Steve Jobs on iPhone 3G Pricing: Trust Us
What Jobs talks about
In this CNBC interview, Steve Jobs explains why Apple lowered the iPhone 3G price and argues the move is good for users, developers, and Apple itself. He says the company is pricing it to broaden access and grow the installed base.
Jobs also talks about the iPhone’s global rollout, saying Apple is already in 70 countries and planning launches in 22 more on July 11. He says China and Russia should follow later in the year once regulatory approvals are in place.
The interview closes with Jobs addressing Wall Street directly. He says Apple has been delivering record quarters and that if the company keeps focusing on strategy, talent, and execution, the bottom line will take care of itself.
Jim Goldman introduces and questions Jobs; Jobs speaks in brief interview answers.
In his words
“We've done pretty well for our stockholders over the last decade”
“Trust us that maybe we know what we're doing”
“It's going to be great for the users”
“It's going to be great for the developers”
“We've been having record quarter after record quarter”
Key points
- The lower iPhone 3G price is meant to help users, developers, and Apple.
- Jobs tells investors to trust Apple’s judgment on pricing and strategy.
- Apple says it has sold six million iPhones since launch.
- The company is in 70 countries and plans a 22-country 3G rollout on July 11.
- Jobs says China and Russia are likely to come later in the year.
- He frames Wall Street results as a consequence of strong top-line growth, talent, and execution.
Full transcript
Welcome back. Apple Computer unveiling its latest and greatest, an upgraded iPhone with a faster internet connection and satellite navigation capabilities. The good news for consumers, it's priced $200 lower than the current model on the market. CNBC's Jim Goldman talked to the man behind the new 3G iPhone, Steve Jobs, in another first, right here on CNBC. Jim. Hey Maria, good evening to you. Yeah, let's get to the particulars because that pricing news is generating a lot of headlines. Whipsawed Apple investors just wondering exactly what this is all going to mean for the company. When Steve Jobs unveiled the iPhone, he was careful to point out price. We are talking cheaper and we're also talking much faster and a lot better. But a lot of investors are worried that a cheaper price could hurt Apple revenue down the road. Kind of a weird oxymoronic kind of thing going on with Wall Street as well as the company.
It's something I asked Steve Jobs about in this first on CNBC interview. Well, you know, I think we've done pretty well for our stockholders over the last decade. And I would just encourage them to trust us that maybe we know what we're doing. And maybe we're pricing this in a way that's going to be great for everybody. It's going to be great for the users who can now afford them. It's going to be great for the developers who have more of a base to distribute their applications to. And it's going to be great for us. Now, Apple also confirming the company has sold six million iPhones since its launch almost exactly a year ago. The real question now for investors as well as Apple is the global penetration.
Apple had hoped to be in 25 countries by now. But Steve Jobs tells me the company is now in 70 countries instead, planning 22 countries for the initial 3G rollout on July 11th. But what about big countries like China and Russia? That's something else I asked him about. You've got India, but you're still working on China and everybody seems... The two big ones we just didn't have a chance to get close were Russia and China. And I think you'll see those happen later this year. And when you look at those markets, how important are they for the overall success of this phone? People are waiting with bated breath to get iPhone legitimately into those markets. Obviously, you even alluded to it during your comments that... I think every market's important and we have to get through the regulatory bodies in China, which we're in the process of doing.
I think later on this year, you'll hear some announcements. But 70 countries is a lot of countries. And we're launching in 22 of the biggest simultaneously on July 11th. So I think we're going to be off to a fast start. Yeah, and indeed, this is the first time that Steve Jobs is providing a timetable for penetration into the all-important Chinese market. But what about Wall Street and the strange and bizarre roller coaster ride this company has suffered over just the past year? At one point, Wall Street's darling. Another point, Wall Street's whipping boy. Apple enjoying a kind of momentum now. But what does Steve Jobs have to say to his investors, as well as those calling the shots on the street? Listen to this. We've been having record quarter after record quarter.
So we're very pleased with how the company's doing. And, you know, Wall Street, I've never been able to figure out Wall Street. But someone once told me, manage the top line, which is your strategy, your talented people and and your execution and the bottom line will take care of itself. And I've always found that to be the case. So we're turning in record quarter after record quarter. And Wall Street eventually comes out in the right place. Wow. Yeah, indeed. Comes out in the right place. You can catch my entire interview with Steve Jobs this first on CNBC interview by heading over to CNBC.com, as well as my, well, formally live blog of today's entire event. That's at techcheck.cnbc.com.
And you can follow along there as well. Maria, back to you. Nice going, Jim. Thanks so much. Jim Goldman with Steve Jobs.
Transcribed from the audio with OpenAI Whisper. Timestamps link to the video above. Errors are possible.