This is Tim: Cook talks to Charlie Rose about Apple Watch, Samsung, and a …

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Apple CEO Tim Cook doesn’t pronounce publicly mostly outward of events and a company’s quarterly gain calls, so it was a special yield to watch his speak with Charlie Rose this weekend. We’ve put together edited highlights from his initial hour chatting with a ABC speak uncover horde about Apple’s new products, a Apple TV, Steve Jobs, and a destiny of a company.

On a iPhone 6 Plus

We could have finished a incomparable iPhone years ago. It’s never been about usually creation a incomparable phone, it’s about creation a improved phone in any singular way. And so we boat things when they’re ready… This phone—now is a time for it.

The truth [of Apple] has always been to be a best, not a first. If we demeanour behind in time during Apple, a iPod. The iPod was not a initial MP3 player. It was arguably a best, and arguably it was a initial complicated one. But not a first. The iPhone was not a initial smartphone. BlackBerry was shipping phones, Palm was shipping phones. iPhone was a initial complicated smartphone. And afterwards if we demeanour during iPad—tablets were shipping a decade before. And yet, iPad arguably was a initial complicated tablet, and a initial one that met any turn of blurb success.

On a Apple Watch

To wear something, it had to be impossibly personal. It had to simulate your ambience and demonstrate what we wanted to demonstrate about yourself. It’s arrange of like your garments and your shoes: You’re not going to wear a same thing everybody else does.

We commend that record itself isn’t sufficient, that it had to have a character element. It had to be something that you’re unapproachable of wearing. we mean, this is connected to your body… It creates [the computer] unequivocally personal.

It requires an iPhone, yes, since they’ve been designed to work together… however, if we go for a run, and we don’t wish to lift your iPhone, song is also in your watch. And so with a Bluetooth headset, we can run and listen to your song though your iPhone.

On Apple’s health initiatives

With health care, there is a wide-open margin to make some unequivocally surpassing contributions… So this is nonetheless another approach to start to build a extensive perspective of your life, that should commission we to take caring of yourself over time, and when we need help, it empowers we to take certain information to your alloy to get assistance from them. All while guarding your privacy, so that nobody’s removing a information if we don’t wish them to have a data. Nobody’s pity a information if we don’t wish them to share a data. And, no, we’re not gripping it.

On Apple Pay

As it turns out, people adore their credit cards. we don’t know what credit cards we have, though many people adore their credit cards, since they competence adore that we collect airline points, or there’s something about it that’s sticky.

We looked during a attention and we said, y’know, people like that part. And so we’re about creation a user’s life better. Making a believe better. We saw all a mobile remuneration things that had been finished as nothing of it was creation anybody’s life better. It was some-more about formulating a business indication for someone else to make money.

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We started with a user, and we said, “What do they unequivocally want?” Well, nobody wants to lift a wallet. You don’t wish another thing that we have to remember to put in your pants when we travel out a door. You don’t wish another thing to lose. You don’t unequivocally wish this tag with unprotected numbers on it that has a outrageous confidence risk on it.

We bound a confidence issue. Our element is many some-more secure than a normal credit tag element is. We kept a thing a people liked, that is they do adore their card. And we pronounced “We don’t wish any of this data.” So we’re not doing what other companies are doing. We don’t wish to know what you’re buying. We don’t wish to know where you’re shopping it. We don’t wish to collect all this things on [you], Charlie. we don’t wish to know where you’re spending your nights.

And so we firewall all a stuff, we don’t keep it, it’s not on a servers. And so we kept what’s great, and bound what wasn’t.

On Steve Jobs and innovation

He’s in my heart, and he’s low in Apple’s DNA. His suggestion will always be during a substructure of a company… His bureau is still left as it was… his name is still on a door.

When he called me one weekend, in Aug of [20]11, and he pronounced “I’d like to talk,” and we pronounced “Oh, okay,” and we go “When?” and he goes “Now.” [laughs] And we contend “I’ll be right over!”

