Tim Cook takes on those Apple bears who say the company's best days are behind it (VIDEO)

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In a televised interview conducted today on CNBC, Apple CEO Tim Cook told former hedge fund manager Jim Cramer that the long-term outlook for the company has never been better. This comes after Cook's announcement last week that Apple was lowering its revenue guidance for the fiscal first quarter due to lower than expected iPhone upgrades in China. That announcement sent shock waves through the market with Apple's stock dropping nearly 10% the next day.

During his interview, Cook pointed out that he isn't worried about the 35% decline in Apple's shares since its peak last year. He says Apple is managed for the long term and cites three reasons why he believes that the long term outlook for Apple is better than it has ever been. Reason one is the company's innovative culture. Cook says his team is outstanding when it comes to getting hardware, software and services to work together. Reason two, the large active installed base of iPhone users which is now roughly 1.4 billion after adding another 100 million active iPhone users in 2018. Third, the iPhone has the highest rate of customer satisfaction and loyalty in the industry.

As the CEO points out, with this large, loyal installed base, Apple can expect recurring revenue from hardware sales and from the App Store. It also will help Apple continue to grow Services revenue, which has expanded from $7 billion in 2010 to $41 billion in calendar year 2018. Fiscal first quarter Services revenue is expected to be a company record $10.8 billion.

Sitting inside the Apple Store on Apple's campus in Cupertino, Cook told Cramer about how Apple's products are life changing. He mentioned the emails from Apple Watch owners whose lives were saved by the timepiece, and the photos that are saved on the iPhone that bring back memories. The executive managed to sidestep Cramer's question about Chinese businesses that are subsidizing employees purchases of phones from Chinese manufacturers while imposing fines on those who buy an iPhone. Instead, Cook spoke about how the decline in the country's economy was exacerbated by tensions from the trade war with the U.S. He is optimistic that the battle will lead to a new trade agreement between the two countries.

Cook called "baloney"on analysts who have turned bearish on the stock and those who have called the iPhone XR a flop. He pointed out that since Apple started shipping the iPhone XR on October 26th, it has been the most popular model every day. "Of course I'd like to sell more, and we're working on that," said Apple's CEO.


Cook says that the market is emotional in the short term and that Apple looks through all of that, focusing on the long term. "And so when I look at the long-term health of the company, it has never been better," Cook stated. "The product pipeline has never been better. The ecosystem has never been stronger. The services are on a tear." He also discusses how Qualcomm is overcharging for its standards essential patents by charging "exorbitant" rates for licensing its patents instead of the Fair, Reasonable and Non-Discriminatory (FRAND) rates it should be charging.

In response to Cramer's comment about Alexa, Apple's CEO says that the company is investing heavily in the virtual personal assistant, which is now found on 500 million devices. Cook says that Siri is used 10 billion times a month and is available in 21 different languages in over 30 countries.

It's a fascinating interview and you can watch it by clicking on the video at the top of this article.

FEATURED VIDEO

32 Comments

1. Derekjeter

Posts: 1466; Member since: Oct 27, 2011

Let’s be honest, there’s nothing that any company will bring out in the next 5 years that will be true innovation let alone Apple. It’s over for them and every other company. People don’t want to spend $1000 or more for something that’s not even worth $500. This is not a short term issue. It’s a very long term issue and all tech companies need to start realizing this new generation will not be as stupid as fan boys and drop hundreds or thousands on the same product year after year.

5. Atechguy0

Posts: 918; Member since: Aug 03, 2018

So Apple signed contracts with Qualcomm, and hasn't paid Qualcomm a dime in years now. Even though they were still using some of Qualcomm's chips while this has been going on. Plus all the patents Qualcomm holds that Apple is currently using. Yet Tim said call Qualcomm's rates "exorbitant". That's real rich from a company like Apple. A perfect example is Apple charging $750 USD, or $1030 CAD, or $1080 AUD, or €1000 EURO for an iPhone XR. The iPhone 7 plus is a better phone than the iPhone XR, it has 3D touch, a higher resolution display, Touch ID, same ram, and two cameras (zoom). The iPhone XR has no zoom camera, no 3D touch, no touch ID, and a lower HD+ resolution display. Tim can you not see that the iPhone XR is not great value, like you stated. Just because you tell people it's great value doesn't make it so.

