Kara: what do you think about Google's painting?
Tim: I don't want to talk about other companies. You brought up patents so I addressed that
TIm: I think we have the best phone, but you have 2 OS that make up the vast majority of mobile (iOS and Android). You have Windows Mobile now beginning to ship, and you have RIM still serving some large number of enterprise companies, but the momentum are in the first two
Tim: anything can change. we're in the early stages of the smartphone revolution
Tim: when you back up and look at this, its a billion unit market a few years from now
Tim: opportunity is huge. clearly can be changes along the way
Walt: one thing happening in the Android side of things among OEMs, they're looking to focus on fewer models
Tim: I wonder where they got that idea?
Walt: if you group all the Samsung Galaxy models together its the biggest Android group, but not one product
Walt: Apple has one unit, last years model.
Walt: that's not the way you did it with the iPod, not the way you did it with the Mac. Why not more iPhones
Tim: We're focused on making the best product. Not x number of phones at different price points. There's not a policy or commandment that there will only be one iPhone. But we have an overriding belief in making the best
Tim: one of our best advantages is that we're not fragmented. we have one App Store, one phone, one screen size, one resolution. Pretty simple if you're a developer on this platform. That's not the case on Android
Kara: but there's several different iPods
Walt: your people would say we have all these iPods covering different price points, and lower ones are not junky. why are you not making a new $99 iPhone?
Tim: who knows what we'll do in the future!
Tim: with the iPod, we didn't sit around and target price points. We realized we could do a pretty great product with the iPod shuffle
Tim: the result of that was that we could have different price points, not the objective
Tim: whenever we have the opportunity to make great products that hit different price products we do
Kara: disappointed that we wouldn't get to talk about new products but lets talk about TV. Steve talked a lot about it
Tim: very uncharacteristic of us--we've stayed in the Apple TV business. We're not a hobby company.
Tim: if something creeps in and isn't' a big success, we put it aside and move on
Tim: we've stuck in Apple TV. It's not the 5th leg of the stool (Mac, iPod, iPhone, iPad, music)
Tim: first six months of the year we sold 2? million, as many as we reported last year, thanks to the 1080p update
Tim: incredible, off the charts. we;re going to keep pulling the string and see where it takes us
Tim: TV is an area of many people's lives where they're not pleased with it
Tim: right now our contribution is Apple TV
Walt: there's a ton written about Apple doing a TV Set. Are you making a TV?
Tim: we're not going to say that
Walt: as you think about making a box...
Tim: here's how we would look at it: can we control the key technology. Can we make a significant contribution far ahead of what others are doing? Can we make a product we would want ourselves? What we ask when thinking about it
Kara: is Apple TV good enough today?
Tim: I love it, but we keep pulling the string
Walt: there's not a lot of content on there. There's a limited number of channels compared to other products. You don't stream movies
Tim: you can rent the movie though, that's what most people want to do
Walt: what's the core technology in TV ?
Tim: I don't want to answer that
Kara: I'm assuming its the TV itself (what?)
Kara: whats your relationship with content providers?
Tim: we don't want people to get ripped off. Comparing it to music; a whole generation was growing up not paying for anything
Tim: I think Apple's relationship with the content providers is good. They're long time Apple customers. Most movies are edited on Macs
Tim: There's a level of trust with Apple. Steve brought us closer because he owned a content company (Pixar)
Kara: What's their complaint? You're not paying them enough?
Tim: I don't think they'd say that. Met with them, "great conversations" about what more we could do, not negotiating complaints
Kara: would you do something like Google is doing with Youtube for original content?