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Tag: Tim Cook

  • Apple Earnings Released, Revenue $51.5 Billion

    Apple Earnings Released, Revenue $51.5 Billion

    Apple just released its financial results for its fiscal 2015 fourth quarter ended September 26. It beat Wall Street expectations on revenue and EPS with $51.5 billion and $1.96 respectively. Net profit was $11.1 billion.

    For comparison, the year-ago quarter saw revenue of $42.1 billion, net profit of $8.5 billion, and $1.42 per diluted share.

    Apple reported gross margin of 39.9% compared to 38% during the same period last year. International sales accounted for 62% of this quarter’s revenue.

    “Fiscal 2015 was Apple’s most successful year ever, with revenue growing 28% to nearly $234 billion. This continued success is the result of our commitment to making the best, most innovative products on earth, and it’s a testament to the tremendous execution by our teams,” said Apple CEO Tim Cook. “We are heading into the holidays with our strongest product lineup yet, including iPhone 6s and iPhone 6s Plus, Apple Watch with an expanded lineup of cases and bands, the new iPad Pro and the all-new Apple TV which begins shipping this week.”

    “Apple’s record September quarter results drove earnings per share growth of 38% and operating cash flow of $13.5 billion,” said CFO Luca Maestri. “We returned $17 billion to our investors during the quarter through share repurchases and dividends, and we have now completed over $143 billion of our $200 billion capital return program.”

    You can find the full earnings release here.

    Image via Wikimedia Commons

  • Tim Cook Talks to Stephen Colbert About Coming Out

    Tim Cook Talks to Stephen Colbert About Coming Out

    Tim Cook is one of the country’s most-powerful – and most-visible – CEOs. And it’s that visibility that led him to come out publicly last October.

    The Apple CEO opened up to Stephen Colbert about his decision, saying he “wanted to tell everyone [his] truth.”

    Cook said he felt “a tremendous responsibility” to do it during an interview on The Late Show.

    “It became so clear to me that kids were getting bullied in school, kids were getting basically discriminated against, kids were even being disclaimed by their own parents — and that I needed to do something … Where I valued my privacy significantly, I felt that I was valuing it too far above what I could do for other people. And so I wanted to tell everyone my truth.”

    “Many people already knew, for many people it was no revelation. it’s like discovering something in your iPhone that it’s always done but you didn’t quite know it, right?” said Cook. “And so it wasn’t a revelation to a lot of people that I work with but it was maybe to the broader world.”

    Cook revealed he is gay in an eloquent piece in Bloomberg last October. There, he called being gay ‘among the greatest gifts god has given him.”

    “I don’t consider myself an activist, but I realize how much I’ve benefited from the sacrifice of others. So if hearing that the CEO of Apple is gay can help someone struggling to come to terms with who he or she is, or bring comfort to anyone who feels alone, or inspire people to insist on their equality, then it’s worth the trade-off with my own privacy,” he said.

  • Tim Cook’s Security Costs Apple $700,000 a Year

    Tim Cook’s Security Costs Apple $700,000 a Year

    How much is Tim Cook’s safety worth to Apple?

    Not quite a million bucks, according to a recent filing.

    Patently Apple unearthed Apple CEO Tim Cook’s security budget, which was buried inside its Schedule 14A report it recently filed with the Security and Exchange Commission.

    According to Apple, it spends just shy of $700,000 a year keeping Cook safe.

    Here’s the actual text from the filing:

    This amount represents: (i) the Company’s contributions to Mr. Cook’s account under its 401(k) plan in the amount of $15,600; (ii) Company-paid term life insurance premiums in the amount of $2,520; (iii) vacation cash-out in the amount of $56,923; and (iv) security expenses in the amount of $699,133.

    This puts Tim Cook in the upper tier of high-profile CEOs in terms of security spend.

    As of 2014, Amazon spent $1.6 million protecting Jeff Bezos. Oracle spent $1.5 million on Larry Ellison’s security.

    Third on Fortune‘s list was Disney CEO Bob Iger, who cost his company just shy of $600,000.

    There haven’t been any public incidents involving Tim Cook and some rabid Apple fan (or rabid Apple hater). So, I guess it’s working?

    Image via Valery Marchive, Flickr Creative Commons

  • Apple Disappoints On iPhone Sales

    Apple Disappoints On iPhone Sales

    Apple just released its quarterly earnings report. The company surpassed Wall Street estimates on revenue and earnings per share, but iPhone sales were not on par with expectations. iPad sales were also down 18%.

    The company sold 47.5 million iPhones during the quarter. Analysts had expected closer to 49 or 50 million.

    CEO Tim Cook said, “We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch. he excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.”

    Apple shares began to sink after the report’s release.

    Here’s the company’s full earnings announcement:

    CUPERTINO, California — July 21, 2015 — Apple® today announced financial results for its fiscal 2015 third quarter ended June 27, 2015. The Company posted quarterly revenue of $49.6 billion and quarterly net profit of $10.7 billion, or $1.85 per diluted share. These results compare to revenue of $37.4 billion and net profit of $7.7 billion, or $1.28 per diluted share, in the year-ago quarter. Gross margin was 39.7 percent compared to 39.4 percent in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue.

    The growth was fueled by record third quarter sales of iPhone® and Mac®, all-time record revenue from services and the successful launch of Apple Watch™.

