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Apple's Cook talks quarterly earnings, new products

MacWorld Staff | April 24, 2013
Apple announced second-quarter earnings Tuesday, and CEO Tim Cook had plenty to say during the company's conference call with Wall Street analysts.

Going forward, we still see a significant opportunity in China. It's a great market, we have 11 stores there; we expect to double those in less than two years. We have added about 8000 iPhone point-of-sales in the indirect channel to about 19,000 a day, and we obviously have a plan to add more, and further grow our distribution. This number's obviously just too low currently.

We're also innovating with our online store there, and adding different functionality to the store. China has an unusually large number of potential first-time smartphone buyers, and that's not lost on us. We've seen a significant interest in iPhone 4 there and have recently made it even more affordable to make it even more attractive to those first-time buyers. And so we're hopeful that will help iPhone sales in future.

On the competition

The smartphone market has always been competitive. The names of competitors have changed. In the beginning, RIM was the, sort of, the very strongest player because the smartphone as you know really got going in the enterprise area. And of course, today, our top competitor from a hardware point of view would be Samsung, married to Google on the operating system side.

We've got some really great stuff coming in the fall and across all of 2014.

They're obviously tough competitors, but we feel that we have the best products by far. We are continuing to invest in innovative products, and feel really really confident about our product pipeline in both hardware, software, and also services. We have the best ecosystem by far, and we're just going to keep augmenting it and making it better and better, and that shows up in both our loyalty ratings and our customer satisfaction. And so I'm feeling very good about our competitive position.

On potential new products

I don't want to be more specific, but I'm just saying we've got some really great stuff coming in the fall and across all of 2014.

On the supply chain

We exited March quarter with no shortages, while achieving inventory turns of over 90, which is still to this day a staggering [number] for our industry. The December quarter was the largest quarter ever in the history of Apple and the technology industry as a whole. And, as you know, it included for us a number of new products, an unprecedented number, and of new product ramps. The reality is, the work we do to produce truly innovative products is very hard, and there've always been challenges that I'm sure we'll face in the future; however, I would assure you that we are working very closely with our manufacturing partners to execute what we feel is a very exciting road map.

On iPhone and iPad sales


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