Tim Cook

(Preparations for Apple’s 2013 WWDC developer conference / Image via Nick)

There’s a lot we already know about what we’ll be seeing next week at WWDC– we’ve already brought you exclusive details on iOS 7, OS X 10.9, a MacBook refresh, Apple’s new Radio service, and much more. What else might we see Apple show off next week? Below are a couple of our best predictions based on what we think Apple is most likely to show off as well as few things we’ve been hearing:
Expand
Expanding
Close

(via <a href="http://www.ap.org" target="_blank">AP</a>)

The U.S. Department of Justice has released its case against Apple in the alleged ‘ebooks pricing fix’ case (via CNET) that claims Apple made deals with book publishers to manipulate the price of ebooks.

The Justice Department believes Apple moved to raise ebook prices before Apple launched the iPad and the iBookstore so the company could benefit at the cost of the consumer.

Notably, everyone mentioned in the complaint has settled out of court ahead of this week’s trial, but Tim Cook has remained adamant that Apple is innocent of any wrongdoing.

Apple’s iBookstore has established deals with all of the major book publishers and sells ebooks on its proprietary store for viewing on Apple’s iOS devices including the iPhone, iPad, and iPod touch.

As we noted this morning, Tim Cook echoed this message at last week’s D11 conference:

The e-book case to me is bizarre. We’ve done nothing wrong there, and so we’re taking a very principled position. … We’re not going to sign something that says we did something we didn’t do. … So we’re going to fight.

The Justice Department released all 81 slides outlining its case against Apple, which you can view in its entirety below.
Expand
Expanding
Close

In the midst of the U.S. government’s interest in Apple and other large multinationals that “avoid” paying taxes in the U.S. or repatriating funds stored abroad, RudeBaguette.com notes that the French society of authors, composers, and music publishers (SACEM) has announced that Apple owes around 5 million euros in unpaid taxes.

The funds apparently come from unpaid royalties on iPad sales for 2011 that France and other EU countries, such as Germany, collect for devices capable of transferring and displaying copyrighted material:

To give a bit of a background, the copie privée is a tax in several countries including France & Germany that is applied to all digital devices that can transfer, read, or otherwise make use of copyrighted material. The tax goes to the SACEM, which then takes the lump sum of all the taxes collected and deals them out to authors, creators, producers, actors, etc. accordingly… the problem here isn’t so much the tax, but that Apple actually charged the consumers this tax, and didn’t pay it out to the SACEM.

The news comes as reports claim France is beginning to crack down on tax schemes of large companies with plans to force  Apple, Google, and others to disclose details of foreign business activities and tax practices:
Expand
Expanding
Close

We discussed Tim Cook’s speaking at Duke’s Fuqua Business school on the occasion of the 25th anniversary of his MBA back in April. This weekend, Duke published  insightful snippets of the remarks he made and they are incredibly insightful. Perhaps most interesting was Cook’s views on collaboration:
Expand
Expanding
Close

Tim Cook noted during his interview at the D11 conference tonight that “Apple has no religious issue porting an iOS app to Android,” but was careful to point out that they would only do so “if it made sense.”

When asked about Facebook’s Android home screen replacement and whether such access would ever be available to developers on Apple’s platform, Cook noted that there are plans to allow deeper access to iOS, but such changes will only be allowed if they don’t impact the customer’s experience. Kara Swisher specifically asked about the possibility of Chat Heads becoming part of iOS, but Cook was quick to shoot the idea down:
Expand
Expanding
Close

Live on stage during his interview at the AllThingsD D11 Conference tonight, Tim Cook has for the first time talked at length about his view on wearable technologies as competitors like Google and others push ahead with Glass and other wearable projects. While noting that broad range appeal with a product like Google Glass is “tough to see,” Cook said he thinks “the wrist is interesting” while calling the form factor “somewhat natural” compared to head mounted products.

Nike Fuel Band well made for the fitness category. Works well with iOS. The ones that do more than one thing aren’t great. They won’t convince a kid who has never worn glasses, a band, or a watch to wear one. There are lots of things to solve in this area, ripe for excitement. I think there will be tons of companies playing in this (won’t respond to Walt asking if Apple will). I see this as a very key branch of the tree… referring to the post-PC era.