    “We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” said Tim Cook, Apple’s CEO. “The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.”

    “In the third quarter our year-over-year growth rate accelerated from the first half of fiscal 2015, with revenue up 33 percent and earnings per share up 45 percent,” said Luca Maestri, Apple’s CFO. “We generated very strong operating cash flow of $15 billion, and we returned over $13 billion to shareholders through our capital return program.”

    Apple is providing the following guidance for its fiscal 2015 fourth quarter:

    • revenue between $49 billion and $51 billion
    • gross margin between 38.5 percent and 39.5 percent
    • operating expenses between $5.85 billion and $5.95 billion
    • other income/(expense) of $400 million
    • tax rate of 26.3 percent

    Apple’s board of directors has declared a cash dividend of $.52 per share of the Company’s common stock. The dividend is payable on August 13, 2015, to shareholders of record as of the close of business on August 10, 2015.

    Apple will provide live streaming of its Q3 2015 financial results conference call beginning at 2:00 p.m. PDT on July 21, 2015 at www.apple.com/quicktime/qtv/earningsq315. This webcast will also be available for replay for approximately two weeks thereafter.

    This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 27, 2014, its Form 10-Q for the fiscal quarter ended December 27, 2014, its Form 10-Q for the fiscal quarter ended March 28, 2015, and its Form 10-Q for the fiscal quarter ended June 27, 2015 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

    Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, the Mac and Apple Watch. Apple’s three software platforms — iOS, OS X and watchOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

  • Tim Cook: “Today marks a victory for equality, perseverance and love”

    Tim Cook: “Today marks a victory for equality, perseverance and love”

    Today the US Supreme Court, in a 5-4 ruling, said that the Constitution requires that same-sex couple be allowed to marry. The decision effectively makes gay marriage legal nationwide, as states can no longer reserve the right to marry only for heterosexual couples.

    And the tech world’s most prominent gay CEO, Tim Cook, has spoken out.

    In a series of tweets, Tim Cook said that “Today marks a victory for equality, perseverance and love.”

    He also managed to comment on the ruling with a tip to late Apple CEO Steve Jobs:

    Tim Cook publicly revealed that he is gay last October. In an op-ed in Bloomberg, Cook said he is “proud to be gay” and that it is “among the greatest gifts God has given me.”

    “I don’t consider myself an activist, but I realize how much I’ve benefited from the sacrifice of others. So if hearing that the CEO of Apple is gay can help someone struggling to come to terms with who he or she is, or bring comfort to anyone who feels alone, or inspire people to insist on their equality, then it’s worth the trade-off with my own privacy,” he said.

    “For years, I’ve been open with many people about my sexual orientation. Plenty of colleagues at Apple know I’m gay, and it doesn’t seem to make a difference in the way they treat me. Of course, I’ve had the good fortune to work at a company that loves creativity and innovation and knows it can only flourish when you embrace people’s differences. Not everyone is so lucky.”

    Apple was one of many tech companies which filed an amicus brief with the Supreme Court earlier this year, urging it to rule in favor of same-sex marriage. It argued that bans on same-sex marriage are bad for business.

    But for Tim Cook, it’s clearly more than just business.

  • Apple’s U2 Album Giveaway Turned Kids Gay, Say Russian Wingnuts

    Apple’s U2 Album Giveaway Turned Kids Gay, Say Russian Wingnuts

    According to some right-wing Russians, this is probably going to turn your kid gay:

    That’s the cover of U2’s most recent album, Songs of Innocence. You might remember it as “that album my iPhone kept playing whenever I accidentally opened up iTunes.”

    The Guardian reports that a member of Russia’s Liberal Democratic Party of Russia (LDPR) is raising hell over the album, blaming Apple for “spamming youths with illegal content” – more specifically distributing “gay propaganda” to kids. He wants an investigation from the top legal authority in the country.

    You may recall that last September, Apple did everyone the favor of giving out U2’s new album to every iTunes user. During Apple’s big press event for the iPhone 6 launch, CEO Tim Cook gave Songs of Innocence to hundreds of millions of people for free. But here’s the thing – instead of just allowing users to download the album for free if they wanted to do so, Apple pushed the album to everyone. It was mandatory U2.

    This led to lots of people waking up in a why the fuck is there U2 on my phone stupor, followed by a pretty significant backlash. It was so intense that Apple had to make a dedicated page with the sole purpose of helping people remove the album from their libraries with one click.

    U2 called the whole stunt “incredibly subversive”, “really disruptive”, and totally “punk rock”, as U2 would.

    Apparently, it wasn’t just the music that pissed off Mr. Starovoitov.

    The photo, of U2’s drummer Larry Mullen Jr hugging his son, is supposed to represent “how holding on to your own innocence is a lot harder than holding on to someone else’s”

    But to anti-gay Russians, it’s a dangerous promotion of gay sex.

    According to a Russian newspaper, there’s already talk of taking legal action against Apple.

    Look, homophobic Russian dudes – U2 isn’t trying to make anyone gay. Apple isn’t trying to make anyone gay. You can’t make anyone gay. It doesn’t work like that. You can make someone’s ears bleed, and they may be responsible for that – but that’s about as far as it goes.

    Apple and Russia have a history when it comes to homophobia. Bigoted politicians have tried to ban Tim Cook from the country, and iPhone statues have been removed just days after Tim Cook came out.

    Even Siri is homophobic in Russia.

