iLounge

By Charles Starrett

Senior Editor, iLounge
Published: Thursday, February 25, 2010
News Category: Apple, iPad, Apple TV

Apple has posted an audio webcast of COO Tim Cook’s recent comments made at the Goldman Sachs Technology & Internet Conference 2010. During his talk, Cook made a number of interesting comments regarding the Apple TV, iPad, and iPhone. According to Cook, the reason Apple calls Apple TV a hobby is because it’s in a market that’s “very small today.” However, unit sales of the Apple TV grew 35% year-over-year in the December quarter, and the company is “continuing to invest in it” because it believes “there’s something there.” However, Cook contrasted the Apple TV’s hobby status with the iMac, which he believed was a strong product with a bright future ahead; by contrast, the current model for the Apple TV was difficult, because it would seem to lead to an Apple-branded TV, adding that the company has “no interest in being in the TV market.”

Regarding the potential market for the iPad, Cook said he “wasn’t losing any sleep” over possible cannibalization of existing Apple products, and amplified prior hints regarding its value relative to netbooks, saying that he doesn’t think people will want to continue to use inexpensive but disappointing netbooks over time. Having used the iPad for six months, as he explained, the experience was significantly better. As for distribution, Cook said the company will initially sell the iPad in its direct channels, including in Apple Stores, online, and through its education sales force, and in indirect channels where the company has “assisted sales,” including Apple’s “stores in stores” at Best Buy locations and Apple Premium Resellers, all places where the company “has sales people that can answer questions.” He suggested that the iPad could later come to locations without sales assistance, implying that customers will need to be helped through initial experiences with the unfamiliar device. He also described AT&T’s iPad data pricing as “revolutionary,” noting that he wouldn’t want to suggest what competing carriers might have to do to sell the iPad along with AT&T, and later said that he thinks there is a place for both iPhone OS and Mac OS operating systems.