Cook did note that “people want wearables to be light, unobtrusive, reflect their fashion/style” and that it would take some convincing to show people ‘why it’s worth wearing them’:

Expand
Expanding
Close

Image via AllThingsD

We are here on the scene at Tim Cook’s interview at AllThingsD‘s D11 Conference in Palas Verdes, California. The proceedings will begin at 6 PM Pacific / 9 PM Eastern, and we’ll be noting both Walt Mossberg and Kara Swisher’s questions and Tim Cook’s answers in this post.

At last year’s D10 conference, Cook gave insight into improved relations with Facebook (which forecasted iOS 6 integration), hints at the demise of Ping, insight into his first few months as taking over the reigns from Apple co-founder Steve Jobs, and more.

This year’s interview will follow Apple’s improved transparency with manufacturing partners, several major product launches, the Apple Maps debacle, the departing of two top Apple executives, and comes amidst a time in which Apple’s competition is heating up and new Apple product categories are rumored to be brewing.

With that in mind, it will be interesting to see both AllThingsD‘s questions and Cook’s responses. Find our complete live blog below:

Expand
Expanding
Close

Image via <a href="http://allthingsd.com/20120611/apples-tim-cook-says-hello-the-full-d10-interview-video/"><em>AllThingsD</em></a>

As announced in April, Apple CEO Tim Cook will be returning to the stage for an interview with AllThingsD‘s Walt Mossberg and Kara Swisher at the D11 conference. The event begins today, and the interview of Tim Cook starts at 6PM Pacific/ 9PM Eastern time. We will be at the event live and we’ll be providing full coverage during the interview.

Expand
Expanding
Close

http://www.youtube.com/watch?feature=player_embedded&v=VLIf0m5CNXQ

You can’t help but laugh at Stewart’s ribbing of the senators’ questioning, but it is pretty clear Apple is pushing for simplicity and is only jumping through the loopholes because they are there. Tim Cook appears very genuine in his hopes for a more simple, fair tax code.

In other news, Apple is doubling its lobbying spending.

The company spent about $2 million on lobbying last year, up from $180,000 in 1999, records show. This year it is on pace to nearly double last year’s figure.

Apple’s lobbying expenditures still pale in comparison with those of Microsoft Corp., which spent $8.1 million in 2012, and Google, which spent $16.5 million, records show.

Daily Show Flash code below for when the YouTube video gets taken down. Via Fortune

Expand
Expanding
Close

During this morning’s Senate hearing regarding Apple’s tax strategies, Apple CEO Tim Cook provided opening statements regarding Apple’s perspective on the issues. Notably, during a time in which Cook was discussing Apple’s United States-based operations and strategies, the Apple CEO said that Apple’s upcoming Made-in-the-USA Mac line will be assembled in Texas…

Expand
Expanding
Close

Update: Live coverage of the Senate hearing on Apple’s offshore tax practices is above.

As things heat up in the row on alleged tax avoidance by Apple, Ireland has denied a claim made by the Senate Permanent Subcommittee on Investigations that it had agreed a special deal with the company to allow it to pay corporation tax of just 2% on its Irish earnings.

The denial was made to Yahoo! Finance reporter Conor Humphries:

According to the congressional report, Ireland had also agreed a special 2 percent rate for Apple’s Irish taxable profits instead of the normal 12.5 percent, but a spokesman for Ireland’s finance department, when asked how and why this had come about, said: “Ireland’s tax system is statute based, so there is no possibility of individual special tax rate deals for companies.”

This appears to flatly contradict a statement by the Senate subcommittee that accused Apple of …
Expand
Expanding
Close

Apple today has published its testimony proposing corporate tax reform and detailing the company’s tax practices ahead of CEO Tim Cook’s appearance at a Senate hearing on offshore tax practices scheduled for tomorrow.

In the testimony, Apple proposed what it called comprehensive corporate tax reform that should: Be revenue neutral, eliminate all corporate tax expenditures, lower corporate income tax rates; and implement a reasonable tax on foreign earnings that allows free movement of capital back to the US.

While some Subcommittee members may have differing views on these tax policy matters, Apple hopes the Subcommittee will see that these recommendations aim to create meaningful change and go well beyond what most US companies propose. As both a pioneer and participant in the American innovation economy, Apple looks forward to working with the Subcommittee on its efforts to encourage comprehensive reform of the US corporate tax system. Apple appreciates the opportunity to appear before the Subcommittee to contribute constructively to this important debate.

