From our studios in new york city, this is charlie rose. [cheering and applause] wow. Good morning. A couple of bigger questions beyond apple. You once said to me at a conference, and i was ready to go introduce someone, i said, what do you think i should ask . You said, either facetiously or not, asking what comes after the internet. I remember telling you that. I remember your reaction. You went like this i wanted you to ask him because i wanted to hear what he was going to say. [laughter] i think you have to think about things like this. Sometimes in the valley, everyone can get so fixated on one thing and lots of companies pop up and do those things. You are not thinking about the next, next, next thing. It is something that we think about and i dont know what the answer is. I dont know what the answer is. We always have some ideas here and there. Give me one. I dont want to give you one. I dont want anyone to copy it. We have people that copy us and i dont want to help them. In this country, we had to because of Edward Snowden and other incidents, try to come to roots with the idea of freedom, privacy, and National Security. Where is that debate . I think it is a tough balance. I dont think that the country, or the government found the right balance. I think they erred too much on the collecteverything side and i think the president and administration is committed to moving that pendulum back. However, you dont want it is probably not right to not do anything. So, i think it is a careful line to walk. You want to make sure you are protecting american people, but you do not want to take there is no reason to collect information on you. 99. 99 of other people. A lot of people say, have said to me, there is a whole ton of information already out there that is in the possession of Companies Like google, like so many other companies. That information is there and they worry about that, too much personal information is out there at u. S. Axis to it, which is different than National Security implications of what you do to listen to peoples phone conversations or Technology Companies due to provide a list of everybody. We have taken a very different view of this than other companies. Our view is when we design a new service, we try not to collect data. We are not reading your emails. We are not reading yourimessage. If the government late a subpoena on us to get yourimessages, we cannot provide. It is encrypted. The door is closed. Our business, charlie, is based on selling these. Our business is not based on having information about you. You are not our product. Our products are these. This watch and macs and so forth. We run a very different company. I think everyone has to ask, how do Companies Make their money . Follow the money. If they are making money mainly by collecting gobs of personal data, i think you are right to be worried and you should really understand what is happening to that data and the companies i think should be very transparent about it. From our point of view, you can see what we are doing on the credit card thing. We do not want it. We are not in that business. I am offended by lots of it. I think people have a right to privacy. I think that is going to be a very key topic over the next year or so. We will reach higher and higher levels of urgency as more and more incidents happen. I think that, for us, it in the snowden thing, just to go long on that for a moment, what we wanted is we wanted instantly to be totally transparent because there were rumors and things being written in the press that people had backdoors to our service, all sorts of none of that is true. Zero. We would never allow that to happen. They would have to cart us out in a box before we would do that. If we ever give information and we finally got agreement from the administration to release how many times we had National Security orders on apple. In a sixmonth period we had to release a range, because they will not let us release the exact over is between 0250. That is the lowest number you can quote. It could have been none or it could have been 249. Correct. We have hundreds of millions of customers. It is a very rare instance that there has been any data asked. One of the reasons is we can keep a lot. We are not the treasure trove of places to come to. I mentioned Robert Kennedy and Martin Luther king in your office. Tell me the values that you consider most important beyond the culture and the values of apple. Tim cook, the man. Treating people with dignity, treating people the same, that everyone deserves a basic level of human rights, regardless of their color, regardless of their religion, regardless of their sexual orientation, regardless of their gender, that everyone deserves respect and i will fight for it until my toes point out. I think those two guys, if you look back in history, i think they are not the only two there were many that, really, they laid their lives on the line. They knew they were doing it. I had the tremendous respect for both of them. I do. I look at them every day, because i think for people they are still too many cases in the world and in the United States where there is a class structure, or we are voting, or people are trying to convince each other that this other group of people do not deserve the same rights. I think it is crazy. I think it is unamerican. I think it does not belong. I also see, as a businessman in apple, i can see the value in diversity. I see a tremendous company that, because we do not judge each other, because we do not have different rights and so forth, because we allow anyone in the front door, i see a company that this inclusion really inspires innovation. And so i see the value from it from that point of view as well. But from a human point of view, i feel it just isnt right. I have seen it not occur and i have seen the devastation of it not occurring. I want to do everything i can do to not only not propagate the interesting thing about discrimination is that you may not be able to access the full range of humanity, but also you are doing a huge disservice to yourself because the Human Potential. Anything that restricts the Human Potential is doing a disservice to you and to everyone around you. I agree. It