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Apple executives speak: On toaster-fridges, financial guidance, and lawsuits

Macworld staff | April 25, 2012
Here are some highlights of what Cook and Oppenheimer had to say to analysts during Tuesday's conference call.

Cook: I don't have that in front of me, but my recollection is that it wasn't materially different; keep in mind that iPhone 4S just launched within the quarter, and so usually when a new product launches within a quarter you would expect it to mix fairly much toward the new product.

Demand [for the new iPad] has been incredibly robust. We are selling them as fast as we can make them, as Peter mentioned earlier. In China, I believe on a macro basis, China has an enormous number of people moving into higher income groups, middle class if you will. This is creating a demand for goods, not just Apple's but other company's goods as well. I think that there's a tremendous opportunity for companies that understand China, and we're doing everything we can to understand it and serve the market as good as we can.

On potential component shortages

Cook: Tough question to answer. Obviously we're aware of the transition issue you mentioned [regarding Qualcomm chips] with 28 nanometer. We currently do not use 28 nanometer parts, but as you also know we don't comment on future products, so I can't talk about the future part.

Generally, outside of this, we work very closely with our supplier partners, and do everything that we can do to get supply, and sometimes we're successful with that, and sometimes we're not. You can bet that we are focused on anything that we think may impact us in trying to push every button within our disposal to work on it.

On partnering with Wal-Mart

Cook: There's no plan to be in 10,000 [stores]. We're trying some things, and as you know that doesn't include the Mac. We're trying some things and seeing how it goes. They've been a very good partner for us on iPod, been selling iPod for awhile, and are an increasingly more substantial partner in the iPad space as well, and an evolving partner on iPhone. And so, we're working with them, and enjoyed working with them, and hope to continue expanding.

On patents, lawsuits, and settling

Cook: Y'know, I've always hated litigation, and continue to hate it. We just want people to invent their own stuff. If we could get some kind of arrangement where we could be assured that's the case and a fair settlement on the stuff that's occurred, I would highly prefer to settle versus battle.

But the key thing is, it's very important that Apple not become the developer for the world. We need people to invent their own stuff.

On research and development

Oppenheimer: We view [R&D's uptick] as a good thing. We are investing in engineering to continue to bring out the most innovative products in the world to delight customers. We are making investments in our hardware and software engineering teams, we're shipping the best products that Apple has ever shipped today, and we've got some fabulous new products in the pipeline.

 

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