6. sissy246

Posts: 7074; Member since: Mar 04, 2015

Yeah, its funny how apple read the contract , agreed and signed it and then crys about it. Timmy boy, you shouldn't have signed the damn thing.

17. Tech-shake

Posts: 213; Member since: Nov 14, 2016

Couldn’t agree more with you! Apple and all hardware first companies are going to lose ground fast!

28. janis

Posts: 397; Member since: Mar 10, 2014

that is so true. especially for apple, they make money because they have loyal sheeps only

2. Phonehex

Posts: 758; Member since: Feb 16, 2016

Tim Cook is trying so hard so "Sell" the story.

9. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Because the writing is on the wall. Their services are worthless without the iPhone because no one is using Apple maps or Apple music or safari without the defaults gun to their head. The 1.4 billion active iOS users are, firstly, double counted with tablets and phones counting individually and second, going down (which is what the initial scary news was). Finally, half of their revenue is the phone HARDWARE only, not everything attached to it that also makes money. Apple watch sales would go down, homepod doesn't sell anyway, MacBooks are losing popularity fast and being replaced by surfaces now. Tim has to do damage control and fast.

13. midan

Posts: 2716; Member since: Oct 09, 2017

"MacBooks are losing popularity fast and being replaced by surfaces now" What joke is this? :D "The 1.4 billion active iOS users are, firstly, double counted with tablets and phones counting individually and second, going down (which is what the initial scary news was)" down? active iOS userbase was up 100 million last year..

14. TheOracle1

Posts: 2215; Member since: May 04, 2015

"Reason one is the company's innovative culture." Lmao! He lost me right there. Don't get me wrong though. I understand that Apple products are generally good and satisfy most peoples needs but they are no longer innovative (the Chinese are streets ahead there) and certainly not the best any longer.

3. Xxtoxicskittlexx

Posts: 189; Member since: Jun 11, 2018

I think Tim confused that interview with a Key Note.

4. dimas

Posts: 3345; Member since: Jul 22, 2014

Tim, for the last months you've been swiggity with your statements. Just show your investors the cash flow and sales report for iphone xr, xs and xs max. Present them the numbers before you step down.

7. hafini_27

Posts: 949; Member since: Oct 31, 2013

Apple stopped giving a damn after the 7 and 7 Plus. Now they are only ahead of the competition in terms of pricing.

24. Phonehex

Posts: 758; Member since: Feb 16, 2016

Actually after the 6S rather.... I personally saw the iPhone 7 as the worst yearly upgrade of all time.

8. RoryBreaker

Posts: 208; Member since: Oct 11, 2015

Apple is only great at getting rid of things that make sense on their phones & computers

10. BullDozer

Posts: 154; Member since: Dec 18, 2015

Old fart remembering good old days.

12. basher

Posts: 105; Member since: Sep 20, 2015

"it's a fascinating interview" that looks to me more like an Apple commercial... Apple is the best in everything, just to get more money from their users.

15. ryq24

Posts: 875; Member since: Oct 17, 2011

In denial.

16. midan

Posts: 2716; Member since: Oct 09, 2017

"Cook says that the market is emotional in the short term and that Apple looks through all of that, focusing on the long term. "And so when I look at the long-term health of the company, it has never been better," Cook stated. "The product pipeline has never been better. The ecosystem has never been stronger. The services are on a tear." Exactly! As long as there isn't anyone else offering iOS phones and Apple won't lose tens of millions users there's nothing to worry. They will bounce back after markets sees how others are doing currently, Samsung big Q4 warning was good news for Apple, it starting to open people eyes what's happening in the market.

