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Apple shares its thoughts on the market, talks netbooks and iPhone competition

by Parm Mann on 22 January 2009, 11:19

Tags: Apple (NASDAQ:AAPL)

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Having reported its best-ever quarterly revenue, Apple appears to be one of very few corporations to withstand the global recession. Never shy and well-known for its generally pompous outlook, the Cupertino, California-based consumer electronics giant has every reason to gloat having posted net-quarterly profits of $1.61 billion.

Following Apple's first-quarter-results conference call, chief operating officer Tim Cook (pictured right) provided analysts with a Q&A session that offered a small insight into Apple's plans for the future.

When asked about addressing the sub-$500 computer market currently occupied by netbooks, Cook shared his thoughts on what's currently available by stating "we don't feel that they offer good products...underpowered, poor software, cramped keyboards, etc." Without putting to bed the on-going rumours of an Apple netbook, however, Cook adds that the company has "got some ideas, but we will not provide the inferior experience that we believe other companies are providing".

In regards to the once promising but recently-stale Apple TV, Cook states that the product is merely "a hobby for us" but adds that it "will continue to invest in it, because we believe there is something there".

Refusing to comment on Steve Jobs' health and the forthcoming revision of Mac OS X, dubbed Snow Leopard, questions then moved promptly onto the mobile space in which Apple's iPhone has proven to be a monumental success. Sparking plenty of discussion across the Internet, Cook showed almost-threatening criticism of competing products such as Google's Android and the Palm Pre by stating:

"It's difficult to compare to products that are not yet in the market. iPhone has seen terrific rating from customers. Software is the key ingredient, and we believe that we are years ahead of our competitors. Having different screen sizes, different input methods, and different hardware makes things difficult for developers. We view iPhone as primarily a software platform, which is different from our competitors. We don't mind competition, but if others rip off our intellectual property, we will go after them."

We don't mind competition, but if others rip off our intellectual property, we will go after them.

Whether or not Apple can pursue its rivals in court based on multi-touch gesture patents remains to be seen, but the idle threat could be a sign of an increasingly challenging marketplace. Having become the first widely-adopted multi-touch handset on the market, Apple's iPhone has shown tremendous success over the past year but now faces tough competition from the likes or RIM, Palm and others.

Following up on Cook's statement, an analyst asked; "The Palm device seems to directly emulate the iPhone's innovative interface. Is that what you're referring to?"

In response, Cook says "We don't want to refer to any specific companies, so that was a general statement. We like competition because it makes us better, but we will not stand for companies infringing on our IP."

We can't see it escalating into legal action, but the Palm Pre appears to have ruffled some of Apple's feathers.



HEXUS Forums :: 1 Comment

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The Pre looks very interesting - i can see why Apple might worry.