CE-Oh no he didn't! Part XXIX - Apple sez free phones are worthless

Filed under: Handsets, Interviews, AT, GSM, EDGE, Apple, OS X
Sure, Apple and Cisco have been exchanging kind (and not so kind) words of late, but a loose-tongued COO gave us just tidbit we needed to satisfactorily craft the 29th running of CE-Oh No He Didn't. It's no secret that Apple stands to profit mightily off its eventual iPhone sales, and it's also not too far fetched to start dreaming of 3G on the imminent next revision, but laying the smack down on free cellphones in order to bolster your own product is just asking for it. Sure enough, Apple's Chief Operating Officer Timothy Cook said yesterday at a conference in Las Vegas that "A lot of people pay zero for the cellphone," but rather than contemplating his next move, he carelessly blurted out the reason by stating "That's what it's worth," essentially punking users of the ever-basic free cellphone that saw no reason to spring for high-end hardware when initializing their contract. Apple is currently predicting that "around 10 million customers will pay at least $499 to buy an iPhone" because they feel the value is there, but apparently a low-end mobile isn't worth its weight in plastic. C'mon Mr. Cook, we've got no qualms with pricing your mobile as your company deems fit, but slamming the hammer on folks who just need a handset that calls Aunt Susie every now and then is just a bit harsh, no?

[Via Digg]
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LOL. Not only do I not see the iPhone selling well, I see heads rolling over at Apple for its ultimate failure. Their entire business model is flawed.

Only one sales channel - Cingular

Ridiculous expectations - 20% of Cingular's customers will migrate to iPhone - totally ridiculous

Bad design features - no removable battery, lots of eye candy but still just same old technology everyone else has.