Seven years after the death of visionary co-founder Steve Jobs, Apple is on its way to a market capitalization of $1 trillion. The first public company ever to do so. And much of the tech giant's recent growth can be attributed to CEO Tim Cook, who took over from Jobs on a temporary basis while he was sick and then permanently after his death.
Just after delivering the commencement address at Duke University earlier this year, Cook sat down with Carlyle Group co-founder David Rubenstein. They spoke on David Rubenstein's Bloomberg television program, peer-to-peer conversations.
"I'm going to reception you got here. I thought it was for you. No, it's for you. You've now been the CEO of Apple since July 2011. The earnings are up about 80%. So have you ever thought you can't do better than this and maybe you should just say, well, I've done a great job and now I'm going to do something else with my life?"
"Have you viewed the stock price and revenues and profits as a result of doing things right on the innovation side, on the creativity side, focusing on the right products, treating customers like their jewels and focusing on the user experience?"
"I don't even know the numbers that you just quoted. This is not something that's not even in my orbit, to be honest with you. So when you announce your quarterly earnings, analysts always say, well, they didn't sell as much of this product as we thought they would. And so what does that bother you? It did it one time. It doesn't anymore. We run Apple for the long term. And so it's always struck me as bizarre that there's a fixation on how many units are sold in a 90-day period, is we're making decisions that are multi-year kind of decisions. And so we try to be very clear that we do not run the company for people that want to make a quick buck. We run the company for the long term."
"Well, one of the shareholders who recently surfaced is having bought 75 million additional shares is Warren Buffett. Are you pleased to have him as your shareholder? I'm overjoyed. I'm thrilled. Because Warren is focused on the long term. And so we're in sync. It's the way we run the company. It's the way he invests. And so I could not be happier."
"Have you thought about this? Warren is still using an old flip phone. I know. He has no smartphone. Have you thought how much more your stock could go up if he actually used the product? I am working on it. And I'm told that I'll personally cut out the hall to do tech support for it."
"So you're now in a building that was designed and inspired initially by Steve Jobs. Apple Park. And you've moved in recently. Steve had the vision that the workplace should facilitate people working together. Having these common areas that people could work together and run into each other without planning on doing it and that the level of ideas and creativity and innovation that would come out of that would be phenomenal. And we're seeing that. Your convinced standing up working is better than sitting down. We have given all of our employees 100% standing up. If you can stand for a while and then sit and so on and so forth, this is much better for us. I thought of this standing up. Yeah, we can stand up for the while."
"Right, so let me ask you about how you came to this position. So you grew up in Alabama. A very, very small rural town between Pensacola and Mobile on the Gulf Coast. And you grew up where you star athlete, where you star scholar, where you are tech nerd, what were you when you were high school? I'm not sure I would say I was a star anything. I worked hard at school. I had some reasonably good grades. The benefit I got in my childhood was being in a family that was a loving family and a public school system that was good. And that's a huge benefit. And honestly, a benefit that many, many kids don't have these days."
"You went to Auburn and how did you do there? I did pretty good. I did pretty good. I really got into engineering in a big way and industrial engineering. So then you went to work for IBM? I did, yes. I started as a production engineer out designing manufacturing lines. And at that time, robotics were beginning to take off. And so we were focused on automation. I wouldn't say we successfully focused on it. But I learned a lot from going through that as well."
"So you were there for about 12 years. And then you joined another company called Compact. Yes. So you were at Compact, which at the time I think was one of the biggest manufacturers of personal computers. They were the number one at the time. So you're there for about six months and you get a call from Steve Jobs or somebody working for him saying, can you come and join Apple? Apple was modest compared to Compact. Why did you take the interview and why did you join Apple?"
"Yeah, it's a good question. Steve had come back to the company and was essentially replacing the executive team that was there at the time. And I thought, you know, this is an opportunity to talk to the guy that started the whole industry."
And Steve met me on Saturday. And it was like just minutes into talking with him, I want to do it. Which I was totally shocked myself.
史蒂夫在周六见了我。就聊了几分钟之后,我就想这么做了。我自己也很吃惊。
But there was a sparkle in his eye that I'd never seen in a CEO before. And he was sort of turning left when everyone else was turning right. It was almost on everything that he talked about. He was doing something extraordinarily different than conventional wisdom.
Many people were abandoning the consumer market because it was a bloodbath. Steve was doing the exact opposite. He was doubling down on the consumer. At the time, everybody else, the conventional wisdom said, go put your money in storage and servers. And I thought it was brilliant.
And so with talking with him and the type of questions he asked were also different. And I did, literally, before I left, I think I hope he offers me a job. Because I really want to do that.
Did your friends tell you this was not a good idea? They thought I was nuts. They thought I was nuts. Again, conventional wisdom was you're working for the top personal computer maker in the world. Why would you ever leave? You've got a great career ahead.
