Apple CEO Tim Cook recently summoned the company’s employees in Cupertino, California for a Town Hall meeting to discuss various aspects about Apple’s business, the company’s tumbling stock price, and Android’s dominant marketshare numbers.
Since the meeting was held right after Apple’s financial results for the last quarter, the stock price drop that followed was obviously a topic of discussion. Cook addressed employees, dismissing stock price as an area that’s not as important to the company as making great products. He brought the focus on Apple’s record earnings for the last quarter, saying that it was the best quarter any technology company has ever had.
Apple’s much talked about initiative to bring some part of Mac manufacturing back to the US was also a part of Tim Cook’s address. He said that this move wasn’t to gain positive press, but to improve Mac supplies, which have remained constrained since the past few months. He also reiterated that Apple requires its suppliers to comply to the same ethical standards as the company. In its latest supplier responsibility report, Apple revealed that it terminated its contracts with a circuit board manufacturer. Earlier this month, Cook along with marketing head Phil Schiller visited China, where Foxconn—the company that assembles iPhones and iPads—is based.
Cook also discussed Apple retail, whose management has seen a lot of turmoil lately with both the VP and SVP of retail leaving the company. Cook acknowledged that employee satisfaction ratings have dropped in recent times, and the top brass of Apple is doing all it can to improve these ratings.
Another topic Cook addressed was Android, Google’s OS that is taking the developing market by storm, which is worrying a lot of Apple investors. Cook highlighted the huge disparity between Android’s marketshare and its share of web traffic, indicating how the OS ends up on low-end phones that don’t get used for anything apart from calling or texting. He said that Apple’s devices are bought by customers because of the great experience the OS and the hardware offer, while a major reason for Android’s dominance is the cheap prices it is offered for in the market.
Cook added that if the iPhone division alone was spun off as a separate company, it would be ahead of Microsoft in terms of revenue. He continued that if Apple were to split into separate companies corresponding to each product division, many of those companies would make it to the Fortune 100 list.
Cook also noted that China is a very crucial market for Apple’s future growth, and that people in the reason are already very receptive to Apple products. The iPhone 5 sold more than two million units within the three days following the launch of the device in the region.
Do you agree with Tim Cook on all fronts? Do you think Apple should dismiss Android as an OS primarily “winning” because of cheap pricing?