Apple CEO Tim Cook discusses tariffs, iPhone pricing with GMA

Tuesday, September 18, 2018
Apple CEO Tim Cook discusses tariffs, iPhone pricing with GMA
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Tim Cook defended the big price tag on the new iPhones,

NEW YORK (KGO) -- Tariffs are a big issue facing Silicon Valley tech companies, including Apple.

CEO Tim Cook sat down with GMA's Robin Roberts Tuesday morning to discuss their impact and also the high cost of the latest iPhone.

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Apple unveiled its most advanced and most expensive iPhone last week. The iPhone Xs Max has a $1,099 price tag.

Roberts asked Cook if he was afraid a group of people will be priced out.

Cook said there are lower price points for different models of the iPhone. He also pointed out they have replaced your camera, music and video players.

"But the way most people pay for these as it turns out is they do a deal with a carrier and they pay so much per month. So if you look at even the phone that's priced over $1,000, most people pay about $30 a month for it. So it's about a dollar a day," said Cook.

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Cook is keeping an eye on the ongoing trade war with China.

The Trump administration announced exemptions to the 10 percent tariffs on nearly $200 billion worth of Chinese imports, including certain Apple products.

Cook says the iPhone is assembled in China but parts come from everywhere, including the United States.

He's hopeful for a resolution.

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"I'm optimistic, because trade is one of those things where it's not a zero sum game. You and I can trade something and we can both win. I think the two countries will sort this out and life will go on," said Cook.

Cook also said Apple has a tremendous responsibility to help the U.S. and will be investing $350 billion in the country over the next five years.

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