answer...

Here's what Cook *actually* said:
"for us, winning has never been about having the most. "

I see that as distinctly different from not not caring about their marketshare at all. Having the most (highest marketshare) is simply not their foremost goal.

Spirit Dave said,

His response was utterly not defensive one bit. He has no need to be. Did you even watch or are you just reading the quote with your imagination making him sound defensive? lol

I disagree. Tone has nothing to do with being defensive. Not answering a question directly and saying something else is.

Here is where I agree with cook. Yes iDevices as a whole show more internet usage vs Android devices, even tho Android devices as a whole are more widely avail. Here is the details behind much of it. No matter what browser you use on iOS, it is reported as being Safari. Unlike on Android where installing FireFox it reports as being Firefox. Many Android users use desktop versions of a site from their devices, not the mobile versions. Many iOS apps create more web traffic,vs many Android apps which don't. The iPad applications have more that you must buy vs Android where many of those apps are free.

As far as his claim that just in NA, iPad and iPhone leads in numbers and yes it is their biggest market. But sadly NA is the the whole world.

His claim that many Android phones are just feature phones running Android is a lame comment. There are a lot of people who had feature phones and I would agree use smartphones like a feature phone because they arent aware of all the other things a smartphone can do. Not everyone needs to uses email on the go. Not even one wants to web browse from such a small screen. I typically also dont buy stuff using my Android devices like I did with my iPad because at the time I had a smaller device. Now that I have a Note 2, I do everything with it. I shop, I browse and more. But I still do most of that with a PC. With Android you have so many apps to keep you busy, maybe you don't want to use the web all the time. There is more to having a mobile device than Facebook and Twitter.

45M people bought Samsung smartphones as of Q3 2013. Who knows what they are all using them for. They are obviously using them for something. Even if it isnt what Apple fans use devices for. They are buying them to do other things.

Out the box, to make the iPhone do many of the things Android phones do out the box, you would have to spend nearly $100 on applications. Yet Android devices do those things for FREE. When I go and spend $600 for a phone, I dont want to have to spend another $100 right away to even make it do what I want. With Android I have to spend nothing. No apps no cases no screen protectors or nothing. IOS and their devices make you spend money wastefully.

I've had my Galaxy Note since its first day avail and its been nearly a year and I have spent less than $100 during my total ownership. Yet when I had an iPhone 4 and 4S, I spent over $100 in just the first week of ownership before I even purchased the first application. What is wrong with that picture and why is it, fans don't seem to understand that?