If you think the recent fall in profits have josted Apple? Think again as Tim Cook, the chief executive, in an interview has said that the company are planning to come out with futuristic products that people cannot live without.
Last week, Apple reported its first year-over-year revenue decline since 2003, announcing $10.5 billion in profit on $50.6 billion in revenue. Apple also saw its first ever decline in year-over-year iPhone sales, leading one Wall Street analyst to claim Apple’s best days are behind it.
Cook, who was in an interview with CNBC Mad Money host Jim Cramer, discussed his thoughts on innovation, the future of the iPhone and the Apple Watch, the growth of Apple services, Apple’s performance in China among other issues.
“We are going to give you things you can’t live without and devices that you just don’t know you need today. That has always been the objective of Apple. To do things that really enrich people’s lives. That you look back on and you wonder how did I live without this,” Cook said adding
“We are fairly secretive but I would tell you we’re incredibly excited about things we’re working on.”
The CEO also showed no signs of worry over the dip in iPhone sales and said that future advances in iPhone technology that will inspire people to buy new devices.”We have got great innovation in the pipeline. New iPhones that will incentivise you and other people that have iPhones today to upgrade to new iPhones.”
On the Apple Watch, Cook didn’t give many hints about what’s coming in the future, but he said he believes it will be seen differently in retrospect, much like the iPod. “You’ll see the Apple Watch getting better and better,” he told Cramer. “We’re still in learning mode.”
He also addressed concerns about China which had led billionaire Carl Icahn to sell his full stake in Apple earlier this year. Apple’s sales fell 26 percent in Greater China in the second quarter of 2016, and recently, Apple was forced to take down the iTunes Movies and iBooks stores in China on concerns from Chinese officials that believe Apple is “too deeply established” in core industries in the country.
“I could not be more optimistic about China,” he said. According to Cook, the Android-to-iPhone switch rate has been “huge” in China, up 40 percent in the first half of 2016 compared to the first half of 2015. He says Apple is working with Chinese regulatory authorities to get its iTunes Movies and iBooks services back online in the country. “We’re pretty confident and optimistic that we’ll be back online and offering those to our Chinese customers soon.”
However, Cook didn’t say much about Apple’s acquisitions except for saying that it was normal for the company to acquire a company every three to four weeks on average.