Apple says your cell phone is worthless

Apple's COO defends the iPhone's high price tag.

Apple iPhone
The Apple iPhone has a sky-high price tag CNET Networks

From the very moment Steve Jobs unveiled the Apple iPhone at MacWorld two months ago, every corner of the tech world has been buzzing that the thing would be too darned expensive. Indeed, we said the very same thing in our initial analysis of the device. Apple is asking a lot of people to pay $599 for the 8GB version of the iPhone, particularly when that also comes with a two-year contract to Cingular. And what's more, a few studies conducted since January indicate that very few people (one study cited just 1 percent of respondents) would pay that price. On the other hand, the $200 to $300 range is considered more reasonable.

Apple Inc. COO Timothy Cook seems to have taken a "you get what you pay for" mentality. As Wireless Week reports, Cook spoke at a Las Vegas conference recently where he characterized other cell phones as worthless. "A lot of people pay zero for their phone," he said. "Guess why? That's what it's worth." Meow. Though Cook has a point that Americans are addicted to free phones (and subsequently early-termination fees) I can assure you, dear Crave readers, there are plenty of worthy cell phones not made by Apple. Cook then went on to repeat Jobs's earlier prediction that Apple will sell 10 million iPhones in 2008. At this point, all we can say is, we'll see about that. And we can't wait to find out.

About the author

Senior Managing Editor Kent German leads the CNET Reviews editors in San Francisco. A veteran of CNET since 2003, he still writes about the wireless industry and occasionally his passion for commercial aviation.

 

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