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... I ... well ... or know a lot ... so ... how would you care ... it's an absolute ... incredible ... the ... and ... I'm loving every minute of it and I think everything ... will ... read it ... you know we ... for years ... and has launched an ... apples and focused on the edge ... and never have I see ... the things I can talk about ... today ... the juices are flowing ... can ... we have some incredible things coming up ... and forced the company and will were doing today ... the country's very healthy ... we've we've had a few ... decent quarters ... I ... I phone is doing great ... you know we've we've just finished the first half of our year ... and on ... there's seventy million plus people of the more that have I Phones and just into us ... op I pad ... I've had ... has been unbelievable real ... you know for it leased and I ... its been around for while we've all been around for while ... aam ... I've never seen up a product and technology ... that consumers love ... pretty instantly and business law ... an education on ... and people of all ... ages ... I pad is just an unbelievable it's been a knockout ... and I think we're in the first inning ... on the map not act on them on the AIPAC I really believe in the first ten years we've been to the earth ... it's only been two years ... and yet ... so please if you in the audience here tonight ... and God is if you pre much everywhere I go ... actually more than a few ... the Mac ... has had a string of incredible ... op of quarters where we've outgrown the market ... op basically for every quarter for six years ... Apple on the mark and from what harm of relatively small base trying ... odd yes ... we we are you know the Mac has always been more about ... the the bass making the best prawn and not making them up ... on ... we are never going to make the most crucial years ... I don't see that ... on ... but we are going to continue to me ... and so the Mac is strong this together ... and all the sudden ... yet in ... this ... I'm not sure anybody would predicted this ... but ... as I pod was introduced in ... now ... eleven years ago ... eleven years ... even pre pre comp you it sold seven hundred thousand I pods we opened our present we sold a few more than that now ... um ... actually he introduced Apple to a whole bunch of people ... that you know I ... and the Mac benefited from the absence of many many people began to buy them ... bought ... as it turns out looking back ... it introduced Apple ... two people in the developed ... world ... should introduce people to the night in the US and UK in France and Germany ... in Australia ... but ... when ... I phone came along in two thousand and seven ... all the sudden the world changed for Apple ... and many people were introduced to Apple ... in China ... in the Middle East and Eastern Europe and Russia ... in Latin America ... and so the world open ... all stopped ... and now ... with AIPAC ... I pad is doing well in a number of those markets ... and so it's been pretty incredible ... as I'm ... and you come out ... with ... new brakes ... but the world has not ... but we're still in the first inning were still look very beginning of this ... they say that here and what are you introducing and next week the gas to meet so what's the second and I that's a great question and the gifts and ten the finance and really ... happened ... on believe me my first when what you've got and then ... the lesson boarding and it ... Braden to introduce ... some great stuff ... it's a noun this job ... as staff would stop amusements ... I think you'll like a company can and I think you're going to love it he didn't like the big allotment is the first in the ice the first inning relative I've ... read ... ah but ... what I mean by that is ... I'd ... I really believe ... and I believe is from from the beginning know I suck it up and the revelation last week or so ... that the tablet market would eventually surpass the PC market ... and ... I think everybody I've ... heard in the beginning while not all said no way you know there were many naysayers and so forth ... on ... today I think there's a lot more believers ... I'd I would guess is a lot of people in this audience the sea ... that ... use their iPads while more than they use a computer ... I know why do that ... love them ... but I find myself spending more and more time on my eye pattern I think ... as time goes on I think that will even get ... more and more ... and ... so that's the reason I think the money ... if I can pick up on the absolute where we're going to ... the public at large is going to be close to a different approach to this yet from your friends and in Redmond this year ... in which they look at a tablet and what ... we're a tradition to call the PC is just kind of a continuum ... which can run on one operating system and can come in many form factors ... some of them will be ... just tablet some the more we just clamshell sundown will be ... some combination wherein they can pull off the screen or turn it around making new tablet ... what's wrong with that why isn't a tablet actually PC why why why is there a distinction ... well ... in a minute that ... the tablet ... in the PC ... are different ... and ... that you can do things with the tabloid if you're not in Colbert by the legacy that he said ... if you view it as different ... and so I think if you if you take a view that says this is ... a another PC ... all the sudden you're pulling all of the what what ... of the PC market and I think you wind up with something ... you may know maybe not that dissimilar to what a tablet was ten years ago ... in the dough we did the tablet market it was there we invented ... eighty ... on ... the water ... and ... in so I ... you know ... I do I love convergence and I begin to convert its is great in many areas ... but I think that ... for sure about trade offs ... in you have to make tough decisions you have to choose ... and the fact is the more you look at the tablet as a PC ... the more the baggage from the past ... affects the ... law ... in you wonder why does this look good thing the odd ... some months ago ... about how I you know you can converge a toaster or a free dress ... and sure you can do that I can ... somebody my team inside this ... uniting ideals that I digits in the next week ... and I'm ... but I ... I just think that ... you wind up ... not yielding the ... past trauma ... in this particular case when you try to convert ... but knowing the talking about the theory behind it ... all it's the it's trying to do while all the things that ... the operating system of the PC doesn't in and crab should do ... it's not ... trying to live yet to people trying to converge on laptops and ... in tablets and therefore you've got a decline show I think your liking this thing with you ... and so that ... the ice T is ... not optimized for tablets into people what tablets to be in ... everything ... incredibly fit ... but if you look at it ... as a no ball ... you know they've come out of the design ... of the ... Arctic and had did ... you know being checkouts prawn that some research while this is ... this is what I wanted ... and so ... I'm not big on that as you can probably tell I ate ... I think beer or ... two different products' I think ... that ... I think I'd do that many people will look will select a tablet of repeats ... and it's a you know when ... it will really care what Piecyk and so from that twenty view the Mac reporting interconnected ... but ... I think if you force them together ... I think the PC is not as good as it can be ... connecting the tablet is not can it be so I'm not ... we wanted we want appeal the best products and ... I don't think in this case you do that when pushed it so ... I think what a lot just to switch gears for second gear ... I would love to talk about products and get lots be and to keep at it but when things that people are interested in is ... obviously ... Apple has undergone a tremendous ... change the gloss with the death of Steve Jobs ... you're the CEO ... how ... how is Apple different with you is the CEO so far what it ... what ... what did you learn from Steve as CEO on How are you ... a ... hurried change thing I learned a lot this year it was the ... it was absolutely the saddest days in my ... he passed away ... and ... maybe as much ... Asia should ... you should see your predicted that ... on ... a really good ... and I inserted ... a ... but it some point ... you ... late last year ... ever ... I started up in somebody kind of shook me and said ... it's time to get on ... and ... in so that that's that this was replaced by this intense determination to continue the journey ... and ... and that's were it is today so what did I learn from them I've learned ... we could be here all night ... probably all week and maybe Omar ... ah but ... I've learned that focus is key ... not just in your on ... running a company but in your first one as well ... that you can only do so many things right ... and that you should cast aside everything ... on ... in in business ... I kinda business that we're in ... owning the ... she technology before it is very important ... Steve was always laser focused on that and that's very much ingrained in all of us ... doing things great not accepting good or very good ... the only accepting them every bass ... that's embedded in Apple does this ... Apple has a picture of axle ... that is acting so he ... and so special you know I will live ... I'm not going to witness or permit ... the change ... he also told me that the ... joy ... is in the Journal ... and ... that which is a revelation for May ... and ... I think he taught all of this ... life is fragile ... and that ... I'm ... you know we're not guaranteed tomorrow uncertain given everything to God ... now with many assuming ... that you want from that exchange that things do change ... I went with all different for you don't you have yelled you don't wanna be that