Tim Cook

As planned, iPhone sales have started via China Mobile, the largest carrier in China, today. The official iPhone China Mobile deal, which covers both the iPhone 5s and iPhone 5c, was announced in December. Earlier this week, Apple CEO Tim Cook promoted the event with multiple interviews, calling the partnership a “beginning.” Subsequent reports indicated that millions of iPhones have already been ordered through China Mobile…

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Apple CEO Tim Cook informed Apple employees today via email that the company has settled with the United States Federal Trade Commision over an in-app purchases dispute. Cook says that Apple and the FTC have been negotiating for “several months.” The issue in the App Store comes down to the controversies surrounding children spending money too easily in the App Store without the consent of their parents.

Cook notes that “protecting children” has been a priority for everyone at Apple, and Cook notes that the App Store has industry leading controls for security and privacy, making the need to deal with the FTC surprising. Cook’s email details the safeguards in place for the in-app purchase system. Cook also notes the great lengths that Apple went to in order to appease customers who may have been harmed by in-app purchases:

Last year, we set out to refund any in-app purchase which may have been made without a parent’s permission. We wanted to reach every customer who might have been affected, so we sent emails to 28 million App Store customers – anyone who had made an in-app purchase in a game designed for kids. When some emails bounced, we mailed the parents postcards. In all, we received 37,000 claims and we will be reimbursing each one as promised.

Cook also says that it doesn’t feel right that the FTC intervened here. Alas, a settlement has been reached:

It doesn’t feel right for the FTC to sue over a case that had already been settled. To us, it smacked of double jeopardy. However, the consent decree the FTC proposed does not require us to do anything we weren’t already going to do, so we decided to accept it rather than take on a long and distracting legal fight.

Here’s Cook’s email in full:

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In a rare TV interview, Tim Cook described this week’s launch of the iPhone on China Mobile as “a watershed day” for the company. While the soft-spoken Apple CEO is noted for the humbleness with which he speaks, it’s hard to imagine him describing Apple as being “honored” to do business with many other companies.

I’m so honored to be doing business with … China Mobile. It’s a huge announcement…we’re incredibly impressed with them, we have deep respect for them, and have had from the very first discussion that we’ve had together” … 
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Photo: mashable.com

ComputerWorld noted that Apple’s SEC filing on Friday revealed that Tim Cook lost out on $4M worth of stock as a result of his request to the board in August to revise his compensation arrangements to a deal he felt was fairer to shareholders.

Earlier this year Apple’s board revised Cook’s vesting schedule at his urging. Rather than the two monster stock handouts — which only relied on his continued employment — Cook asked that they be spread out over a 10-year period and tied to the company’s stock performance … 
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This morning, Apple CEO Tim Cook sent a lengthy memo to employees as a reflection of the soon-ending 2013 and the upcoming year of 2014, according to multiple sources. In the letter, Tim Cook discusses people experiencing Apple products this holiday season, the Apple products launched throughout 2013, and corporate initiatives. “This holiday season, tens of millions of people around the world, from all walks of life, are experiencing Apple products for the first time. Those moments of surprise and delight are magical, and they’re all made possible by your hard work,” Cook says in the beginning of the email.

Cook notes Apple’s new manufacturing process for the Assembled in the USA Mac Pro and calls iOS 7 an “extraordinarily ambitious project.” “We extended our lead in the smartphone market with iPhone 5s; launched iOS 7, an extraordinarily ambitious project; released OS X Mavericks for free to our customers; introduced the iPad Air and the iPad mini with Retina display; and this week began shipping the Mac Pro from a manufacturing facility in Austin, Texas,” Cook told employees. Cook also notes his pride over Apple reaching 50 billion App Store app downloads this year. Apple reached this milestone in approximately five years…

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The December supply of Mac Pros?

The new Mac Pro is an awesome machine for those with several thousand dollars to spend on a computer and a need for all the power that comes with that thermal core, but managing to get one is going to be difficult for the next few months even if you have the credit card ready. Yesterday, Apple announced that the Mac Pro would go on sale today, December 19th. The store went live last night with the Mac Pro shipping the very last non-holi-day of 2013, December 30th.

As we noted earlier today, Apple’s customers in its home state of California awoke to Mac Pros being quoted to ship in February. But it gets worse…

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Apple CEO Tim Cook, who is not known for many video recorded public appearances outside of Apple events, spoke at length regarding equality at an Auburn University event. At the event, Cook accepted Auburn University’s College of Human Sciences Lifetime Achievement award. AllThingsD first wrote about Cook’s appearance and notes Cook’s discussion of two of his inspirations: Martin Luther King and Robert Kennedy:

“They sacrificed everything, including their lives, as champions of human rights and of human dignity,” Cook said. “Their images inspire me. They serve as a reminder to me every day that regardless of the path that one chooses, there are fundamental commitments that should be a part of one’s journey.”

Cook also quotes the late Nelson Mandela (who Apple is currently honoring on its homepage). Interestingly, Cook’s quote from Martin Luther King is the same one that he sent via video to Apple employees late in November. “The time is always right to do what’s right,” the quote reads. The video (above) of Cook is well worth a watch for the life lessons it provides. Cook also provides insight into Apple’s approach to making its technologies accessible for everyone.

