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Top 5 take-aways from Tim Cook on Apple's Q3 earnings call

John Cox | July 24, 2014
Apple's Tim Cook says iPhone thriving, iPad innovation on tap, Apple is an enterprise company.

 The new trade-in programs are also a positive change and seem to be cannibalizing very few new iPhone sales, according to Cook.

 "What I think is happening in the aggregate if you look across the world is that trade-ins are actually hugely beneficial for our ecosystem because people wind up -- we have more people that are able to join the party...," Cook said. "[P]robably the prime example [is] someone else within the family or in the example that has become more common in the last year, someone trades it in and then that [traded-in phone] goes to either somebody else in that country that is very price sensitive or somebody in a different country and I see all of this as good."

 One reason for that, he said, is that iPhones and iPads "command a much higher resale value" than rival products, which encourages people to trade-in since they can use that money to offset the costs of a new iPhone. The lower-priced trade-ins encourage buyers to try an Apple product. "[I]f we get somebody to try an Apple product and then buy an Apple product, the likelihood [is] that they begin buying other Apple products that may be in different categories or upgrading to one in that category...," he said.

 -3 iOS will be everywhere

 "We're extending iOS in even more dimensions as customers around the world make iPhones and iPads an essential part of their lives, at home, at school, at work and on the go. We're putting a huge effort into delivering the best experience to our customers wherever they use iOS."

 These efforts include: the new UI for driving, CarPlay, which is being adopted by 29 car brands; HealthKit, to let health and fitness apps work to together, and let users share selected health information; and HomeKit, with Siri, to control a wide range of networked devices in the home.

 With iOS 8, Apple has opened some 4,000 APIs, giving developers an unprecedented opportunity to exploit the software as a platform for always-and-anywhere-connected personal computing.

 "[W]e have a very large vision of what iOS can be and we're incredibly excited about our plans," Cook said in his opening prepared remarks.

 -4 Lots of iPad innovation ahead

 "We still feel that category [i.e., tablets] as a whole is in its early days and that there is also significant innovation that can be brought to the iPad and we plan on doing that. When I look at the top level numbers, I get really excited when I see that more than 50% of the iPads that we're selling are going to someone who is a first time tablet buyer."


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