Apple CEO Tim Cook: Apple's 'Ecosystem Has Never Been Stronger' and Long-Term Health Has 'Never Been Better'

[78Bandit]

It's funny you say that... there's a quote from Steve Jobs from 2004: "Apple's market share is bigger than BMW's or Mercedes's or Porsche's in the automotive market. What's wrong with being BMW or Mercedes?" Apple is a premium brand. They've never built lowest-cost products. That's why the products are so good. The iPhone was $500 bucks on a two-year carrier subsidized contract 10 years ago!

It was briefly $500 on a carrier contract for a 4GB model and $600 for an 8GB model. The price quickly fell by $200 three months later and the 4GB device was discontinued. Only a year later the iPhone 3G (8GB) was another $200 cheaper and you could get one for $199 on a carrier contract. That is pretty much where things stayed through at least the iPhone 6s which was still $199 on contract at the time of its release.

 

[nt5672]

They look like the most uncomfortable chairs in the world...

Probably designed by Ive to continue the Apple form over function strategy.

 

[kazmac]

I don’t want services, Mr. Cook I want durable hardware that lets me create and not think about it.

Not manufacturing defects passed off as normal, or overpriced, thin everything that puts form over function.

The more Apple push services, raise prices, and keep screwing up their hardware and software, the easier it is finally start breaking away.

At this point, I’ll probably stick with the cheapest iPad that has pencil capabilities (and pick up a Mini 5 if it does), use that for commutes and just move on.

 

[nt5672]

I'm sure Apple has a product pipeline but from time to time, Cook should open it for more than just a second.

Like he did with the undelivered charging pad (AirPower). I'm sure it was his decision to override engineering and put it in the keynote anyway. A good engineering team could not have been that far off on delivery, that has to be a pure management mistake.

 

[trifid]

The reality distortion field is strong with this one.

 

[Baymowe335]

Profit is not the only key indicator that the company is going to succeed. You need to look at the color of the water. If every market they are in or are entering is RED, then one day those profits will collapse. What you want is BLUE WATER and massive INNOVATION.

Apple needs a new revolution. All we have had since his predecessor died was evolution.

So give me measurable things that indicate the company won't succeed since every measure we have says they are doing brilliantly well.

Just because you can't see the innovation doesn't mean it isn't happening.

Off the top of my head:
1) 3X the iPhones sold since Jobs died. This is bc they have kept innovating, otherwise people leave.
2) Best in class mobile silicon (literally, not arguable).
3) Most popular watch in the world
4) Services biz growing 25% and will nearly match the size of Disney in revenue in 2019.
5) FaceID...Android Manufacturers rushing to copy, still haven't matched the ease/security.
6) Apple Pay...more mobile transactions than PayPal
7) AirPods, wearables in general...growing at 50%
8) Stock price is still over triple since Cook took over.
9) $250B in cash
10) 3X profit of any company
11) Best financial performance of any company in history
12) Guided revenue down $5B to report the second best quarter for any company in history (only 2nd to their own).

Sure, we didn't like seeing the revenue decline in Q1, but let's get real. There are so many positives, you can't throw that all out the window because China struggled with the iPhone. They even told us that was 100% of the revenue shortfall. They need to fix that, but let's stop acting like there are so many signs of failure.

You can't just say "but innovation" and having nothing to back that up. Besides, Apple is a consumer products company. They don't need to come out with a product like the iPhone every year to be successful.

 

[preetb]

“Culture of innovation”? Just stop Tim. You haven’t given a DAMN about innovating anything in years. You’ve been coasting on your predecossor’s legacy and it’s showing.

“I’m not being defensive...”

There was a time when Apple’s products stood for themselves but more and more Tim you’ve been sending your minions out to do damage control. The sooner you are removed from Apple the better off the company will be.

Cramer forgot to ask, "So Tim, tell us about the products you personally helped innovate."

 

[Baymowe335]

Too little too late Cook, your shares sank...

He probably doesn't care because their buyback is even more powerful at lower prices. Cook has been at Apple almost 20 years. You think he's worried about a short term stock price drop? He went through it so many times, he's immune to it...including as recently as Summer 2016 when it was $90.

 

[Michael Goff]

Apple sold 1 billion iPhones in ten years. It sold over 300 million iPods in the same time. Granted, 300 million is less than a third of 1 billion but what makes the iPod exceptional is that it owned 90+ percent of the MP3 player market. The same is not true of the iPhone, which is still eclipsed by Android.

I am talking about more than just unit sales.

 

[ka-spot]

no worries. my iphone 6 will survive for at least 10 more years.

 

[cocky jeremy]

Its quite something to think that they have an entire Apple Store just to be a set for TV interviews.

I'm sure it was planned. I was just kidding.
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I walked by mine a hour ago and it had fewer than 5 customers in it. There were at least 6 or 7 Apple reps looking at their shoes.

Anytime I go here it's absolutely packed. Like 100+ every time.

