TELLING YOU HOW IT IS TECHNICALLY IN BEAR MARKET
TERRITORY, FALLING 20% OR MORE
FROM HIGHS.
FROM HIGHS. TIM COOK SAT DOWN WITH OUR OWN
SUSAN LEE TALKING ABOUT THE
CORONAVIRUS AND SAYING I GUESS
THAT, LOOK, IT’S A PASSING
THING, IT’S NOT A LONG-TERM
THING, THAT WAS THE GIST --
>> THE DEMAND IS THERE.
PEOPLE WANT TO BUY THE iPHONES
AND THE APPLE SERVICES, BUT
BECAUSE OF FACTORIES BEING
CLOSED, STORES BEING SHUT, THEY
CAN’T GET ACCESS.
THE DEMAND IS THERE, IT WILL
COME BACK, AND I THINK MOST
ECONOMISTS BELIEVE THE
CONSUMPTION WILL RETURN.
BUT WEED HAD EXCLUSIVE ACCESS
WITH TIM COOK IN BIRMINGHAM,
ALABAMA, A HOMECOMING OF SORTS
FOR A LOCAL HERO.
HE GREW UP IN ALABAMA, WENT TO
AUBURN, AND NOW HE’S PUSHING
TEASE NEW PHILANTHROPIC
EDUCATIONAL INITIATIVES AT APPLE
AND BASICALLY SUPPLYING CODING
OPPORTUNITIES FOR THE
UNDERREPRESENTED.
UNDERREPRESENTED. WE HAD A CHAT WITH HIM, AND WE
TALKED ALL THINGS APPLE, STOCK
MARKET, CORONAVIRUS AND, YES,
EVEN HIS RELATIONSHIP WITH
PRESIDENT TRUMP.
PRESIDENT TRUMP. LISTEN.
LISTEN. >> THINGS ARE GOING PRETTY MUCH
LIKE WE THOUGHT THEY WOULD GO
THERE IN TERMS OF BRINGING
THINGS BACK.
THINGS BACK. AND SO IT’LL, IT WILL TAKE SOME
TIME.
TIME. BUT, BY AND LARGE, I THINK THIS
IS A TEMPORARY CONDITION, NOT A
LONG-TERM KIND OF THING.
APPLE IS FUNDAMENTALLY STRONG,
AND THAT’S --
>> DO YOU ANTICIPATE DISRUPTION
AT THE LAST PASS THE SECOND
QUARTER?
QUARTER? >> WELL, OUR SECOND QUARTER’S
THE QUARTER WE’RE IN, JUST TO
DECLARE WITH OUR INVESTORS, THE
MARCH QUARTER.
MARCH QUARTER. YOUR CALENDAR FIRST QUARTER.
AND SO I DON’T KNOW THE ANSWER
TO THAT YET.
WE’RE STILL IN FEBRUARY, AND,
YOU KNOW, THERE’S REASON FOR
OPTIMISM.
OPTIMISM. BUT WE’LL SEE, YOU KNOW?
I THINK THE FOCUS IN THE LAST
FEW DAYS HAS TURN OFF OF CHINA
ON TO KOREA AND ITALY.
SO I THINK IT’S VERY IMPORTANT
TO SEE WHAT HAPPENS THERE AND
WHETHER SOMETHING NEW COMES
OCCUPANT OF -- OUT OF THAT.
OUR SUPPLY CHAIN IS RELATIVELY
MORE IMPORTANT IN CHINA, BUT WE
HAVE GREAT BUSINESSES IN KOREA,
AND WE HAVE SUPPLIERS IN KOREA
AS WELL AND SUPPLIERS IN ITALY
AND A GREAT BUSINESS THERE AS
WELL.
WELL. SO WE NEED TO SEE AS THAT
UNFOLDS.
UNFOLDS. >> THE STOCK MARKET, OBVIOUSLY,
IS REACTING, AND APPLE --
[LAUGHTER]
[LAUGHTER] HAS BEEN DOWN --
>> YEAH.
>> YEAH. >> IN -- IN THE PAST FEW WEEKS.
THAT CREATES VALUE INSIDE
AMERICA’S LARGEST COMPANY.
DO YOU THINK THERE’S VALUE THAT
INVESTORS ARE MISSING?
>> WELL, MY PERSPECTIVE, FIRST
OF ALL, I DON’T FOCUS ON THE
SHORT-TERM GYRATIONS OF THE
MARKET.
