$50 billion plus in revenues and $10 billion in profits.
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“No one else is earning anywhere near this. We know a lot more than we did a year ago”.
Tim answered to him saying that “No. No, I – then it was my error for not talking about it. I am – I could not be more optimistic about China”.
Cook said the company has got “great innovation” in the pipeline and new iPhones that will attract people in markets like India.
“I think in a few years we will look back, and people will think ‘How could I ever thought about not wearing this watch?'” he said, adding that the Watch is only on sale in 14,000 stores worldwide, leaving plenty of room for growth. That has always been the objective at Apple, to do things that really enrich people’s lives.
Apple recently launched the 4-inch iPhone SE and a mini 9.7-inch iPad Pro. Notable activist investor Carl Icahn cited “what is happening in China” as the reason why he sold off his position earlier this year.
Personally I would like to see higher resolution displays on the devices as the current resolutions are behind numerous smartphones in the market today.
“You’ll see the Apple Watch getting better and better”, he promised.
Cook said in countries like India, Apple penetration has been less since there is no LTE networks.
Cramer asked about the Chinese government’s recent move to block sales of books and movies.
As Apple’s iPhone growth slows, the company will be looking to new markets to fuel future growth-the strategy certainly worked in China, where Apple’s sales grew by leaps and bounds in 2014 and 2015 before leveling off and declining in the first two quarters of 2016.
Needless to say, the gradually waning iPhone sales signals trouble for Apple, and it worries the investors, stakeholders and the sky high expectations of the Wall Street. “We’re fairly secretive”, he said, “but I would tell you we’re incredibly excited about things we’re working on”.
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“China flipped from Apple’s biggest tailwind to headwind last quarter”, he said in a research report. Cook reminded us that India will be the most populous by 2022. This is in light of the company 1Q earnings call, wherein, they reported their first quarterly sales decline for the first time since 2003. Apple is not expected to update the hardware until the fall months. Before Tuesday, the stock had fallen for eight straight trading sessions, tying its record losing streak.