you know an easy and presumably are no no I don't believe in me that I'd I love museums but I dont wanna live in one and Apple are another thing that Steve taught us all was not ... focus on the path ... use two of the future for us to ... have you ... done something greater done something terrible in the past ... get on with forget it into one and create the next ... in the next thing and so ... when I say that I'm not going to ... witness or permit the change I'm talking about the thing that's most important and how ... uphold sure ... of Apple ... this is something that I think it's so special and so you need ... and ... is not something that ... people can replicate if they could ... I think everybody would be like ... they try ... they tried that but you can't you can't just keep even consulted report to replicate it ... ahh and UK UK I'd just change organizational like Apple in all the sudden happen ... this is something that in the DNA in the fabric of the company invests I'm not going to catch him again to change anything up for us ... to be given some examples how things ... change or what might change what's in it you did thing yet ... Steve told me on ... when he knew ... call me ... to was all the talk of being the CEO and and ... and and subsequently discussions we had ... he he told me he said you know ... I've witnessed what happened in business ... out when Wall Street ... and ... he said that people would ... go to meetings and conference rooms so for that they would all sit around ... and talk about ... what what Wall have done ... how would he viewed this what decision would walk ... and he looked at me with those intensifies that only he had ... Amy told me to never do that to never ask what he would ... just do what ... and so I'm doing that ... and so does that mean that something will be different up for ... that he was the ... person in the world about doing this ... he was he would get ... I've she would flip on something so bass ... you would forget ... that kid with the person that is taking a one day before position on the day before ... Amy and I believe in the US is is that they that hear a statement that he was he was the part ... he would never know that you've bought the APUs it ... yes they have videotape at the the the so you've got crude ... I saw it daily ... I saw it daily and ... and ... this is a daft ... because this is a gift because things do share an inch ... and it takes courage to change encouraged to say I'm no wrong maybe I was right before but maybe not maybe I was never right ... it takes courage to do that I think he had that ... though the stories that we are ... yet to better trickling out of that ... I don't know things are a little more relaxed or you've introduced as policy that housing is there some deliberate ... all day you know I've read some of this I don't need a lot of the ... land ... philanthropic and yes I mean I want my belief Wall on philanthropy is on the Kennedys is to say this and I believe strongly in my heart ... to whom much is given much is expected ... and I do believe that it's it's imbedded in a ... and ... and yes and so Alcoa started a matching ... gift program the employees really love the ... on and it allows us to reach ... thousands of charities and plant seeds everywhere and ... it allows us to do so without the bureaucracy ... of something were a lot of people said in a committee meeting to conclude whether this funds good investments good ... we let the employee decide ... and so we've done that and yes we participate in some other things and and and I think we can do even more ensue were looking at some things in ... your will talk about them when ready and so ... maybe that's a change ... although Steve clearly knew about the matching gift ... and ... to me he was alive then and he was for ... and so ... you know you might feel really strongly about it yes ... I did ... on ... it like it's impossible to say what he would honor ... the dividend thing some people talked about this ... I think ... we did ... the right thing by our We're ... group will do later in the year of starting dividends and doing some share buybacks and ... did you know that the truth is the ... the company's been very successful ... of the ... cash the company has built up ... and ... when we think about things we want to do in the up ... we're going to continue to invest like crazy in R and D were to continue to build our stores we're going to continue to do things that are going to talk about what the heck ... to build up in what the budget goes ... to the get some money left over ... we have a little bit like the Rick and ... we should share ... the rented a lot less secret actually ... has a lot less agreed that you're not going to do now I know I tell you what I do here's the way I did the thing is he will buy that question ... I'm not fooled all of ... I'm not easily full of what ... we're going to double down on secrecy on products ... my how were the real double down on the isthe is on very serious when it doubled the on on this ... however the ECB other things that we do ... that we're going to be the most transparent company in the world ... when what like iam ... but with with social change ... that when God ... I'm ... supply responsibility ... on what we're doing for the environment ... we're going to be the most transport because we think the transparency so important in these areas can maybe if we are ... other people will copy what were doing and in this area I want people to hockey sweaters in other areas of the one and I get it this Friday twenty mean by social change the first one emotion ... I'm I'm thinking about the the um ... all the work we're doing in in manufacturing supply ... would you assess the tube and transparent in the past or how would you assess what's gone on before the test we need to be a new report and that was our method of transparency ... and God did we do more than others I think most people would look at that and say yes our actions were clearly much more ... but our communication was once per year with an annual thing ... ah now ... we're putting our monthly report ... we want everyone to know where they were doing and we hope ... that people caught ... is our athlete is not in China to assess the China citrus has hit many critics ... have ... yet many at criticisms and not just fictional ones ... at the gym once they're very valid criticism was going on in China how would you assess which are changing ... to what the manufactured taxes there are ways in there and Apple ... factory in China ... run by Apple ... done by ... well there's lot of questions in this let me try to take those one by one a little bit what do we do it we decided over a decade ago ... on that ... there were things that ... we could do better than anyone else and those things we wanted to do ourselves ... and then we look to other things and said you know ... somebody else can do that is better than we can or is good as we can and we shouldn't or effort and it's manufactured was one of the ... the ... operational expertise ... and the engineering around ... high in the whole supply chain interest of is all Apple is too old ... the main effect of it so we look at and said you know ... we can somebody else can do this is bittersweet here is that still true us to get a sole trader saying ... I can change I think it's still true I think ... ah but in terms of the the ... what how or the factories doing one this year as an example ... we put a ton of effort into ... taking overtime ... this is the sales ... the promise and easy to see people the audience is backed in part ... because it's come plots because some ... people work want to work ... a lot ... some people want to work a whole lot because they ... want to move and work for your achievement and the back to their village greenback ... is this ... one is thinking ... we we sorta taken a position and said we're going to bring us down ... and we're already up in the Dodd last month from ninety five percent implied when measuring working hours for seven hundred thousand people ... I don't know anybody else doing ... and were reported ... in seeking going or website and see precisely what the work hours are it's almost like the labor report U S but now ... there were tons of it ... five thirty am in the morning we played out in the end of every mall at the beginning and falling month on ... on what we did the month before ... and so we're micromanaging ... and I think we are ... doing in and away ... and were showing the level of care and I don't think ... I don't see going on in other places and I think it's really important ... and so this is an area where I think we're advanced Hope people rip us off line ... so I did that ... and just get this for second ... there's a lot of attention just the last month or so to ... revival manufacturing Nenad Stadium ... Wall Street Journal ... today had a piece about wages Nancy Spain held relatively attractive for many factors price TBV being ... high ... you use to have factories in use to have at least one fact reactor a call in the U S begin ... Colorado somewhere ... you've ever seen the possibility ... the euro are huge company your ... I would say you're certainly the most influential company intact and maybe ... the most are one of the most in any industry ... to you and your an operations expert got ... things do change there is some manufacturing problem the US ... will there be an Apple product ... ever made again in the next day I wanted today ... you what I wondered if ... you want to one-third today and a ... we've already this is not well know were on but the engine for the I phone and I pass a bill to us in awe not just for the US but for the war ... in Austin son asked him ... on the glass on your I phone is made in a plant in Kentucky ... not just for the US ... but for other markets outside the US is well ... and so I think there are things ... that can be done in the U S not just for the U S market but can be axed for good for the war ... now people focus ... there some there is a intense focus on the final assembly because that's the part that ... most people look at the unicycle they don't think about ... all of the parts underneath ... are ... or where the ... significant value of the ... the ... bill material ... and ... so on this the twenties could that be done in the US I hope so one day ... due to the truth is the tool and die maker Steel won the last ... begin to go down in the late sixties early seventies ... and at ... a mini tool and die makers Hino and U S now we can have I could call a meeting of the United States can say with every tool and die maker come to this rain tomorrow ... we went over ... in China you would need several cities ... to fill with school and on ... and so ... Dur has to be ... sort of a fundamental change in the education system and ... that its effort to bring back some of this ... but there are things ... that we can do and that's what we're working on building the Semiconductor Industry stochastic in the nights that it's ... you know we should do more semiconductors ... states ... that dog was recording deal with glass in Kentucky yes this is fantastic and so ... we will do as many of these ... as we can do in you can ... bet ... that we would use the whole of our influence ... awesome ... so whatever salmon back of an Apple product ... design in California assembled in the mistakes in that ... it may end in even though it doesn't say that today you could put down there ... on several parts are from United States ... of course where I can put anything down ... your signature ... I will is for sure we told him the with a better way of saying it but but that it is important ... and now ... I do wanna point out something now and I think this is a very important is that ... if you look it up ... developers ... you know ah ... do the work if you want your odd Tier one DTN ... thing in the beginning of this ... if you think back to the one D two D three probably all the way to five or six ... on how many people knew what a mobile app ... other work you I mean on the tree ... until it was like very sort of coming out of people's mass in Nelson the mainstream ... and now in the US ... there are hundreds of thousands of people developing ... isn't this is something this the whole segment of the economy didn't exist ... just a few years ago ... Ari was nice ... now ... incredible innovations going on among ... you know is the isthe apart from an app twenty duty to look at innovation on the PC you're talking about this earlier ... hard pressed to come up with your new companies are innovating like crazy on how it is the piece that ... I feel that we all are ... and there are some others but that was the small liao ... you can hold a meeting in hearing ... of but every PC developer in he wouldn't have very many people ... but if you said ... let's have a meeting and convention of mobile app ... for everyone in the US is doing mobile apps ... give the service would stay ... since it was a it's a it's so ... it's ... it's big enough to be in the Bureau of Labor state so in that thing why ... haven't the sea ... why should Apple be in peace ... well because I don't see that I don't see that tablet replace thing ... the need for all these these are all nuts ... in Utah don't mean to imply that a dollar ... we haven't done that ... is what I see is that the tablet for some people ... takes over what your PC was offered ... and it will probably also extend the purchasing cycle ... for other where they'll say you know ... I want both ... but I've got a budget ... and so I'm gonna buy this tablet probably more often than under Obama ... my PC or or or my Mac it's it's it's ... since peaking in innovation let's talk about ... the Capped Morse that go on the ... Apple ... Samsung mobile ... set a problem for innovation ... what's a pain in the ... is it isn't a problem for innovation ... the kids you from from our point of view ... it's important ... that Apple will ... not be the developer for The Wall ... we can take all of our energy ... over here ... and finished the painting ... and have someone else for nine all ... we can't have that ... and so ... yet ... the worst thing in the world what can happen to you if you're an engineer you've given your wife to stop ... is for someone ... to read it all ... input your ... and ... and so ... what ... what ... we want to accomplish ... is we just want people to ... trust God ... no one of the developer ... but there people accusing you of ripping them off ... I'm sure right people accusing us of every ... month to the mean you know this is is all the world maybe it's not like you're selling other people other people are selling you all of course yes and into when you look at those ... the vast majority of those ... are on standards essential ... and this is an area where the patent system is broken ... today ... the of standard essential patent carries with it our responsibility ... by the person who owns the path ... to license it in the fair and reasonable in on what's one example just in just the UK start ... up everybody is the enabler and it's it's something that made the notes but did I mean we just make it simple it's it's something fundamental to connecting to the three G network ... you know where ... you ... there's no way you could design of color ... with out ... whatever this ... and ... in so ... that the big issue with the system as I see that the relatives of this there are other issues that trio given to those later ... in the conference but ... the issue is ... that this is an ... economic argument ... it's not a party there should be no ... no one should be able to get an injunction office in central PA ... because the ... the owner of the house ... has the responsibility ... to license them on fair reasonable and nondiscriminatory manner ... and so so when somebody just comes to you and tries to ... on it ... you know get some obscene level of money ... from you for that they're in essence ... telling you they're not going to license them because they wanted to try to get an injunction in ... use the court system to do that ... and in my view ... I've ... use it in a way that it was the intent ... so I just I get to Shiite ... are you saying I want for words yes that's my mask ... you're saying that when you see somebody it's because you finish the painting and they're ripping you off I'd never get when you need more silly new it's because ... they're trying to ... get more money than they should get under the weight standard essential patents are understood ... and nobody else has had deals they've done a painting you ripped off ... there's a lot of stuff and did not get a young people feel ... I e ... I don't want like people talk about how I feel I don't represent how other people you know ... what what what I'm saying all is that ... Apple has naught sued anyone ... over ... standards essential patents that we are ... because we view that it's fundamentally wrong to do that this was never the intention of standards essential ... the intention was ... that some pain on ... the mat gap in you can always argue about the payment in there has to be ... a ... a forum for resolving this dispute ... but the problem in this industry is if you add up what everybody says the standards essential patents or more ... no one else could be on the phone business ... competition would be locked down ... and so it's kind of gotten craze ... this is one ... this is one issue and so ... there's some of the earth ... that is maddening ... it's ... a waste it's that time stop ... hell whatever does it ... stop innovation ... I try to stop us from in a bay no ah but it's overhead is overhead that I wish didn't exist and if we can find a way ... to settle this than ... but you've just ... had settlement talks with Iran then the paper Bryson taught about ... actually can talk and I don't ... know the magistrate does is talk talk ... the magistrate noted Tuesday that really stand ... out is that this I'm sorry didn't tell me that it's still ... get my money I have ... a ... honey like Google's painting ... greedy ... it actually was ... I'd love to Apple's training ... I know that Apple's thing we know ... and ... Google's painting ... the brand spanking all that the most damage I don't I don't want to talk to the company's idea ... you brought up tightens and so I brought up something that I to question the Vegemite tell ... I think is an abuse of the system that ... that was not intended ... and I do think it needs are ... the good eats text in and I'm hoping that ... some of the regulators ... support will ... will ... charge of this and begin to to fix the either the competitive landscape in the smartphone market where is it moving as you all dominated influence ... and money making an ... error with this that we dominated Eike ... huge know I think we have the best bah ... op but ... did did you have ... two operating systems to banks that were stored at the software that operates a small ... get two operating systems ... that make out the ... vast majority of the forces IOF financial ... and ... you have bought Windows Mobile now beginning to you ... to show and will will see how they do it ... caught in the new head around that ... is ... still serving ... there's some ... some large number of enterprise ... but that the momentum right now or are in the first ... and so will the change ... I think ... I think that anything can change because because I think we're in the early ... we're in the smartphone revolution is still in the early stages ... he had you when you when you really back up and look at this ... on this ... markets of ... billion unit market in three years from now ... in a few years after that ... I'm not sure you'll see very many phones in the world once more ... so the opportunity here is heated ... and ... there can clearly be changes along the Y ... so I walked along those lines ... one thing that's happening on the entrance of the equation ... analog be a Lim's and ... I've heard talked alot map this is some talk that publicly is ... that they're looking to make ... fewer models there are lots of models meandered poms ... think some people wonder where they got that idea ... I wonder where they get that that they're looking to focus ... on the day ... and so ... they have yet to have even ... given the Samsung Galaxy S to ... it was ... probably the best I don't know for sure but I think was the best-selling ... keep the creepy groups um all ... all the galaxies together they were the best selling Android ... smartphone ... aam ... they really haven't had a phone that say the single model ... that's a kid like ... I phone has been a bit ... nippy hand you've had this hit home ... a job a platform ... that you've only had this one for new phone at the time ... policy I know the T cell last years model ... for ninety nine dollars in the year before that smile for zero ... and I it's Wednesday industry icons market but ... at any one time is only one and one you like ... it's not that we did it with the I pod ... it's not that we did with the matter ... a ... why don't you have more than one I phone on one or more the one I had this or any chance you might ... put ... it on our North Star is to ... it's to make the best ... and so we are not ... our objective isn't to make this design for this kind of price point or make this design for this arbitrary schedule or ... or lineup on ... you have other things or have ... had X number of phones it's to build the bath ... and so ... that doesn't preclude or stop policy use the word policy will ... is not a policy or recommended by Shell ... in one ... whatever ... there's a ... over we have an overriding belief of making the banks ... and so ... if we find that we can do more great ... ah do we have to I think one of our advantages quite frankly is ... that ... we're not fragmented ... people that ... if you look it when we introduce the new alas ... I was five it's amazing the percentage of our installed base it on the latest bailout ... that's not the case with end ... right ... we have one app store the rules are in their simple straightforward everybody might not agree with all that ... but it's simplest reporting all the apps are there and say you know what app store to get to ... this is not the case ... we have one phone with one screen size ... with one resolution ... and ... so it's pretty simple ... if you're a developer developing for the spot ... and there's been all kind of people that have the success we look at da ... you probably saw that Facebook bought Instagram Instagram had ... we get one product on ... on on the last it's I think it's a testament of ... the power of my Watson along with the welts point was that their seven to nine times the book that says yes yes ... she'll ... get used in your your your folks use to say they said to me yep look we've got all these price point cover ... yet he didn't say we got them all covered with junkie I pods they felt like a world reunite odds ... deal ... for certain Markit at a certain price ... and deal with high quality ... so ... this will be a larger than the visitors said this should help govern the first inning ... lot of the world after the camp to earn two hundred are popped ... why can you make ... why shouldn't you ... be making any ... ninety nine dollar new I phone that's designed around that ... point for a certain ... kind of market and still you could be just as proud of that issue are of your other children ... are nestled in the future I'm not going to ... conjecture on that bet on the pipeline ... it wasn't ... that we sat around and said you know we need of forty nine dollar was at ninety nine dollars ... sort of what ... it what is ... we could do look pretty coupon it called the I pod shuffle ... and it got better and better everytime smaller and smaller and and and now you can just slip it on and ... I were an everyday I were working ... and ... in so each of the products ... were great fraud ... but the ... end result of doubt ... one of the results ... not not a good start is the objective but one of the results more we could have different price ... and so when ever like the Mac ... like the I pod ... whenever we can do ... some fantastic wrong ... in the yield different price points that were all for that ... we don't have a religion to not sell anything below ... sure but I think the thing is is there someone in that mankind ... we make a cool ... smiling on firm could mean a ... cool ... I've come with a bigger screen ... Saturday afternoon we make a seven inch tablet ... or need inch tablet ... I'm the and invite you gotta start army ... I ... the the ... still with the testing of new pricing to discuss in any way it is highly disappointing to me I am a battle with the pricing of ... the the ... TV ... Steve talked a lot this last it's here about wanting to change television played at ... that is her passion about it ... the entertainment industry the eye pads become an entertainment consumption device for a lot of people ... how are you looking to change television from what he was talking about initially ... we know we of ... very uncharacteristic of us we've stayed in the Apple TV ... pro ... business and we ... we continued our Letter latest iteration of the dish of the ... sixty days ago ... can ... in Woodward a hobby the company vision that we ... our tendency is to ... be very few things ... all of our wood behind if you are ... and ... it's ... something creeps in and ... is a big success we get out of the why ... indeed one of our energies on ... something I'll ... Apple TV though you can see what we've gone and we've ... we've stock in depth ... now ... it's not ... it's it's it's not a iam ... the flight to the store ... it's not of the same ... market size of the phone business or ... or the Mac business ... the music business ... the ... tablet businesses lot like that ... bought ... last year we ... whistle but ... lesson three million Apple TV ... just when I know it ... this year just in the first six months or year ... we've sold two point seven ... so the kind of all people of last year that was that was held by the ... by ... bringing the ... Apple to gifts and ten ADP and ... and ah ... supporting ... movies in the cloud and in some other things ... it's a key part of the ecosystem ... and so this is an area ... of intense interest for us ... many of us ... the TV that we do wat ... it's almost exclusively ... on ... that's what my TV watching ... all among the day's everything is is coming for Apple to be in so ... people the cost or stock without trauma ... is incredible ... it's a it's off the charts ... and so we're going to keep pulling the story ... and C word Texas ... I think most people I'm maybe not all but I think many people ... would say ... this is an area in their life they're not ... really pleased with ... now ... that might not be pleased with many things about ... on that achieved all TV experience and so ... it's an interesting area so what to say we do ... so right now our contribution is Apple TV and red right now we go about it ... but ... that there's an interesting question about when this thing you know this ... shouldn't be quite bad actors printed on treatment that you doing ... the television ... set which sounds like an all sounds like a crystal radio ... ads and ... television sets bottoming in all the whole box them a ... big candle in it the whole thing because ... frankly if you ... forget about the Apple TV or some other set top box get connected ... that device ... it has a user interface that ... looks nothing like what you would think was a big user interface with a lot of other ... issues with it ... do you think ... if we could talk I pathetic that I know you're not tell me ... I ask are you making a TV ... retired don't write em like that so I ... the next step for man ... wearing it to be making it as she that she think about improving the television experience just said ... you think that that ... aam ... this is ... can it be done without ... with a box in the book on him ... they can all and everything to other people and just really ... build a lot of smarts ... and to software and other things into a ... box and not kill the whole thing ... is the way will we would look ... at is ... whether Jew or any we would look not just in this ... area but other areas in in house ... can we control ... the key technology ... can we make a significant contribution ... far beyond what others have done in this area ... on it ... can we make a product that we all wore ... we think are reasonably good proxies for for others ... and so those are all the things that we would ask about any ... new product category ... on ... once we ask about ... products' weekend ... families that drew forty napped ... and so these this is sort of ... how we think that how we think about what I'm so it's with Apple TV today ... and I'm good enough ... something that pleases you ... since you use a lot of the product aren't ... I think Apple TV ... is more of something ... that you keep pulling this string the C word is right now to be honest when I use mine are a lot ... you don't have a lot of content on there you can have a lot more content on Apple TV well all we have lots of movies ... Netflix customers love that I know exact time the Tianya attribute it to be in every direction I own it ... and there's not alot content on their peers or some other people's boxes ... just read ... a mean you know there's a limited number of channels that you've done deals with ... you're also nicer that does ... sixteen seventy thousand babies ... trouble is that ... he wants all of ... that's good ... the onstream Umno active I am ... adding There's Netflix movies of course yet I get an F Leandro Quillen ... T volley to drill them all in all everybody has Netflix that just it sticks and you can resume the the ... and that's how most people do that ... watch babies that died TV show ... you don't buy books he brought up from last