Apple CEO Tim Cook discussed his thoughts on innovation during an interview with Mad Money host Jim Cramer. Cook talked about the future of the Apple Watch, the iPhone, Apple’s performance in China, the growth and upgrades of Apple services and several other points.
Much more in pipeline
Cook talked about ideas for future advances in iPhone technology that will influence and inspire people to purchase new devices.
“We’ve got great innovation in the pipeline. New iPhones that will incentivize you and other people that have iPhones today to upgrade to new iPhones,” Cook said.
Cook said they are going to provide things people might think they do not need today but that they are things people will not be able to live without, Cook said.
“That has always been the objective of Apple,” the CEO said.
When questioned about if the smartphone maker is still innovating, Cook reiterated their plans, saying that Apple is fairly secretive, but, “I would tell you we’re incredibly excited about things we’re working on.”
Cook on China and the Apple Watch
Apple announced $10.5 billion in profit on revenues of $50.6 billion last week, its first year-over-year revenue decline since 2003. This prompted Wall Street analysts to claim that Apple’s good days are finally over.
Responding to such claims, Cook said, “I couldn’t disagree more.”
The decline in sales resulted from an abnormally high upgrade rate in late 2014 and 2015 as users upgraded to the iPhone 6. Cook also pointed at growth opportunities in India and China.
Cook discussed the concerns about China as well. Apple’s sales in the region fell 26% in Q2 of fiscal 2016. Due to concerns that the iPhone company was too deeply established in the core industries in the country, Chinese officials recently compelled the U.S. firm to shut down the iBook and iTunes stores in China, but Cook said they are talking to Chinese authorities to solve the problem.
Cook said he could not be “more optimistic” about China. The Android-to-iPhone switch has been quite successful in the region – up 40% in the first half of 2016 versus the first half of 2015, according to the CEO.
Commenting on the Apple Watch, Cook said people will see that they are improving the watch. He added that the company is still in learning mode.
On Monday, Apple shares closed down 0.11% at $93.64. Year to date, the stock is down by almost 13%, while in the last year, it is down by over 27%.