And he told me, he pronounced “I’ve been meditative a lot; Apple’s never had a veteran transition in CEO, I’m dynamic that we will have one now; we wish we to be a CEO.” And honestly, we didn’t see it coming.

I know we demeanour during me with disbelief, though we can contend we was in rejection or whatever, though we thought—I felt—that Steve was removing better; he was still during home, though we felt that he was removing better, we was observant him regularly. And we theory during a finish of a day, we always suspicion he would bounce. He always had. He had had some implausible lows in his health and had always bounced, and we always believed he would.

And so it took me a small by warn for that. we mean, he had talked to me about being CEO before, and so we always knew it was his long-term thinking… to turn a CEO. But not that specific moment.

Tim Cook speaks during Apple's Steve Jobs memorial

And so he and we had a contention behind and onward about—because we was contrast him on this—I pronounced “Y’know, what kind of things do we wish to do as authority contra me?” Just arrange of carrying a good chaff with him. And we go, well, “For example, ads—do we wish me to usually do a ones that we cruise are right, or do we wish to be concerned in it?”

And he said, “Well, we wish you’ll ask my opinion on some things!” [laughs] But he… we thought, Charlie, on that day, that he would be authority for a prolonged time. That I’d be CEO for a prolonged time. And that we would continue to work together.

He knew when he chose me that we wasn’t like him. That I’m not a CO duplicate of him. He apparently suspicion by that deeply, about who he wanted to lead Apple. And so that we have always felt a shortcoming of. And I’ve wanted desperately to continue his legacy. The Apple we deeply love.

And so, from a onset, we wanted to flow any unit that we had in myself into a company. But in terms of being all he was, we never had that objective. I’ve never had a pattern of being like him. Because we knew, a usually chairman we can be is a chairman we am, right? I’m not an actor. I’d be terrible in Hollywood.

And so that’s what I’ve done. I’ve attempted to be a best Tim Cook we can be.

On building a good team

I cruise any person… if you’re a CEO, a many critical thing, to me, is to collect people around we that aren’t like you. That heighten you, since we wish to build a puzzle. You don’t wish to smoke-stack chicklets adult and have everybody be a same.

And so we trust in farrago with a collateral D. And that’s farrago in thought, and farrago in any approach we wish to magnitude it.

The people that approximate me are not like me. They have skills that we don’t have; we competence have some that they don’t have. What we do as a team, collectively, we’re means to do some implausible things. And it’s since we collaborate. And we see one of my pivotal things in life is to make certain that we combine during an implausible level.

Because we run a association functionally, we’re not like a standard vast association that has n-number of divisions, and n-number of P and Ls [income statements]. Everybody is a organic expert, and afterwards we collectively, to get things done, we work together as a team. Because a work unequivocally happens horizontally in a company, not vertically. Products are horizontal: It takes hardware and program and services to make a torpedo product.

cook connects

We’re all different. And that’s a appetite of it. We’re not perplexing to put everybody by a automobile rinse so they demeanour alike, speak alike, cruise comparison during a finish of a day. We disagree and debate. If we were to come into a executive organisation meetings on Mondays, you’d hear a lot of contention and discuss about something. We don’t always determine on everything. But we have good honour for one another, and we trust one another, and we element one another. That creates it all work…

I cruise that a existence is that Apple has always had implausible contributors during unequivocally high levels. Jony [Ive, SVP Design]’s been there perpetually and contributing during an implausible level, as has Craig [Federighi, SVP Software Engineering] and Jeff [Williams, SVP Operations] and Dan [Riccio, SVP Hardware Engineering]. And we usually go around a table. We have a new CFO now [Luca Maestri].

This organisation of people—and we’ve recruited Angela [Ahrendts, SVP Retail and Online Stores]. You know, Angela now runs retail, Angela Ahrendts, and she is fantastic! This turn of people are able of doing implausible things, and it’s a payoff of a lifetime to work with them.

