Apple yesterday announced its Q2 2017 earnings, reporting profits of $11.03 billion on revenues of $52.9 billion. The company sold 50.7 million iPhones, 8.92 million iPads, and 4.19 million Macs. To delve into greater detail, Tim Cook this evening joined Jim Cramer on CNBC’s “Mad Money” for a full sit down interview talking earnings, the future, President Trump, and more.
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Cook opened the interview by talking about how Apple perceives the people who claim the company is “doomed” or that its best days are behind it. Cook explained that Apple looks to the future rather the long-term, focusing primarily on whether or not customers are happy with products and services:
“It’s absurd. It’s people just not understanding the company.
I strongly believe that if users are happy then things will take care of themselves over the long-term. We don’t really look at the stock, because we’re focused on the long-term.”
Tim Cook also talked up the importance of the iPhone, and just how integral it has become to users. The Apple CEO called the iPhone the “best consumer product ever” and pointed to examples such as Health and Apple Pay as to how people can’t live without iPhone:
“iPhone is best consumer product ever. It’s become so integrated and integral into our lives, your health data is there, you’re paying with it from an Apple Pay point of view, you’re messaging your friends. I don’t know if there’s such a consumer product that’s made such a profound change in people’s lives.”
During yesterday’s earnings call, Tim Cook blamed some of the slowing iPhone sales on the increasing number of reports related to the upcoming iPhone 8. He reiterated that again during today’s interview, explaining that the articles tend to push people to delay their purchase, especially in China where people “have a tendency to buy the latest”
From there, the interview shifted towards Services and what Apple could potentially add to make it an even bigger chunk of business. Cook explained that video has hit an “air pocket” where cord cutting is starting to accelerate and people want different ways to consumer TV. He also noted that consumers want to something that’s “more than just linear TV.
“We see that the video has hit an air pocket. While cord cutting has been happening on some kind of basis, we think it’s accelerating. It’s clear what the end story looks like here and we’d like to play in this. We think the best experience for a customer is to view things how they want and want.”
Cook also talked about Apple’s original content efforts, essentially saying this is the company’s way of testing the waters and that it will see where these initial efforts end up.
In addition to the advanced manufacturing announcements that we previously covered, Cook also teased that Apple is doing a lot to build the future generation of coders and that the company is putting money into the efforts. We should hear more about that over the summer, likely at WWDC, according to Cook.
President Trump was also a point of discussion, with Cook saying that in these types of relationships, there are things you’ll agree upon and things you won’t. He stated that there’s no reason to let the things you don’t agree on mean you have zero interface. Cook also reiterated his calls for tax reform and the outrageous process that is bringing money back into the United States.
Finally, in typical Tim Cook fashion, he teased the pipeline that Apple is currently working on. Noting on artificial intelligence, augmented reality, and Apple Watch.
We always are working on an incredible number of things. The watch has been an incredible move into health, especially in the wellness and fitness piece. I’ve lost 30 pounds thanks to Apple Watch.AI is huge, we use it in so much of what we do today. We’re going to be able to use it more in the future thanks to processor and GPU improvements.
As I’ve said before, AR is something we’re really excited about.
View clips of Tim Cook’s interview below and we’ll update as more video rolls in.
Below is Cook’s 2015 interview on the show: