Apple’s latest iPhone lineup is its most expensive yet, with prices starting at $999 for the iPhone XS and $1,099 for the iPhone XS Max. But Apple CEO Tim Cook doesn’t see a problem with that.
In an interview with Good Morning America this week, Cook again defended Apple’s price tags, talked about Apple Watch Series 4, and explained why some devices have avoided price hikes amidst America’s trade war with China.
Some analysts believed Apple made a huge mistake when it slapped a $1,000 price tag on the iPhone X last fall. They warned the device wouldn’t sell and predicted impending doom for Apple.
As it turns out, they were wrong. The iPhone X became a huge success, outselling every other iPhone month after month — and it reassured Apple that we’ll pay anything for its latest phones.
iPhone XS is affordable… according to Tim Cook
It’s no surprise, then, that the iPhone XS is just as expensive, while the iPhone XS Max commands an even bigger premium. But Cook doesn’t see this as a problem for most consumers.
“We want to make an iPhone for everyone — that’s always been our objective,” Cook explained to GMA after being asked whether Apple was worried its high prices could make its new devices inaccessible to some.
“But if you look at [iPhone XS], it’s the most advanced iPhone we’ve ever done,” he continued. “It has an unbelievable camera in it… and it has the smartest and most powerful chip ever in a smartphone.”
“But the way most people pay for these, as it turns out, is 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 about $30 a month for it. So it’s about a dollar a day.”
Cook pointed out how the iPhone has replaced a whole bunch of different devices — like music and video players and digital cameras — and is “really important” to Apple fans. He said a similar thing when defending the price of the iPhone XS Max during an interview with Nikkei.
“People want to have the most innovative product available,” Cook concluded, “and it’s not cheap to do that.”
Cook talks Apple Watch Series 4 and iPhone XS’ awesome camera
Cook also gushed about Apple Watch Series 4 and its EKG functionality, which is coming later this year. It’s the first device capable of performing an EKG that consumers can buy over the counter.
“It’s an incredible power for you to have,” Cook said. “It empowers the individual to own their health.
Cook also touched upon fall detection in the new Apple Watch, and spent some time explaining the new camera in iPhone XS and iPhone XS Max, which is “the best camera we’ve ever shipped before,” he said.
“Now, in the palm of your hand, you can make a portrait that used to cost tens of thousands of dollars.” Cook said he is “so proud” of what Apple has been able to do with its latest iPhone cameras.
Avoiding trade tariffs and a $1 billion valuation
Before moving onto Apple’s new products, Cook was asked about America’s looming trade war with China, and how some Apple devices had managed to avoid trade tariffs.
Cook explained that although the iPhone is assembled in China, it’s very much an American product, with a number of components that are manufactured in the U.S.
“I think [the government] looked at this and said it’s not really great for the United States to put a tariff on those type of products,” Cook said.
On becoming the world’s first company to hit a $1 trillion valuation, Cook said Apple feels a tremendous responsibility to help its country. He noted that Apple has created 2 million jobs in the U.S., and will invest $350 billion into the country over the next five years.
Cook also highlighted Apple’s efforts to push coding into education, and how important it is for students in public and private schools to learn to code.
You can watch the full interview with GMA below.