My aunt had a number of pithy sayings that have stayed with me through the years. These are timeless personal insights that can help guide us through life. “Nothing improves without change” is a good example.
To me, that means change is coming whether we like it or not so we need to learn to adapt. Another one is “Everybody is out to get your money.” In a world with diminishing altruism, that tends to ring true.
Here’s another I made up myself. “How much is an iPhone, Tim?” OK, that’s less a homey folksy saying as it is an attitude about the price of a new iPhone because I don’t think Apple’s executives worry much about the price of anything; whether Lamborghini or Italian leather shoes.
Here’s why. Tim Cook:
We always thought… that if you provide a lot of innovation and a lot of value, there is a segment of people who are willing to pay for it
Uh huh. I’m sure the folks who run Rolex and Rolls Royce think the same way. Here’s the problem. A Kia Rio gets people from point A to point B much the same way a Rolls does, and a $14 Casio watch tells the same time as a Rolex, and most smartphones have roughly the same amount of functionality.
A Rolex may have gold and diamonds and a Rolls Royce might be quiet in plush leather seats, but in the end the watches tell time and the cars get you from here to there.
For us, it’s a large enough group of people that we can make a reasonable business out of it.
Reasonable my ass!
No company on planet earth has Apple’s cash reserves, stock market value, R&D expenditures– or stock buyback programs and valuable dividends. Apple has about a billion customers who mostly buy hardware but increasingly the company is selling more to the same customer– I use the rapidly growing Services group as an example– which means the customer base is not growing as rapidly if at all.
Apple does not care and pays lip service to the great unwashed masses of humanity who cannot afford an iPhone because Apple keeps jacking up the price. I know what you’re thinking. “Really, Tera?” Yes. A few weeks ago the least expensive iPhone was the SE at $349 and the most expensive was iPhone X at $1,149. Now, iPhone 7 is $449 and iPhone Xs Max is $1,449. The spread is going up, not down.
We want to serve everyone. We understand that there is a wide range of what customers are looking for and a wide range of prices that people will pay
That statement smacks of elitist poppycock marketing-speak. Apple’s executives may want to serve everyone, but raising the prices into MacBook Pro territory will not achieve that objective.
Tim doesn’t know the cost of an iPhone.