Apple's Cook: We're not worried about Amazon's Kindle Fire, other rivals

Apple's Cook: We're not worried about Amazon's Kindle Fire, other rivals

Summary: The inevitable Kindle Fire question emerged on Apple's earnings conference call and Cook largely swatted it away.

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Apple CEO Tim Cook said he wasn't worried about tablet competition and the pricing of Amazon's Kindle Fire, a new tablet entry at $199. And given Apple's success with the iPad so far why would he?

The inevitable Kindle Fire question emerged on Apple's earnings conference call and Cook largely swatted it away (Apple statement, Techmeme, CNET). He said:

We've seen several competitors come to market to try to compete with the iPad over time. Some had different form factors, different price points and I think it's reasonable to say that none of these have gained any traction thus far. In fact, as all of those competitors were coming to market our share actually went up. In the June quarter, according to IDC, we were responsible for three out of every four tablets sold. I think when you really assess this thing and look at iOS5, iCloud, the ecosystem with iTunes and the App Store and books and movies and the fact that we have over 140,000 native Apps for iPad versus a number in the hundreds for the other guys, I feel very confident about our ability to compete and extremely confident in our product pipeline.

Cook was later asked about how big the tablet market can be. The answer: Tablets will ultimately be larger than the PC market. He said:

We've now sold 40 million on a cumulative basis and it's pretty clear to me that if you forecast out in time that the tablet market, I still believe it will be larger than the PC market. That's not a guidance number. That's just something that I very much believe.

Related: iPads in the enterprise: Pondering the headaches

Topics: Amazon, Apple, Hardware, Laptops, Mobility, Tablets

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24 comments
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  • RE: Apple's Cook: We're not worried about Amazon's Kindle Fire, other rivals

    What are you going to say when your stock is down 7%?
    bstringy
    • Well"IF" that happens I'll be saying about time!

      @bstringy ... After all I am a HUGE Apple fan and have been for years but lets be honest here it's been (Apple stock) inflated for some time now and should be adjusted to reflect realities rather than the dream state Apple's stock prices have been representing. I for one tend to think it would be healthy for Apple.

      Pagan jim
      James Quinn
      • Since even with the new iPhone four-months delay Apple still showed 40% Y-Y

        @James Quinn: ... growth rate, this drop in shares prices with be very short. Apple is going to have $$37-40 billion Q4, another 40% Y-Y growth quarter.

        Next financial year Apple will end with $140 billion sales and $34 billion in net profits -- if the growth will slow down to 28% Y-Y. Lets see how well Apple will grow next year -- if conditions will be good, then they can continue this years Q3-Q4 fast 40% pace and then sales and profits will be even bigger.
        DDERSSS
      • RE: Apple's Cook: We're not worried about Amazon's Kindle Fire, other rivals

        @DeRsss are you insane? Have you seen the economy and job market? I would not be surprised if this was the worst Holiday Season in more than 30 years!
        slickjim
      • Are you insane? When Apple ever overestimated their target revenue last ...

        @Peter Perry: ... time?

        Hint: it was ten ago in the previous IT/dot-com bubble crisis. Apple since never once missed their target figures, always topped it, including for the latest quarter.

        So if Apple projects $37 billion revenue, then this means that it will be certainly no less than that (if no new catastrophe in economy and production will happen), or more like about $40 billion.
        DDERSSS
    • RE: Apple's Cook: We're not worried about Amazon's Kindle Fire, other rivals

      @bstringy Their stock has been overinflated for too long.
      What I thought was more interesting is that Apple said the same thing about the IBM PC back in the Apple IIe & Lisa days. Are we going to see history repeat itself with Apple shooting itself in the foot and becoming an under 10% niche player in a market it helped create?

      Frankly, if they don't get their act together and provide the same experience across all of their iOS devices, people are going to start looking elsewhere. Why does FaceTime work completely different between iPhone 4/4S and iPad 2? Why are standard apps like Clock, Calculator, and Stocks missing from iPad 2 when they are on all iPhones? People talk about Android becoming fragmented, but iOS is doing the same thing. Whose idea was that?
      BillDem
      • Yeah except we haven't seen the same thing with the iPod.

