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This is Tim: Apple's CEO on New categories, China growth, and free updates

Macworld Staff | Oct. 30, 2013
Here's an edited transcript of what CEO Tim Cook said about the iPhone 5S, channel inventory, the difference between the iPhone 4S and the 5C, and more at Apple's recent conference call with analysts after releasing strong fourth-quarter results.

We do believe that this has been—or that the announcement last week—was our largest iPad announcement ever, and we're confident we're going to grow year-over-year, and if you look back we had a very very strong quarter a year ago. We get off to a great start this weekend with iPad Air, and then later in the month we'll begin shipping the new mini.

We did feel that we wanted to reduce the price of the iPad mini, and so we did that and now are coming in at $299, which is an incredible value to get access to the whole of the ecosystem and so forth. And iPad Air is just an absolutely incredible product; the best iPad we've ever done.

And so I think all of these are going—these products are going to do really well. I think it's going to be an iPad Christmas. But we'll see. We will report the numbers back to you in January how we did. But we're pretty confident.

On free updates
Our primary reason for doing it was that we wanted it to become a part of what it meant to own a Mac, and what it meant to own an iOS device. We saw iWork had become the best-selling productivity app on a mobile device; we wanted all of our customers to have access to our very latest software, so they would have access to our best features; and so we decided to make the bold move of making it free.

And y'know, I know some other folks charge $199 or so for each of these—actually, for the OS and the productivity apps—but we really wanted to make it a part of the experience. And so we're making it free, and we're going back all the way to Snow Leopard on the OS X side. And iWork is free for all new Macs, and so I think it's a very strong offer. I think it's just another reason that everyone should buy a Mac. And we think it's a great decision to do so, but most importantly, we think it's great for our customers.

On education
We had our best education quarter ever. We went over a billion dollars in revenues for the first time ever. We were up strongly, year-over-year—up 8 percent; iPad was up 22 percent year over year; and the Mac was up 8 percent, and as you know the PC market was down 10 [percent] in the aggregate and likely down even more in education. And so we feel like we're doing great on both fronts, both in the iPad space, and in the Mac space for people wanting to buy a Mac. And we do see Chromebooks in some places, but the vast majority of people are buying PC/Mac or an iPad.


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