    Image via Helge Øverås, Wikimedia Commons

  • Apple Pay Continues To Gain Momentum

    Apple Pay Continues To Gain Momentum

    Apple released its financial results for its fiscal year 2015 Q2 on Monday. The company had a record quarter largely thanks to iPhone sales, as well as strong performances by Mac and the App Store.

    During the ensuing conference call, CEO Tim Cook talked a little bit about the momentum Apple Pay continues to gain. Here’s what he had to say about that (via SeekingAlpha’s transcript):

    We’re seeing great momentum with Apple Pay. Discover announced today that its cardmembers in the United States will be able to make contactless payments in participating stores through Apple Pay beginning this fall.

    And last month, we said that the number of locations accepting Apple Pay has tripled, and we continue to see great progress with merchants. Best Buy, which has been a longtime, strong partner of ours, has just announced that it’s now offering Apple Pay in-app and later this year will offer Apple Pay in all of their U.S. stores.

    And merchants aren’t the only ones jumping onboard. Earlier this month, a leading healthcare payment network announced acceptance of Apple Pay for its clients, so over 50 major hospitals across the country, including Stanford Healthcare and Aspen Valley, will accept Apple Pay this year for copays and bill payments at registration and check in.

    Both Discover and Best Buy put out press releases about their Apple Pay integrations on Monday.

    Best Buy said customers can immediately start using Apple Pay to make purchases in the Best Buy app on the iPhone 6 and 6 Plus. An update is now available in the App Store.

    “Today’s consumers have many different ways to spend their money and we want to give our customers as many options as possible in how they pay for goods and services at Best Buy,” it said. “The acceptance of Apple Pay in the Best Buy app is the latest enhancement for our mobile platform.”

    The company also noted that it is opening a technology innovation office in Seattle this summer, which will largely focus on mobile.

    “In addition to paying in stores with iPhone 6, iPhone 6 Plus and Apple Watch, millions of cardmembers can also use Apple Pay with iPad Air 2 and iPad mini 3 when paying for goods and services within apps beginning this fall,” Discover said of its integration.

    “As the mobile payments landscape matures, Discover remains committed to giving cardmembers secure options for using their cards and mobile devices,” added Diane Offereins, Discover’s president of payment services. “Discover’s focus on simplicity and value for our cardmembers aligns well with the way Apple Pay makes purchases easy and convenient.”

    The company notes that when cardmembers add their credit or debit card to Apple Pay, the actual card numbers are not stored on the device or on Apple servers.

    As part of the agreement, it said, Discover Network will enable eligible financial institutions, including Discover Debit issuers, to let their cardholders use Apple Pay.

    Earlier this year, Apple partnered with USA Technologies to make Apple Pay available in over 200,000 vending machines, laundry pay stations, parking meters, etc.

    Image via Best Buy

  • Apple: iPhone, Mac Are Cannibalizing iPad

    Apple: iPhone, Mac Are Cannibalizing iPad

    Consumers seem to be showing less and less interest in Apple’s iPad line as time goes on, and that’s not necessarily because of the device’s competition from other tablets.

    In February, IDC released research finding that people bought 3 million fewer tablets in the prior quarter than they did a year before that.

    The iPad specifically not only faces that trend, but also cannibalization from other Apple products, including the iPhone and Mac. Apple CEO Tim Cook saids as much on the company’s earnings call on Monday. He acknowledged the cannibalization, while maintaining that he doesn’t see this as a particularly negative thing.

    He also conveyed optimism for the iPad’s future, particularly in the enterprise. Apple entered an exclusive partnership with IBM last year that sees Apple bringing IBM’s big data and analytics capabilities to the iPad and native apps for for IBM cloud services.

    During the earnings call, SVP and CFO Luca Maestri noted that the iPad has consistently been the top tablet in the enterprise, and cited a recent survey from Changewave, which found that among corporate buyers planning to buy tablets in the next six months, 77% plan on buying iPads. He also said that in addition to IBM, it is working closely with over two dozen other business software and solution providers including Box, Docusign, Microstrategy, Revel, and ServiceMax to bring more solutions to the iPad.

    Here’s what Cook had to say (via SeekingAlpha’s transcript of the call):

    Number one, we have to stop having the situations where we sell through more than we sell in, where we don’t have to have an inventory correction. That was over a million units. Two, have we had cannibalization? The answer is yes. We’re clearly seeing cannibalization from iPhone and on the other side, from the Mac. And of course, as I’ve said before, we’ve never worried about that. It is what it is. That will play out, and at some point, it will stabilize. I’m not sure precisely when, but I’m pretty confident that it will.

    The IBM partnership, I think, is in its early stages in terms of bearing fruit here, but everything I see I like on it. I’m a big believer in the ability for iPad to play in a major way in enterprise. And so I’m looking forward to seeing that play out as we move forward.

    If you look at the underlying data, it makes you feel a lot better than the sales do. And so things like first time buyer rates, the latest numbers from the U.S. are somewhere around 40%. And if you look at China, they’re almost 70%. And so these numbers are not numbers that you would get if the market were saturated. And so I continue to believe, even though I’ve seen people write that, that I think that theory is not correct, and do not see that.

    We also see usage numbers that are off the charts, so far above competition it’s not even in the same planet. And we see customer satisfaction at or near 100%. And so these kind of numbers, along with intent to buy numbers, everything looks fantastic, the ecommerce numbers.

    And so my belief is that as the inventory plays out, as we make some continued investments in our product pipeline, which we’re doing, that we already have planned and have had planned for some time, between that, the inventory playing out, the enterprise starting to take over, I think still I believe the iPad is an extremely good business over the long term. When precisely it begins to grow again I wouldn’t want to predict, but I strongly believe that it will.

    Apple has so far sold 34 million iPads in its fiscal year 2015. That’s compared to 135 million iPhones and 10 million Macs. During its Q2, it sold 12.6 million iPads compared to 16.4 million the same quarter last year.

    The company did manage to set a March quarter record for iPad sales in Japan and an all-time high for sales in China.

    The iPad turns five years old this month. It’s been the top seller in its category every year since.

    Image via Apple

  • iPhone, Mac & App Store Give Apple Another Big Quarter

    iPhone, Mac & App Store Give Apple Another Big Quarter

    Apple released its financial results for its fiscal 2015 second quarter ended March 28. Thanks to strong performance by its iPhone, Mac and App Store businesses, the company posted 27% revenue growth and 40% EPS growth, setting records for the second quarter.

    The company managed to exceed Wall Street expectations.

    Quarterly revenue was $58 billion and quarterly net profit was $13.6 billion compared to revenue of $45.6 billion and net profit of $10.2 billion for the same quarter last year.

    Gross margin was 40.8% compared to 39.3% last year, and international sales accounted for 69% of the quarter’s revenue.

    Apple credits record second-quarter sales of iPhone and Mac as well as an all-time record performance from the App Store with driving the company’s impressive growth.

    CEO Tim Cook said, “We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever. We’re seeing a higher rate of people switching to iPhone than we’ve experienced in previous cycles, and we’re off to an exciting start to the June quarter with the launch of Apple Watch.”

    Note that he didn’t include the iPad in there as sales of those were reportedly worse than expected.

    “The tremendous customer demand for our products and services in the March quarter drove revenue growth of 27 percent and EPS growth of 40 percent,” said CFO Luca Maestri. “Cash flow from operations was also outstanding at $19.1 billion.”

    For its fiscal 2015 Q3, Apple is projecting revenue between $46 billion and $48 billion and gross margin between 38.5% and 39.5%.

    Image via Apple

  • Tim Cook Is Donating His Fortune to Charity

    Tim Cook Is Donating His Fortune to Charity

    Apple CEO Tim Cook has joined another club for the super wealthy – the philanthropy club. Which to be honest, is probably the best kind of club for the super rich.

    In an interview with Fortune, Cook revealed that he plans to give all of his money to charity – well, pretty much all of it. After he pays for his nephew’s college, he says, the rest will go toward philanthropic goals.

    From Fortune‘s profile:

    Representing their companies publicly is obligatory for CEOs, but Cook takes public stands on issues including stopping the transmission of AIDS, human rights, and immigration reform. He sees them as opportunities for leadership. “You want to be the pebble in the pond that creates the ripple for change,” he says, adding that Apple’s people have long cared about such issues even if they haven’t previously spoken so openly about them. To Cook, changing the world always has been higher on Apple’s agenda than making money. He plans to give away all his wealth, after providing for the college education of his 10-year-old nephew. There should be plenty left over to fund philanthropic projects. Cook’s net worth, based on his holdings of Apple stock, is currently about $120 million. He also holds restricted stock worth $665 million if it were to be fully vested.

    Cook joins a growing list of high-profile, incredibly wealthy business leaders who’ve decided to give most – if not all – of their fortunes to charity.

    If you’re curious as to who else has pledged to give away the majority of their money, check out Warren Buffet and Bill Gates’ Giving Pledge website. There you’ll see names like Michael Bloomberg, Sheryl Sandberg, Reed Hastings, Carl Ichan, Elon Musk, Ted Turner, and Mark Zuckerberg.

    Cook appears to be a very generous person.

  • Tim Cook Tried to Give His Liver to Ailing Steve Jobs

    Tim Cook Tried to Give His Liver to Ailing Steve Jobs

    If you were wondering just how close current Apple CEO Tim Cook felt to former Apple CEO Steve Jobs, well, here’s your answer.

    The former attempted to give the latter part of his liver.

    That’s the word from Becoming Steve Jobs: The Evolution of a Reckless Upstart into a Visionary Leader, a new Steve Jobs biography due out on March 24. Fast Company got its hands on a excerpt from the book, written by journalists Brent Schlender and Rick Tetzeli, and it explains how in 2009 Cook, distraught over Jobs’ worsening condition, took the steps to see if he could help.

    One afternoon, Cook left the house feeling so upset that he had his own blood tested. He found out that he, like Steve, had a rare blood type, and guessed that it might be the same. He started doing research, and learned that it is possible to transfer a portion of a living person’s liver to someone in need of a transplant. About 6,000 living-donor transplants are performed every year in the United States, and the rate of success for both donor and recipient is high. The liver is a regenerative organ. The portion transplanted into the recipient will grow to a functional size, and the portion of the liver that the donor gives up will also grow back.

    Apparently, Jobs shot Cook’s offer down immediately, saying, “I’ll never let you do that.”