 

[vernmc]

I don't know what can be done to the iPhone that would make a person stand in line like it was in the past. But raising the price and being able to access my phone with face id just doesn't do it. I would think a lower priced phone would stir interest. But they have fallen way behind in innovation in other areas such as home automation. If Tim makes 13 million dollars a year and he thinks politics and battery replacement is the main factor. He needs a new job. I think he is saying this for the media. I notice they have increased the number of ads.

 

[trifid]

3X the iPhones sold since Jobs died. This is bc they have kept innovating, otherwise people leave.

It's not innovation. OLED, inductive charging, edge to edge screens, water proofing, Apple was extremely late to the party. Only thing new was face ID but the value of that "innovation" isn't enough to sustain a platform. There is another reason of why people keep buying, I think it's just the ease of use and elegance of iOS.

Consider iPhone 7, it was extremely outdated when it came out, because Samsung was already offering OLED, water proofing, inductive charging, edge to edge, but it was a huge success, to this day I'm amazed how such old tech was so successful, Apple wasn't even trying.

The question is how long can Apple keep milking Job's invention without further innovation because historically Apple relies heavily on innovation. I think that's why Apple wants to shift to services and why they want to stop reporting iPhone sales numbers, they know they can't sustain the innovation.

 

[Bawstun]

So he's doubling down on the brand failure. OK, let's see how that plays out in 10 years. is 10 years "long-term" in Cook's eyes?

He has no vision. This is not sustainable and already the writing is on the walls for failure. Declining phone sales for 3 years (this year will make 4) 4 years running. Not a good sign.

 

[Piggie]

I bet he has amazing products in the pipeline.
And of course he could not be more happy.
And they are the best they'd ever made.
And people love them.

 

[Rogifan]

Agree with much of this but we were shouted down and told Tim knows best. What he did was the classic MBA textbook move and shutter everything that wasn’t making x amount of dollars. But lots of that stuff (photo books, routers, displays etc) kept the magic in the brand between refresh cycles. Now it looks skinny and desperate and too many people are starting to see through it.

I get that Apple needs to find new revenue streams but Apple moving from a product company to a media company or a software as a service company is a very different thing and for me personally not as exciting. Buy this new magazine service for $10/mo isn’t as sexy as here’s a new hardware product to lust after.
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Why? IMO, Cook is so under-appreciated. And I think the more he gets out in front of the cameras the better for him and apple. Let him be as "defensive" as he wants.

No. He doesn’t know how to tell a story or drive a narrative. Now I actually think Apple is an innovative company but the more Tim goes out there and says it the more people think well if you have to keep saying it then you must not be. Don’t say, show.

 

[Naraxus]

So give me measurable things that indicate the company won't succeed since every measure we have says they are doing brilliantly well.

Just because you can't see the innovation doesn't mean it isn't happening.


Off the top of my head:

1) 3X the iPhones sold since Jobs died. This is bc they have kept innovating, otherwise people leave.

Subjective. Is it because their "innovating" or is it because people are comfortable (read trapped) in the Apple ecosystem?

2) Best in class mobile silicon (literally, not arguable).

This I'll agree with you on. Apple's mobile chips are indeed at the top of the pile.

3) Most popular watch in the world

Subjective

5) FaceID...Android Manufacturers rushing to copy, still haven't matched the ease/security.

Touch ID is still far better than FaceID

6) Apple Pay...more mobile transactions than PayPal

Haven't used it so I don't know. Mainly because my bank account is south of $0

8) Stock price is still over triple since Cook took over.

At the expense of their Mac line and professional customers....

9) $250B in cash

Thanks to Apple evading and not paying their fare share in taxes.

10) 3X profit of any company

Thanks to the asininely high prices they charge for their products

11) Best financial performance of any company in history

Debatable

12) Guided revenue down $5B to report the second best quarter for any company in history (only 2nd to their own).

More like deceived their investors and committed possible stock fraud in the process.

Sure, we didn't like seeing the revenue decline in Q1, but let's get real. There are so many positives, you can't throw that all out the window because China struggled with the iPhone. They even told us that was 100% of the revenue shortfall. They need to fix that, but let's stop acting like there are so many signs of failure.

Product quality suffering, Mac lineups neglected for years and manufactured/designed with a shocking amount of flaws, products that bend right out of the box, insulting their customers when it's clear it's their own design flaws and sneakily and deliberately installing software to slow down their phones to force upgrades, complete abandonment of the Mac Professional. The list goes on.

You can't just say "but innovation" and having nothing to back that up. Besides, Apple is a consumer products company. They don't need to come out with a product like the iPhone every year to be successful.

That must be their reasoning behind neglecting the Mac lineup for so long.

 

[femike]

???? From where I sit Apple's ecosystem and product pipeline are the weakest its ever been. Tim Cook has being living in his bubble far too long. It's a clear sign he should go back to his old job.