MARKET. I THINK FOR ME AND WITH THE WAY
WE HAVE RUN THE COMPANY, WE WORK
FOR THE LONG TERM.
AND I SEE NO LONG-TERM
DIFFERENCE BETWEEN WHAT WAS
HAPPENING FOUR WEEKS AGO VERSUS
WHAT’S HAPPENING TODAY.
AND SO, NO, THE MARKET TAKES
TIME TO RECOGNIZE THAT AND SO
FORTH, AND IT’LL DO WHAT IT’S
GOING TO DO.
I’M THE LAST PERSON TO BE ABLE
TO PREDICT IT.
FINISH.
FINISH. [LAUGHTER]
[LAUGHTER] BUT I WOULD, YOU KNOW, FOR ME, I
LOOK THROUGH THAT, LOOK THROUGH
THE NOISE AND CONCENTRATE ON THE
FUTURE.
FUTURE. AND THE FUTURE LOOKS VERY
BRIGHT.
BRIGHT. >> YOU MIGHT BE ABLE TO GET
APPLE AT A DISCOUNT, A 15%
DISCOUNT.
DISCOUNT. >> WE ARE A BUYER, RIGHT?
WE HAVE A SHARE REPURCHASE PLAN,
AND SO, YES.
>> THIS MIGHT BE AN OPPORTUNITY
TO MAYBE UP THOSE SHARE
REPURCHASES FOR APPLE.
>> I DON’T WANT TO ANNOUNCE
ANYTHING ON THE AIR, BUT
EVERYBODY KNOWS THAT WE’RE
BUYING SHARES, AND IF THE STOCK
IS LOWER, YOU BUY MORE SHARES
FOR THE SAME AMOUNT OF MONEY.
>> NOW, YOU’RE THE ARCHITECT OF
THIS LOW INVENTORY, FAST MOVING
SUPPLY CHAIN THAT APPLE
CURRENTLY HAS.
CURRENTLY HAS. DO YOU HAVE ANY, I GUESS, IDEAS
TO MAYBE BRING BACK OR MOVE SOME
OF THAT SUPPLY CHAIN OUTSIDE OF
CHINA MORE?
CHINA MORE? >> WELL, IT IS IMPORTANT TO
RECOGNIZE THAT OUR PARTS ARE
BUILT EVERYWHERE.
BUILT EVERYWHERE. THEY ARE TRULY GLOBAL PRODUCTS.
SO YOU HAVE SEVERAL PARTS THAT
ARE MADE IN THE UNITED STATES
THAT SERVE THE WORLD.
SO NOT ONLY FOR THE iPHONE
SOLD IN THE UNITED STATES, BUT
THOSE SOLD AROUND THE WORLD.
AND SO WHAT WILL HAPPEN TO THE
SUPPLY CHAIN AS WE LOOK BACK ON
THIS, I WOULDN’T WANT TO SAY AT
THIS POINT BECAUSE THE QUESTION
FOR US ALWAYS IS WHAT KIND OF
RESILIENCE DOES THE SUPPLY CHAIN
HAVE.
HAVE. IT’S NOT WAS THERE A PROBLEM,
BECAUSE THERE WILL ALWAYS BE
UNPREDICTABLE THINGS THAT COME
UP.
UP. BUT AS YOU KNOW FROM FOLLOWING
US, WE WORK THROUGH EARTHQUAKES,
TORNADOES, FIRES, FLOODS,
TSUNAMIS, SARS.
TSUNAMIS, SARS. AND SO WE’VE HAD A LONG LIST OF
THINGS, AND THE OPERATIONAL TEAM
IS VERY GREAT AT WORKING THROUGH
THESE.
THESE. SO THE QUESTION FOR US AFTER WE
GET ON THE OTHER SIDE WILL BE
WAS THE RESILL YENLS THERE --
RESILL YEANS THERE OR NOT AND DO
WE NEED TO MAKE SOME CHANGES.
MY PERSPECTIVE SITTING HERE
TODAY IS THAT IF THERE ARE
CHANGES, YOU’RE TALKING ABOUT
ADJUSTING SOME KNOBS, NOT SOME
SORT OF WHOLESALE FUNDAMENTAL
CHANGE.
CHANGE. >> SO YOU DON’T ANTICIPATE THEN
MOVING, SAY, TO OTHER LOW COST
COUNTRIES LIKE THE SEAT
UNANIMOUS OR THE CAMBODIAS?