    More from the book:

    “Somebody that’s selfish,” Cook continues, “doesn’t reply like that. I mean, here’s a guy, he’s dying, he’s very close to death because of his liver issue, and here’s someone healthy offering a way out. I said, ‘Steve, I’m perfectly healthy, I’ve been checked out. Here’s the medical report. I can do this and I’m not putting myself at risk, I’ll be fine.’ And he doesn’t think about it. It was not, ‘Are you sure you want to do this?’ It was not, ‘I’ll think about it.’ It was not, ‘Oh, the condition I’m in . . .’ It was, ‘No, I’m not doing that!’ He kind of popped up in bed and said that. And this was during a time when things were just terrible. Steve only yelled at me four or five times during the 13 years I knew him, and this was one of them.

    So this is coming straight from Cook.

    According to Cult of Mac, the new biography features interviews with Tim Cook, Jony Ive, Eddy Cue, Pixar’s John Lasseter, Disney CEO Bob Iger and Jobs’ widow, Laurene Powell Jobs. The book may be seen as a bit of a departure from the tone in Walter Isaacson’s best-selling 2011 bio Steve Jobs – which Cook himself maligns in the new book as doing a “tremendous disservice” to Jobs.

  • Alabama Bill To Be Named After Tim Cook

    Alabama Bill To Be Named After Tim Cook

    In October, Tim Cook penned a piece for Bloomberg Buisnessweek in which he publicly came out as gay. Now, it appears that an anti-discrimination bill in Alabama is to be named after him.

    Reuters reports:

    Democratic state Representative Patricia Todd, Alabama’s sole openly gay lawmaker, said on Wednesday that Apple was initially hesitant about having Cook’s name on her bill, which faces steep odds in the Republican-dominated Legislature, but later embraced the idea…

    “Nobody could have scripted this,” said Todd, who plans to introduce her bill in the Alabama legislative session beginning in March. “I never in a million years would have expected it.”

    Todd had said after Cook’s letter that she would put his name on the bill, but apparently it’s official now.

    Cook was born in Mobile.

    In other Tim Cook news, Facebook CEO Mark Zuckerberg took some issue with Cook’s comments on advertising-based businesses in a new Time Magazine cover story.

    Image via Apple

  • Tim Cook: “Being Gay Among the Greatest Gifts God Has Given Me”

    Tim Cook: “Being Gay Among the Greatest Gifts God Has Given Me”

    Citing a desire to help others be more comfortable in their own skin, Apple CEO Tim Cook has publicly revealed that he is gay.

    In an eloquent piece for Bloomberg Businessweek, Cook writes:

    For years, I’ve been open with many people about my sexual orientation. Plenty of colleagues at Apple know I’m gay, and it doesn’t seem to make a difference in the way they treat me. Of course, I’ve had the good fortune to work at a company that loves creativity and innovation and knows it can only flourish when you embrace people’s differences. Not everyone is so lucky.

    While I have never denied my sexuality, I haven’t publicly acknowledged it either, until now. So let me be clear: I’m proud to be gay, and I consider being gay among the greatest gifts God has given me.

    Cook says that he’s always been a private person with “humble roots” – one that doesn’t “seek to draw attention to myself.” It is this that’s prevented him from coming out in the past. Now, he explains, he’s willing to give up his own privacy to be a lead figure for equality.

    “I don’t consider myself an activist, but I realize how much I’ve benefited from the sacrifice of others. So if hearing that the CEO of Apple is gay can help someone struggling to come to terms with who he or she is, or bring comfort to anyone who feels alone, or inspire people to insist on their equality, then it’s worth the trade-off with my own privacy,” he says.

    Though Tim Cook has a history of supporting LGBT causes and was always open about his sexuality at Apple, he had never discussed it publicly until now.

    “When I arrive in my office each morning, I’m greeted by framed photos of Dr. King and Robert F. Kennedy. I don’t pretend that writing this puts me in their league. All it does is allow me to look at those pictures and know that I’m doing my part, however small, to help others. We pave the sunlit path toward justice together, brick by brick. This is my brick.”

    Image via Apple

  • Apple Earnings Released, Revenue $42.1 Billion

    Apple Earnings Released, Revenue $42.1 Billion

    Apple just announced its earnings for its fiscal 2014 Q4. This includes revenue of $42.1 billion and quarterly net profit of $8.5 billion, or $1.42 per diluted share. That’s compared to revenue of $37.5 billion and net profit of $7.5 billion, or $1.18 per diluted share, last year.

    Gross margin was 38% compared to 37% last year. International sales made up 60% of the quarter’s revenue.

    CEO Tim Cook said, “Our fiscal 2014 was one for the record books, including the biggest iPhone launch ever with iPhone 6 and iPhone 6 Plus. With amazing innovations in our new iPhones, iPads and Macs, as well as iOS 8 and OS X Yosemite, we are heading into the holidays with Apple’s strongest product lineup ever. We are also incredibly excited about Apple Watch and other great products and services in the pipeline for 2015.”

    “Our strong business performance drove EPS growth of 20 percent and a record $13.3 billion in cash flow from operations in the September quarter,” said CFO Luca Maestri. “We continued to execute aggressively against our capital return program, spending over $20 billion in the quarter and bringing cumulative returns to $94 billion.”

    The company’s board declared a cash dividend of $.47 per share of the Company’s common stock. This is payable on November 13th to shareholders or record as of closing on November 10th.

    Apple is projecting revenue between $63.5 billion and $66.5 billion in the coming quarter with gross margin between 37.5% and 38.5% and operating expenses between $5.4 billion and $5.5 billion.

