Kara: lets begin, whats the state of Apple under Tim Cook?
Cook: absolute incredible time to be with Apple
For years, and this will not change, Apple's been focused on innovation
Cook: Juices are flowing, incredible things are coming out
Cook: we've had a few decent quarters, iPhone's doing great. 70+ million people with them
Tim: iPad has been unbelievable really
Tim: I've never seen a product in technology that consumers, business and technology have all loved, people of all ages
Cook: We're in the first inning of [iPad]
Tim: the Mac has had a string of incredible quarters, outgrown the PC market for 6 years
Walt: growth from a small base, right?
Tim: never going to make the most computers, focused on the best product
Tim: iPod introduced Apple to a lot of people who didn't know the Mac. Also introduced Apple to developers
Tim: Many people in China, middle east, latin america, Russia introduced to Apple by iPod, iPhone
Tim: We're still in the very beginning
Kara: What are you introducing next?
Tim: thats a great question. We're going to introduce some great stuff. I think you're going to love it
Tim: repeating his line that the iPad/ tablet would eventually outsell the PC
Tim: fewer naysayers than previously on that prediction
Tim: says he's using iPad a lot himself
Walt: the public at large are going to be exposed to something from Microsoft later this year (Windows 8) that will be across PCs and tablets, including hybrid devices. What's the distinction
Tim: In my view the tablet and PC are different. If you view as different, you can do things with the tablet you can't do if you are straddled with the legacy of the PC
Tim: we didn't invent the tablet market, it was there
Tim: we invented the modern tablet. Convergence is good in some cases but there are tradeoffs
Tim: OS of the PC "should do" things that the tablet doesn't need to do
Tim: People want tablets to be "incredibly thin"
Tim: converged design isn't going to make a "kick ass product"
Tim: "I think if you force them together, the PC is not going to be as good as it can be, and the tablet is not going to be as good as it can be"
Walt: obviously Apple has going through a lot of change with the death of Steve Jobs, what is different, what did you learn, what are you doing different ?
Tim: (broken voice) saddest day of my life when Steve died.
Tim: Some point last year, somebody shook me and said it;s time to go on. Sadness displaced with a desire to do great things.
Tim: learned focus is key, both in products and in your personal life. Do a few things great, cast everything else off.
Tim: owning the key technology of the product
Tim: not accepting good or very good, only the best. Apple has a culture of excellence" that is "so unique and so special, I'm not going to witness or permit the change of it"
Tim: "the joy is in the journey" and Steve "taught all of us that life is fragile, tomorrow isn't guaranteed so give today your all"
Tim: Steve taught us not to focus on the past, focus on the next thing
Tim: not allowing change in the sense of the culture changing
Tim: you can't change your organization to look like Apple and just have it. "of course I'm going to change things"
Tim: "When he called me to his home to be CEO, Steve said he'd witnessed Disney after the death of Walt Disney committees of people asking what Walt would have done
Tim: Steve said don't sit around trying to ask what Jobs would do.
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