Apple's Tim Cook Discusses the Future of Apple

During this past week, Apple CEO Tim Cook was interviewed by the Wall Street Journal. The interview covered topics from the company's future, an iPhone with a larger display, and how Android is like Europe.

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When Cook was asked if he views Apple as a non-growing company, he said:

Last year, we grew (revenue) by $14 billion to $15 billion. Yes, those percentages are smaller compared to a year earlier and two years earlier and so forth. But that doesn’t mean that you’re not a growth company. We were in hyper-growth, or whatever is above growth. We went from $65 billion to over $100 billion to $150 billion to $170 billion. These are historic, unprecedented numbers. I don’t know any companies adding growth at that level. So when you say $14 billion to $15 billion compared to those numbers, it’s clearly smaller and a smaller percentage, but, to put it in some context, that’s like adding three Fortune 500 companies in a year. I think that’s hard to say that’s not a growth company.

[The last quarter] was an interesting quarter in a lot of ways. It was our highest revenue ever. It was our best iPhone sales, best iPad sales and one of our best Mac quarters ever and this is in an environment where the PC industry is shrinking. And we grow by 19%, that’s pretty fantastic.

We always look at the underlying health of our businesses. And what I mean by that is we look at sell-through because that’s what’s most important to us. About 70% of our business is indirect, 30% is direct. In that 70%, we look at great detail of what’s selling through. So when you look at the sell through, the iPhone was actually higher than the sell-in so I care more about that.

Now a days, people are looking for phones with a larger screen than that of what the iPhone offers. Tim Cook was asked in the interview if he is against that, here is his response:

What we’ve said is that until the technology is ready, we don’t want to cross that line. That doesn’t say we’ll never do it. We want to give our customers what’s right in all respects – not just the size but in the resolution, in the clarity, in the contrast, in the reliability. There are many different parameters to measure a display and we care about all those, because we know that’s the window to the software.

The WSJ also asked Cook on his opinions on Google selling Motorola to Lenovo. Here are his thoughts:

I wasn’t surprised. It seems like a logical transaction. Google gets rid of something that’s losing money, something that they’re not committed to. I think it’s really hard to do hardware, software and services and to link all those things together. That’s what makes Apple so special. It’s really hard, so I’m not surprised that they are not going to do that.

During the interview, he compared Android to Europe. Cook reiterated that the App Store has over one million apps with over half of them optimized for the iPad. Android, on the other hand, only has approximately 1,000 apps which are optimized for tablets, which he says is one of the reasons why the experience on Android tablets is so crappy because the app is nothing more than a stretched out smartphone app".

The other thing is that Windows pretty much was one thing. Android is like Europe. Europe was a name that somebody came up with for Americans who didn’t understand that Europe was a lot of countries that weren’t like U.S. states. They were very different. Android is many things. How many people who use a Kindle know that they’re using Android? And you see what Samsung is doing by putting more and more software on top. I think it’s night and day. The compare is so off.

Apple has big plans for upcoming products in multiple categories for the years to come. The company is spending an enormous amount of money on the Mac's future.

Check out the full interview on the Wall Street Journal, it is well worth checking out.

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