This is Tim: Cook at the 2013 Goldman Sachs conference

Today's Best Tech Deals

Picked by Macworld's Editors

Top Deals On Great Products

Picked by Techconnect's Editors

1 2 3 4 5 6 Page 4
Page 4 of 6

The Retina display is twice as bright as an OLED display. And so I only bring these points up to say there are many attributes of a display, and what Apple does is sweat every detail. We care about all of them, and we want the best display. And I think we’ve got it. I feel great about it.

I’m not going to comment about what we’re going to do in the future, because that releases our magic, and I’m not going to do that. But, you know, the customer experience is always broader than that which can be defined by a simple number.

On what Apple will and won’t do

The only thing we’ll never do is make a crappy product. We’re going to make a great product. That’s the only religion that we have. We must do something great, something bold, something ambitious. We want the customer to be the center of it. We want to enrich people’s lives. And all of this other stuff, we sweat the details on those, in hopes that we’ve proven over the years that this is something we can do.

On the future of the iPad

I think the tablet market will be huge. It is a huge opportunity for Apple. It’s one of those areas that show what I mentioned earlier, of software, hardware, and services being integrated, and creating an experience that’s jaw-dropping. I think it’s huge.

To put the 23 million [iPads sold in the last quarter] in some context, HP, who is the world’s largest PC seller, in that same quarter, sold 15 million PCs. So 50+ percent more iPads were sold in that quarter than PCs, and in fact if you look at the full year last year, there were more iPads sold than HP sold of their entire PC lineup. And so there has been a sea change here, but I think we’re in the early innings of this game.

The tablet market last year, the projections that I’ve seen would indicate there was about 120 million tablets sold last year. The projection is that this is going to triple—triple!—in four years. And so when you think about that—I think the actual number’s 375 [million]—that’s more [than] PCs that are being sold today around the world. And the PC growth rate, as you know, is actually contracting, not growing.

The tablet is attracting people who’ve never owned a PC, and people who have owned them, but aren’t greatly experienced. And Apple is at the forefront. The iPad is absolutely the poster child of the post-PC revolution. If you look at what we bring there, we’ve worked really hard on our ecosystem. There are over 300,000 apps that have been custom-made to take advantage of the big beautiful canvas that iPad has. The other guys have a few hundred. We have a significant lead in this area.

Also, I think the tablet, as I mentioned before, you can see the whole of Apple coming out here. If you look at—I have no idea what [our] market share is, because we’re the only company that really reports how many units we sell—but if you look at usage, there are companies out there that have very, very good metrics in usage.

And so, if you look at IBM, as an example, [it] did a study on Black Friday. And this was shocking—it was shocking to even us. On Black Friday, the product that there was the most shopping done on, of any mobile device, was iPad. And I don’t mean iPad as compared to a single brand somewhere, I mean iPad was twice as much as the total of every Android device. Every one of them! Every phone! Every tablet! Twice as much.

And so, why is this? It’s because it’s an incredible experience. By the way, iPhone in that same survey was almost twice as much as all Android devices. And so, we really sweat the details and so we have a greater customer experience, and the data is very clear that customers use them a lot more.

They clearly use them to a much higher degree than whatever our share might be. I’m not sure what people are doing with these other tablets. But that’s what we care about. We want people to love our products, and use our products. Not just buy them. Our relationship starts there, it doesn’t end there.

The other thing that’s so profound about iPad is that in this short period of time, it’s moving and being sold in a large way in all the key markets. So we find ourselves in virtually every Fortune 500 company, in almost every Global 500 company. We find ourselves in education, and we’ve put a lot of energy into that area, [into] making it easy for people to do fantastic textbooks that are incredibly engaging, and of course we find ourselves in consumers’ [hands], but usually it takes a long time for products to engage all of these markets. We’ve kind of already done that.

But I still think we’re in the initial innings of this, and so this is very exciting, it’s very profound for the industry. I think it once again shows that the age-old model of everyone doing a sliver of something and hoping it comes together in a product that has a great experience—customers aren’t buying it, they don’t like it, they want integration. And Apple can do that better than anyone.

On cannibalization

The truth is, in different ways I’ve been asked this question for many years. I think the first time I got asked about cannibalization was when Apple came out with the iBook. And people were definitely worried that it would cannibalize the PowerBook. And portables went on to be three quarters or more percentage of the Macs [75 percent plus], and Macs hit an all-time record last year. If you look at when we came out with iPad, what did people worry about? They worried, “Oh my god, you’re going to kill the Mac, what have you done, you’re stupid!”

1 2 3 4 5 6 Page 4
Page 4 of 6
Shop Tech Products at Amazon