Skip to content
Subscriber Only

Tim Cook Says Old IPhone Is Apple's New Cheap Phone

Tim Cook, chief executive officer of Apple Inc., speaks during an event at the company's headquarters in Cupertino, California, on Oct. 4, 2011. Photographer: David Paul Morris/Bloomberg
Tim Cook, chief executive officer of Apple Inc., speaks during an event at the company's headquarters in Cupertino, California, on Oct. 4, 2011. Photographer: David Paul Morris/Bloomberg

The euphoria Apple investors felt when the company finally unveiled a plastic, lower-priced iPhone on Sept. 10 was short-lived. Before the news conference, analysts expected a cheaper device that would create a new class of Apple smartphone customers in China and other emerging markets. But the 5c, with a contract-free price tag starting at $549, was still too expensive.

In response to critics, Apple CEO Tim Cook suggested in an interview with Bloomberg Businessweek that his company's strategy at the lower end of the market hasn't changed: The new cheap phone is the old iPhone 4S.