About the things that steve stood for at a macro level, he stood for innovation. He stood for the simple, not the complex. He knew that apple should only enter areas where we can control the primary technology. All of these things are still deep in our company. Theyre still things that we very much believe. The strife for perfection, for being the best, for only do will the best products, for staying focused. The fact that despite this table being so small that you and i are sitting at, you could put every apple product on it, every single one that we have today and yet this year our revenues will be, you know, approximately 180 billion. Theres probably no other company on the face of the earth that could say that. Most companies begin to do larger and larger and larger portfolios because you always its so easy to add. Its hard to edit. Its hard to stay focused. And yet we know well only do our best work if we stay focused. And so you know, the hardest decisions we make are all the things not to work on, frackly. Because theres lots of things we would like to work on that we have interest in. But we know that we cant do everything great. Rose tim cook for the hour, next. Funding for charlie rose is provided by american express. Additional funding provided by and by bloomberg, a provider of multimedia news and Information Services worldwide. Captioning sponsored by Rose Communications from our studios in new york city, this is charlie rose. Rose tim cook is here, he is the c. E. O. Of apple. He succeeded steve jobs in august of 2011. Cook joined apple in 1998 against the advice of his friends and his own better judgement. He has said apple in early 1998 was very different than the apple of today. The company had been losing sales for years and was considered to be on the verge of extinction. He also said working at apple was never in any plan that i outlined for myself but was without a doubt the best decision that i ever made. On tuesday cook announced what he called the next chapter in apples story, at the same venue where steve jobs introduced the mackintosh personal computer po year east ago, he introduced iphone 6, iphone 6 plus and apple watch and apple pay, a mobile Payment System that aims to do something about the credit card. I am pleased to have tim cook at this table for the first time. Welcome. Charlie, its great to be here. Thank you for inviting me. Rose we have much to talk about. You call it the next chapter. Why . The apple watch is the most personal device weve ever created. The i think it takes us into a whole different area. We had a we had an intense team working on this for three years. And so we explored many different things. And as the product came to fruition, it became not only the time piece that you would expect, but a device that can do many different things, include really a whole new way of communicating and connecting with people, and also it has a health and fitness component that we think has, you know, could really be profound. Take your Blood Pressure and lots of other things. Well, it will start with heart, and it will be a sort of a personal trainer for you. You can set goals and it will reward you for achieving certain things. You can choose to interact with your doctor. You can choose to combine it with other apps on the phone and get a full view of your house. And so its a wol new area for apple. And we think, you know, were all about making great products and enriching peoples lives. And we see it as allowing us to do that at a whole different level. And then of course iphone 6, and iphone 6 plus. These are the best i phones weve ever done. And i think youll agree, you have in front of you, they are the best ones. This is my iphone, look at the size of it. This is the iphone 6. And this is the iphone 6. The thinnest phone weve ever done. The screen is just to die for. Its superfast. Its lightning fast. It has a whole new range of Wireless Technology and so its screaming fast on the wireless network. Its really unbelievable. And it feels unbelievable in your hand. Hold it. Its something, its really unbelievable. The design johnnie and his team did such an incredible job here. Its really seamless between the glass, its like a singular form. Rose yes. But back to what is next. This represents a continuation of the iphone. Well, a leapfrog, i would say. But yes, it is, the iphone 6, its not the first iphone. But its the biggest advancement ever in iphone history. And so we think that the upgrade cycle here and the number of people that will switch from other smart phones, it will be enormous. Rose were you challenged by what samsung does and what it has in the development of this size personal smart phone . No, we honestly, charlie, we could have done a larger iphone years ago. It has never been about just making a larger phone. Its been making its been about making a better phone in every single way. And so we ship things when theyre ready. And we think that both the display technology here, the battery technology, that Everything Else and the software, you can on here you can still use this phone onehanded. Because you can tap it twice and the screen will come down. And so the engine uity here and the fact that weve integrated Software Hardware and services which i think only apple can do, this phone now is the time for it. Rose there are other watches on the market. Sure. Rose samsung and others. Sure. Rose is the philosophy of apple we dont have to be first, we want to be prepared to be the best. The philosophy has always been to be the best. Not the first. If you look back in time at apple, the ipod, the ipod was not the first mp3 player. It was arguably the best. And arguably it was the first modern one but not the first. The iphone was not the first smartphone. Blackberry was shipping phones, palm was shipping phones. Iphone was the first modern smart phone. And then if you look at ipad, tablets were shipping a decade before. And yet ipad arguably was the first modern tablet. And the first one that met any level of commercial success. The watch which im wearing here, will be the first watch. Rose may i see that . You may see that. And so here. Rose see if you can get in on this. So you can see. Rose you cant get this today. You cant get it shipped out, early next year but you can see some of the apps ive got on here. I may have some things on