SOME PEOPLE CALL THIS AN
INFLECTION POINT FOR CHINA’S
MANUFACTURING INDUSTRY
MANUFACTURING INDUSTRY ESPECIALLY WITH THE DISRUPTS,
AND PEOPLE ARE UNCERTAIN BECAUSE
CHINA’S NOT CHEAP ANYMORE, LET’S
BE HONEST, RIGHT?
>> YEAH.
>> YEAH. THAT’S THE THING THAT PEOPLE
DON’T UNDERSTAND, I THINK, IS
THAT THERE’S A PERSPECTIVE THAT
IS THAT THAT CHINA IS -- IT
HASN’T BEEN FOR A LONG TIME, THE
AS BOTH OF US KNOW.
AND SO BUT FOR US, WE’RE NOT
REALLY FIXATED ON COST ONLY.
COST IS ONE FACTOR, CLEARLY.
BUT WE’RE ALSO FOCUSED -- WE’RE
FIXATED ON QUALITY.
AND WE’RE FOCUSED ON TIME TO
MARKET AND THE SPEED AND THE
DEPTH OF ENGINEERING IN THE
DIFFERENT PLACES.
DIFFERENT PLACES. AND SO SOMEBODY WOULD HAVE TO
MEET ALL OF THOSE IN ORDER FOR
US TO DO SOMETHING.
>> YEAH.
>> YEAH. IN ANNOUNCING ALSO YOUR FIRST
RETAIL STORE IN INDIA BY THE
YEAR 2021.
YEAR 2021. >> I’M EXCITED ABOUT THAT,
BECAUSE THAT’S THE ENGINE,
THAT’S E A HUGE OPPORTUNITY FOR
US.
US. FOR YEARS WE COULD NOT ENTER
THERE UNLESS WE ENTERED THERE
WITH A PARTNER.
INTO RETAIL.
INTO RETAIL. AND WE DID NOT WANT TO DO THAT,
YOU KNOW?
YOU KNOW? WE WANT TO MAINTAIN CONTROL OF
OUR BRAND AND SO FORTH.
BUT THE ADMINISTRATION WORKED ON
THIS WITH THE INDIAN GOVERNMENT,
AND THAT CHANGE HAS BEEN MADE.
AND SO WE’RE, WE ARE VERY, VERY
POSITIVE ABOUT ENTERING ONLINE
THIS YEAR AND RETAIL NEXT YEAR.
>> SPEAKING OF THE
ADMINISTRATION, I’M SURE YOU GET
ASKED THIS ALL THE TIME, BUT
WHEN PEOPLE SEE TIM COOK ON ONE
SIDE, DONALD TRUMP ON THE OTHER,
THEY SEE A LOT OF DIFFERENCE.
BUT YOU HAVE BEEN ABLE TO
ENGAGING AND WORK TOGETHER --
ENGAGE AND WORK TOGETHER.
HOW DOES THE RELATIONSHIP WORK?
>> WELL, THERE ARE DIFFERENCES,
THERE’S NO DOUBT ABOUT THAT.
BUT YOU LOOK FOR INTERSECTIONS,
AND I CARE A LOT ABOUT CREATING
JOBS, AND I THINK THE PRESIDENT
DOES AS WELL.
I CARE A LOT ABOUT TRAINING THE
WORK FORCE FOR THE FUTURE, AND
THE ADMINISTRATION IS FOCUSED ON
THIS AS WELL.
I THINK ONE OF THE U.S.’ MAJOR
CHALLENGES IS TO SOLVE THIS
ISSUE.
ISSUE. IT’S THAT AS TECHNOLOGY SPEEDS
OVER AND OVER AGAIN AND JOBS ARE
DISRUPTED AND JOBS ARE CREATED,
WE HAVE TO MAKE SURE OUR
EDUCATION IS PREPARING PEOPLE
FOR THE DISRUPTION AND THE
CREATION.
CREATION. AND I THINK IF WE DO THAT, WE
CAN, WE CAN FLOURISH IN THIS
ENVIRONMENT.
ENVIRONMENT. BUT IF WE DON’T, WE LEAVE A LOT
OF PEOPLE BEHIND.
AND THAT SHOULD BE UNACCEPTABLE
FOR ALL OF US.
AND SO THESE ARE JUST TWO OF THE
THINGS THAT WHERE THERE’S
INTERSECTIONS.
