Apple CEO Says Head Not Stuck in Sand, Cool Stuff Coming Up

Apple faces increasing competition in the smartphone market

Apple chief executive Tim Cook has insisted that the iPhone maker does not have its head "stuck in the sand", as he gave the strongest signal yet the company is working on an important new product.

Shares in Apple have slumped by more than a third since September over concerns about the company's ability to keep innovating amid increased competition from the likes of Samsung.