On outward criticism

One good ability we have is restraint noise. we typically examination and listen to things that are low and severe and egghead in nature, not usually a noise. we cruise that if we get held adult in a sound as a CEO, you’re going to be a terrible CEO, since there’s so many sound out there in a world. Everybody’s on a sidelines observant what we should do, shouldn’t do, etc. It’s sorta like a aged Teddy Roosevelt quote in a locus [“It is not a censor who counts; not a male who points out how a clever male stumbles, or where a doer of deeds could have finished them better. The credit belongs to a male who is indeed in a arena…”]

Well, I’m a unwashed one. And we have to retard a noise. The question, we think, is did we have doubts, and a answer is no, and did a executive organisation have doubts—I cruise we can see in a products that we were all betting on any other in a vast way.

On a IBM collaboration

Are we some-more open, yes. we cruise IBM… that’s a good one to speak about for one since we cruise it’ll give we an discernment into how we demeanour during things, and this is substantially opposite than a past.

We demeanour during these products and a iPads that aren’t here, and we cruise we can change a approach people work. We’ve altered a consumer’s life. We’ve altered a approach students learn and teachers teach. But when we get to a operative environment, a change that we’ve made, to us, isn’t poignant enough. We start to ask ourselves, “Why? Why haven’t we finished more?”

The genuine answer is in a applications. There’s not adequate apps that have been combined for verticals; for unequivocally low verticals, like what a airline commander does, what a bank teller does, down during a turn of a job. And so we start to ask ourselves, “Should we do this, or should we partner, or should we usually forget it?”

I didn’t wish to forget it, since this is a approach to heighten people’s lives in a vast way, to change a approach people work, we meant many of a life is spent working! And positively a apps are changing a approach we work, though I’m not observant it as many in other places.

thoughts on apple tim prepare and privacy

[IBM has] things that we don’t have. They have low straight believe of many opposite verticals, right? They have a outrageous sales force. IBM brings poignant craving believe to a table. We move a products that craving wants, and so we have something they don’t have. And we also don’t contest on anything.

To me, this is a ideal marriage. There’s no friction, there’s usually “We have what they need, they have what we need; together, we can yield something to business that is blow-away.” And so IBM is in a process, with a help, of conceptualizing many opposite apps for many opposite verticals, from banking to all a opposite financial services, to pharmaceutical, to aerospace and manufacturing, and so on and so forth. And they have a go-to marketplace that we don’t have.

This is an area where we cruise that everybody’s going to win. We’re going to win, IBM’s going to win, and some-more importantly than both of us—the customer’s going to win.

On a Beats acquisition

In Beats, what we saw was several things. We saw talent that we was super tender with; Jimmy and Dre are off a charts artistic geniuses. They also had teams underneath them that we unequivocally liked.

Jimmy has a low believe of a low-pitched industry; Dre knows artists. Dre is an artist. And they had started a subscription service. And a subscription service, well, some people cruise that they’re all alike. Let me tell you, we went into a thing skeptically, like we should… not into a acquisition, into their service, since Jimmy had told me how good it was.

apple beats 1

One night, I’m sitting personification with theirs contra some others, and all of a remarkable it dawns on me that when we listen to theirs for awhile, we feel totally different. And a reason is that they famous that tellurian curation was critical in a subscription service; that a sequencing of songs that we listen to impact how we feel. It’s tough to describe, though we know it when we feel it. And so that night—I couldn’t nap that night. we was thinking, “We’ve… We need to do this.”

… we felt that we could get a subscription service, we could get implausible talent, and that we cruise we could all put a heads together and do some things that are over what possibly of us are now doing, and we could get a fast-growing business.

On competition

Google, clearly… Google reserve [the Android handling system], too. we think, we would say, Google would be a top. And afterwards they capacitate many people in a hardware business, like Samsung, and Samsung is a best of a hardware companies in a Android sphere.

You know, who else. we don’t cruise Facebook a competitor, we cruise Facebook a partner. We’re not in a amicable networking business.

[Charlie: And will not be?]

We have no skeleton to be in a amicable networking area. We partner with both Facebook and Twitter, and we have integrated both of them into a handling system. We’ve worked closely with both of them so that a business can get entrance in a opposite and singular approach to their services. And we like both companies.