INTERSECTIONS. AND I THINK MOST PEOPLE WOULD
SAY THOSE ARE NONPARTISAN, YOU
KNOW?
KNOW? THE CREATION OF JOBS SHOULD BE
NONPARTISAN, THE EDUCATION
SHOULD BE NONPARTISAN.
AND SO THAT’S HOW I SEE IT, YOU
KNOW?
KNOW? WE’RE VERY FOCUSED ON POLICY,
NOT POLITICS.
NOT POLITICS. THAT PROBABLY HELPS.
I THINK WE DON’T IS HAVE A PAC.
WE’RE PROBABLY THE MOST
NONPOLITICAL COMPANY OUT THERE.
WE DON’T GIVE TO POLITICAL
CAMPAIGNS, YOU KNOW, CANDIDATE
CAMPAIGNS AND SO FORTH.
BUT WE DO FOCUS ON POLICY.
BECAUSE WE WANT TO BE A
CONTRIBUTING CITIZEN OF THE
UNITED STATES AND TO HELP THE
COUNTRY EVERY WAY WE CAN.
>> UH-HUH.
>> UH-HUH. SOME WOULD SAY YOU WERE PROBABLY
ONE OF THE FIRST, IF NOT THE
FIRST, IN SILICON VALLEY TO
REACH OUT AND ENGAGE WITH THE
WHITE HOUSE.
WHITE HOUSE. RECENTLY LARRY ELLISON OF ORACLE
HELD A FUNDRAISER FOR PRESIDENT
TRUMP, RECEIVING A LOT OF
BACKLASH FROM HIS EMPLOYEES.
HAVE YOU RECEIVED ANY SORT OF
CRITICISM FOR TRYING TO ENGAGE
AND WORK WITH THE WHITE HOUSE
FROM YOUR EMPLOYEES?
>> WELL, WE HAVE A LARGE
EMPLOYEE BASE, AND PEOPLE ARE
WELCOME TO HAVE THE VIEWS THAT
THEY HAVE.
THEY HAVE. BUT I TRY TO DO WHAT I DO --
WHAT I SAY AND SAY WHAT I DO.
AND FROM MY PERSPECTIVE,
ENGAGEMENT IS ALWAYS BEST.
BECAUSE JUST SIMPLY STANDING ON
THE SIDELINE AND YELLING DOESN’T
ACCOMPLISH ANYTHING BUT
POLARIZATION.
POLARIZATION. AND SO I WANT TO SUIT UP AND
PLAY A ROLE.
AND IF I DISAGREE ON SOMETHING,
I WANT TO TRY TO INFLUENCE IT.
IF I AGREE ON SOMETHING, I WANT
TO TRY TO AMPLIFY AND FIGURE OUT
A WAY THAT I CAN HELP IN SOME
WAY AND BE A GREAT CITIZEN OF
THE COUNTRY.
THE COUNTRY. SO SO THAT IS MY PERSPECTIVE ON
THINGS AND THE WAY THAT WE TRY
TO LEAD THE COMPANY.
>> TIM, THANK YOU SO MUCH.
>> THANK YOU.
THANK YOU FOR BEING HERE.
>> SO A NEUTRAL, SOBER FIGURE AS
THE HEAD OF AMERICA’S LARGE
COMPANY.
COMPANY. LARGEST COMPANY.
LARGEST COMPANY. WHAT’S HAPPENING IN CHINA, AS HE
SAID IN THAT INTERVIEW, SOME
SUPPLIERS AND FACTORIES HAVE
BEEN REOPENING.
BEEN REOPENING. IN FACT, THEY ADD TO SHUT ALL 42
STORES DURING THE WORST OF THE
CORONAVIRUS, BUT NOW MORE THAN
30 HAVE REOPENED, SOME WITH
LIMITED HOURS, AND WE’VE BEEN
HERE BEFORE.
HERE BEFORE. TIM COOK HAS BEEN CEO OF APPLE
SINCE 2011, HE’S SEEN A LOT OF
THIS --
THIS -- NEIL: ABSOLUTELY.
NEIL: ABSOLUTELY. >> UPS AND DOWNS.
BUT AS YOU SEE WHERE THE STOCK
TRADING, YOU KNOW, ABOVE RECORD
HIGHS OR WERE AT RECORD HIGHS
EARLIER THIS YEAR, HE’S BEEN
ABLE TO EXPAND THAT VALUE