is not what the country was based on. I get back to that. There is some basic level of rights that our forefathers had the insight to think about. We are still fighting 250 years, a little less than that, i guess, afterwards to see that vision. But it is worth the fight. We have certainly come a long way since dr. Kings speech in the mall. But we have a lot further to go. We have a lot further to go. There is the threat to the planet. There is. This is one that we are putting a lot of energy in. We, at apple . We at apple. We want to leave the world better than we found it. What does that mean for us . It means that we take toxins out of our products. We have done that. I think we are the only Consumer Electronics company that has done that. It means we focus on renewable energy. We have a data center where we could not get to 100 for noble energy there. It is too much. We will never get there. But it is there. We have it in north carolina. You should go see it. Working with the state and the talented apple, we pulled it off. It is 100 renewable. We are building our new headquarters. It will be 100 renewable. We are working on our supply chain and we are digging deep within the supply chain. We have initiatives going on there as well. To me, i know some people have issues with this, but to me it is all about leaving the world better than you found it. I dont know about you, but when i spend my spare time, when i have any, i like to be out in the National Park and reminding myself of the land and the beauty of it. You can go to different places and see that slipping away. It is not right. We owe it to the generation, to the younger generation, not to keep turning the other way. Those same values ought to be applied to the people that make apple products, wherever they live and where they work. Absolutely. You can see what we do have done there. We have trained well over 2 Million People on their rights. Where you and i have a good view of what our rights are, that is not the same in every country in the world. One of the best ways you can make sure that things are happening well is that people stand up and say, something is happening that is not right here. We have audited so deep in our supply chain we do it constantly, looking for anything wrong. Whether it is down to there is a safety exit blocked. We have gone beyond the auditing and are now essentially holding universitystyle classes on the manufacturing campuses with our partners because people see, just like you and i, probably, you do not start in life here. You start in life at the bottom and you crawl up. We are trying to provide education, which to me, is the great equalizer on people. Two people on factory floors who want to do more. We have worked with local chinese universities to employ classes on campus to make it convenient for people. I really feel that we have done a tremendous amount in this area and plus, we have been incredibly transparent. This is an area, unlike me being secretive around the future, i want everyone to copy. If they have at her ideas, i wanted them. I think we all ought to be, just like the environment and human rights, this is an area that we all ought to share and we can all improve the world on. It is not building a new product where we want to keep it secretive. The apple of your future stands as steve once said, at the junction of humanities . Yes, it does. You can see it in these products. The incredible watch. You can feel it. You can see that in everything we do, we have this focus on how am i changing the world . How my enriching someones life . How am i making things easier for people . We are just not making products to sell. That is a very that does not get me up in the morning. I get up in the morning, and many other people get up in the morning, to change things. That is who we are as a company. That has not changed. We may change other things. We may become more open. We may participate in these things we have not done before. But what drives us are making great products that enrich peoples life. It has driven apple forever. Are you not the Largest Company in the world in terms of market cap . We are, but we do not fixate on a. I do not get up in the morning thinking, we are the largest and act arrogant you dont think of it that way. You also have over 100 oem dollars, based on stock and buy back done. Do you think of that in terms of the opportunities it provides you . Whether it is technology, whether it is humanities, whether it is being a good citizen . I do. I see it as a responsibility. I do not see it as a burden. I see it as a responsibility and i feel that this gives us a greater ability to contribute more. Not just in a monetary sense. We will always contribute the most to humanity through a product. The products change peoples lives and allow them to do things they could not do before. I am proud to be working on product red with bono and eliminating aids in africa. I am proud that we are out in front on environment. I am proud that we are pushing like crazy in human rights. I am proud that we are pushing on education and changing the way the teachers teach and students learn. These things excite me. They move the dialogue the world. I am not just talking about the u. S. , i am talking worldwide. I think these are the things that make our hearts sing. These are the things that get us up in the morning and it drives us to do unbelievable things and worked unbelievably hard. It is not the largest market cap in the world. This is not an objective that where people will work the extra hour, will go the extra mile. Those things are not things that push people. They do not push me, anyway. I am not saying to all the shareholders, i am not saying that i am not focusing on you. I am very focused on them. I am talking about what drives people. What we have learned is something simple. It is very simple in a way. If we focus on great products that enrich peoples lives, and we do that really well, the financial returns will follow and are shareholders will be happy and it is a continuous circle. I like that because it is simple. Too Many Companies focus on trying to get the market cap. That does not drive people. I was at compaq at a time where the objective was