Apple also detailed the company’s current tax practices and noted it “made income tax payments to the US Treasury totaling nearly $6 billion – or $16 million per day.” Apple points out that, at a rate of 30.5%, that accounts for around “$1 out of every $40 of corporate income taxes collected by the US Treasury last year.”

Apple continued by commenting on its recent decision to borrow $17 billion in debt instead of repatriating offshore funds to help fund its shareholder return:
Expand
Expanding
Close

Yesterday Politico reported that Tim Cook will appear before Congress next week to testify in a hearing regarding how the company is handling its overseas finances and domestic taxes, and today Politico has published a brand new interview with the Apple CEO.

Tim Cook and Apple tend to avoid any public discussion aside from comments during quarterly earnings calls, but it seems the company is on a PR offense leading up to next week’s public hearings.

“We don’t have a large presence in Washington, as you probably know, but we care deeply about public policy and believe creative policy can be a huge catalyst for a better society and a stronger economy.”

Cook went on to defend Apple against any accusations that may come its way next week.

“I can tell you unequivocally Apple does not funnel its domestic profits overseas. We don’t do that. We pay taxes on all the products we sell in the U.S., and we pay every dollar that we owe. And so I’d like to be really clear on that.”

The Apple CEO also noted the company’s $100 million project to produce a Mac line in the United States this year, which the company says will add jobs to the economy.
Expand
Expanding
Close

Yesterday we decided not to run with a story published by Bloomberg that Pegatron’s forecasted 25 percent to 30 percent drop for second-quarter revenue was due to “falling iPad mini demand.” It seemed a little far fetched that an Apple supplier would be giving up specific information on product demand, something we know suppliers in Apple’s circle typically remain tight-lipped on. Today CEO of Pegatron Jason Cheng has confirmed our suspicions in an email to Fortune claiming that Bloomberg reporter Tim Culpan made the iPad mini angle up.

While quoting an analyst’s expectations for iPad mini demand in Q2, Bloomberg’s Tim Culpan offered the following quote from Pegatron Chief Executive Officer Jason Cheng as proof:

A decline in revenue from the iPad Mini “is more on demand, while price has been stable. Not just tablets, also e-books and games consoles, almost every item is moving in a negative direction.”

Pegatron chief Jason Cheng says he wasn’t referring to iPad mini specifically, but rather all of its products including all tablets and game consoles, while noting that “clearly refused” to answer Culpan’s questions related to specific products. Here’s what he had to say about the Bloomberg piece:
Expand
Expanding
Close

Fortune is out today with its annual FORTUNE 500 list ranking the largest corporations in the U.S. by revenue for fiscal 2012 (before expenditures). This year Apple, for the first time, has finally cracked the top 10 of Fortune’s list rising from its 17th place position last year to No. 6 on this year’s list. It’s still well behind Wal-Mart at No.1, as well as Exxon Mobil, which Apple happened to briefly surpass Apple’s market cap back in January to become the world’s most valuable company.

As for tech companies on the list, Facebook just barely made the Fortune 500 for the time this year coming it at number 482, while others include AT&T at No. 11, HP at No. 15, Verizon at No. 16, Microsoft at No. 35, and Amazon at No. 49.

Head below for the top 10 list and check out the full Fortune 500 here. 
Expand
Expanding
Close

Apple CEO Tim Cook will be interviewed on opening-night of AllThingsD‘s D11 conference in May. Cook’s interview with Kara Swisher and Walt Mossberg will be his second as the Apple CEO spoke at the conference last year as well. The conference runs in California from May 28th until May 30th. (Image via ATD).

Expand
Expanding
Close

Apple CEO Tim Cook spent Friday and Saturday at Duke University during one of the school’s “Real Conversations with Real Leaders” sessions. Cook gave business advice from his perspective as one of the most powerful executives in the world to the crowd at his alma mater.

photo by <a href="http://instagram.com/p/Ynos07nn0d/" target="_blank">csinar</a>

Tim Cook graduated from the Fuqua School of Business in 1988. Other Duke alumni at Apple include Senior Vice President of Internet Services Eddy Cue and Senior Vice President of Operations Jeff Williams…

Expand
Expanding
Close