Amazon, we don’t work with that much. We have small attribute there. They sell, as we know, they’ve come out with a phone. You don’t see it in a lot of places. They have some tablets, though they’re not a product company. Apple’s a product company. And so in a prolonged term, will they turn a bigger product company? we don’t know, you’d have to ask Jeff [Bezos, CEO] what his skeleton are.

But when we cruise of competitor, we would cruise of Google.

On a expansion ecosystem

I wouldn’t contend that we were ever “just a hardware company.” A poignant volume of a iPhone is a program and a services. It’s usually that we don’t apart out a cost between a hardware and a program and a services. It’s partial of a possess ecosystem, and we do that since it all works together. It usually works when we do it that way.

When we apart a two, we breeze adult with… well, cruise about what happened in a PC area. When we had Windows and a apart OEM that was doing hardware, and afterwards somebody else that was doing apps—and we have a problem, you’re pulling your hair out, we call a assistance desk, and a assistance table tells we to call another assistance desk, and that assistance table tells we to call somebody else, afterwards a other male doesn’t even have a assistance desk.

So we famous early on that these kind of devices, we unequivocally need to have a “womb to tomb” perspective of them for a customer’s sake. And so if somebody calls us, it’s a problem. We’re not flitting a buck. we cruise we get a many improved patron experience.

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We’ve got 9 million purebred developers. We’re not carrying a problem removing people to rise for a platform. If we were during a discussion in Jun in San Francisco [WWDC], there’s developers there from roughly any nation in a world, and they’re essay for iOS.

We have implausible entrance to innovation, and we also perspective it and yield it—it’s a payoff to work with [the] developers we do. We yield them like it’s a privilege. And from their indicate of view, they get to pattern something from a association that has over 90 percent of their business on one chronicle of a handling system.

So we’re not fragmented like Android is, right. We’ve got, we’ll recover iOS 8 subsequent week. Right now, iOS 7, a one we usually expelled a year ago, 92 percent of a business are using iOS 7. If we looked during a allied series for Android, it’s unequivocally low.

Think about how it used to be if we were a developer. You had to go and negotiate with any retailer—and there’s no tellurian retailers—and so we were negotiating in any nation in a universe perplexing to get your product on a shelf. Here, we can pull a button, we examination it, and it quick gets in a App Store. And it’s in a App Store in 155 countries. we mean, it’s unequivocally shocking. The jobs that this thing has combined is unbelievable. We’re now between a people that we occupy directly and a developers—and a developers are a vast square of this—we’re obliged for a million jobs in a United States.

On flourishing markets and pricing

If we demeanour behind during a final year, a business in incomparable China is about 30 billion. And to my knowledge, that’s incomparable than any American company; positively in technology, maybe a largest of any, period. We’ve put a lot of appetite in there for years, we’ve had unequivocally quick growth.

But… eventually what’s causing that is, we have a poignant series of people relocating into a center class. Large numbers, rare vast numbers. This is also function in Brazil, it’s function in Turkey, it’s function in Thailand, it’s function in Malaysia—it’s function in many opposite places. Indonesia’s beginning, it’s during a opposite place in that curve.

Certainly, income is a gating factor. But there’s a lot of retailers that will concede smartphones to be paid for over time. In China, there’s a funding on smartphones if we pointer a contract, many like a United States. And so there are ways to make it some-more affordable.

Also, this is iPhone 6 and 6 Plus, though we also sell iPhone 5s and iPhone 5c, and all of these usually got reduce prices on Tuesday… You will find that in rising markets a brew of product sales are infrequently opposite in those markets contra other markets.

On successes and failures

[Regarding Maps…]

new apple ios 6 maps 11394391

Oh, we screwed up, to put it bluntly. There were many screw-ups in that one, it was usually not one, there’s many. We’ve schooled and corrected and are stability to deposit in Maps since a elemental premise—that maps were unequivocally pivotal to Apple—is a same as when we finished that call many years ago.

