Skip to main content

Tim Cook holds company-wide Town Hall, talks iPhone dependence, benefits, pipeline & India

In the days following Apple’s record Q1 earnings announcements, Apple CEO Tim Cook and other top Apple executives held a Town Hall meeting at the Infinite Loop headquarters in Cupertino to reveal new announcements and take attendee questions.

Multiple sources in attendance at the event said that Cook as well as newly appointed Chief Operating Officer Jeff Williams each spoke and made announcements and teases related to new employee benefits, future iPad growth, Apple Watch sales, future retail stores in China, Apple Campus 2, and the future product pipeline.

Cook also fielded questions from the audience, attempting to reduce concerns related to the company’s iPhone dependence, discussing porting more Apple services to Android, growth in India, and releasing cheaper iPhones to appease growing markets.

Cook reportedly began his talk by putting Apple’s revenue announcements in context. He said that Apple sold enough iPhones in the holiday quarter (74.8 million units) to cover the populations of New York, London, Beijing, and Shanghai. Cook also called the Apple Watch one of the “hottest” holiday gifts, and he claimed that sales of the device exceeded those of the original iPhone in its first holiday quarter in 2007.

In response to the slowdown in iPad sales, Cook said he expects iPad revenue growth to return by the end of 2016. Cook noted that he is especially bullish on the iPad line, and sources in attendance said that Cook actually read his presentation notes off of an iPad Pro. Apple is preparing to release a new iPad next month. Cook also praised the fourth-generation Apple TV by noting that Apple sold more set-top boxes than ever during the holiday quarter.

Moving on to future products, Cook reportedly said that the new Apple TV and the tvOS sets the stage for a “bright” future for Apple in the living room. Apple has been working on a cable-replacement service, but the latest reports have indicated multiple stalls in the process.

Cook also noted his excitement over future products coming out of the software, services, and hardware divisions, while teasing some “far-off” hardware announcements coming beyond this year. Cook said that Apple is using Apple Music on Android as a way of testing the waters for growing its services division through other platforms, opening up the door for more porting in the future.

He also touched upon the new Cupertino Apple Campus 2, noting that Apple employees will likely first begin moving into the new campus by the end of January 2017. He emphasized how important the new theater will be in giving Apple flexibility to hold larger events on its own campus versus relying on places in San Fransisco or San Jose. Cook reportedly called the new campus a “gift” to the future of Apple employees.

Also on the topic of new Apple employee benefits, Cook said that Apple would soon be announcing a pair of time-off benefits for Apple employees.

First, Apple employees will now be granted up to four weeks of paid leave if they need to take care of an ill family member. Additionally, Apple’s extended maternity and paternity benefits from fall 2014 will now be available in most of Apple’s operating countries outside of the United States. Apple Retail head Angela Ahrendts is said to have added that Apple is working on new solutions for retaining employee talent across the company.

Jeff Williams also spoke briefly on the subject, touching upon Apple’s work in the supply chain. Williams reportedly said that Apple will soon announce that all of its smelted metals for products used across 2015 and beyond are either completely conflict-free or coming from smelting partners that are are amid validation for becoming wholly conflict-free.

Lastly, Cook touched upon questions involving Apple’s dependence on the iPhone and how India and other emerging markets play into the company’s future.

Cook is said to have called the iPhone the “greatest business of the future,” noting that Apple has room to grow the iPhone for decades. He menitoned that 4G LTE networks are not in every emerging market, and this gives Apple the opportunity to push its latest devices to regions like India. Cook called India one of Apple’s most important growth areas for the next decade, noting that Apple is in early preparations to bring its retail stores to the country.

Cook said that he continues to to consider China key to Apple’s future and that the company plans to open up its 40th store in China by the end of the summer. He also noted that Apple believes it does not need to release a cheaper, less feature-packed iPhone to appease growing markets. Instead, he said, Apple’s research indicates that people across these regions are willing to spend more for a better experience.

(Top image: Reuters)

FTC: We use income earning auto affiliate links. More.

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

Comments

  1. RP - 8 years ago

    Many many many people here and in other forums have been frustrated by the foot dragging on Apple TV. There is so much potential, but Apple like all legacy companies that fail, focused far too much on the iPhone to the detriment of the rest the company and its future.

    I’m glad Apple is finally taking Apple TV seriously but they could have been so far ahead by now. Blaming deals with the cable companies or networks was a clue that Apple was had its head up its ass and failed to the the potential and their ability to leapfrog established players.

