Apple CEO Tim Cook appeared on CNBC's 'Mad Money' with Jim Cramer today addressing concerns about the company's stock following its first down quarter in 13 years.
When asked to comment on media reports that Apple is dead. Cook replied, "I think that's a huge overreaction."
Look, we just had actually an incredible quarter by absolute standards. $50 billion plus in revenues and $10 billion in profits. To put that in perspective, the $10 billion is more than any other company makes. So it was a pretty good quarter, but not up to the street's expectations, clearly.
Cook says that people are upgrading at a lower rate this year as compared to the abnormally high upgrade rate to the iPhone 6, which affected sales. As expected, he sees tremendous potential in emerging markets such as China and India. However, Cook also notes that smartphone penetration is just at 40% and there is plenty of room for growth.
It turns out that people in every country in the world there's a segment of buyer that wants the best product and the best experience and that's what we're about providing.
Cook also points out that the number of switchers was the largest ever in the last six months. In China switchers were up 40% from the first half of last year to the first half of this year. That is seen as a signal that the market doesn't need to grow that much for Apple to see future growth as it could see growth at the expense of Android.
You can watch both parts of Cook's interview below!
When asked to comment on media reports that Apple is dead. Cook replied, "I think that's a huge overreaction."
Look, we just had actually an incredible quarter by absolute standards. $50 billion plus in revenues and $10 billion in profits. To put that in perspective, the $10 billion is more than any other company makes. So it was a pretty good quarter, but not up to the street's expectations, clearly.
Cook says that people are upgrading at a lower rate this year as compared to the abnormally high upgrade rate to the iPhone 6, which affected sales. As expected, he sees tremendous potential in emerging markets such as China and India. However, Cook also notes that smartphone penetration is just at 40% and there is plenty of room for growth.
It turns out that people in every country in the world there's a segment of buyer that wants the best product and the best experience and that's what we're about providing.
Cook also points out that the number of switchers was the largest ever in the last six months. In China switchers were up 40% from the first half of last year to the first half of this year. That is seen as a signal that the market doesn't need to grow that much for Apple to see future growth as it could see growth at the expense of Android.
You can watch both parts of Cook's interview below!