We dont like people in this room, period. Stahl how do you think you did in this movie . Rate yourself. Secretly with myself, i regarded it as the best thing i ever did. It was the most difficult. And the criterion for that is i made it look the most easy. Stahl youth is set in the swiss alps. Michael caine plays fred ballinger, a retired, celebrated composer and conductor who has turned his back on music. But he cant help finding it everywhere. cow bells ring musically cow lows kroft im steve kroft. Stahl im lesley stahl. Whitaker im bill whitaker. Rose im charlie rose. Pelley im scott pelley. Those stories tonight on 60 minutes. Woman its been a journey to get where i am. And i didnt get here alone. There were people who listened along the way. People who gave me options. Kept me on track. And through it all, my retirement never got left behind. So today, im prepared for anything we may want tomorrow to be. Every someday needs a plan. Lets talk about your old 401 k today. 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What is it that makes apple so innovative and so profitable, and yet so secretive, almost obsessively secretive . Apple agreed to let us in, to an extent, beginning at the annual launch in september of apples new products. Go tim cook thank you. cheers and applause thank you. Thank you. Its been an incredible year for apple. Rose tim cook has been running apple for the past four years, but for most of the 15 years before that. Steve jobs weve had some real revolutionary products. Rose . The stage belonged to apples late cofounder, steve jobs. Jobs were going to make some history together today. Rose jobs transformed the computer from a cumbersome machine into perhaps the most personal and sleek Consumer Product of all time. The iphone is 12,000 times more powerful than the original macintosh, and next year, it will have sold one billion units. Following steve jobs was one of the most challenging successions imaginable, a daunting responsibility for the man he handpicked, tim cook. Cook ive never met anyone on the face of the earth like him before. And it. It was a privilege. Rose ive never met anyone on the face of the earth like him . Cook no one. No one. Rose not one person . Cook not one. Rose who had. . Cook who had this incredible, uncanny ability to see around the corner; who had this relentless driving force for perfection. Rose the spirit of steve jobs hovers over apple. He was a founder like no other a volatile visionary capable of creating products people wanted before they even knew it. Cook is a measured and passionate engineer from alabama. On the apple campus, employees still talk about steve jobs in the same way that tim cook does. Cook its a bar of excellence that merely good isnt good enough. It has to be great. As steve used to say, insanely great. Rose you believe you can do things other companies cant do. Cook you do. You do. We all do. And we have, fortunately. Rose it begins on the apple campus at 9 00 a. M. Every monday morning at the executive team meeting. Im from 60 minutes, and im in search of the brains of apple, and someone said, go in this room and youll find them. laughter is this the place . Cook no, no, this is not the place. Rose attendance is mandatory. If you are in this room, you are one of the most important people at apple. They wouldnt let us attend the meeting, but they were eager to tell us what they like so much about their company. Thats jeff williams, officially named the new chief operating officer this week. And thats eddy cue. He is the guy who helped create itunes. Eddy cue its amazing to be able to work at a place where youre Building Products that everybody in the world uses. Whether its a twoyearold or 100yearold, they get to experience the products that were building, and thats amazing. Rose is the dna of steve jobs baked deeply into everything just said . Cook it is. It is. This. This is steves company. This is still steves company. It was born that way, its still that way. And so, his spirit, i think, will always be the dna of this company. Rose and if there was anyone at apple who comes close to sharing jobs dna, it would be this man, jony ive, apples chief design officer. Hes considered by many at apple to be the most important person at the company. Every apple device on the market today was either created or inspired by this reserved and polite son of a british silversmith. We met ive in his design studio, but apples preoccupation with secrecy allowed us to see only so much. Whats interesting in this room is that i see these covers over some of these desks. You know, why is that . Jony ive thats so you cant see whats underneath it, charlie. Rose what . Meaning, if i could see whats underneath it, i would know where the future is of apple. Ive youd know what were working on next. And so thats one of the reasons that. That its extraordinarily rare that people come into the design studio. Rose and thats why you dont like people in this room, period. Ive laughs thats right. We dont like people in this room, period. Rose ives team of 22 designers are a very close group. In 15 years, only two have left the company. We noticed that ives studio is quiet and looks a lot like an apple store. No coincidence ive designed both around his signature wooden tables. Here, ive and his team create