season you do have to buy the TV show ... so ... you're not solving every problem that person might have the TV with your current crop I'd read ... and ... Tiger ... when you talk but owning the core technologies what what is the core technology in the television experience with you ... I wanna get into that added to tell but I ... guess it's just that I doubt it was all ... I ... or what percentage of ... whites nineteen ... he is a good candidate working together in law passed ... in ... at ... all rights ... besides the audience and eclectic rescinding its TV ... so itself I'm did this in ... and how was your age Hollywood ... in terms of getting everything ready with the sea was very influential down there ... how do you ... approach Hollywood people ... I think we have very good relationships with the pump ... um ... you know we have great respect ... for the content owners we ... we don't want to stop to be ripped off ... our ... you know with this is the way we felt about music we love music ... and we wanted to provide ... a simple and elegant way for people to buy it because we felt that the vast majority of people were on us in that if they had that they would ... pay for ... and ... the whole generation was you know growing up at the time the ... audit should just be free and it's the ... if the continued ... you would know the artist ... if if that happens to me the business with one of the great movies and ... in the dust like that for any of us nobody really wants you think I should just get this or think it's good I think ... I think that they ... are ... U S possibly because we didn't care I mean the these guys have been buying Macs forever ... still ... I'm ... most movies are edited on ... and so these are longtime Apple customers ... the ... devil with Apple before I pod before I fall ... before I've had in so ... there is a level of trust ... in those relationships now ... and I think ... Steve brought us even closer because he also owned a content business from ... and if it ends ... that thinking in the way of looking at it I think greatly help us would be there complain about you ... I mean in that they are ... dressing like it's probably and ... it's probably better care to ask them I'm going to try I'm and I'm sure it is like saying ... I mean you should best be not mean of them and ask what what would you what would you say you probably hear from them ... I don't think your Guinea hear that ... um I don't know ... I don't know are you are and that was servile of them ... recently and up ... we ... never break conversations because there there were talking about what more we can do to get up ... in instead of ... in other ... some tissue or whatever so ... I'd ... I feel I'm interested to hear what you hear are you working on a ... some kind of content server said that I could use my living room ... other than the one I mean I assume you have iTunes it's very famous but ... I ... into it's ... new to the light is that you served us ... what percentage of care ... I you with any say that we use in its U S led the way I'm well ... you know it is is is that the answer I want to have would you do with it like it will stay with you to start funding original programming and things that you see Apple ever doing that ... the series of good ones like this and I think ... I don't think Apple ... has to ... own ... content ... of ... we haven't had an issue ... for the most part in getting on to ... and certainly look good songs and then ... we had ... thirty million saw ... I think ... virtually every song out there are thirty million thirty million songs ... um ... we have double digit thousand movies ... we have a hundred in ... over a hundred thousand TV episodes ... of is it a little ... more difficult but you get out into countries because they have separate ownership within each country ... of but ... but for the most part ... giving content ... isn't an issue ... then ... and so I think that ... I think there's a great part ... in doing content writing and I have great appreciation for the current owners and so ... I think this is an area where ... Apple ... Corps doing well ... is the right approach to making a finding that not making it the funding it hobble we funded through the debris just ... thing that we can provide ... for the content owners to sell lots of their stock up ... and so if we can make a very simple and elegant solution ... with their content ... been ... that's the best thing that we can do for all parties to consumer laws that because they get it when they want it where they wanted ... on the content owner is getting paid for it and so they love that it's not being ripped off ... and it's it's great for us is what is the bills are he says ... Tim now ... aam ... speaking of partners ... what is going on between you and Facebook ... it is a great company ... I have great appreciation for me but yet ... and ... on my ... Apple devices ... I ... there's a menu that comes up for sharing Twitter's well through it ... yes Facebook is not ... the snow Facebook ... that nine hundred million people ... why ... were you able strike a deal would you ever strike a deal which are really sch I think we get back to the relationship is very solid ... a sculptural earlier he can ask for a new variety ... ah ... I think it's very solid with great respect for them I think we can do more with them ... um ... and so we have just taken down this one ... so it can be the ... one thing seems telling is very onerous ... the still onerous ... they have their way of doing things and I ... but people can say that about us is well be to say that ... they do ... op ... and so ... that ... because you have a point of view doesn't mean you can ... do more with other people than it is mere fact I think ... in many cases I found over the years to two people have strong points of view ... can appreciate each other even more in their relationship is much more reliant you kind of last house for each other ... in a lot away is getting to heaven for us ... for us ... we want to provide ... customers simple and elegant ways to do things they wanted ... in Facebook hadn't ... knowing ... hundreds of knowing cost ... and ... and so ... you need any body that is the I phone I pad ... we want them to have the best experience ... with Facebook on the spot ... so ... there will be a better experience state to ... state the state I speaking of that other states and that ... was not things and purchased seventy years by Apple ... ad in DC more acquisitions ... under ... the Tim Cook reaching ... we continue to buy company ... we ... you know we've used they're not ones that we ... seek to make public that we ... we buy company eventually have to tell us ... it depends on the amount of that and so forth I don't have to I dunno ... op ... he ... says it has been in this way it is that part of it doubling down on secrecy of the party doubling down ... of ... that year the Timor Leste will coming in at secrecy still going out secrecy thank God or to correct ... just ... I'm saying that what I feel strongly that being secretive on the product side of our business ... yet still ago and in order to install important Ari speaking of the company's huge hidden in the black room and Apple the lab ... GC big acquisitions that you can't avoid people noticing say buying of Twitter ... trying ... to get look Instagram ... for example ... no we did with it ... um ... do I see good ones ... I was and I wouldn't rule it out ... I'm not looking at a big one right now we're not looking to be right ... um but I wouldn't rule it out in in so for us ... you know we ... historically the we don't we haven't bought a company for revenue stream ... we bought a company because they have great people ... coal technology great IP ... on ... and ... there was a synergy with ... a product that were working on them or something maybe the it maybe it would become a feature that ... maybe they were great skills that we can re deployed onto another project ... and so we've done several of the times ... and I think the will to survive more there's no doubt in my mom ... on ... but ... I wouldn't say we would never do one for revenue but it's not how were wire ... we are not wired for that and you're okay with us to have some ... so ... Tuesday yet except he actually has River ... yes the yen dropped now the line I was at times is un perfect for Instagram ... so that ... well twenty ten can I just said the deal is a way here with steeple company called Siri ... Siri actually watched it this time it's been within a matter of months you bought them ... so we take credit for that but ... I'm ... but Siri is ... and it's in your aunts it's your its hints ... at least at the moment it your principal way of selling the I phone four s which is you pointed out this all the March numbers ... whatever work is done now that that John after their three M L Jackson you know whatever ... when it works ... time ... it works it works really well ... come away mention ... the times actually doesn't work ... and that's not what a lot people come to think that Apple products and ... it says I can help you with this ... at this moment or misunderstand Curie did something wrong ... with the baby ... you know so let's go now that all that product up to your ... standards and Westerners love it ... cost result customers love it it's ... of one of the most popular features of my phone four s which is our ... most popular ... the most part the soil worldwide ... but ... does more good he can do ... and ... we have a lot of people working on this ... and I think to be really pleased with ... some things that you see over the coming months on ... where the breath that you're talking about ... ah ... we got some ... cool ideas about what Siri can do it ... up ... and so ... we got what we have a lot going on and this is what's critical to these firms going forward ... I think series prudent to is that people want to ... relate to the fall ... in a different walk ... and you know for years ... there was a lot of ... our ... there was a lot of invention ... in the input ... and then touch came along was a very cool to for why ... and on ... and I think voiced particular when it's combined with where ... where understands the context not just ... voice recognition voice recognition has been around for long time ... maybe it didn't work ... in different times of four over the ... term of that ... but what really makes you really cool ... is that ... she has a personality ... if she becomes many people's best friend ... I mean is it that will set ... up ... day ... I'm the judge ... ah ... now a woman not listening to me in some the start of my life that go ahead ... so ... I think it'd be really pleased with where were taking center so that more responsive Bossier one ... up up up up up up up up up up to that which are looking for I always wanted to ... in the ... end of the trip ... most of the most in the eye ... I think you can be really happy with a really good in it is T its profile IPO for Falmouth ... you know does not is indeed the IPC that this but what ... you could put ... probably I'm guessing a different voice recognition module them the when you have a nap ... and I'm not saying it's it's pretty good but I mean you put a better one and two for one with the voice recognition it's understood in understates the context the a I did for you that you'll see some Xpert town that's Richard that's what I've ... you have ... this is something better ... people dreamed of for years ... and ... and it's the ... it's really here tonight ... yes he can be broader and ... and so forth ... we see unbelievable potential ... and it yet ... Siri ads that feature is sort it has moved into the mainstream ... people hear the word Syrian and know what you're talking about it's amazing this has happened ... since ... just popped over an option daughter-in-law ... and ... so I can really really happy with where to go ... so I'm I'm doubling down on ... their discretion of the Steve had ... in the last interview about what he does all that ... with any get a fantastic answer that ... two questions actually won his ... twenty view all then when you see your role ... and Apple ... as you know on a daily basis ... and secondly I think you can set yourself a missionary ... I mean that was stuck on proceeds ... name visionary ... leader Ted Stevens a genius and a visionary and ... and your I've never really viewed ... that my role was to replace might think he's an irreplaceable ... a person that ... Steve was in a regional ... and I don't think there's another one of those being that ... and so I've never really viewed ... or were filled the way ... of trying to be Steve it's just it's not my enemy ... it's not my goal of mine ... our ... I'm I am who I know that ... I'm focused on ... in envy ... great CEO the fall ... haha ... it's incredible everyday to work ... with what I consider to be the smartest ... and most innovative people are ... and so I spend my day working with those people ... on ... many different things some things we didn't talk about that you wanted to talk about it ... and ... many things that ... that go with running a ... the company ... Apple signs ... and ... TeleGeography is that ... and so forth ... and I've loved every minute of it ... it's an incredible place to be a Disney ... it is my oxygen ... so that's how strongly I feel about ... chance that one questions that and and ... and with them on our box the number now watching ... you need to make like secret for oxygen ... um ... because the alarm on the Ifo Leon ... yes we haven't gotten the toaster for giraffe ... as is ... um ... um ... who's the curator ... the station along what top ... well ... in general an approximate ... know the understanding was that the QE was an editor curator of a lot of these these ideas or products ... given the privilege the clothes ... if I look around the executive team ... many of the people ... are the people of their working with four ... double digit years ... Aaron ... we all know each other really well ... have great respect for one another to work together ... well ... the curator role move ... as it always ... it is always ... it's always he was amazed that he didn't know he never did ... D and I think if you were sitting here he would tell you that no one person and all Ltd said that ... the Brazilian top ... there ... I mean ... look at what we're doing it ... that's the possible you could have and how slender just to make it when you're back into the ... to everything so ... you ... his ... team brought in great people to come ... as the standard ... for today brought in ... and that became ... that built an incredible company his legacy will be ... leaving the foundation has or will always be ... in the DNA of the company ... then ... sudden I wouldn't get overly focused on ... he does what ... he eats ... with the ... company doing all the things that were doing there's a lot of people ... a lot of people in there has always been lucky ... so what is your last question and it yet it's ... it's your call become a trillion dollar company ... know the very ... good and ... create your own C I and ... II ... I just wanna build great products ... I would go great products ... in its best mothers ... there's not a specific red and gold or ... or ... I think you think he really secret till you're reducing the gap now I think if we do that ... that the other things fall ... I think companies to get ... sorta confused and think their goal is the revenue ... or profit certain profit or whatever for us our stock price of something ... those things you can focus on ... can make better you have to focus on the things that lead to ... in four oz that's all about great products ... and so all of her inner jeans ... are on that ... not the ... result ... and looking at it they not Apple ... the lazy or would you love to know when debt ... known as much about you as the date of the Steve Jobs ... twenty twenty you look up to ... the quiz or purse and her company are ... all we need heroes yet so forth are ... they ... are ones that are just Easter ones are living ... you know I ... if you want in my office you would see ah ... Bobby Kennedy and Martin Luther King ... two units ... ah ... if you're talking about CEO is that I think they are living better doing fantastic jobs I have ... incredible respect for Bob Barker ... and what he's done it is ... and I can and it's the ... you know it's ... a great fortune for us to have him serve on our board ... our ... it in you know there are others I think some great opportunities to meet people it did no ... lots of robots ... to that list is is growing ... and I ... questioned questions ... the mics are ... yep ... I might ... get ... one year this one there ... swung into their ... and ... write it starts ... this is never an interest in Apple yes ... bring in the metal ... a tinge on ... from ... Brandeis University ... closed end up just a very strong and higher in markets ... but ... one area that ... many years ago to try to work ... deep discounts for institutional purchases both for higher ed and for Kiki false teachers ... forget like in the same price that for I pad the real's kays ... you see that changing Apple's culture ... investing in higher ed giving us a ... good discount to make education affordable again ... what we've done with education is actually there is still a discount for institutions ... and three ... and each year during the back to school season ... we ... store in Sweden that in some why some sort of ... all her something that the ... student would lie ... and so ... we're going to be doing that education is very very important odds that I'd ... actually does sell a lower price to be that well ... that it doesn't it ... in the consumer markets would win a Buy employee in which ... which they are today doing ... on ... and so we're going to continue offering the last year just last year ... that is the discounted donations were three quarters of the billion now ... it is not an insignificant now ... and ... maybe even ... more of the cases education in general were doing other things that I think ... have a profound effect on people like it if you if you're familiar with iTunes University ... millions of people ... are taking forces great courses from great instructors on iTunes you ... if you're not taking one I would encourage you to look out this is very there's some great stuff out there ... um ... although that we do and were doing all this for for it ... we are doing this to make money were doing all this for free because we think it can really make a difference ... which launched ... iBooks author ... in Jane you where ... this is a school that most people wouldn't charge thousand dollars for were giving away for a ... were given away so that people can make textbooks ... odd because we think that the textbook is an incredible thing ... if done right for the state of versus today's textbook that is dog eared seven years old ... behind the times ... as you were to continue to do things like this that we think can really change teaching lor ... this is education the foundation of Apple since the ... very early to it's it's the very very early days ... and continues to be today really Prada were doing ... thank you ... or there ... I'm ashamed ski with fortune magazine I ... I can it's nice to be able to ask the question is ... I have ... to say I'm happy nice to be below my kid rate Gaan ... and ... tin you ... think you care ... it yet but ... if ... you ... sit in the press and an important part of the Apple cultures to these self critical ... aam ... Kara Walton of coming in a couple of times that this is an audience that doesn't know you very well ... with ... which you talk a little bit about your strengths and weaknesses as a CEO and as a person ... and and and that Adams to reciprocate his idea the the full well I'd be happy to do that ... you may never ride a public performance appraisal ... I think your guts to do that I don't ... I