    The Internet is the future of ttelevision and television is future of the Internet.

    • Greg Kaplan (@kaplag) - 8 years ago

      For a lot of people the internet being the future of television has been about what you want to watch and when you want to watch it.

      Devices like the ipad and iphone already do that but add, “wherever you want to watch it”. When we all got portable computers, with fast internet, the need to be all huddled around one screen, where only one person can watch what they want at a time, became a thing of the past. Mom and dad watch the news while the kids grab the ipad and watch cartoons kinda thing.

      There’s plenty of value of putting that stuff up on a big screen to enjoy and share with people but It’s much more profitable to sell each person in a family a $500+ device than it is to sell one family a $150 device. The content deals are the real money maker for the Apple tv. They probably didn’t see it being worth it until they had them in place.

      • RP - 8 years ago

        Wherever I go people still huddle to watch tv. Hulu. Netflix, Amazon, etc. and that is only limited by the imagination of those working on it. Apple included. It is gimped by that mentality of the status quo and protecting status quo products.
        Apple has surely been shortsighted on the potential of their Apple TV.

      • snkrsfx - 8 years ago

        Couldn’t agree more

      • ktest098 - 8 years ago

        How is Apple dragging it’s feet on the AppleTV?? They released a whole new AppleTV late last year, finally lets developers write apps for it, and even put out a fairly substantial software update a month or two after launch. AppleTV is in a pretty good place now, Apple will improve it but from the standpoint of putting put something that is very flexible in letting developers create for the TV, they have done a fantastic job.

      • ktest098 - 8 years ago

        Ignore my response to you, meant to respond to the parent instead but didn’t notice “reply” was on top of, not below the message.

    • rnc - 8 years ago

      “but Apple like all legacy companies that fail”

      Then go to the “young” companies, because they won’t!

      Call Apple legacy if you want, but you want content from even legacy-er companies. Watch YouTube instead.

      • RP - 8 years ago

        Boy you missed the point by only a few miles

    • Rich Davis (@RichDavis9) - 8 years ago

      I don’t know, I just watch regular cable TV with a few premium channels and then YouTube, with the occasional Amazon, Crackle movie. I actually played with the last AppleTV and I didn’t much care for it. I can channel surf on cable much faster.

    • ktest098 - 8 years ago

      How is Apple dragging it’s feet on the AppleTV?? They released a whole new AppleTV late last year, finally lets developers write apps for it, and even put out a fairly substantial software update a month or two after launch. AppleTV is in a pretty good place now, Apple will improve it but from the standpoint of putting put something that is very flexible in letting developers create for the TV, they have done a fantastic job.

      • RP - 8 years ago

        Because those things should have happened YEARS ago. Gaming should have happened YEARS ago. Better UI and a better experience should have happened YEARS ago.
        They went about Apple TV the same way every company that has imploded has; by not caring about it and not letting it compete with their legacy bread and butter product until it was too late, when others started eating away at establishment players lunch.

        iCloud, photos, gaming could all be better and could be better integrated. There is so much more growth potential in Apple TV than almost any other product Apple has and they have been sitting on it, asphyxiating it, gimping it. They have been shortsighted about. They have been myopic about it. Their focus on it has been so narrow where the opportunities and endless.
        Not saying they’re doomed or anything like that, just that they have been sleeping on it and need to tap its potential. Like I said, I do not think there is another product right now that has as much growth potential as Apple TV.

  2. applegetridofsimandjack - 8 years ago

    That is a very old photo up there. Of the iPad Air announceent back in 2013. Seems like lightyears back…

  3. taoprophet420 - 8 years ago

    Instead of talking about the new campus’s theater he should talked about it being a place for better teamwork, better workplace and platform for better hardware, software and services.Who cares if you can hold events there if the products are not the best they can be.

    They need to lessen work hours and executives breathing down the departments necks and the hostile way they treat employees along with the new benefits they are going to announce. Apple is loosing talent to other Silicon Valley companies and the new campus should be a platform to switch that. Apple needs to restructure and build a better workplace at the new campus.

  4. RP - 8 years ago

    Microsoft is on a buying spree it seems. Buying obscure and even foolish multimillion dollar acquisitions like Swiftkey. I know they are positioning Xbox as a Chromecast, Apple TV device. But they should just buy Roku and use it as the container for all their services. With the end of consumer Windows, the Roku could take over that spot with all of their properties. onedrive, Xbox, outlook, etc.
    It would make them instantly formidable in the post pc era

    • snkrsfx - 8 years ago

      I’m not so sure you can say foolish spending. I’m pretty sure Apple have the wits to know what, where and when to buy something. I could be wrong, but we see such a small part of a much, much bigger picture that Apple see’s and studies daily.

