Apple event 20111004 (iPhone 4S unveiling, Tim Cook closeup 001)

Towards the end of Apple’s earnings call earlier today, Tim Cook and CFO Peter Oppenheimer fielded a number of questions from analysts. And of course, many of them took the opportunity to question the two on the validity of recent rumors.

The Wall Street Journal’s ‘Apple cutting iPhone 5 part orders’ story, the recent 4.8-inch iPhone meme, and the ongoing budget iPhone rumor were all brought up during the Q&A session. And Tim Cook (sort of) addressed each one…

First off, the The Wall Street Journal story. The piece claimed that Apple has been contacting suppliers to cut orders of iPhone 5 parts. The consensus was that this was a sign of slipping iPhone demand, and it sent Apple’s stock tumbling.

Here’s what Cook had to say about it:

“Months of rumors about order cuts and so forth, so let me take a moment to comment on these. No comment on any particular rumor.

I suggest its good to question the accuracy of any kind of rumor about build plans. Even if a particular data point were factual, it would be impossible to interpret that data point as to what it meant to our business. The supply chain is very complex and we have multiple sources for things. Yields can vary, supplier performance can vary. There is an inordinate long list of things that can make any single data point not a great proxy for what is going on.”

Now, onto the recent spike in reports revolving around a larger iPhone. Supply chain sources tell DigiTimes, China Times and others claim there’s a prototype of an Apple handset floating around supplier plants that has a 4.8-inch display.

Cook all but shoots down the rumors:

“The iPhone 5 screen offers a new four-inch retina display. It also provides a larger screen without sacrificing one-handed use. We put a lot of thought into screen sizes and we think we picked the right one.”

And finally, on that budget iPhone we keep hearing about. Recent reports from Bloomberg and The Wall Street Journal have rekindled talk of Apple making a budget smartphone to help it make inroads into low-end and emerging markets.

We’ve heard this response before:

“The most important thing for Apple is to make products that impact people’s lives. We don’t seek revenue for revenue’s sake.”

It’s worth noting, however, that after that last comment, Cook does add “We’ve had a great track record on iPod of offering different products at different price points,” possibly leaving the door open for a more diversified iPhone lineup.

Other than that, there’s nothing really groundbreaking here. Tim didn’t confirm or deny the part cuts, and of course he didn’t comment on future products. But he did say today that Apple was working on some exciting stuff, and that their pipeline was “chock full.”

  • Don’t listen to rumors is the point here. Darn I would like a 4.8 inch iPhone.

    • s0me

      What about the Iphone 5 rumors? Those pictures look like the actual phone…

  • @dongiuj


  • Alex

    The fact that he even replied to rumors shows their concern.
    His comments are also vague at best. He doesn’t deny or confirm anything. Psychologists know exactly what this line of speech means. It’s so obvious.

    • Guest

      You shouldn’t think that Cook is that stupid, he likely wanted people to think like you do.

      • Kurt

        if he was so smart he would analyze the way he speaks and try speaking without being so damn monotone.

      • he sucks… no passion or emotion… apple needs another steve type..

    • he did not reply..

      • Alex

        No comment IS a comment. If he didn’t want to comment on it, he wouldn’t have gone on record as saying no comment to the rumors. Having to say that you will neither acknowledge nor dis-acknowledge something is acknowledging it. Otherwise you would have kept your mouth shut.

  • 4p0c4lyps3

    Cook’s comments, vague, evasive and meaningless.

    • exactly.. there is nothing to quote..

  • I like iPhone so much! Thanks a lot.

  • Daniel

    What I think is that Apple is used to earn much more money than they do these days. So there are no concerns about anything but the fact that now they have serious hungry opponents not satisfied with small peace of cake.

  • Liam Mulcahy

    This is confusing

  • NOthing at all was said.. please delete this

  • jilex

    Of course he won’t deny or confirm anything, it’s not apple style (as a way to say it) and now i think the order cuts were real, but not because they weren’t selling the iPhone 5 as expected, but because they wanted to put attention on quality, remember the post about the scratch on the back plate and the photos of bend i5? well, maybe they are taking care of it

  • Irfan Tarique

    Basically hes saying … stfu! Non of your business. Where the hell is my Latte?

  • 4.8″ iphone6 would have 440ppi and be sold alongs iphone5 with a cheaper spec iphone to cover all bases