But we did screw adult on a release. It should not have happened like it did, it shouldn’t have come out, and, y’know, infrequently when you’re using fast, we trip and we fall, and we cruise a best thing we can do is get behind adult and contend “I’m sorry,” and we try to pill a situation, and we work like ruin to make a product right.

If you’re substantially never creation a mistake, you’re substantially not doing enough.

On a “iCloud Hacks”

[iCloud] wasn’t hacked. There’s a disagreement about this. If we cruise about what hacking iCloud would mean, it means somebody could get into a cloud and go fish around in people’s accounts. That didn’t happen. What happened was that—let’s take you. It didn’t occur to you, we hope. But let’s take we as an example.

Somebody could say, “Oh, we know Charlie’s ID from somehow, maybe it’s his email,” and they competence theory your password, or that’s not as likely, they competence phish it. How do we phish it? we could fake to be somebody else, and we could unknowingly give me your password.

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That happens on a Internet too many times today. That’s a series one emanate by far. And it’s not usually an Apple issue, this is an internet issue. You usually saw that this happened to, we think, millions of Gmail users. They were phished. My bargain is it wasn’t a crack there either, of a infrastructure, it was a phishing expedition.

There are lots of bad people that do this. And what we pronounced was, instead of usually saying, “Hey, there’s a lot of bad people that do this,” we need to figure out how can we try and strengthen a business on this. That’s a tip goal, and so we’re operative internally about how to move some-more recognition to these schemes.

In addition, we have to do things where it notifies a patron quick if it does happen, that’s reactive. And we don’t wish it to occur during all, though if it does, you’d substantially wish to know instantly. And so there are things like that and some other things that we can’t report right now where we can, we cruise we can make a grant over usually creation certain a cloud’s not hacked.

On fasten Apple

It was an engaging meeting. we had gotten a call several times from a hunt people that he had employed, and we kept observant no, we was during Compaq, we was happy, or suspicion we was, and they were persistent.

And so we finally thought, y’know, I’m going to go out and take a meeting. Steve combined a whole attention that I’m in, I’d adore to accommodate him.

And so I’m overtly going into a meeting, I’m usually meditative “I’m gonna accommodate him,” and all of a sudden, he’s articulate about his plan and his vision, and what he was doing was going 100 percent into consumer when everybody else in a attention had motionless we couldn’t make any income in consumer so they were headed to servers and storage in a enterprise.

And we thought, I’d always suspicion that following a flock was not a good thing, was a terrible thing to do. You’re possibly gonna remove big, or lose, though those are a dual options. He was doing something totally different. And he told me a small about a design—enough to get me unequivocally interested—and he was describing what, later, would be called a iMac, and a approach that he talked, and a approach a chemistry was in a room, it was usually he and I. And we could tell: we can work with him.

And we looked during a problems Apple’d had and we thought, y’know, we can make a grant here. And operative with him—this is a payoff of a lifetime!

Tim Cook

And so all of a sudden, we thought, “I’m doing it! I’m going for it!” And we arrange of, we have this voice in your ear that says “Go west, immature man, go west.” we was immature during a time. But y’know, we come behind and we try to do a things that people do with spreadsheets and things and nothing of it creates sense. It didn’t make sense. And yet, my tummy said, “Go for it.” And we listened to my gut. There was literally no one around me that was advising me to do it.

My premonition was revelation me aloud to go, and it wasn’t formed on—y’know, as an engineer, we wish to write down pros and cons, and a financial partial we wish to demeanour at, and we wish it to say, “Go,” we wish it to arrange of countenance a preference that your gut’s come [to], and it never did.

Because Michael Dell had finished a criticism weeks progressing that if he were a CEO—and he is and was a unequivocally reputable CEO—that if he were a CEO of Apple he would tighten it down and give a income behind to a shareholders. That it had no future. He was usually observant what everybody thought. They didn’t know Steve.

And so in that meeting, we resolved “All of those guys are wrong.” They don’t know him, and they don’t know his vision, and they see things in a normal way, that Steve never did. He was always looking good over a norm. He had a present for that, he clearly had a present for that.

