Timothy Donald Cook – Apple, Inc.
Misjudged the demand for the 7 plus
“Katy, one of the things that we did not get right was the mix between the iPhone 7 and the iPhone 7 Plus. It wound up that demand was much stronger to the iPhone 7 Plus than we had predicted. And so it took us a little while to adjust all the way back through the supply chain and to bring iPhone 7 Plus into balance, which occurred early this past quarter. What have we learned from it? Every time we go through a launch, we learn something. And you can bet that we’re brushing up our models and we’ll apply everything we learn to the next time.”
Watch units have doubled in 6/10 top markets
“We have seen the watch as a really key product category for us since before we launched it. We took our time to get it right, and we’ve made it even better with the Series 2 offering. And we’re really proud of the growth of the business. The watch units more than doubled in six of our top ten markets, which is phenomenal growth, particularly in a non-holiday quarter. And so we couldn’t be more satisfied with it.”
Not surprised that competitors are falling out of watch
“Where does it go? I wouldn’t want to comment on that, but we do have a really great pipeline here. And I think in terms of competition falling out and so forth, the watch area is really hard. It in essence from an engineering point of view is similar to a phone in terms of the intricacies and so forth. And so I’m not very surprised that some people are falling out of it. But we’re very committed to it and believe that – it’s already a big business and believe over time it will be even larger. Thanks for the question.”