prototypes of future products before the specifications are sent overseas to be manufactured. With the iphone 6 and 6plus, the design team made ten differentsized models before deciding which worked best. Ive and we chose these two because, partly, they just felt right, they somehow. Not from a tactile point of view, but just, emotionally, they felt like a good size. Rose do you do this about every product, this amount of dedication to emotional context . Ive this is the tip of the iceberg. Because weve found that different textures considerably impact your perception of the object, of the product what its like to hold and what its like to feel. So, the only way that we know how to resolve and address and develop all of those issues is to make models, is to make prototypes. Rose ive also showed us how he prototyped the apple watch. It begins with a sketch of the watch casing. Then, a computeraideddesign specialist transforms the sketch into a threedimensional electronic blueprint. That is sent to this High Precision milling device known as a c. N. C. Machine. Ive we attach to this fixture in there a block of aluminum. And the cutter that you can see there in this c. N. C. Machine is now machining incredibly accurately the form at the back of the watch. Rose and creating the round edges. Ive yeah. And all of the tiniest details as well. Rose once its been carved, the prototype of the watch casing is sanded and polished by hand by veteran craftsmen. Ives Team Oversees every design detail, including testing hundreds of different hues and shades of red, blue, and yellow for the watch bands. Ive all of these things, i think, in aggregate, if we manage to get them right, you sort of sense that its an authentic, really thoughtfully conceived object. Rose ive described the process that comes next. Turning a prototype into a working product requires a high level of complex engineering. When he wanted to make the new macbook apples thinnest and lightest laptop ever, ive worked with apples head of hardware engineering, dan riccio, to create a battery powerful enough to last all day, but also small enough to fit into ives slim case design. Dan riccio every tenth of a millimeter in our products is sacred. Rose every tenth of a millimeter is sacred. Riccio with this design, it involved, you know, mechanical designers, toolmakers, chemists. And it also involved Software Engineers to go off and design a pack that would fit within the surfaces with. Of the product, but still work reliably. Rose one of the most complex engineering challenges at apple involves the iphone camera, the most used feature of any apple product. Thats the entire camera youre looking at in my hand. How many parts are in here . Graham townsend theres over 200 separate individual parts in this. In that one module there. Rose Graham Townsend is in charge of a team of 800 engineers and other specialists dedicated solely to the camera. He showed us a micro Suspension System that steadies the camera when your hand shakes. Townsend this whole autofocus motor here is suspended on four wires. And youll see them coming in. And here we are. Four. These are 40micron wires, less than half a human hairs width. And that holds that whole suspension, and moves it in x and y. So that allows us to stabilize for the hand shake. Rose in the camera lab, engineers calibrate the camera to perform in any type of lighting. Townsend go to bright, bright noon. And there you go. Sunset now. There we go. So, theres very different types of quality of lighting, from a morning, bright sunshine, for instance, the noonday light. And then finally maybe. Rose sunset, dinner. Townsend we can simulate all those here, believe it or not, to capture one image, 24 billion operations go on. Rose 24 four billion operations going on. Townsend . Just for one picture. Rose the company is known for focusing as much energy on how products are marketed and sold as it does on the way theyre designed and built. We werent sure what to make of it when apple took us to this unmarked warehouse off the main campus. Inside, we found yet another prototype, a mock store where apples head of retail, angela ahrendts, is continually refining new designs for apples 469 stores worldwide. How many iterations of what im looking at have you gone through . Angela ahrendts oh. laughter i mean, honestly, there are meetings in here every single week. And theres a floor set we use this as a stage, and we say this is rehearsal. Rose ahrendts wants customers to be transfixed from the moment they walk through the doors. Ahrendts the most important goal is that it is dynamic. People are used to living on their phone, so theyre used to being dynamic, emotive, immersive. And so, how do we make sure when they walk into a store they say, wow . Rose apples huge Profit Margins roughly 40 across the board have made it the most valuable company in the world, worth about 600 billion. People may love their apple products, but if there is one complaint you hear a lot, its that, by the time you buy one, a newer, better version is already on the way. Apples head of marketing, phil schiller, admits that the company often pits one product against another. Is there danger of one product cannibalizing the other product . Phil schiller its not a danger, its almost by design. You need each of these