to become a 40 billion company. Employees do not get excited about that. This is not something you wake up and go, i will take the hill today to get it is not that. But changing the world . These are the things that people work for. It pushes people. This is who we are as people. It is the values of our company. It has been the value of our company forever. It is steves credit. He put these ideas in the company. It was not just his values. It was his mentor in and teaching and instill these deep in the company. If i step off the curb this afternoon, i hope i dont, but if i do, those will be the values of the company tomorrow and the next day. It is that deep. It is. I know i probably set it too many times, but it is a privilege of a lifetime to be there, because i think there is no place like it on earth. What was it that bono said to you . About his free album . What did he say to you to get you to buy his free albums and what did he say to you when he walked over at the presentation . He called me the zen master because he cannot shake me up. From our point of view, it is kind of simple. We love music. We were thrilled with the album. We think the album is killer. I dont know if you have listened to it yet. I encourage you to do it. What we wanted to do is give something to our customers. I think the vast majority of them are going to love the music and love the gifts. Some may not love it. I hope they all do. It was more about our customers. It felt great to participate in something that is music history, the largest album release ever. The real thing was giving something to our users so you can get the album. Yeah. I hope you listen to it. They have done a killer job. They worked on it for five years. The band has done incredible work here. I think youre really going to like it. They performed one song at our event and i think the crowd really like. Thank you for coming. It has been a pleasure. I will never forget this. Tim cook, ceo of apple. Yves behar is here. Forbes magazine calls him the most influential Industrial Designer in the world. He is the founder of awardwinning design fuseproject. The firm is behind cutting edge product designs in Silicon Valley in the postapple era. He is the chief creative officer of job on. I am pleased to have him at the table. This program has an interesting design. We are especially pleased to have you here. Notwithstanding that, tell me the role of design as you see it. The role of design as i see it is to create important, good design. To balance the notion of sustainability, market success, consumer connection. What i always say is that good design accelerates the adoption of new ideas. There is new ideas out there in the world that are important, such as how do we live more sustainably . How can technology be simpler and be accessible to all . Design can prove that these things are possible. Bring them to the world in a way that they get accepted. A recent profile of you in a magazine written by casey newton, he said that Industrial Design is a curious profession. Its practitioners are not quite artist, though they are artistic. They are not engineers, though the best of them bring a deep technical understanding of the work. You agree with that . I agree with that. It is complementary, but we live in between. We live in between industry and people. We live inbetween technology and emotion. We live inbetween the world of manufacturing and cost and the world of ideas and expression. We are inbetween people. One day we will be at a board meeting, with next will be on the factory floor. What led you to design . Design has always been something that the thing i was searching for. I was lucky because i discovered it when i was 14 or 15 years old. I have stayed with design since. I have never had a doubt since i saw other designers, it is want i wanted to pursue. Is great if you can when you are teenager find what you want to spend your life doing. It is confirming that the more you do it, the more you love it. I could not imagine doing anything else. I also feel that now, quite a few years since that discovery when i was 14 or 15, it is something that i still love and that i still feel there is a whole world of discovery and design in front of me. It has been said at one point that fear is one of the big impediments to good design. Fear of change, fear of change exists in two places. It exists inside companies, inside businesses. There are risks with new designs, new approaches, new ideas. Fear exists in the consumer mind. We tell the consumer certain things cannot be done or we tell them that good design is expensive, we say that sustainability in products and services is not achievable. There is fear on both sides and for us, it is to push back that fear. I feel very much like a contrary and when i hear people talking about their fear. Part of the role of a good designer is to convince the ceo that design is not a limiting factor, but enhancing factor . The role of design is we have to convince the ceo. We also have to convince everyone else in the company. The engineers to the people in charge of manufacturing to the person folding boxes, making sure they fold the boxes in the right way and that they should project in the right way. Our role is yes, someone has to give the thumbsup. I have to say that quite often, the right ceo will lead to the right outcomes. The entire organization has to be behind it. Steve jobs, a person who appreciate you design. Not just appreciated design. He really created the modern era of design and gave credibility in business for all of us designers. Lets not forget that design at apple in the 1990s was seen as a complete failure. Apple was not viable as a company at all until the first ipod came out. It was not actually good for design, because people love the apple designs but they were not successful in the market. They were not making a difference in the bottom line. What changed . I think what changed was new ideas. Apple was very focused on desktops, was very focused on the creative market. Because they were trying to make things better and of higher quality, they could not compete against dell and microsoft of this world. They started focusing on smaller, more personal, more intimate produ