Is The iPhone The New Cord-Cutting Device? Tim Cook Says 'Absolutely'

CNBC's Jim Cramer believes Apple Inc. (NASDAQ: AAPL)'s iPhone is a powerful enough device for consumers to part ways with their monthly cable subscription.

Typically speaking, consumers wishing to part ways with their monthly cable service require a TV or at the very least a tablet. But Cramer explained during Wednesday's "Halftime Report" segment he prefers watching videos on his phone over an iPad because it is the "perfect form factor."

Tim Cook Agrees

Apple CEO Tim Cook told Cramer in an interview Wednesday that not only is the iPhone the best consumer product in the world, it is "absolutely" a suitable cord-cutting device.

Speaking to Cramer during Wednesday's "Mad Money" segment, Cook explained that the iPhone has "become so integrated and integral" in a user's life that it is nearly impossible to live without it. Nevertheless, few iPhone users view their device as the ultimate "cord-cutting" tool — but they should.

Cook noted that iPhone users watch all of their video and other forms of entertainment on their mobile devices. As such, the iPhone should be considered "at the center" of entertainment, especially since it is backed by "millions of developers."

To this end, Cook hinted Apple is looking to play a major role in delivering content to its users. However, he added management is still in the "learning" phase but admitted the company has plans to work on some original content.

"We do think that the best experience for a customer is to view things when they want, the way they want, and have many different additional information around what they're watching, you know, not just the linear TV feed," Cook emphasized.

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