Apple COO Tim Cook on Android, Verizon, and more

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Part of the magic of Apple is that there’s not high walls between these product groups. They like each other, talk to each other, they’re of the same DNA, they want to build the best products in the world. So if one has a great idea, there’s not a “not invented here” in the other group. And so one of the key learnings from the iPad was that people love instant on. They really love that. And so the MacBook Air incorporated that. And that’s just one simple example, but there are tons of examples throughout all of our products where something started on one and went to a different one. And it’s not always in the same direction, either. It can start on the phone and then flow forward, it can start on the iPad and flow, and so on, and so forth.

And so, that’s part of the way we run the company. I think Steve said it great when he said, “If the Mac company were a separate company, and the iPad company were a separate company, what would the Mac company build to compete with the iPad? I think the answer is the MacBook Air.” And I think that’s a phenomenal insight, I think a great way to look at it. It’s not that the groups are competing, they’re sharing. And coming up with the incredible products that people really want.

[Any other observations about your battle with Android?]

If you look at the iPhone portion, we had record sales on iPhone with 16.2 million units sold in the quarter. Peter [Oppenheimer] said we believe we could’ve sold more if we had more supply. From the market estimates that we’ve seen, it suggests we’ve moved faster than the market. Obviously we’re working around the clock on increasing supply. We’re continuing to expand countries and carriers. We’re getting enormous enterprise traction, with 88 percent of the Fortune 100, which is mind-blowing, I believe. 83 percent of the Fortune 500, 60 percent of the FT 100. So enterprise traction is gaining.

We have the highest customer [satisfaction] ratings in the industry, versus Android or RIM or anyone. We have the largest App Store, with over 300,000 apps. We’ve now sold over 160 million iOS devices. This is huge. And we fundamentally believe that our integrated approach delivers a far superior customer experience than the fragmented approach. And you can see this in a variety of ways, from fragmentation of a number of app stores out there, that people are going to pull their hair out because they’re going to have a variety of updating methodologies, a variety of payment methods, and slightly different derivatives. You can see from surveys that people are doing to see who is on the latest OS, and you’ll notice that the iOS is always off the charts on the percentage of people that have the latest version versus the other guys. We are launching with Verizon next month, we believe there’s a huge pent-up demand there. And we think that that will help us in the U.S.

The net net is that we think that our integrated approach is much better for the end user because it takes out all the complexity for the end user, instead of making the end user a system integrator themselves. I don’t know about you, but I don’t know very many people that want to be system integrators as a consumer or somebody in the enterprise. You know, I think that the more iPhones that we can get out there into people’s hands, the more people love them and I think we’ve got a very bright future. I think the same thing about iPad. It’s the same set of issues at the end of the day. The difference on iPad is that we’ve been running three quarters without any significant competition of any type. And I think the customer [satisfaction] ratings on the iPad are also off the charts. I don’t know if any of that is new. I doubt that it is. So I think we’re in a very good position.

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