Apple CEO Tim Cook Teases 'Great Innovation' in Product Pipeline on CNBC's Mad Money

Apple CEO Tim Cook today sat down with CNBC Mad Money host Jim Cramer, where he discussed his thoughts on innovation, the future of the iPhone and the Apple Watch, the growth of Apple services, Apple's performance in China, and more.

Last week, Apple reported its first year-over-year revenue decline since 2003, announcing $10.5 billion in profit on $50.6 billion in revenue. Apple also saw its first ever decline in year-over-year iPhone sales, leading one Wall Street analyst to claim Apple's best days are behind it.

timcookmadmoneymay2016
"I couldn't disagree more," said Cook when asked about the comment, attributing the perceived sales dip to an abnormally high upgrade rate in late 2014 and 2015 as people upgraded to the iPhone 6 and pointing towards growth opportunities in China and India. Cook went on to tease future advances in iPhone technology that will inspire people to buy new devices.

We've got great innovation in the pipeline. New iPhones that will incentivize you and other people that have iPhones today to upgrade to new iPhones.

We are going to give you things you can't live without that you just don't know you need today. That has always been the objective of Apple. To do things that really enrich people's lives. That you look back on and you wonder how did I live without this.

He reiterated Apple's future plans later in the interview when questioned on whether Apple is still innovating. "We're fairly secretive," he said, "but I would tell you we're incredibly excited about things we're working on."

Cook also commented on Apple acquisitions. "We've acquired a lot of companies. We generally acquire a company every three to four weeks on average," he said. "We're always looking," he added on the topic of potential major acquisitions.

On the Apple Watch, Cook didn't give many hints about what's coming in the future, but he said he believes it will be seen differently in retrospect, much like the iPod. "You'll see the Apple Watch getting better and better," he told Cramer. "We're still in learning mode."

If you look at iPod, iPod wasn't viewed as a success, but today it's viewed as an overnight success. [...]

And so I think that in a few years we will look back and people will say, "How could I have ever thought about not wearing this watch?" Because it's doing so much for you. And then it will all of a sudden be an overnight success.


Cook also addressed concerns about China, which led billionaire Carl Icahn to sell his full stake in Apple earlier this year. Apple's sales fell 26 percent in Greater China in the second quarter of 2016, and recently, Apple was forced to take down the iTunes Movies and iBooks stores in China on concerns from Chinese officials that believe Apple is "too deeply established" in core industries in the country.

"I could not be more optimistic about China," he said. According to Cook, the Android-to-iPhone switch rate has been "huge" in China, up 40 percent in the first half of 2016 compared to the first half of 2015. He says Apple is working with Chinese regulatory authorities to get its iTunes Movies and iBooks services back online in the country. "We're pretty confident and optimistic that we'll be back online and offering those to our Chinese customers soon."

Cook also spoke at length on the dip in Apple stock, the company's quarterly performance and predictions for next quarter, smartphone penetration in China and India, and Apple's customer loyalty and potential for growth in services.


Cook's segment aired on Mad Money on CNBC at 6:00 p.m. Eastern Time. Part one and part two of the full episode are now available on the CNBC website and are embedded above.

Tags: CNBC, Tim Cook

Top Rated Comments

bgraham Avatar
103 months ago
He's been saying the same for the past 5 years.
Score: 90 Votes (Like | Disagree)
Boatboy24 Avatar
103 months ago
Great innovation, my ass.
Score: 72 Votes (Like | Disagree)
macbeta Avatar
103 months ago
Watch Bands and pink laptops are not really the kind on innovation I think I'm looking for...
Score: 72 Votes (Like | Disagree)
Chupa Chupa Avatar
103 months ago
Broken record at this point. So tired of TimCo telling us to expect exciting products in the coming year which then never develop... at least the exciting part. It's really the Silcon Valley version of the Boy Who Cried Wolf, except its the CEO Who Cried Amazing Product Pipeline.
Score: 60 Votes (Like | Disagree)
nfl46 Avatar
103 months ago
I'll believe it when I see it. I swear he says the same thing every year.
Score: 58 Votes (Like | Disagree)
Sirious Avatar
103 months ago
"That you look back on and you wonder how did I live without this."

I actually do that a lot with Touch ID, Apple Watch and Apple Pay. There is some truth in his speech.
Score: 51 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
General iOS 17 Feature Orange Purple

iOS 17.4.1 Update for iPhone is Imminent

Monday March 18, 2024 5:27 am PDT by
iOS 17.4.1 and iPadOS 17.4.1 should be released within the next few days, with a build number of 21E235, according to a source with a proven track record. MacRumors previously reported that Apple was internally testing iOS 17.4.1. As a minor update for the iPhone, it will likely address software bugs and/or security vulnerabilities. It is unclear if the update will include any other changes. ...
M3 iPad Feature 3

New iPads Likely to Begin Shipping in April

Monday March 18, 2024 9:52 am PDT by
Apple's new iPad Pro models with OLED displays will likely begin shipping to customers in April, according to information shared today by Ross Young, CEO of display industry research firm Display Supply Chain Consultants. Bloomberg's Mark Gurman also said the new iPad Pro models might not ship until "deeper" into April in his Power On newsletter on Sunday:I've repeatedly said that new...
iOS 17 Passkey With Apple ACCOUNT Feature

'Apple ID' Expected to Change to 'Apple Account' Starting With iOS 18

Sunday March 17, 2024 7:13 am PDT by
MacRumors was first to report that Apple was planning to rebrand "Apple ID" to "Apple Account" across its software platforms and websites like iCloud.com as early as this year, and now Bloomberg's Mark Gurman has corroborated this change. A mockup of the new Apple Account branding In his Power On newsletter today, Gurman said the new "Apple Account" branding will start to be used later this...