think you're the best to do that already but still do a couple of weeks rethought how we got that that advice ... well I think you should do ... you should do ... um ... I'll leave that for you ... there was a lot of attention on what specific things that Steve paid attention to for example he was ... very involved in marketing and design as CEO ... he was less involved with ... supply chain management because that was your expertise ... Ari for you is involved in marketing and design is Steve was ... um ... no not ... it depends on what ... period of time ... but ... Steve spent ... all virtually all of his time on those two things ... and ... of course toward the end he was spending less time on all of the is um ... but no I would say that I'm spending time in many areas not not exclusively this ... can a second or I'm so ... thing here ... and to ... die with a read write and splatter ... I have a question you control a lot of the products and services you offer but one of them ... you don't which everything from your retina display graphics to HD video to see your e use is more more of his bandwith and ... was wondering is is that something you know as the asthe very few companies that control all the bandwidth seek to ... figure out new ways to make more money on that charge people more work is that something you think you need to either ... have an ownership stake in at more control than you currently have or is it even regulated ... fairly right now ... the low cost and without a little bit what answer the part of that ... do I think we need to own a carrier or a ... forum for the pot ... on now ... I don't think we need to do that ... the key ... if you if you look at Apple's business ... the vast majority of our business now is outside the US ... and so owning something just in the U of ... we ... would not have great value in the in the total worldwide ... our war what the press ... plus ... I really think the guys that have the know a lot more than we do about this ... this is their area of expertise in and ... we've tried to ... the August about things that were we can contribute in places where we can ... and ... I wanna make great devices ... and with the news ... some of the band ... but ... I don't really feel like we have to own the pipe to do ... I think we can partner with the pipe ... appellants fee could stop texting me to ... I'd ... think very much just yet this is really been that interesting ... to him ... aam Lane show nonfinancial and I just you ... I attended two part question yet ... backing minus three start to get lots of right back in nineteen ninety eight to ... when you joined Apple what that what that Steve Jobs tell you that that time to encourage you to join him in the company was not in great shape ... and the second part is crucial in having visions ... what would've happened did you see the future at that moment ... it is a very interesting meeting ... this is ... up ... hired an executive search for ... time to find somebody to run operations and I got a call a few times and said you know I have been a compact that long ... like the people here ... and ... they kept calling him to call and ... I've been Shipley said ... you know Cal talk and not ... I flew out I had no time in so I flew out ... the good Friday on a read on ... for Saturday morning meeting with the ... and the honest to God truth is five minutes into the conversation I'm one and enjoy now ... and I wish off ... at this because it wasn't Halloween in ... to the conversation all ... it what it what to do it he he he painted a story ... our strategy ... that ... he was taking out gold deep in the consumer ... at a time when I knew ... that other people were doing the exact opposite ... I've never fallout following the herd was a good strategy ... you know you're destined to be average in the US to ... and so why still growing and soon ... and he told me a little bit about what would ... later be named the UN ... and I saw brilliance and ... and ... I saw ... someone that was ... unaffected by Monday ... and that's always impressed me with people that have ... been unaffected ... and so ... does three things ... I thought ... I'm in proportion the women do ... and I went back to resign ... immediately ... and down that I see ... every I did I see the I phone the I pad in the I pod now when it's all was ... Apple was the only technology company that the new law ... including the one I was working at it and had worked ... we are ... if a ... customer ... get angry with the company ... they would yell and yell well ... but they would continue the ball ... they contacted people ... get angry compact ... that would just walk into ... a jealous they get angry and jealous they were just by that time from Ikea ... and some people were moving freely to and fro ... but that our whole question was do you need ... to re ... and there were there was this Ummah Sharon's ... it is so ... you just don't see it in technology in general ... you can see and feel it in our customer ... and so I knew that was different in what I look at the balance sheet of the company ... I thought I could add salt ... and purchase a paid in turning around what I thought was a great in her ... on ... and so ... that that that's the ... real story ... in ... Europe ... HM Stuart Allsopp ... I'm ... confused by the way you name products not ... outlooks understand the backstory and how you went from an eye patch wanted ... to do an icon ... or even from a night from three to four to ... four H ... maybe just talk about height of up to Mean products and ... to get books nobody liked ... it a good question um ... he was the better the type ... if you think ... if you look back I pod ... we ... had not thought of the change did a few times a week of calling a dog on it ... and then when we announced the different I'd hardly call that I plug them in a ... and we changed that a few times in the change to massively week ... we're ... told that I pod Nano ... the shuffle came out with all the I pod shuffle in the next iterations of that although although they were starkly different than the first one if your motor will first look at what ... we call this the I pod shuffle we kept calling it a shot ... and so with the I pad ... I pad we wouldn't add in the night I was assigned to why if you look in the first MacBook Pro a new look of the MacBook Pro has changed over that ... time period the same thing for MacBook Air ... actually I'm back is like that to become the first time ... and today were shipping on the can so ... it's that you can do with either why is this is the real story ... here you can stick with and and ... and people ... are ... generally love without end or you can put a number in the end of that which denotes degeneration or whatever ... and ... if you keep the same ID like in the case of the four workouts ... op we ... we ... kept before ... but couldn't apps on there too to know the difference and that that yes some people would say all the stands for Syrian some people might say that stands for speed ... ah ... for example if we were thinking about Siri when we didn't bet on three G yes ... we're thinking about speed if you remember the I phone three G and which five hundred yes ... and so it's what we wanted to ... and some ... of the of the kids and I phone five that the new I pad was not a ... I'm not a ... good bit knew what the shocking new way of ... of ... Denee from Apple for you ... it goes back to what we've actually done the MOPS ... the way we do the math in the way with God ... so it's it's ... it probably was an ... odd ... talked about in a way that seem like it was the more shocking change that ... that was it really wasn't cheap ... just your average or social hall ... so all the I pad to just can be a ... what a lot of ... I mean he's just been now it's ... here it's can be thickly worsened in the next question ... I think that the ... contestants ... were here ... I know Warren the with the new partners things for joining us today ... see you been at Apple for many years now and when Steve Jobs to a medical leave of absence he became the head of the company ... the curious now that ... I'm you can see Oprah few months now ... the biggest surprise or challenge ... you ... encounter ... now that Steve Jobs and along with the company ... you know from being there for fourteen years ... it's not ... it's not like I was walking into ... an unfamiliar place or working with unfamiliar people ... um ... these were people like me well and and a cold sure the glove ... and ... so although the things that may be a CEO coming yet ... to a new company with an aisle ... seat and I didn't have any chance ... so what what did ... what shocking thing occurred to me that the very first walk ... was ... I Names CEO and I start getting thousands of emails for debt ... thousands ... and the privilege of this is most of them are from cost ... and they talk to you is if you're sitting in their living where ... because they have an intimate relationship with the company it's it's something I'd ... I would guess is very different for Apple versus other ... and so ... that was a little bit of a surprise I was getting hundreds ... but this wind up by I'm ... huge mall ... and ... that's can continue to doubt get into trouble ... sch ... I could never ... read everyone of them ... but I'd I think it shows you that connection that we have with ... with customers and the people in that it's an emotional connection not just a ... you know transactional ... I just did ... Apple just bought at hobby this many buy something wrong ... and ... and so that's one thing all throw up ... the other things I can say anything ... other has surprised ... of ... you know again it's not an unfamiliar place it's not unfamiliar people it's ... a company that I ... didn't love the prolonged time ... to get ... even Barrick request to what we'd like to get everyone back here and ... try to make sure that your money your ... thoughts on to emerging trends are these the scene