Tim Cook: Apple Not Concerned by Kindle Fire Popularity, Helps Boost iPad Sales

Tim CookThere is an old saying that has been modified and attributed in many ways to many people that basically suggests that there is no such thing as bad press. This is proving true for Apple as the popularity of other tablets increases, so do the sales for their iPad 2. While it might seem a bit unusual on the surface, if you take a moment to consider it there is some real sense there.

Last week, the analysts from JP Morgan met with Apple CEO Tim Cook and chief financial officer Peter Oppenheimer to discuss how they felt about Apple’s prospects considering the competition. They discovered during their meeting that “Apple is not too concerned about the low-priced entrants.”

The subsequent report published by JP Morgan following that meeting indicates that they didn’t feel Apple was feeling pressure from these lower-priced competitors. In fact, they indicated that it is their view that “low-priced, reduced feature-set entrants, such as the Kindle Fire, are soap box derby devices stuck between a tablet and e-reader.” I believe if you look back, this is exactly what we have been saying at PadGadget for some time now. People getting excited over tablets with a device that whets their appetites is a good thing, because then they move on to the next device that they really want. Don’t discount either, that the people buying the Kindle Fire are going to overwhelmingly fit into the category of buyers that aren’t looking to spend the kind of dollars required to buy into an iPad. So those people can’t be seen as lost-sales for Apple because they wouldn’t have had them anyway.

The one caution JP Morgan did give was that subsequent generations of devices like the Kindle Fire may be something to watch out for. If those manufacturers with low-priced devices start listening to consumer feedback they might just add the features people are looking for at a price that still comes in under the iPad.

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About Jillian: A professional. A geek. Writer. Music fanatic. Creative. Thoughtful. Programmer. Educated. Outgoing. Thrill seeker. Realistic. Optimist. Clever. Sarcastic. Not typical. Contact me on Twitter: @codeGoddess

  • http://zadl.org SuperZADL

    The last paragraph is just the same old “Yeah this Android tablet stinks, but the next one will be great” chorus that we’ve been hearing all along. Frankly, they either need to step up their game, or get relegated to vaporware status.

    Either that or Apple has to really screw up big time. Which they could do, but somehow I doubt they will.