    Image via Apple

  • Tim Cook In Hot Water For Bending iPhone And Botched OS Updates

    Tim Cook In Hot Water For Bending iPhone And Botched OS Updates

    Apple’s CEO Tim Cook is taking the heat for the recent publicity stumbles his company has made. Bending iPhones and botched OS updates are causing users to rethink their commitment to the company.

    “I just wish that Tim Cook had a better handle on things,” Mac customer Jason Nochimson told Bloomberg News. Nochimson discovered that the latest OS update left him without cell phone service on his iPhone 6. He spent two and a half hours talking to customer service. “I was worried that my daughter’s school was going to call me today and I wasn’t going to be able to get them,” he said. When Nochimson finally reached a representative, “he told me that he was not made aware that Apple was releasing 8.0.1 today. It was a shock to him that that happened. He said typically when they do software updates they know about it days in advance so they’re ready for it.”

    In response, Apple has released a statement: “We apologize for the great inconvenience experienced by users.”

    “Hey, Tim, we have an idea: Get your shit together,” a MacDailyNews editorial retorted, “Apologies are nice, but they only go so far. Fix the problem(s), Apple.”

    Reuters reported the blunders have left the company with a 25 billion dollar loss in stocks. Howevere, the public image of the company is arguably the biggest casualty of the blunders. Social media is mocking Apple and the bending iPhone 6 relentlessly:

    Still, the first three days have resulted in 10 million iPhone 6 sales, according to Reuters. The #bendgate scandal has yet to affect sales.

  • Tim Cook Promises That Apple’s Protecting Your Privacy

    Tim Cook Promises That Apple’s Protecting Your Privacy

    Maybe it’s the NSA and the government’s now-public surveillance initiative. Maybe it’s because the company just introduced and new iOS and a new payment solution that requires people to put themselves out there. Maybe it’s Jennifer Lawrence nudes. Whatever it is, Apple CEO Tim Cook has written a letter to Apple users assuring them that their privacy is at the forefront of the company’s concerns.

    “Our commitment to protecting your privacy comes from a deep respect for our customers. We know that your trust doesn’t come easy. That’s why we have and always will work as hard as we can to earn and keep it,” says Cook in the letter, published on Apple’s site.

    In the letter, Cook talks about two-step verification, protecting iCloud security, and more. He also takes the moment to take a shot at some other high-profile tech companies. See if you can figure out which ones…

    A few years ago, users of Internet services began to realize that when an online service is free, you’re not the customer. You’re the product. But at Apple, we believe a great customer experience shouldn’t come at the expense of your privacy.

    Our business model is very straightforward: We sell great products. We don’t build a profile based on your email content or web browsing habits to sell to advertisers. We don’t “monetize” the information you store on your iPhone or in iCloud. And we don’t read your email or your messages to get information to market to you. Our software and services are designed to make our devices better. Plain and simple.

    Did you catch that? Subtle, right?

    Lastly, Cook reiterates a point he’s been making for a while – that Apple doesn’t allow backdoor spying.

    “Finally, I want to be absolutely clear that we have never worked with any government agency from any country to create a backdoor in any of our products or services. We have also never allowed access to our servers. And we never will,” he says.

    This letter is really a cover letter, serving as the introduction to a new privacy site. Apple has reorganized privacy information, allowing users to view resources on the built-in privacy elements of its products, how to manage one’s own privacy, and detailed info on government requests.

    Image via Apple

  • Steve Jobs’ Old Office Hasn’t Been Touched Since His Death

    Steve Jobs’ Old Office Hasn’t Been Touched Since His Death

    If you are wondering about the amount of reverence the folks at Apple have for late co-founder Steve Jobs, you really shouldn’t be. But to put it bluntly, it’s a lot.

    Take this little anecdote from Bloomberg’s extensive interview with current CEO Tim Cook:

    Steve Jobs’s office remains Steve Jobs’s office. After his death in 2011, Tim Cook, his friend and successor as Apple (AAPL) chief executive officer, decided to leave the sparsely decorated room on the fourth floor of 1 Infinite Loop untouched. It’s not a shrine or place of mourning, but just a space that Cook sensed no one could or should ever fill. “It felt right to leave it as it is,” he says. “That’s Steve’s office.”

    Like a parent who leaves a departed child’s room untouched, everyone at Apple has decided to keep Steve Jobs’ old office as is – even while everything around it changes.

    You might think that all of this reverence would be hard for Cook, and who’s to say it isn’t? Jobs was a god within the Apple culture. Polarizing outside of it, but inarguably heralded as a visionary within. Despite this, Cook certainly took one step toward making the company his own at the recent Apple press event.

    Cook channeled Jobs and his famous “one more thing” bit before announcing the Apple Watch, which some say is the first true Apple product of the Cook era.

    Image via Wikimedia Commons

  • Are You Impressed With The Apple Watch?

    Are You Impressed With The Apple Watch?

    This week, Apple introduced the world to the Apple Watch. Opinions are mixed as you’d expect. Some think the device marks the turning point for the company as the true beginning of the Tim Cook era, and that the device will be largely successful. Others think it’s a big disappointment or an otherwise unnecessary product destined to fail.

    What do you think? Will the Apple Watch follow in the footsteps of the iPod, iPhone, and iPad as a groundbreaking success story or will it fail to gain significant traction? Somewhere in between? Share your thoughts in the comments.