        @BillDem... Apple got a hold of that market and held onto it against all comers even Sony and MS. Apple is not the same and oh yeah the company that said that way back in the day is still here while countless others who went head to head with Apple are no longer. Maybe even then they were right? Hmmmm?

        Pagan jim
        James Quinn
      • inflated

        @BillDem
        apple has a 2012 P/E of 12 (ex cash of 9), that is less than the market average and ridiculously low for a grow stock.
        for an inflated stock look no further than amazon. it has a P/E of 100. now, that's inflated!
        bannedfromzdnetagainandagain
      • RE: Apple's Cook: We're not worried about Amazon's Kindle Fire, other rivals

        @Pagan jim

        I dont think you can count Win7 tablets as an attack on iPad considering that the OS wasnt designed for tablets at all. Win8 will be an actual challenger and if it fails than you can make that claim just fine. Sony isnt exactly a good example, Android, WebOS, and Playbook are good examples however.

        IMHO the only real contender will be Win8 if the Kindle Fire doesnt throw a wrench into release approach.
        WishyWashyWannabe
        • RE: Apple's Cook: We're not worried about Amazon's Kindle Fire, other rivals

          @Pagan Jim

          PS - ordered my Kindle Fire as a temp for Win8 tablets. As I was thinking, I dont even know if Win8 is a contender - i would amost give it another class.

          Post post PC era. Its a tablet that is... an evolved PC. Something that the iPad isnt.
          WishyWashyWannabe
    • RE: Apple's Cook: We're not worried about Amazon's Kindle Fire, other rivals

      @bstringy He's not worried. Tomorrow it will bounce higher!
      veggiedude
    • RE: Apple's Cook: We're not worried about Amazon's Kindle Fire, other rivals

      @bstringy What was he going to say, anyway - that he WAS worried?
      Another non-event from ZDNET!
      radleym
    • RE: Apple's Cook: We're not worried about Amazon's Kindle Fire, other rivals

      @bstringy I would say that all stock fluctuates.
      non-biased
  • Steven Jobs compared tablets to cars and PCs to trucks, so obviusly Cook ..

    ... continues with the same vision.
    DDERSSS
  • I thought it was all about price!

    How many times have I read the pundits here telling us that it was "all about price - and nobody can underprice Apple" because of supply chain, or consumer perception or whatever.
    So now we have cheaper,well-built and full-featured tabs, and we're starting to hear just plain "nobody can beat Apple". Could all these ZDNET prophets have jumped on the wrong bandwagon? Will any of them start thinking for themselves, or will they continue to parrot what the "big boys" in industry say?
    Stay tuned, if you care.
    radleym
    • RE: Apple's Cook: We're not worried about Amazon's Kindle Fire, other rivals

      @radleym [i]How many times have I read the pundits here telling us that it was "all about price - and nobody can underprice Apple" because of supply chain, or consumer perception or whatever. So now we have cheaper,well-built and full-featured tabs, and we're starting to hear just plain "nobody can beat Apple"[/i]

      Price of an actual tablet, yes. Price of a smaller e-reader/sort of tablet thing for buying Amazon's consumables... no.

      i.e. If the Samsung Galaxy Tab 10.1 were selling for $199, they might actually make a dent in the iPad market.
      Badgered
  • Arrogance...

    It's brought down bigger companies than Apple. I wouldn't adopt the "no one can catch us" attitude just yet.
    crazydanr@...
  • Apple

    Apple will be fine, they have a good fan base, people like me will hold out for the next iPad rather than buy a limited kindle fire. With Apple I have all my apps and iCloud.

    There are close to 300,000,000 people in the US. If Apple sells products to the 25,000,000 the brand will be ok, the rest can go for Android, Blackberry, Windows Phone 7, Linux, Win 7, Chrom, Amazon etc.
    Hasam1991
  • RE: Apple's Cook: We're not worried about Amazon's Kindle Fire, other rivals

    I think the Kindle Fire might take over the e-reader market. I doubt it will do anything to the iPad market.
    Badgered
    • RE: Apple's Cook: We're not worried about Amazon's Kindle Fire, other rivals

      @Badgered

      If you read books a lot, you need a non-LCD screen, like e-paper. period.

      The winner will be the company that bring to market a product with the next generation e-paper: color, fast, low power.
      danbi