Speaking at the Goldman Sachs Technology and Internet Conference today, Apple CEO Tim Cook stressed that PC innovation is rapidly shifting from PCs to mobile devices.
Computing innovation is shifting to mobile devices
In a talk which ranged from cash flow and acquisitions to the success of the iPhone and iPad, Cook begun by stressing that Apple remains the market leader when it comes to product innovation.
“Innovation is deeply embedded in Apple’s core and it’s stronger than ever before. Apple is center of innovation”, said Cook.
The Apple CEO then went onto say that computer innovation is quickly switching from the PC market to mobile devices. “Look at the app economy and the PC market of today. The money is flowing to two or three people and you don’t see too many people doing apps for PCs.
“The innovation [of the PC market] has moved to tablets and smartphones.”
The tablet market is just getting started; iPad has conquered business
Indeed, Cook was enthusiastic about the possibilities of the tablet market going forward, and especially on the ability of the iPad to meet the needs of both consumers and business folk.
“I think the tablet market will be huge, it’s a huge opportunity for Apple," he said. "It’s one of those areas that show software, hardware and services being integrated and creating a jaw dropping experience.”
Steve Jobs’ successor then echoed some of his thoughts from past conferences by saying that the iPad has the gumption to take control of the post-PC era.
“If you put the 23 million [iPads sold in Q4) in perspective, HP sold 15 million PCs in that quarter. That’s 50% more iPads than PCs. There’s a sea change here but we’re in the early innings of this game.”
“PC growth rate is actually contracting not growing and the tablet is attracting people who never owned one, and who had one and didn’t rate the experience. Apple is the poster child of the post PC revolution.”
Citing the iPad’s increasing adoption in business and education, Cook then suggested that Apple had already conquered all markets with the tablet.
“We find ourselves in almost all Fortune 500 companies, we find ourselves in education and we’ve put a lot of effort in that area to make textbooks really engaging. It usually takes a long time to engage all markets but we’ve already done that.”
Cook talks cash flow, Apple ‘superstars’ and cannibalization
The wide-ranging interview also saw the Texan tackle working with Jonny Ive and Bob Mansfield to product cannibalization and emerging markets. Here’s the some of the other highlights from Cook’s talk:
- Quizzed on a cheaper iPhone, Cook said that Apple’s “north star is always great product and not how we hit a price point”.
- In what may be seen as a dig at other competitors, Cook added that companies that don’t have a great product “talk about the spec or something”.
- On the possibility of the iPad mini cannibalizing iPad sales, Cook said: “If we don’t cannibalize someone else will”.
- The Apple CEO hailed his senior team as a bunch of ‘superstars’, labelling Jonny Ive as the “best designer in the world” and Bob Mansfield as the “best silicon expert”.
- Cook said that “cash is not burning a hole” in Apple’s pocket.
- 50% of iPad owners in China and Brazil don't own another Apple product, said the Apple CEO. "This is a huge thing for us."