Apple CEO Tim Cook, once again took to CNBC to soothe investors. Post the disappointing second quarter earnings call, investor skepticism is clearly visible in the dwindling stock prices of Apple. So Tim Cook appeared on CNBC with Jim Cramer on his program “Mad Money” and shared his perspectives on the earnings report, calling media reactions “a huge overreaction”.
We just had an incredible quarter by absolute standards, $50 billion plus in revenues, $10 billion in profits. To put that in perspective, the $10 billion is more than any other company makes.
said Cook on the show.
He further added that Apple was doing “pretty good” having earned $53 billion in profits during last year compared to which the number 2 company made $24 billion.
Ever since the legendary Steve Jobs came back to Apple in 1998, Apple has been on a dream run to become the top company in the world. Until last week when the company posted its fiscal second quarter earnings call which reported saw a decline for the first time in 13 years.
Since then, stock prices of Apple have been on a constant decline with Monday recording the eighth consecutive daily loss for the company, the longest such losing streak since 1998, according to CNBC.
Going beyond financial numbers, Tim Cook, however, said that the most important thing was that customers love their products. Expressing his faith on customer loyalty and the strong fan base commanded by Apple, Cook said
Customers love our products. Loyalty has never been higher and satisfaction is at its highest.
Tim Cook also revealed future plans of Apple and said he was super excited about some of the secret, unannounced gadgets to come including new iPhones.
We’ve got great innovation in the pipelines, new iPhones. We’re going to give you things you can’t live without that you don’t know you need today. That’s always been the objective of Apple.
Cook also addressed the investor concerns of Apple’s fate in China where it recorded a 16 percent drop in iPhone shipments and a 26 percent decline in revenue during its fiscal second quarter.
I think what you see in China in general is a smartphone industry isn’t growing, there’s movement between different suppliers of smartphones, but in the areas we play, we’re doing quite well,
He went on further to say that he could not be more optimistic about China because if one looked at it on a two-year basis, Apple grew 70 percent in China. “It’s hard-pressed to say those aren’t good results,” remarked Cook.
The Chinese government also shut down Apple iTunes’, Movies and iBooks services last month. Cook said that they were working with the relevant government agencies and businesses and were confident to come back online soon.
In addition to China, Cook also mentioned Indian market having a “huge market potential” where the company has been trying to establish its presence through own retail outlets.