to the emerging mobile space one ... is wearable computing were seeing about a half dozen start-ups and SmartWatch based trying to compete with that and still ... seems very nation and and obviously tools working on their project collapse and heads up display to display your general thoughts on ... wearable computing where that states might be going ... in the second one is he talked about how Windows eight ... for tablets might be going full circle in a bad way in terms of where Micra soft start with the tablets of twenty gift on some painting today ... and whether Apple can play a role the answer to pick up the mantle where ... Micra soft ... of wearable ... all I ... a ... on NikeFuel way ... and so this is one of the things that are ... yours ... talking about ... um ... some cool things that can be done ... and I think it's an interesting area and that that the question is ... can it change someone's behavior ... for something like this there's other companies doing ... things like this too and I think ... the book has been written on that ... on ... it's it's just that cool thing to know ... it will ... pay ... but if it can really drive someone to act if only to be a good way ... the PDP can be pretty cool ... and so I think the verdict is out ... and ... it will largely be determined by how much innovation is in the area ... I think there are some good companies working on this so ... I think it'll be interesting Micra soft ... um ... yes ... um so what what we're doing right now ... and ... the ... other things that we might be looking at that I think ... more fit ... into ... areas where we can make significant contributions ... picture question ... cafe I just posted a very tight end Todd I'm so I'm one assets in the tin really touch on it all ... but your gasoline use or to falling into the big player in the gaming space ... if I'm not mistaken ... most the revenue generated at stories is from ... gaining entertained right ... I mean right it numbers SA soccer game is a huge category are apt to use during ... you can hear today Apple TV play game in UTP ... but you certainly don't own or even dissipate in the livingroom gaining experience in any significant way ... it depends on what it all the living room ... a fund's holdings are on the TV ... yes ... its so so my question is ... you have to speak a mean ... you're in the gaming space already a beta Nintendo Micra soft and Sony own ... the TV game states and they're building on write their buildings entertainment products or Micra soft as ... all these things you can do it on your TV now ... you guys only have the Apple TV and Netflix ... is gaining in your future DC that is something you wanna get deeper into what ... I so the little old to put an end and I think this idea that were a gaming now in a fairly good one ... of what are the prime reasons people why not touch it again ... in some people buy for music as well but a lot of people live there ... Aaron ... I realize that's not the big screen that you're talking about ... ah but ... gaining this trend above all the dead in the U S become more people ... using playing games on portable devices ... did you do want the ... the big screen TV now and so ... ah where we might go when the future ... what I will say ... op but this is an area where customers love game ... aam we want to do things the customer wants to do ... I'm not interested in being in the console business that the traditional ... what what what is all about today as traditional game ... but if you view gaining more broadly ... then I feel like we are ... a pretty good player today and the things that will do in the future will only make that ... Baker ... said ... he's seen on TV ... something you're interested ... ah blessed right I think it can be interesting ... I think it could be interested ... it turned ... out to handle one get for it to everyone very ... worst in the day to get the standing on the ... Joerg Eagles from Akerson thanks for the job sort of ... aam ... he talked alot about the motion of the the customers as a lot of passion and of the customers ... do you think that this sort of ... attention is paid Apple from rumor sites and news sites in the near everybody ... is it a distraction or a driver or how does that affect you in the company ... I think it's a privilege that people would care ... about the company didn't care enough to Ryan and Karen Paul ... and Karen up to ... Austin me an email and say you're out what's on this thing in him you need ... to be looking at this differently or ... I think all of that ... is right ... I'd I love ... and of ... do I want something printed on the website is confidential ... no ... op but the so the question I think that you're asking as I leave you ... all ... assertive our ecosystem has including ... on ... great sites that on ... care deeply about the company and want to inform customers have got no problem with ... with people that disagree with things that were doing I think that's ... that's our country I love that it's great that we can have ... disagreed ... so that's rugby ... the big sets ... things up and in the scene ... over here blog ... eighteen you get the smile ... unique because from Google and you talk about about DNA ... yen and the size of the hardware industries huge the size of this whole story ... in Tuesday's huge size of the immobile industry's huge ... and why advertising ... why and ... when sizing for Apple ... oh whatever though you may know I am ... well I had it is um ... would be pretty small next to your advertising revenue and we know that what really really small ... in ... so I I wouldn't put it ... if you notice what I was talking about the things and Apple that make up ... for what the stool I did mention ... on ... so ... you know ... I don't see it at the same level by any means is the other ... as the other things ... our company it's it's not ... it's not nearly as she was waiting to see you honestly it's over we're in a different stratosphere is there ... on ... were brought to come ... that's what we are ... you look at the same focus ... yes endangered ... yes ... and make that ... tiny ... ants and focus of the go together ... so you will need to get out of the ad business ... the the ... but in them ... the FTC is not in the red and ... um ... it's a fear that the FTC is ... I ... I'm ... I taking notes ... he he should know the chairman of didn't ECB really is ... probably hear ... I don't really know when I ... and you ... learn to trust the man who was a nice day me and says we love ... it from ... in any case the charming doable ... for every year ... I'm I'm sure answering from ABC News and I wanted to ask you about pain ... at first the what what really happened to it and secondly ... is that the last time we really are to see Apple going into that social space and a leading up to other companies them ... I think we have to Apple doesn't ... have to own the social network that that's ... part of your question ... but in Does Apple need to be social ... yes ... and ... but with the ways that we express that today ... are or what the ... integrate Twitter into high alas ... aren't in you'll see us integrate Twitter into the Mac awhile since we introduce up now on ... it is that some people think I'm message ... the social ... I did so we've we've done a very elegant solution there if you're familiar with the right message ... and you'll see more things along that ... in the future ... data center ... is it a ... our ... social activity because you're you're picking someone else play game ... against or multiple players or whatever and so ... things like this ... made our devices even more useful to people and will will do things like that that that to me doesn't mean that all that ... Apple needs to on the social network ... but you do you have anything to happen think of how the link and if you're not a small dose carefully avoiding I'm a dyed in the US denied wines Ltd would let me sew on a rather sly what happened in so I think ... the ... you know we tried Cheney and ... I think the ... customer better to do instead yet this isn't something that ... I won a lot of energy ... Tariq until it ... was the ... last time I checked I think it's still there ... some customers love that this is the ... he does not huge number that it and so ... you know will we kill it died on the lookout ... as long as the e mail you I'm an everyday basis to keep it for what ... well I wanna say that I know I ... can tell myself to Goebel plus ... the ... the ... a dent in the build a hundred times ... my question actually is in the U ... it's the Walton care of that and ... that you have a rare opportunity to interview Steve Johnson stage Telefónica people not legal to do that ... and you've had the rare opportunity to be the first person to the Tim Cook ... do you think deeper trade edition of Apple ... I had to Apple today ... um what are your thoughts on the interview ... you know I the the the the the ... know what Mitt not coming back on at ... the hands of the ... if you're welcome back aam and I will look forward to reading your thoughts on the interview ... and that this isn't to ... be on the same answer me now I believe in ... competitive Journal well ... we wish to tell those living calling it the I phone five or not ... I mean at all ... she would announce those products here I didn't expect him to but you know that no credit that she knitted future of Apple from from T and I mean I think that that's the question is is the first interview I think the ... art ... tradition here at the conference ... has been due to things ... but the audience and the ... other media better year ... judge it and then we also own a website we'll said columns and ... we can make some judgments too ... but you're just is entitled to that was when Ackman viewed from the stage and ... you can see here is that is now ... now ... I think he's tapping for being here for the first time this week it needs ... to thank you thank the much ... the the the ... the ...