Updated: Apple at GS Tech & Internet Conference – Feb 23, 2010

Apple COO - Tim Cook

Updated – Here are a few highlights from Apple Chief Operating Officer (COO) Tim Cook’s Feb 23, 2010 presentation at the Goldman Sachs Technology and Internet Conference:

On Apple TV…

“Apple TV is still a hobby” … Apple continues to invest in Apple TV, but it’s still a “hobby.” Apple did grow Apple TV unit sales by 35% last quarter (unit-by-unit). “The (Apple TV) ‘go to market model’ is difficult … it leads to the TV and we have no interest in that market (building TVs).”

On Macs…

“iMac – best desktop computer in the world – According to NPD, Apple has a 22% unit share in desktops (primarily iMacs) with a staggering 42% in revenue share.”

On the iPad…

Apple's iPad

“I’ve been using one (iPad) for six months or so and I will tell you that the experience is just absolutely incredible.”

“I’ve been very clear about my view of netbooks (miniaturized laptops) … I think they are an experience that most people will not want to continue to have … People were interested in the price (low) and they got it home and used it and they went ‘why did I buy this?’ … I think when somebody looks at the iPad, and plays with it and experiences the magic of it, and they compare it to a netbook, I find it hard to believe that people are going to buy netbooks. Now ‘everybody’ won’t make the comparison, so I’m not suggesting that … but obviously many of those customers are game for the iPad.”

“It’s an incredible value at $499 … It’s amazing the experience that you can have … it has the best browsing experience … probably better than 99% of you could imagine …You have to try it.  E-mail is ‘off the charts’ … it has the platform which gives you the ability to have all of the apps from the Application Store. It’s a way to share photos like you’ve never had before … you can watch videos … you can listen to music … you can read books on it … we will open an iBooks Store at the same time we launch the iPad.”

On the iPhone…

iPhone 3GS

“It was only 2-1/2 years ago that we shipped the first iPhone and between iPhone and iPod Touch we’ve hurdled the 75 million barrier … just on iPhone we’re over 40 million … this is as of the end of last quarter (I’m not giving updates for the current quarter) …”

“Platform is getting larger and larger and the eco-system is getting better and better … over 3 billion downloads on the application store and over 140,000 applications offered for sale … these are incredible numbers … who would have dreamed of these just a year ago.”

On advantages of Apple’s scalable Mac operating system (OS)…

“The Mac OS is amazingly scalable … and this is a HUGE competitive advantage for Apple because we use the (foundations of) Mac OS from the iPod Touch to the new iPad to the iPhone to the Macintosh … and I think there is no other company on Earth that can use the foundation of their OS in such a way. So that allows us to innovate at an enormously fast speed, with many fewer people than what it would take if we were geographically North (*ouch* a Redmond diss). This is a really huge advantage for us … maybe I should just leave it there.”

On iPhone/Mac growing popularity in enterprise…

“The iPhone is 2-1/2 years old. 70% of the Fortune 100 companies in the US are either deploying the iPhone or are currently testing for deployment. 50% of the Financial Times 100 (international market) are doing the same … and so we saw a huge uplift from corporate customers as we went to the iPhone 2.0 (OS) software and then 3.0 (iPhone OS), because we put enterprise features in the software … we clearly see this as continuing … On the Macintosh side … it’s amazing how many CIOs (chief information officers) are visiting Apple and are interested in the Mac … Many CIOs that once thought that ‘standardization’ was the most important thing in life, now look at the importance of having people’s creativity at peak, and they’re increasingly deciding to let the employee decide. Well this mega-trend helps Apple immensely, because many employees have always wanted to use the Mac … I mean who would not want to use the Mac, or select the Mac over a Windows unit? This is an enormous mega-trend that is positive for Apple. In addition to that, the Mac OS is well known for being more stable, having better security … and you get all of the ease of use features that everybody loves.”

“Employees are coming in (to management and IT) and saying not ‘can I have a Mac?’, but ‘why can’t I have a Mac? … I prefer a Mac and I may be making $150,000 per year, but if you can make me 1% more productive, you’ve paid for the Mac plus (more) just in one year’ … People (enterprise management) are looking at these questions differently … at least the ones with vision.”

“The word ‘complete’ is not in our dictionary … we’re all about innovation … many times that means obsolescing ourselves … we’re going to continue to make things better and better … and continue to innovate … that’s why we’re here.”

On new Apple Stores (now just short of 300 locations)…

“Ron Johnson (head of Apple Retail) has built a world class retail team” …

Ron Johnson

(One benefit of the recession is that) “some top properties would come on the market at better economics (lower rents), and so we slowed it down (pace of new store openings in 2008/9) … and guess what? Now, there are a lot of great properties on the market. And so we see this … we want to take advantage of this … so we’ve turned the dial up and now we’re going to be at the high end of that 25 to 50 (normal pace of new store openings) and do about 50 this year.”

“There will be another store in China in Shanghai in the summer that is mind-blowing … And another one in London that will also drop your jaw.”

Listen to the full presentation…

Apple’s Chief Operating Officer (COO), Tim Cook, will be delivering a presentation at Goldman Sachs Technology & Internet Conference – scheduled to kick off at 1:10 pm Pacific / 4:10 pm ET on Tuesday, February 23, 2010.

Listen to Audio Webcast