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Fortune is out today with its annual Businessperson of the Year list and this time around a couple notable Apple connections have made the list. Coming in at #4 behind #1Elon Musk, activist investors, and Tencent CEO ‘Pony’ Ma Huateng, is Apple’s recently hired Head of Retail, Burberry CEO Angela Ahrendts. 
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Apple executives have reached out to employees today in a company wide email urging them to review Apple’s Business Conduct Policy, a document describing how employees should conduct themselves in and outside the company while representing Apple. An email from Apple’s SVP and General Counsel Bruce Sewell (below) was accompanied by a new version of the policy available to employees in iBooks format and a video from CEO Tim Cook discussing the policy.

It’s unclear if there was a situation at Apple that could have prompted the email and video from Apple executives to employees. Apple notes that the policy “explains in very clear terms how you are expected to conduct yourself with our customers, business partners, government agencies, and fellow employees.” The document also covers legal principles  “like antitrust and anti-corruption laws” that all employees are expected to follow.

In the video, Tim Cook quotes Martin Luther King Jr saying “The time is always right to do what is right” and urges employees to speak up about other employees not following the code of conduct. Cook’s full quote from the video below:

As Dr. Martin Luther King once said, the time is always right to do what’s right. At Apple, we do the right thing. Even when it’s not easy. If you see something that doesn’t meet our standards, speak up. Whether it’s a quality issue or a business practice, if it affects Apple’s integrity, we need to know about it.
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Customers entering an Apple Store (<a href="http://www.flickr.com/photos/klingon65/3840822757/in/photolist-6RpdN2-6RtfAW-6RJAHC-6TMNPK-6YaK9g-72ym3y-72ym69-76vgUH-76zcSC-7a46eP-7a46j2-7a46rZ-7a46vV-7a7VFJ-7bk1Cx-7dWBrd-7ebgkw-7fwqc8-7hjdSo-7pJoH8-7pJryH-7pNgDU-7pNhNW-7pNkxW-7rwhLM-7sVwEs-7tYcdD-bqqpoE-bqqqXs-bqqq3L-bDkiMB-bqqqwu-8gRXYQ-dDbgNk-crXJFW-dLxppW-co1G8N-dFMpEd-9SH1T9-bQrD92-aVVDhv-8gRXQC-8gRXR7-8gRXU7-8gNFZz-8gNFZV-8gRXSb-8gNG26-8gNG2H-8gRXTw-8gRXSw/">Photo by Gary Burke</a>)

iOS 7’s flashy launch earlier this year overshadowed a breakthrough new feature: iBeacons, a location-based technology with profound implications for industries such as retail. An iBeacon system could allow a store to install transmitters that would wirelessly connect to an iPhone and tell the phone its location with respect to items on shelves. This iPhone could then perform additional functionality if it is equipped with a specialized application. According to multiple sources, Apple is planning to soon enable just that in its retail stores…
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In a rare move, Apple CEO Tim Cook has written an opinion article in the Wall Street Journal. Tim Cook discusses his feelings about race, gender, nationality, and sexual orientation equality in the context of life inside of and outside of Apple. Cook says that Apple fosters an environment where every single person is safe and welcomed. He goes on to share details about this and Apple’s policies:

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While Apple Stores across the United States are expected to have significant supplies of the iPad Air, some Apple Stores have been told to allocate a smaller number of devices for purchases handled in the early morning.

For example, depending on the store and market size, a few dozen to several dozen units of each model in every color and internet-connectivity option will be allocated for purchases before 12 noon.

Once the store-specific sales number for morning purchases is hit, some stores will not offer those models until later in the day or via Personal Pickup…

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Asymco’s Horace Dediu has put together a couple of charts showing that while the number of visitors to Apple’s retail stores continues to climb, the rate of growth is flattening off.

The underlying reason appears to be a slow-down in the rate at which Apple is opening new stores, as the average number of visitors per store has remained stable for the past three years … 
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Following several reports this month and hints from Tim Cook that Retina iPad mini stock could be in short supply when the device launches next month, the hit and miss DigiTimes reports today that the shortages are due to limited supply of displays from Apple’s supplier Sharp. Specifically, the report claims that Sharp’s “Oxide TFT process is seeing low yield rates” leading to a less than ideal supply of  7.9-inch Retina panels. Sharp accounts for around 40% of the displays for iPad mini with Retina display production, while LG Display is providing the other approximately 60%, according to the report:
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Following Apple’s earnings results for Q4 2013, which includes a record iPhone sales number for the September quarter, Apple CEO Tim Cook has emailed employees to congratulate them on the results. Cook says that Apple “has never been stronger,” and highlights the products being released this fall. “I am happy to report that Apple’s business has never been stronger, and we are heading into the holidays within amazing lineup led by the new iPhone 5s, iPhone 5c, the stunning iPad Air and iPad mini with Retina display,” Cook says in the memo…

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