    Apple calls the device its “most personal device ever”.

    “With Apple Watch, we’ve developed multiple technologies and an entirely new user interface specifically for a device that’s designed to be worn. It blurs the boundary between physical object and user interface,” says Jony Ive, Apple’s senior vice president of Design. “We’ve created an entire range of products that enable unparalleled personalization.”

    It features an iOS-based user interface, which has been tailored for a smaller device. It has a “Digital Crown,” which lets you scroll, zoom, and navigate without having to get your fingers in the way of the display. This also serves as a home button and a way to access Siri. The display does feature a touchscreen with a “Force Touch” feature, which senses the difference between a tap and a press. This lets you access controls within apps.

    The device also comes with the “Taptic Engine,” and a built-in speaker. Together, these enable alerts and notifications (both audio and vibrations). It features features Wi-Fi 802.11b/g and Bluetooth 4.0 to pair with your iPhone. And yes, you must have an iPhone, which is one of the biggest criticisms of the device. Why create a device that requires you to have another expensive device to use in the first place?

    Apple is playing up the health and fitness applications of the device more than anything else. Unfortunately, it uses the Wi-Fi and GPS in your iPhone to track how far you’ve moved, so you still have to have your iPhone with you, which isn’t the most convenient thing in the world if you’re jogging or biking.

    To be fair, some Apple Watch competitors also require phones, but Apple was starting from scratch here. It’s unlikely that they wouldn’t have been able to come up with a way to make the device usable on a standalone basis.

    Speaking of competitors, TechHive has a good comparison of features between the Apple Watch and Android Wear – Google’s wearable platform, which is extended to a variety of device-makers. Apple appears to have Google beat on some fronts, but just like with iPhone vs. Android, a lot of it is going to come down to different devices for Google’s platform. Some will be better than others. There’s also the fact that Apple’s device doesn’t come out until next Spring, and Google could launch all kinds of updates in that time.

    Other competitors have spoken out about Apple’s device. Fitbit, for example, notes that it already has a 70% market share in the connected health and fitness space, and that it offers the “widest range of all-day trackers” and price points”.

    Ben Thompson at Stratechery wrote an interesting post this week comparing the introduction of the Apple Watch to those of Apple’s other big product unveilings: the iPod, the iPhone, and the iPad. He points out that in those three cases, Apple spent some time explaining the markets that made those devices must-haves, and that such an explanation was lacking from the Apple Watch intro (which you can watch below).

    Thompson writes, “Now it’s very fair to note that the biggest difference between the introduction of the iPod, iPhone and iPad as compared to the Apple Watch is that Steve Jobs is no longer with us. Perhaps the long introduction was simply his personal style. But the problem is that the Smart Watch needs that explanation: what exactly is the point?”

    He goes on to criticize some of the demos for the watch, pointing out that they were bad because they’re activities “better done on your phone.” The good ones he says were for activities that “extend your phone” in ways that wasn’t possible before, but that even these activities “make the Watch seem less capable as a self-contained unit.”

    The fact that they took the time to show off a feature that lets users draw doodles and send them to each other is questionable. This seems like such a dumb and insignificant feature that it makes you wonder how little the device has going for it if that made it into the presentation – especially given Thompson’s point about leaving out the “why”.

    Ditto for the feature that lets you record and sent your heartbeat to someone. Here’s how Apple describes it: “When you press two fingers on the screen, the built-in heart rate sensor records and sends your heartbeat. It’s a simple and intimate way to tell someone how you feel.”

    I’d argue that it’s more weird than simple and intimate. It’s also kind of one of those things, where it’s like: Okay, it can do that, but is it really one of the most significant features that it should be part of the demo?

    Battery life is said to be about a day, though the company aims to improve it ahead of launch. As it stands, users would have to charge yet another device each night, in addition to their phones, unlike most traditional watches, whose batteries tend to last a really long time.

    Apparently the device is water resistant to the extent that rain, hand-washing, and cooking are okay, but swimming or showering with it aren’t a good idea. I guess that doesn’t bode well for all kinds of exercise or cleaning up at the gym.

    Some have criticized the device for not catering to left-handed people. It does work either way you use it, but the positioning of the Digital Crown might be a little awkward for the lefties.

    Gizmodo does us all the service of reminding us that the Apple Watch won’t even be released until next year, and that any so-called “reviews” that are out so far are basically meaningless. See: 5 Apple Watch Reviews From People Who Wore It for Like Maybe 3 Minutes.

    Here’s what people are saying about the Apple Watch in real time:


    Some are questioning the brand strategy Apple is employing. The device was largely expected to be called the iWatch, which would obviously fall in line with Apple’s other iDevices. Even Tim Cook referred to it as an iWatch at one point. Yet they’ve elected to call it Apple Watch. They also called their new payments product Apple Pay. Why are they moving away from the enormously successful “i” brand?

    Apple Pay may actually be the biggest thing the Apple Watch has going for it, and that has more to do with adoption by retailers than any technological aspect. Apple revealed that 220,000 retail locations are going to let users pay with Apple Pay (which also works on the new iPhones). With the Watch, users should be able to pay for things at a lot of common locations by bumping their wrist, and not even having to get anything out of their pockets. But if not, they can still take the phone out their pocket and do so, which doesn’t seem all that complicated. For that matter, swiping a card the old fashioned way doesn’t either.