Because it wasn't a decision that you could kind of sit down and do the engineering kind of analysis saying, here are the pluses and here are the minuses. Because that analysis would always say, stay put. It was this sort of voice in your head that was saying, go West, young man, go West. Despite the fact that there was no state income tax in Texas and there is in California, you're still sad, you're going to go West.
So in hindsight, this was the best professional decision of your life, I assume. Maybe the best decision of my life. I'm not sure you need to put professional in that.
So you go there and what is your job in Apple? Running worldwide operations. The company that time was struggling in many different areas and operations was in a different. Our economies of scale didn't lend itself to us doing manufacturing in different places like we existed in the company at that time. And so we found partners that were expert manufacturing and we maintained the intellectual knowledge of how the process and obviously all of the design of the product.
When you got there and you're working for, Steve, was it better than you thought? Worst than you thought? More challenging than you thought? I found it to be liberating is the way I would describe it because you could kind of talk to Steve about something very big. And if it resonated with him, he would just say, okay, and you could do it.
And so it was like a total revelation for me that a company could run like this because I was used to these layers and bureaucracy and studies and studying things and sort of the paralysis that companies can get into. And Apple was totally different than that. And I realized that if I couldn't get something done, I could just go to the nearest mirror and look at it and that was the reason.
Steve's health was such that he couldn't continue to be the CEO. He told the board that. And you were announced as the CEO, I think around July of 2011, something up around there. When you became the CEO, did you feel you had, Steve would say, here's what I was interested in doing and you fulfill my goals or did you feel you had your own view on what you should do and how did you balance it too?
You're succeeding a legendary figure. It's not so sequential as that. We have a really open company and so most of us could finish the other person's sentences even when we might disagree with them. And so it wasn't a matter of Steve having this secret file or something. He was always sharing his ideas all the time. And so it's very different than that.
And I thought, honestly, my thought at that time, and I know people will tell me you're just not very smart. But my view at that time was he was going to be chairman and he would do that forever. And we would figure out the relationship, the change there. And that's what I thought. And it, unfortunately, turned out that way.
Today, Apple is going to reinvent the phone. Do you have a product that is the most successful consumer product in the history of mankind, which is the iPhone? There was a sense that it was a profound product. It was a game changer. If you go back and watch the keynote that Steve announced it, you can feel his passion in it and the way he described it, I still remember it like it was yesterday.
So how many iPhones have now been sold? Well over a billion. So there are 7.5 billion people in the face of the earth. So one of every seven people has one, more or less. Well, some people probably have about more than one along the way. I hope so anyway. Well, you do have new ones coming out every so often.
So if I buy a new iPhone, should I expect another one in two years? You should expect that Apple is going to keep innovating. You should jump on the train now, though. Because life is so short, David.
Okay. Well, I have a hearing. I have my iPhone here actually and I do use it and I love it. And one time when you and I were in China, I couldn't quite work something and I asked you to help me and you said, look, I normally don't do textbooks for people, but you're nice and it did work.
You came out with the Apple Watch not too long ago. Why was it called the Apple Watch and not the iWatch? Because you have iPhone, iPod, iPad, why not iWatch? Did you ever think of that or? I'm sure you must have thought of it. I'm sure it's not a novel idea, but I'm just curious.
It was something that we thought of it. It was an amazing question. No, it wasn't a crazy question at all and how come Apple Watch won out? Well, I kind of like the Apple Watch. What do you think? I don't know, but I'm not going to be sure. I'm going to be a CEO so well.
Okay, so how are they doing? They're doing fantastic. Cellular is now on the watch. You don't have to travel with your iPhone, you can just use your watch.
One of the my best moments of a day is to go through my emails that are from users. And I get so many each week from people that found out they have a heart problem from their watch. It's alerting you if you've been sitting and your heart has climbed to a level that doesn't make sense relative to the activity that you've been doing.
Suppose you don't want to know if you have a heart problem. Well, we think most people do because you can then go seek help. Okay. Seriously, David, so many people have written and said the watch alerted me to a problem. I took an action and went to the cardiologist. He told me that if I had not gone there, I wouldn't be a lawyer. I would have been alive.
So you say you go through your emails and then when it emails you directly, I can't assume you can't. Oh, sure they do. Well, how could you respond to all those emails? I can't. But it doesn't mean that I can't read a fair number because myself, because I think it's important to sort of keep your hands on the pulse of the user.
Today, let's talk about some of the values that you've been espousing. One is a privacy. We see privacy as a fundamental human right. And so to us, it's right up there with some of the other civil liberties that make Americans what they are. You know, it defines us as Americans.