here. Rose so what is interesting is the outside entrepreneurs can design apps for this watch. Yes, weve opened it up to developers. One of the reasons we wanted to announce it before shipping so developers will have time to develop software for it. And we think that you know, based on the first few days, i would say there is going to be a lot of stuff available for it. Rose there is a fashion item aspect to this too. There is. Rose johnnie brought in his friend mark newsal. He did. And mark is unbelievable. Hes another great addition to the apple teamment but johnnie and team recognized that to wear something it had to be incredibly personal. It had to reflect your taste and your and express what you wanted to express about yourself. Its sort of like your clothes and your shoes, youre not going to wear the same thing everybody else does. So most tech companies, i think, look at this as only technology. We recognize the technology itself isnt sufficient. That it had to have a style element. It had to be something that youre proud of wearing. I mean this is connected to your body. And so. Rose it makes the computer personal. It makes it very personal. That doesnt take away from the function of it. The function of it is killer. I mean there is a computer on a chip in here. Its the first one weve ever done. There are 4, 500 components wrapped in one. It has everything from the gpu to the cpu to memory and all the rest. Rose you have to have an iphone for it to work. It requires an iphone, yes. So because theyve been designed to Work Together. And so things like messages, choosing the cellular system to pull down your messages. However if you go for a run and you dont want to carry your iphone, music is also on your watch. And so with a bluetooth headset, you can run and listen to your music without your iphone. Rose the healthcare business is a huge sector of our economy. Yes. Rose this is your entree into that in some way . See, this is huge, charlie. Because i think, and im not looking at it just from the monetary piece of it is, we do want to enrich peoples lives. So we want to make great products that enrich peoples lives. Neither one is sufficient by itself. We want to do both. And so arguably with health care there is a wide open field to make some really profound contributions. And so our entry into this is we announced health kit in june. Health kit allows if you want, if you wish, on your phone, you can begin to take all of the data thats in all of your health apps and aggregate those. You might elect just to use that yourself. You might elect to interact with your doctor on this. And so now all of a sudden weve also got a device that gathers certain fitness data about you and yet so this is yet another way to begin to build a comprehensive view of your life which should empower you to take care of yourself over time. And when you need help, it empowers you to take certain data to your doctor to get help from them. All wile guarding your privacy so that nobody is getting the data if you dont want them to have the data. Nobody is sharing the data if you dont want them to share the data. And no, were not keeping it. Rose in introducing these products, there is was in the past as i suggested the arena where you had it is where steve introduced 30 years ago the macintosh. When you introduced the watch, you famously said one more thing, words that steve had used. Where is steve in all of this . Well, hes in my heart. And he is deep in apples dna. His spirit will always be the foundation of the company. I literally think about him every day. His office is still left as it was. Rose on the fourth floor. On the fourth floor. His name is still on the door. And we still, if you think about the things that steve stood for at a macro level, he stood for innovation. He stood for the simple, not the complex. He knew that apple should only enter areas where we can control the primary technology. All of these things are still deep in our company. Theyre still things that we very much believe. The strife for perfection for being the best, for only doing the best products, for staying focused, the fact that despite this table being so small that you and i are sitting at, you could put every apple product on it, every single one that we shook today, and yet this year our revenues will be, you know, approximately 180 billion. Theres probably no other company on the face of the earth that could say that. Most companies begin to do larger and larger and larger portfolios because you always, its so easy to add. Its hard to edit. Its hard to stay focused. And yet we know well only do our best work if we stay focused. And so you know, the hardest decisions we make are all the things not to work on. Frackly. Because there is lots of things we would like to work on that we have interest in. But we know that we cant do everything great. Rose is tv one of those . Well, tv is one that we continue to have great interest in. So i choose my words carefully there. But you know, tv is one of those things that if we are really honest, it is stuck back in the 70s. Think about how much your life has changed and all the things around you that have changed and yet tv, when you go in your living room to watch the tv or wherever it might be, it almost feels like youre rewinding the clock and youve entered a time capsule and youre going back card backwards. The interface is terrible, i mean its awful. And you watch things when they come on unless you remember to record them. Rose so why dont you fix that . Well, you know, i dont want to get into what were doing in the future. But we have taken steps with apple tv and apple tv now has over 20 million users and so it has far exceeded the hobby label that we placed on it. And we have added more and more content to it this year. And so theres increasingly more things that you can do on there. But this is an area that we continue to look at. Rose and was this a question for you, among some investors, among some consumers, among some people who write about technology . There was the question, steve was a visionary. Can tim continue the apple tradition of creating new products every four years or less . Can he reach into the future . Does he have that kind of makeup . Did that concern you . Did you think about that . Were you committed to prove that apple had a future beyond the