    Apple Pay could be an added convenience for those who have the Watch, but I’m not sure it’s a good enough reason to get one in the first place. The offering is also missing some key retailers like Walmart and Best Buy, which have refused to support it.

    A lot of people wear watches more for fashion than for functionality. Most people carry around phones with them that tell time. Watches are basically jewelry, and though the Apple Watch comes with a large variety of styles and customizations, the fashion characteristics are debatable. In fact, the fashion world is apparently divided. Apple Watch comes in three main varieties: Apple Watch, Apple Watch Sport and Apple Watch Edition. Prices have yet to be revealed for the Sport and Edition editions.

    The Apple Watch Edition collection comes in six designs, each made from 18-karat gold. These will likely be at the high-end of Apple’s pricing scale, and will arguably be the most fashionable. We’ll see how much they end up charging for them, and how much the type of people willing to shell out good money for watches prefer them to more traditional watches.

    The low-end Apple Watches start at $349. And remember, that’s on top of the price of the required iPhone.

    What do you think of the Apple Watch? Hit or miss? Let us know in the comments.

    Image via Apple

  • Tim Cook Called Apple Watch the iWatch, So I Guess You Can Too

    Tim Cook Called Apple Watch the iWatch, So I Guess You Can Too

    Other than hundreds of people giving a man a standing ovation for putting a watch on his wrist, the most shocking thing you possibly witnessed during Tuesday’s big Apple event was the death of the “i”.

    Death may be a little harsh – there’s still the iPhone and the iPad. But Apple clearly moved away from the i-everything path that it’s been on for years with the release of Apple Pay and the Apple Watch.

    Yep, the Apple Watch. Not the iWatch, like people had been calling it for months. Surprised by what Apple ultimately decided to call its new wearable?

    You’re not alone.

    That’s Apple CEO Tim Cook slipping up and saying “iWatch” in a backstage interview with ABC News. Even Tim Cook knows, deep down, that it probably should’ve been called an iWatch.

    Image via Apple

  • Apple’s White, Male CEO Unsatisfied with Company’s White, Maleness

    Apple’s White, Male CEO Unsatisfied with Company’s White, Maleness

    Tech’s diversity problem (both in terms of gender and ethnicity) has been well documented. But in the name of transparency Apple has decided to release its own numbers for scrutiny, following similar moves by other major players.

    To get straight to the likely unsurprising news, Apple is pretty white and pretty full of dudes. Out of Apple’s 98,000 employees, 70 percent are male and 55 percent are white. When you look at leadership, the numbers skew even more heavily – 72 percent male and 64 percent white.

    This puts Apple at the less-diverse end of a spectrum that consists of Google, Yahoo, Facebook, Twitter, Pinterest, and eBay. Apple joins Google and Twitter at that end of the spectrum (both also reported 70 percent male). Out of all the major diversity reports previously released, eBay ‘wins’ with an only 58 percent male workforce.

    Like Google, Facebook, and everyone else, Apple’s CEO Tim Cook is not happy about these numbers but is committed to making progress.

    “Apple is committed to transparency, which is why we are publishing statistics about the race and gender makeup of our company. Let me say up front: As CEO, I’m not satisfied with the numbers on this page. They’re not new to us, and we’ve been working hard for quite some time to improve them. We are making progress, and we’re committed to being as innovative in advancing diversity as we are in developing our products,” he says in an Apple-ized diversity report page, just released today.

    Cook does make a good point that the term ‘diversity’ represents other differences in the human condition other than sex and race – although those are the two specific figures that all these tech companies are voluntarily reporting.

    “Our definition of diversity goes far beyond the traditional categories of race, gender, and ethnicity. It includes personal qualities that usually go unmeasured, like sexual orientation, veteran status, and disabilities. Who we are, where we come from, and what we’ve experienced influence the way we perceive issues and solve problems. We believe in celebrating that diversity and investing in it,” says Cook.

    Like Facebook, Google, and many other tech companies, Apple is and has been for some time, a huge supporter of human rights causes. This is undeniable. But when it comes to their own hiring practices, these companies known that a 70/30 male to female ratio just isn’t going to cut it anymore. It’ll be incredibly interesting next summer, when these companies all reveal their second diversity reports. Will all this attention the issue is receiving have changed anything by then?

    Image via screenshot, Apple.com

  • Apple Excitedly Welcomes Beats ‘To The Family’

    Apple Excitedly Welcomes Beats ‘To The Family’

    Apple’s acquisition of Beats is officially official. The company even put out an extra special landing page welcoming the team to the Apple family. Most of its acquisitions are barely even acknowledged.

    Apple’s “welcome to the family” message says:

    Today we are excited to officially welcome Beats Music and Beats Electronics to the Apple family. Music has always held a special place in our hearts, and we’re thrilled to join forces with a group of people who love it as much as we do. Beats cofounders Jimmy Iovine and Dr. Dre have created beautiful products that have helped millions of people deepen their connection to music. We’re delighted to be working with the team to elevate that experience even further.

    And we can’t wait to hear what’s next.

    Over on the Beats by Dre site, visitors are greeted with this message:

    By the way, when Cook says “the entire beats team,” it’s possible that this is only for a limited time for some.

    The acquisition comes after winning EU approval earlier this week.

    Images via Apple, Beats by Dre