products to try to fight for their space, their time with you. The iphone has to become so great that you dont know why you want an ipad. The ipad has to be so great that you dont know why you want a notebook. The notebook has to be so great, you dont know why you want a desktop. Each ones job is to compete with the other ones. Rose the first new product to come from apple since tim cook took over as c. E. O. Was the apple watch. cheers and applause there is intense speculation about everything apple does, including that the watch may not be the breakout product apple had hoped. It has been on the market for eight months, but apple has not released any sales figures. You think its a product that needs improvement . Cook i think all products are going to be. Rose i know that. Of course i know that. Cook yeah. And i think the watch is no exception to that, is were. Were going to continue to fine tune. Rose so youre disappointed in some of the things. Cook im not disappointed in it. Its every par. Rose but you saw room to improve it . Cook charlie, when we. When we launch a product, were already working on the next one, and possibly even the next, next one. And so, yes, we always see things we can do. applause this is the future of television, coming now. Rose and then there is apple tv, and suggestions that apple wants to do much more in the television business. As well as speculation about apple developing a car. But tim cook is keeping that a secret, too. How hard is it to say apple will be in the car business . Cook laughs rose but. Okay, i mean, how hard is it to say, yes, weve done this. Were looking into it. We may very well go there. How hard is that . Cook one of the great things about apple is we probably have more secrecy here than the c. I. A. Rose ah whatever secret products apple may be working on, no one feels the pressure to deliver more than jony ive. Is there any possibility that apple can get too rich and too fat and too complacent . Ive that possibility absolutely exists. I think one of the things that characterizes the way that we work is that our heads tend to be down at these tables, worrying about what were doing. And our heads dont tend to be up, looking around at what weve. Rose thinking how great we are, what we achieved . Ive yeah. And were more aware of the distance between us and the perfection that were chasing than. Than ever before. Rose apple has one Million People manufacturing its products in china. Why doesnt it bring those jobs home . That part of the story when we return. Made a simple tripvere chto the grocery storeis anything but simple. So finally, i had an important conversation with my dermatologist about humira. He explained that humira works inside my body to target and help block a specific source of inflammation that contributes to my symptoms. In Clinical Trials, most adults saw 75 skin clearance. And the majority were clear or almost clear in just 4 months. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal infections and cancers, including lymphoma, have happened; as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. Before treatment, get tested for tb. Tell your doctor if youve been to areas where certain fungal infections are common, and if youve had tb, hepatitis b, are prone to infections, or have flulike symptoms or sores. Dont start humira if you have an infection. Ask your dermatologist about humira. Because with humira clearer skin is possible. My kcup® filter is back. Now you can make anything, even a piece of home. The single servemakeallyourfavorites exactlyhowyoulikeit machine. Keurig hot. Your favorites. Your way. They are. Do i look smarter . Yeah, a little. Youre making money now, are you investing . Well, ive been doing some research. Let me introduce you to our broker. How much does he charge . I dont know. Okay. Uh, do you get your fees back if youre not happy . dad laughs wow, youre laughing. Thats not the way the world works. Well, the worlds changing. Are you asking enough questions about the way your wealth is managed . Wealth management, at charles schwab. Spend less time chasing sales and more time going the extra mile. Find thoughtful gifts at amazing prices everyday at t. J. Maxx, marshalls and homegoods. Give Something Special, to those most special to you. Find thoughtful gifts at amazing prices everyday at t. J. Maxx, marshalls and homegoods. Want to do Something Special this christmas . Support i have a dream foundation. Help a child achieve the dream of a higher education. Cbs cares. Rose apple is based in cupertino, california, but the vast majority of its revenue, workers, and customers are overseas. That raises a number of issues for the worlds Biggest Company why wont apple bring home more manufacturing jobs from china . Why doesnt apple pay u. S. Taxes on the nearly 200 billion it keeps overseas . But perhaps the most pressing issue facing apple today is encryption. It is believed that the terrorists in last months attacks in paris used encrypted apps to avoid surveillance. U. S. Law enforcement immediately renewed its calls for apple and other companies to provide access to its customers encrypted texts and emails. Apple c. E. O. Tim cook has refused to do so. And though we interviewed him prior to the attacks, cook has since told us that apple is cooperating with autho