 

[charleswhalley]

I don't know too many CEO's that go on record saying business is down even when business is down. With that being said, I can appreciate some of his remarks. Yet, the iPhone is getting heavier and more expensive by the year. I just want an affordable, sexy, awesome phone that does not cost a monthly mortgage payment hehe.

Cook sounds like a soccer manager whose team is on a losing streak, trying to say things are ok in the dresssing room and he has the full support of the board. Hopefully he’ll be gone shortly and replaced by someone who cares about product innovation, marketing, and customers - not the lightweight superficial crap that he spends too much time getting involved in.

 

[Defthand]

So what is the point of market share if profits are the game?

I imagine it’s easier to stay in business selling affordable goods to a lot of people than selling luxury-priced goods to fewer people.

In the example of the iPod, the hardware’s profit was secondary. It was a content consumption device. Apple’s real profits came from the 99 cent music tracks it sold. Customers—lots of them—is the only model that can sustain a service.

 

[appelei]

1. Confusing iPhone lineup: Which one is the best? Which one should I stand in line for on release date? I don't feel the magic anymore and I guess I am not the only one.
   
2. No small iPhones in lineup: Why is the premium iPhone always the largest one? Where is the SE2? When I bought the iPhone 5 it was special in every way and someone inside Apple thought about usability. Go get the Xs Small! It's huge! It's fantastic! Make Apple great again!
   
3. No budget iPhone: I repeat, where is the SE2?
   
4. Apple scares off professionals: Nice design MacBook Pro, but extremely thin and not really professional (ports/heat/T2 bridgeOS ****/battery life) in my opinion. Better to buy a tower Mac Pro with some expandability, Oh, wait, Apple forgot to make one. Professionals make content and applications and Apple, you need them to sustain the ecosystem.
5. No services succes without marketshare: Why are (or were) some products overpriced like the HomePod, where instead Apple should lower the price to increase marketshare for services (Apple Music)?

 

[femike]

“Culture of innovation”? Just stop Tim. You haven’t given a DAMN about innovating anything in years. You’ve been coasting on your predecossor’s legacy and it’s showing.

“I’m not being defensive...”

There was a time when Apple’s products stood for themselves but more and more Tim you’ve been sending your minions out to do damage control. The sooner you are removed from Apple the better off the company will be.

Very correct.
Take for example the mac mini. On the web page it says in large bold "Re-engineered in no small way". Are they serious? This updated mac mini, after 4 year of ignoring it, uses the the exact same case, and very poor GPU. It's a hobbled product and far from the best they could do. Tim Cook is a croc of crap.

 

[Defthand]

I am talking about more than just unit sales.

As am I. The iPod litterally changed Apple’s popularity from that of a niche brand to a household name.

 

[phoneme]

Yes android eclipses IOS in market share, not in profits though. And some manufacturers sell more android than apple sells iphones. Some don't. So what is the point of market share if profits are the game?

the point is market dominance. the only reason apple profits are higher is because it's a close system apple gets all the profits of its sales. were as android is open source so there many more points of it's profits and hence not at a central point. im willing to bet if you went to every single andriod mfg and add up every single one it would be a different story.

 

[Baymowe335]

Subjective. Is it because their "innovating" or is it because people are comfortable (read trapped) in the Apple ecosystem?

This I'll agree with you on. Apple's mobile chips are indeed at the top of the pile.

Subjective

Touch ID is still far better than FaceID

Haven't used it so I don't know. Mainly because my bank account is south of $0


At the expense of their Mac line and professional customers....

Thanks to Apple evading and not paying their fare share in taxes.

Thanks to the asininely high prices they charge for their products

Debatable

More like deceived their investors and committed possible stock fraud in the process.

Product quality suffering, Mac lineups neglected for years and manufactured/designed with a shocking amount of flaws, products that bend right out of the box, insulting their customers when it's clear it's their own design flaws and sneakily and deliberately installing software to slow down their phones to force upgrades, complete abandonment of the Mac Professional. The list goes on.

That must be their reasoning behind neglecting the Mac lineup for so long.

Well, you didn't do so well. Just a few problems....I am not going to go through all of them.

3X phones than Jobs could sell...3X the iPhones is 3X the iPhones. A "lack" of innovation since 2011 would have users switching. Didn't happen.

The best financial performance in history is NOT debatable. It is. The most profit ever recorded by a company. How is it debatable?

Apple pays every dollar in tax they are legally required and doesn't break the law. Don't like companies taking advantage of the LAW, change it. They have a fiduciary duty to their shareholders to optimize taxes.

"Product quality suffering." Most subjective statement ever. Some facts to refute that...the reason iPhones are not selling with the growth of before is partly BECAUSE the damn devices last so long and have such quality silicon that their usable lives are longer.

I stopped reading with "stock fraud." Not even a real phrase and you have no clue what you're talking about in general. You probably read about the joke class action lawsuit on this forum and think it has credibility. Apple did nothing wrong. Since you have $0 in your account, you likely don't own stocks and don't know how this works.