Tim: "it was an art" that Steve would change his mind 180 degrees; " this was a gift!" "
it takes courage to say 'I was wrong.' I think he had that"
Tim: The Kennedys said "two whom much is given much is expected"
Tim: "matching gift program at Apple allows us to do things without a lot of the bureaucracy of group decisions on what charities to support"
Tim: Steve knew about the matching gift program and was strongly supportive of it
Tim describing Dividend program and share buybacks
Tim: we have money left over (after investing and building new products) we should share it
Tim: will double down on product security and secrecy
Tim: will be the most transparent company in the world in some areas: social change, supplier accountability
Tim: we think people will copy us, and we want people to copy us in that area
Tim: in the past we did an annual report (on supplier accountability), now we're putting out monthly reports. We want everyone to know what we're doing
Kara: address China and what you're doing, what you're changing. Why isn't there an Apple factory in China run by Apple?
Tim: Why don't we do it? We decided a decade ago there were things we could do better that anyone else
Tim: and manufacturing was among those others could do as well or better
Tim: operational efforts and product design are Apple strengths
Tim: we put a ton of effort into taking overtime down. It's hard because its complex. Some people want to do a lot of work, move to a factory and work long hours and then move home
Tim: we'er reporting hours for 700,000 people
Tim: we put out a labor report like the US does
Tim: "we're micromanaging that, doing it in a way and showing a level of care I don't see in other places"
Tim: "I hope people rip us off blindly" in social accountability
Walt: ever see the possibility of bringing manufacturing back to the US?
Tim: I want there to be. We've already (this is not well known) the engine of the iPhone (ARM Chip), the glass is made in KY
Tim: people focus on the final assembly, because that's what people think of, but parts underneath are significant value.
Tim: could the assembly be done in the US? Hope so, but tool and die makers in the US couldn't fill a room. You'd need several cities in China for all the tool and die makers in business
Tim: there are some things we can do in the US, including semiconductors. Corning glass in KY, we will do as many of these as we can do. We will use the whole of our influence to do this
Tim: today you could put down "several parts from the US' on the back of the iPhone
Tim: "so very important" to look at developers
Tim: if you look at D1-D6 (prior to 2007), who knew what apps were? there are now hundreds of thousands of app developers. Didn't exist a few years ago
Tim: from an app point of view, you'd be hard pressed to come up with a list of people making significant innovative software on the PC. But in mobile, you'd need "several football stadiums"
Tim: I don't see the tablet replacing the need for all PCs or Macs. The tablet for some people takes over what their PC was about. Will extend their purchasing cycle - buy tablets more often, fewer PCs
Kara: are patents a problem for innovation?
Tim: "well it's a pain in the ass"
Tim: its important that Apple not be the developer for the rest of the world
Tim: "we can't finish the painting and have somebody else put their name on it"
Tim: worst thing when you're an engineer is for someone else to rip it off and put their name on it
Walt: there's people accusing Apple of ripping off other too
Tim: those are mostly standards essential patents
Tim: something fundamental to connecting to the 3G network, you can't design a product without it
Tim: the issue is that this is an economic argument. Nobody should be able to get an injunction on a SEP. The owner has the task of getting Fair, Reasonable and NonDiscriminatory licensing
Walt: so when you sue its ok and when you're sued its wrong
Tim: can't say how other people feel. But Apple hasn't ever sued anyone over SEPs we own.
Tim: you can always argue over SEP licensing, but the problem is that if you add up what some people say the SEPs are worth (apparently referencing Samsung and Motorola), there'd be no way to build anything
Tim: its overhead we wish didn't exist.
Tim: The magistrate said we can't talk about it