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Tim Cook remains optimistic about Apple’s future despite earnings downgrade

By Cookie Monster - on 10 Jan 2019, 12:10am

Tim Cook remains optimistic about Apple’s future despite earnings downgrade

The Apple iPhone XS and XS Max.

Aside from sharing his thoughts on Apple's most important contribution to mankind, Apple CEO Tim Cook also discussed in more details on a wide range of topics such as the poor sales in China, the iPhone battery replacement program, the iPhone XR, the ecosystem, the wearables business and Siri.

On the topic of the recent earnings downgrade, Cook reiterated the poor sales of the iPhone in China are caused by a slowing Chinese economy, and the ongoing trade war between U.S and China created a "more-sharp downturn". However, he has heard "some very encouraging words" recently about the ongoing talks between the two countries to ease tensions. 

While he blamed the lower-than-expected numbers of iPhone upgrades on the battery replacement program, Cook said he is not bothered about it and analysts' highly valued metric of measuring iPhone sales in a 90-day period is right at the bottom of his list of concerns.

This is far, far, far down my list. The point is, if somebody decides to buy an iPhone a little later, because of the battery, huge discount that we gave, they decide to hold on a little longer, I'm I'm great with that. 

I want the customer to be happy. We work for them. And so the important thing is that they're happy. Because if they're happy, they will eventually replace that product with another. And the services and the ecosystem around that will thrive.

Cook has some positive news to share about Apple's business in the short and long term.. He defended the sales of the iPhone XR and calls the reports on the model being a flop as "bologna". In fact, the iPhone XR has been the most popular iPhone "every single day" since it started shipping according to him. While he declined to comment on the sales of the iPhone XR relative to the other models, Cook shared that he would like to sell more and Apple is "working on that". 

Cook also touts the immense value and importance of the Apple's ecosystem, and how critics have "underappreciated" it. He said the "ecosystem has never been stronger" as the product pipeline "has never been better" and the company's long-term health has "never been better".

"I'm not defensive on it. This is America and you can say what you want," Cook continued. "But ... my honest opinion is that there is a culture of innovation in Apple and that culture of innovation combined with these incredible, loyal customers, happy customers, this ecosystem, this virtuous ecosystem, is something that is probably underappreciated."

Apple is reportedly launching a premium news subscription service and video streaming service later this year as part of a wider strategy to earn more revenue from its online content and services.

He also stated the wearables business, which includes the AirPods and the Apple Watch, is performing so well that it has already surpassed the iPod business by 50% at the latter's peak. 

And so already, exceeded it by 50 percent at its peak. At its peak. Also, if you take AirPods and the Watch separately, and you sort of back these up and align it to the launch date of iPod, as well, and, you know, where all of them have a comparable amount of time, you would find that each one, independently, is, like, four to six times ahead of where iPod was at a comparable period of time.

Research data has shown that the AirPods continue to dominate the market and Apple managed to sell more Apple Watches in 2017 that all its competitors combined

As for Siri, Cook said that Apple is "putting a ton of investment" in Siri. The "quality is going up" with more than 500 million devices using Siri in 21 languages and 30 countries. He plans to expand the availability of Siri to every country in the world. 

You know voice is a never-ending journey. We all speak a bit differently. I have a southern dialect, not as southern as I used to. But there's a lot of stuff to do there. But I'm highly confident in our ability to keep innovating like crazy there.

Source: CNBC via MacRumors (1) (2) (3)

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