And he took that present and embedded it in a company. It wasn’t a present that he kept to himself. One of the—one of a many things we desired about him, he was a dear friend, though he was also a good mentor. He was a good teacher. This is something that’s never combined about him, though what he left in not usually me, though in many of us, is what he taught us. He was one of a best mentors in a world.

It’s many some-more than [perfectionism]. No, it’s many some-more than that since that’s just—that’s holding a bar so high that it’s unequivocally tough to hit. But no. It’s teaching. And it’s training and creation certain people are learning. And him holding such an interest, he’s going out of his approach to do this. we saw him do that over many years, with not usually me though many people, and we cruise it’s missed. It’s a outrageous partial of what he did that’s missed in many of a things that I’ve read.

That, and a tellurian aspect of him. He was an implausible tellurian being, and we think, y’know, I’ve never examination anything that unequivocally prisoner him, or prisoner a Steve we knew.

On destiny products

It’s so easy to add. It’s tough to edit. It’s tough to stay focused. And nonetheless we know, we’ll usually do a best work if we stay focused. And so a hardest decisions we make are all a things not to work on, frankly. Because there’s lots of things we’d like to work on, that we have seductiveness in, though we know that we can’t do all great…

We spend a lot of income in RD, and that series has ramped dramatically. That’s true. Some of that is spent for things that aren’t shipping yet—like a Apple Watch is an instance of that. Y’know, we’re… I’ve announced it now, so that everybody can see it, though we’ve been spending income for 3 years on it since we started expansion about 3 years ago.

apple watch activityApple

And there’s apparently other things that we’re operative on that right now isn’t apparent. We’re always doing that, and we’re also operative on things like this [gestures to a Apple Watch] that is apparent.

[Charlie: Here’s what’s engaging about both we and Steve Jobs…]

We’re both secretive. [laughs]

There are products that we’re operative on that no one knows about, yes; that haven’t been rumored about yet, yes. Part of some of those are going to come out and be blow-away probably, and some of those we’ll substantially confirm “Y’know, that one, we’re going to stop.”

We flog around a lot of things internally and we competence start something and get down a highway a small bit and have a opposite idea. Steve told a story publicly about a iPad. iPad was started approach in allege of when it came out, many years before. It was put on a shelf. [Tablets were] not a new idea. It was suspended since of a suspicion to make iPhone.

The organisation was reallocated to work on iPhone, and afterwards a iPhone came out, and after iPhone got adult and running, we brought a iPad out. There are always things that we’re looking during that are sketch RD responsibility where there’s not compared revenue.

A lot of what leads to creation is curiosity. It’s oddity to start pulling a string, and we see where it takes you. And a lot of what we do isn’t apparent to a open in a commencement where it’s going to lead.

Like Touch ID, as an example. We did Touch ID a year ago. People thought—a lot of people suspicion Touch ID was usually a approach to get into your phone. And it’s unequivocally cold during doing that. But afterwards we also said, “Well, we can buy things from Apple with it.” Obviously we, a whole time, were formulation to do a many broader roll-out for mobile payments with Touch ID, though we deposit in a lot of things that have prolonged tentacles for decades or so. Not usually for indicate products. Point products don’t disturb us.

On a destiny of television

Well, TV is one that we continue to have good seductiveness in. So, we select my difference delicately there. But TV is one of those things that, if we’re unequivocally honest, it’s stranded behind in a 70s. Think about how many your life has changed, and all a things around we that have changed, and nonetheless TV, when we go in your vital room to watch a TV or wherever it competence be, it roughly feels like you’re rewinding a clock, and you’ve entered a time capsule, and you’re going backwards. The interface is terrible! we mean, it’s awful! And we watch things when they come on, unless you remember to record them.

[So because don’t we repair that?]

Well, yeah, y’know, we don’t wish to get into what we’re doing in a future, though we’ve taken stabs with Apple TV. And Apple TV now has over 20 million users and so it has distant exceeded a “hobby” tag that we’ve placed on it, and we’ve combined some-more and some-more calm to it this year. There’s increasingly some-more things that we can do on there.

But this is an area that we continue to demeanour at.

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