And we see that this is becoming a larger and larger issue for people. And so our, our, uh, tact on this is we, we, uh, take a minimum amount of data from customers. And that's really that which we need to, to provide a great service. And then we work really hard to protect it with encryption and so forth.
Okay. You've also talked about the importance of equality. Yeah. Why is that important to you? As I look at the world, many of the problems of the world come down to the lack of equality. It's the, it's the fact that, uh, it's the kid that's born in one zip code who doesn't have a good education because they happen to be born in a zip code. It's, uh, someone that, uh, is maybe an LGBT community, uh, that is fired because of that.
It's someone that has a different religion than the majority and therefore they're ostracized in some way. It's a, very simply I think if one day you could wave a lawn and everybody in the world would treat each other with dignity and respect, there are many, many problems that would, would go away with that.
So you exposed, um, your own personal life a bit, you know, the privacy that you've said other people should have, you kind of gave up some of your privacy. Uh, why did you do that? Well, I did it for a greater purpose is that, uh, it became clear to me that there were lots of kids out there that were, uh, not being treated well, including in their own families.
And, uh, and that kids need someone to say, oh, they did okay in life and they're gay. So it must not be a life sentence in some kind of way and when I, we're getting these notes, it would tug on my heart even more and it, it got to the point where I thought, I'm making the wrong call by trying to do something that is comfortable for me, which is to stay private. Uh, that I needed to do something for the greater good. And, uh, so that's why, no regrets. Never do.
So now you're, obviously, in the public eye. I recently you had a meeting with President Trump. What was the meeting with President Trump like? You know, I, I wouldn't want to say what he said. What I talked about was, I talked about trade and the importance of trade and, and how I felt, uh, that, uh, two countries trading together, make the pie larger and that, um, it's true, I think undoubtedly true, that, uh, not everyone has been advantage from that in, in either country.
Uh, and we've got to work on that. But I, I felt that tariffs were not the right approach there and I showed him some, uh, more analytical kinds of things to, to demonstrate why.
We also talked about immigration and, uh, the importance of, of fixing the dreamer issue, uh, now, you know, we're only one court ruling away from a catastrophic case there.
So do you think you made progress on these issues? I, I hope so and, uh, I hope so.
那么你认为你在这些问题上有进展了吗?我,我希望是的,嗯,我希望是的。
Capitol has roughly 260 billion dollars of cash, more or less. Uh, what do you tend to do with that cash? We're going to, uh, create a new site, a new campus within the United States. We're going to hire 20,000 people, uh, and, and so, and we're going to spend, uh, 30 billion in CAPEX, uh, over the next several years. And so we're, number one, we're investing and investing a ton in this country. Uh, we're also going to, uh, buy some of our stock because we view our stock is, uh, is a, is a good value.
So your, uh, did your parents live to see your success? My, my mother, uh, passed away, uh, three, three years ago and, uh, my, but my father's still alive.
So your mother lives, isn't it? Your, your mother lived to see you be the CEO. She did. And the chief said, well, you're great. I always knew you'd be successful. And can you help me with my iPhone?
Well, I, I did, uh, get both of them on iPad and I finally convinced my father, uh, to, uh, start using iPhones. And so, but, uh, they, honestly, they've treat me like they did 20 years ago and 40 years ago, 60 years ago. He calls you with tips about what to do or tell you how to do things or not. Yeah, if I do something, he doesn't think it's good. He tells me about it. Right. So, yeah, I saw you on that show. You weren't very good. So, uh, I'm hoping you edit this well.
You're obviously a pretty public figure. You were not before. Have you ever thought that maybe you could run for President of the United States? Because, um, you, you, um, you know, you've seen the present up close.
I'm not political. Right. I, I love focusing on the policy stuff, but, um, in the dysfunction kind of in, uh, in Washington between the, the legislative branch and, and so forth, I think that, uh, I can make a bigger difference in the world doing what I'm doing. And, uh, I appreciate the, the comment, but, um, I think, yeah. You know, the President is something that you'd love to, to be President, but not ever run. And, and, uh, that should never happen in our country. And so that kind of illuminates me.
Of all the CEOs that I know that have run major companies, you are the lowest ego, kind of most self-effacing person that I've seen in this kind of position. So, um, uh, have you ever noticed that you're different than the other people or CEOs and, and, uh, how do you maintain this self-effacing kind of modest, uh, demeanor when you're running the biggest company in the world?
But when you, when you work at Apple, uh, uh, there's a high expectation on everyone to perform and to contribute. And because of that high bar, and you never quite get there, including the CEO, including every job in there. And so I'd never feel that way very long if I ever felt that way.
Well, thank you for taking the time today. And I'm going to say, uh, thank you for having me. You're the first person I've interviewed without a tie on. And so I was in your honor. And, um, I bet you sleep in a tie.