groundwork that steve jobs had laid . He called me one weekend, in august of 11ee. And he said i would like to talk and i said okay, and i go when. And he goes now. I said ill be right over. And he told me, he said i have been thinking a lot. Apple has never had a professional transition of c. E. O. Im determined that we will have one now. I want you to be the c. E. O. And honestly, i didnt see it coming. Rose you did not see it coming. I know you look at me with disbelief. But you can say i was in denial or whatever, but i thought, i felt steve was getting better. He was still at home but i felt he was getting better. I was seeing him regularly. And i guess at the end of the day i always thought he would bounce. He always had. He had some incredible lows in his health and has always bounced. And i always believed he would. And so it took me a little by surprise for that. I mean he had talked to me about being c. E. O. Before and so i always knew it was his longterm thing. Rose that you what become the c. E. O. Rose but not then. But not that specific moment. And so he and i had a discussion back in forth about because i was testing him on this. I said what kind of things do you want to do as chairman versus me. Just sort of having a good banter with him. And i go well, i said for example, ads, do you want me to just do the ones that i think are right. Or do you want to be involved in it. And he said well, i hope you will ask my opinion on some things. But he i thought, charlie on that day, that he would be chairman for a long time. That i would be c. E. O. For a long time. And that we with continue to Work Together and he knew when he chose me that i wasnt like him. That im not a carbon copy of him. And so he obviously thought through that deeply about who he wanted to lead apple. And so that i have always felt the responsibility of. And i have wanted desperately to continue his legacy. And the apple i deeply love. And so i, from the onset i wanted to pour every ounce that i had in myself into the company. And but in terms of being everything he was, ive never had that objective. Ive never had the objective of being like him. Because i knew, the only person i can be is the person i am, right . And im not an actor. I would be terrible in hollywood. And so thats what i have done. Ive tried to be the best tim cook i can be. And i think that the reality is that apple has always had incredible contributors at very high levels. Johnnys been there forever and contributing at an incredible level as has craig and jeff and dan. And you just go arnged the table. We have a new cfo now. Theres this group of people, and weve recruited angela. Angela now runs retail, she is fantastic. This level of people are capable of doing incredible things and you know, its a privilege of a lifetime to work with them. Rose you have a picture in your office of Martin Luther king and a picture of robert f. Kennedy. Robert f. Kennedy after his brothers assassination, someone said the difficulty for him while hell have no rfk as he was to his brother jack, so i might ask the question, do you have a tim as you were tim, steve. I think each person, if you are a c. E. O. , the most important thing to me is to pick people around you that arent like you. That compliment complement you because you want to build a puzzle. You dont want to stack chicklets up and have every one be the same. So i believe in diversity with a capital d and thats diversity in thought. And diversity anyway that you want to measure it. So the people that surround me are not like me. They have skills that i dont have. I may have some that they dont have. What we do is a team collectively are able to do some incredible things. And it is because we collaborate and i see one of my key things in life is to make sure that we collaborate at an incredible level because we run the company functionally, were not like the typical big company that has n number of divisions and n number of p ls. Everybody is a functional expert and then we collectively to get things done, we Work Together as a team. Because the work really happens horizontally in our company, not vertically. Products are horizontal. It takes Hardware Plus Software plus services to make a killer product. And so all of these people, it if you were to line us up and talk to everyone, you know several of them. Were all different. And that is the power of it. Is that were not trying to put every one through a car wash and so they look alike, talk alike, think alike at the end of the day. We argue and debate. If you were to come in our executive Team Meetings on mondays, you would hear a lot of discussion and debate about something. We dont always agree on everything. But we have Great Respect for one another. And we trust one another. And we complement one another. And that makes it all work. Rose did the team, you leading the team have any question that you could accomplish what you did knowing those questions were out there about the future of apple. I think for me, i cant talk about what everybody else thinks but for me, one great still i have is blocking noise. And so i typically read and listen to things that are deep and challenging and intellectual in nature, not the just the noise. I think if you get caught up in the noise as a c. E. O. You are going to be a terrible c. E. O. Because theres so much noise out there in the world that everybody is on the sidelines saying what you should do, shouldnt do. Et cetera. Its sort of like the old roosevelt quote in the arena. Rose right, teddie roosevelt. Credit belongs to the man in the arena that gets dirty and all of those things. Yes, well im the dirty one. And you have to block the noise. And so the question i think is did i have doubts. The answer is no. And did the executive team have doubts. I think you can see in our product that we were all betting on each other in a big way. Rose but then it goes back to my original question, apple is becoming, its building on its tradition. But its doing things different. Steve said to you, dont ever ask yourself what would steve do, correct. He did. Rose dont ask that. Do what you think you need to do based on the circumstances that you face. So is apple becoming more open . I have mentioned the fact that people who have create apps can do it for the watch. 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