As mentioned earlier today, Tim Cook is speaking momentarily at the 2015 Goldman Sachs Technology and Internet Conference where his remarks will be live streamed, and below we’ll update with the latest from the Apple CEO. In previous years, Cook has used the platform to share insight about product performance including the Apple TV and tease future roadmaps as the CEO often does. Today’s appearance follows Apple’s record quarter for any company with more than $74 billion reported in revenue and over 74 million iPhones sold. Apple is also positioned to release the Apple Watch in April, Cook recently mentioned, so today’s remarks should be interesting.
– You can listen along at home to the streaming audio here (Safari required), but we’ll capture all the highlights for you and update below as well.
– Waiting music is a go, Cook scheduled to speak at the half hour mark.
– Kicking off with Gary Cohn, President and COO moderating of Goldman Sachs, moderating.
– Cook thanking everyone for joining, giving disclaimer about forward looking statements per usual.
– Cohn mentioning record quarter, asks Cook’s opinion of Apple’s biggest accomplishments in 2014.
– Cook says Apple fortunate to have a good year, says company doesn’t believe in law of large numbers, says it’s old dogma cooked up by somebody, says Steve Jobs said putting limits on thinking never good, Apple not focused on numbers but rather what produces numbers, says Apple is a product company, important to make great products, calls iOS 8 largest release since App Store created, calls iPhone 6 and 6 Plus biggest advancement in iPhone yet, says Apple hit the ball out of the park operationally on that roll out, mentions bringing Touch ID to iPad, making iPad thinner and lighter and more powerful (not iPad mini 3!), says Mac kept humming, growing in bad industry.
– Cook now recalling Swift and ability to write apps faster, says even he and moderator Cohn could write apps with Swift, mentioning HealthKit calling it profound saying it allows you to share health information with physicians if you desire, mentioning HomeKit and controlling your home with Siri, now talking CarPlay and extending iOS into the car, home, and health.
– 27 new Apple Stores opened last year, extended online store in more places, over $58 billion in revenue from emerging markets, talking IBM and potentially bearing fruit this year with roll out of new apps through partnership, says greatest contribution to society through empowering people with products and with initiatives like ConnectED, Global Fund and Product (RED) fight against AIDS
– Talking climate change, says the time for talk has passed, time for action is now, says all data centers run off renewable energy, announces 1,300-acre solar farm in Monterey, California, says it’s an $850 million investment, large enough to power 60,000 homes, Apple’s retail stores in California, new campus
– Cook now discussing iPod’s arrival among early MP3 players, describes superior user experience, says tablets were niche before iPad’s arrival, says Apple Watch is similar as several smartwatches now exist but none have changed how people live, says that is Apple’s objective, Cook mentions he’s been wearing one for a while of course, says not sure Cohn’s traditional watch looks cool, says Apple Watch looks fantastic, variety and customization are features, new ways to communicate including Siri
– Says most men keep phone in front pocket, better to use Apple Watch to check information, comments that too many men in conference audience, calls for more women and diversity which was received with an applause
– Cook says a lot of doctors believe sitting is the new cancer, notes Apple Watch reminds you to move and stand each hour, says Watch causing employees to stand 10 minutes before each hour
– Cohn asks how significant non-hardware will be for future Apple business, Cook says Apple hasn’t been a hardware company for some time, says buying a Mac is buying an experience of integration between hardware and software services, says services reported financially together including App Store and AppleCare and media sales with $18 billion from 2014, says iPhone has a great deal of value but software continues to add value that isn’t measured by revenue, says that’s the magic in Apple, says owning the whole widget is important
– Cook says Apple Pay going faster than he anticipated, didn’t expect retailers to make many changers around holiday season, mentions $2 of $3 spent with contactless payments Apple Pay metric from earnings call, Cook mentioning Jet Blue news from this morning, Cook mentioned Apple working with 2,000 banks and credit unions over Apple Pay, said more than 750 signed up last month
– Cohn mentions Apple Pay doesn’t collect customer data, Cook says Apple makes small amount from each transaction but that’s the business model, not collecting data, says customers care about privacy, cites getting credit card details stolen three times, says Apple Pay far more secure and private
– Cook says Panera Bread tells Apple 80% of mobile payments in their store using Apple Pay, says would be higher if Apple Pay was in all their stores
– Cook now talking cheaper iPhone, says company won’t make something second rate (8GB iPhone 5c/16GB iPhones/iPads?), says “it’s a bunch of bull” to think that Apple needs to create a cheaper iPhone for China, says if company makes great products there will be a good business
– Asked about Xaomi, Cook cites past competition from BlackBerry and Nokia saying Apple will always have stiff competition, that it makes company better
– Cohn mentions 70% revenue growth in China last quarter, asks Cook what key to success was, Cook says Apple is investing in people and places there through opening as many as 40 stores by next year, cites partnerships with search companies and carriers, says Apple putting its personal energy into understanding and respecting the market in China, says $38 billion in revenue from China and company has enormous opportunity with more people moving into the middle class, says four new stores have opened in last few weeks with cities of populations of 9 million people, cites India as another opportunity with investments there and rapid growth, Cohn compares India to China in terms of wealth creation and urbanization
– Cook talking stock buyback program, says Apple looks at program once a year, will announce new plans for stock buyback on April earnings call following previous cadence, says Apple not cash hoarder, says company wants to give back cash it doesn’t need
– Cook now talking IBM partnership, says IBM has deep knowledge of a number of verticals, Apple doesn’t, says IBM has field resources, IBM doesn’t, says Apple has devices enterprises want to deploy, IBM doesn’t, says Apple has platform for writing apps, IBM doesn’t, says general productivity tools exist, but partnership creates unique apps for specific verticals
– Cook compares businesses with employees stuck behind a desk to analog schools, says switching to deploying Apple technology like taking schools digital, says going to work and moving back in time technologically is current behavior
– Cohn asks Cook about the future of the Mac, Cook says it has a great future despite the industry shrinking with Cook up to 7% shares, says Mac has seen growth 10 consecutive years, Apple continuing to invest in Mac, says “we’ve moved from about 5 billion to 25 billion last year… we’re up 5 times in revenue in an industry that most people look as left for dead”
– Cook says Apple only company with mainstream mobile and mainstream desktop operating system, only company with such as Microsoft has Windows and Google has Android, says combination allows Apple to create unique experiences like Continuity
– Cook says Apple has hired great talent like Angela Ahrendts running retail and Jimmy Iovine through the Beats acquisition, success comes from determining what products to do and what not to do
– Cohn mentions $700 billion market capitalization record Apple just hit, thanks Cook for attending
– That’s a wrap!