Monday, November 24, 2014

Expanding Ecosystem for Tim Cook & Co.

Tim Cook is more candid and informative than personally I have seen him.  The thought came to mind was that he had studied interviews Steve Jobs gave, no doubt intensively, to learn how the Apple icon carried himself and what he divulged.  In any case, I found myself encouraged about how the company is doing and more importantly how well positioned it is for the future.   

iPhone will continue to lead Apple revenues and profits, but it is not by any means the only business.  Software services is an $18 billion business, for one thing.  Also customers love the bigger screen experience: Consequently iMac has grown 21% and Apple has kept innovating there.  Its overall ecosystem is getting larger, for example, with finances (Apple Pay) health and fashion (Apple Watch) added in.

TV is an interesting space for Apple, and no doubt other firms as well.  It is a 30-year old technology, so the contrast that Cook paints is compelling:  We work at our sophisticated PCs and work our mobile devices, then we head to our living room and it is a step back in time.  He demures on offering more information, but still TV definitely has a compelling business proposition.

What Cooks says on matters of privacy is instructive: Apple doesn't read our e-mails, texts or face-time communications.  So whether it's the good guy (government) or the bad guy (hackers) calling for personal data, they cannot provide anything.  It's a pointed jab at Google, among other technology majors. Apple business model is exquisitely crafted around hardware and software, unlike others where advertising revenues are huge and our personal data is an integral business proposition. 

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