  5. k m (@nyctenor) - 8 years ago

    Game changers for Apple are going to be 1) the ability to watch 3 network channels (and local too) on your Apple TV via internet connection (NO CABLE ACCOUNT REQUIRED other than internet connection. 2) micro-SD card capability for ALL Apple devices, OLED displays, which are brighter and 3) FILE SYSTEM ACCESS and lower cost FOR ALL IOS DEVICES.
    THose will be game-changers, and speed the ability for Apple to mass-produce

    • o0smoothies0o - 8 years ago

      Not sure what you mean by micro-SD card in all Apple devices, but putting it in any would be incredibly stupid, and there is no chance they are going to do that.

    • ktest098 - 8 years ago

      Adding MicroSD support certainly would be a game changer, it would mean Apple would be losing.

  6. So Apple sold at least 2.3 million watches over holiday quarter, based on what Cook said.

  7. Scott (@ScooterComputer) - 8 years ago

    “noting that Apple has room to grow the iPhone for decades”…the man is off his rocker. Seriously. Two decades ago “telephones” was an entirely different market. If the iPhone survives for decades, civilization has done “it” wrong.

    Also “noted that Apple believes it does not need to release a cheaper, less feature-packed iPhone to appease growing markets. Instead, he said, Apple’s research indicates that people across these regions are willing to spend more for a better experience.”
    Interesting…Apple is also selling those people USED iPhones…hand-me-downs from America. “Only but the best!” for Apple customers, eh? How disrespectful. Apple should be USING its superior supply chain knowledge and device creation talents in order to bring “first world” experiences to these emerging markets at an emerging market price. That could mean less expensive handsets via a combination of older components and slightly lower margins, not “less feature-packed”. That could mean designing devices for longer lifecycles (guaranteed 4 year OS updates), by optimizing and tuning iOS updates better than they have. That could mean making devices with a lower cost of ownership that are easier to repair with parts readily available, like improving water-resistence and making screen replacements something non-Apple vendors can more easily do “officially”. All things Apple has yet to do in emerging markets. (It gets DONE in emerging markets…see the Shenzhen Flash upgrade post on 9to5 from the other day, but Apple isn’t a party to any of that. That’s an extreme case, but Apple needs to make replacement screens and buttons available as a “part”, like car dealers have to. The pricing would be key to their commitment; Apple is making $0 on that market now, so if they price with high margins, we’ll see their goal.)

  8. rgbfoundry - 8 years ago

    We plan to push out a few iOS updates capable of significantly slowing down older iPads. I’m sure it’ll kill the iPad 2, so expect “iPad revenue growth to return by the end of 2016.”

    • irelandjnr - 8 years ago

      You think iPad 2 is getting iOS 10? It’s not.

      • 4nntt - 8 years ago

        I don’t see why not. Apple normally only discontinues support if major OS features can’t be back ported. Until the GPU, memory, or 32-bit processors become barriers, it should still have support for the latest OS. Right now there are too many newer iPads with those same limitations. I think it still has a few years of life left with the exception of newer games. Those will start requiring more GPU performance or Metal support.

    • RP - 8 years ago

      The iPad 2 does what is does really well. I think a lot of people who simply browse the Internet watch Hulu and Netflix on it are satisfied. That’s me for sure.
      When it finally does die, I’ll get a new model. But the thing goes and goes and goes. I will always love the iPad 2 even after it dies.

  9. Santa Josh - 8 years ago

    Arguably, Apple should have been accepting cracked iPhone’s since they started. I know that android services have always had that feature and on a competitive level it seems absurd that they wouldn’t accept them.

    On the other hand, Apple is a colossal company with a lot going for them, but if you make a phone with a screen that cracks so easily, make sure people can still trade them in if they want to. It’s not like it’s impossible for apple to invest in some repairs. Either way, if I hadn’t gotten both of my iPhones free I would use android. I got my iPhones at http://www.appleoverstock.com I guess some company overstocked on iPhones and are giving a bunch away.

  10. Rob Senner - 8 years ago

    Also, AppleCare, very soon, is no longer overseas. If you call in, you’ll be speaking to someone in your country guaranteed. I’m out of a job, but I think this an excellent idea.

    • 4nntt - 8 years ago

      Apple has pretty much always been that way. Call centers are in or close to the country you are calling from.