Tim: You know, you could converge a toaster and a refrigerator. I just think that you wind up not building the best product when you try to converge. (Tim, ever hear of the toaster OVEN?)
Kara: What kind of tradeoffs?
Cook/Jobs/Apple secret to success: "The more you look at a tablet as a PC, the more the baggage from the past affects the product."
Cook said basically the same thing during Apple's most recent quarterly call with analysts. This was re: touch computing for Windows 8.
Tim: You get clamshells and things, where the I.D. is not optimized for tablets. People want them incredibly thin. When you start with the notebook, you're not going to come out with a kick-ass product.
If you force them (PC, tablet) together, then the PC is not as good as it can be, and the tablet isn't as good as it can be.
Walt: Apple underwent a big loss with the death of Jobs. How is Apple different with you as the CEO so far? What did you learn from Jobs? How have you changed things?
Tim: I learned a lot fro Steve. It was the saddest day of my life when he died. (Chokes up).
But at some point, late last year, somebody said, "It's time to get on." That sadness was replaced by this intense drive to continue the journey.
What did I learn? That focus is key. You can only do so many things that are great, and you should cast aside everything else.
In our business, owning the key technology is very important.
Doing things great, not accepting things good or very good, that's embedded in Apple. Apple has a culture of excellence that is so unique and so special... I'm not going to witness or permit the change of it.
Tim: He also taught me that the joy is in the journey, which was a revelation for me. And that life is fragile.
Cook echoes Jobs' the journey is the reward...and the post-Jobs journey has been sad but rewarding for Apple and Cook
I know people want to hear about products, but hearing the Jobs influence is powerful stuff.
Cook clarifies that Apple is not a museum to be preserved...the DNA of Apple's culture won't change, but some things will change and are changing.
Dropped offline. Should be back now.
Cook's cone of silence: Apple investing like crazy in R&D and in "things I won't talk about today."
Phew. Glad you're back, Rafe
Walt: What are you going change?
Tim: Steve told me, I witnessed what happened at Disney when Walt passed away. People went to meetings and said, "What would Walt have done." And he told me to never do that.
Steve could flip on things so fast, that you'd forget he was taking the opposite position the day before.
It was an art!
I saw it daily!
This is a gift. It takes courage to say I'm wrong. I think he had that.
Walt: What has changed, then? Philanthropy?
Tim: Yes, I believe in my heart that to those to whom much is given, much is expected. So Apple has started a matching program. We let the employee decide. I think we could do even more.
Steve knew about the matching gift thing. He was alive then and he was for it.
Kara: I've heard you're a lot less secretive.
Tim: We're going to double down on secrecy on products. But there will be other things we do that we're going to be the most transparent.
Like social change, and doing the most we can for the environment. In this area I want people to copy us.
Kara: Assess the situation in China. Why doesn't Apple own a factory in China?
Tim: Steve told me that we should do what we're best at. Manufacturing isn't one of those. But the logistics, Apple is doing all of that.
"We're going to double-down on secrecy. I'm very serious about this -- double-down," Cook said. On the other hand, Cook says Apple will be more transparent about working with its suppliers, a la Foxconn
Tim: We're taking overtime down, for example. This is hard, since some people want to work hard and then go back. We're measuring work for 700,000 people. And we're reporting it. Every month.
Tim: We micromanaging that, and showing a level of care, and doing it in a way that I don't see elsewhere. And I hope people rip us off.
Walt: You used to have factories, at least one in the US. Do you ever see the possibility. Will there ever be an Apple product made in the US?
Tim: I want there to be.
The engine for the iPhone is made in the US. Not just for the US but for the world. The glass for the iPhone is made in Kentucky.
There are things that can be made in the US and are good for the world.
There's an intense focus on the final manufacture. Could that be done in the US ? I hope so, one day. The truth is, the tool and die maker expertise in the US began to go down in the US.
I could call all the tool and die makers from the US together and it wouldnt fill a room.
Cook sounds like a car maker from Japan: iPad and iPhone are made in America, sort of
Tim: You can bet we will use the whole of our influence to to this.
Walt: Will the back of an iPhone ever say, designed in the US, made in the US?
I hope he explains this -- the notion of more U.S. manufacturing
Tim: Now, in the US, there are hundreds of thousands of people developing apps. Now, there's incredible innovation going on in apps. There are very few companies innovating like this on apps for the PCs.
Tim: But if you said, let's have a convention of people developing mobile apps, it'd fill several football stadiums. It's big enough to be in the bureau of labor reports.
Kara: So why have PCs?
Tim: For some people, I see the tablet replacing the PC. It will probably extend the purchasing cycle (for PCs and Macs).
Kara: Let's talk about the patent wars. Is it a problem for innovation?
Lots of app developers in the U.S., Cook says, but not enough tool-and-die makers to fill the room where he is speaking. I guess an iPhone Made in America isn't coming soon
Cook says patents are a "pain in the ass" and he doesn't want someone else put their name on Apple's work
Walt: "You just had settlement talks with Samsung, can't you solve this?"
Cooks says no one should have an injunction for a "standards-essential" patent, such as connecting to 3G networks. Apple has not sued anyone over standards-essential patents the company owns, he stated...
And Cook says he won't speak about Samsung patent issue: "The magistrate said I couldn't talk about that..."
They're talking about mobile competitive landscape.
Cook is asked about competitive landscape. Apple doesn't dominate he said, but "we have the best phone." Well, Apple does dominate in its share of the revenues
And in share of App-economy . No contest
"The smartphone revolution is still in the early stages," Cook says. An accurate outlook given how things can change. Just look at RIM
Walt is asking why Apple doesn't release more than one version of the iPhone, the way they do with other devices.
Cook is asked aobut Samsung Galaxy series and having one new iPhone at a time. He says Apple’s way is to make the best product, not for a specific price point or arbitrary schedule. “It’s to build the best.” True...Apple does not have an arbitrary
Walt asked about a $99 iPhone, and Cook says "who knows what we will do in the future."