18. TheOracle1

Posts: 2215; Member since: May 04, 2015

"The product pipeline has never been better." Or more unjustifiably expensive. Midan (lead singer of the i8), look at it this way. Under Cook Apple has becoming unnecessarily risk averse. As you know I use a Vivo NexS and if Apple produced a phone like that with an in-screen fps, pop-up camera, in-screen speaker, no notch and a 4000mah battery for $1,000 it would be an immediate smash hit. Even if it had flaws, consumers would buy it. After all they produced the notch abomination and got away with it.

19. midan

Posts: 2716; Member since: Oct 09, 2017

Making phone is always making compromises, Vivo did theirs to make NexS and it didn't work that well. Saying Apple would sell samekind of phone with $1000 and calling it hit when you don't know what you have to leave out from the phone. Every hardware makes price higher and also there's limitless space inside a phone. Companies just need to figure out what are the things people care to paid. So far it looks like Vivo made cool looking device which reviews don't recommend to buy. Phone like that from Apple wouldn't have been smash hit because tech in Apple level so far isn't ready for such a product and Vivo NexS is great example of that, current in-screen fps aren't good and definately not Apple level standards.

21. TheOracle1

Posts: 2215; Member since: May 04, 2015

I've asked you countless times to read a current review of the NexS or at least the user reviews on XDA but you clearly refuse to do so. For the umpteenth time, the review units from the middle of last year were the Chinese version and it wasn't designed for the international market. The International version came out around August/September and is excellent and doesn't have the bugs that the Chinese version did. The fps is fine but takes some getting used to. And please stop with the Apple standards bs. That's gone down the same toilet as their sales are going. I tried to engage you in a meaningful discussion and you just resorted to your same fanboy crap.

22. midan

Posts: 2716; Member since: Oct 09, 2017

"The fps is fine but takes some getting used to. And please stop with the Apple standards bs. That's gone down the same toilet as their sales are going." Touch ID worked very well since day one, didn't take any time to get used to it. Apple users have very high standards how they think pricey device should work. That's why we are willing to pay the high price. Apple standards also shows in Face ID, it's clearly best face ID tech in the market and that's why Apple could only use Face ID without touch ID. so does international version of NexS have better fps? better camera? better screen? better OS? does international version have NFC so it can be used for mobile payment?

23. TheOracle1

Posts: 2215; Member since: May 04, 2015

Wtf are you talking about? I'm NOT comparing phones you moron. Forget I brought the subject up. It's gone way over your head.

25. Vancetastic

Posts: 1104; Member since: May 17, 2017

Allow me to sum it up: “Apple is perfect, everything they produce is just the best, and they make the mostest moneys (yay!). Samsung is in big trouble, too.” I’m not sure why you try with these guys.

27. TheOracle1

Posts: 2215; Member since: May 04, 2015

I'm not going to try any longer and just go full ¢rapple on them from now on. I was going to try and point out that many Chinese phones don't have nfc because QR code scanning is the primary form of mobile payments in Asia. But he'd get into a debate about nfc being better and Apple Pay being the best of all. Remember this is the same guy that didn't know there's no Google Play Store in China.

31. Vancetastic

Posts: 1104; Member since: May 17, 2017

It’s too bad these comment areas are littered with trolls that just want to cheerlead their favorite brand without actually discussing anything. It is hard not to get caught up in it, though.

29. midan

Posts: 2716; Member since: Oct 09, 2017

Going personal is the way Android users go when they get owned, not surprising! Typical behaviour Not going to waste my time with people like you, been doing that enough already.

30. Vancetastic

Posts: 1104; Member since: May 17, 2017

Your comment sounds like you are...”going personal”, as you say.

26. Vancetastic

Posts: 1104; Member since: May 17, 2017

How do your “high standards” feel about that floppy iPad Pro?

20. Whitedot

Posts: 772; Member since: Sep 26, 2017

"Reason one is the company's innovative culture". When apple starts really inovate Iphone product they will want to charge north $2000.

* Some comments have been hidden, because they don't meet the discussions rules.

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