CNBC Transcript: Apple CEO Tim Cook Speaks with CNBC’s Josh Lipton

JOSH LIPTON: APPLE JUST REPORTING. SO LET’S GET YOU THOSE NUMBERS. APPLE REPORTING EPS OF $1.42, KELLY. THE STREET WAS AT $1.38. REVENUE OF 42.4 VERSUS EXPECTATIONS OF 42.1. GROSS MARGIN OF 38%. iPHONE UNITS, 40.4 MILLION, KELLY, VERSUS EXPECTATIONS OF 40 MILLION. iPAD AT 10 MILLION. THAT’S THE FIRST TIME IN TEN QUARTERS YOU HAVE SEEN REVENUE GROWTH THERE IN THE iPAD. MAC 4.3 MILLION. OTHER PRODUCTS CATEGORY, KELLY, REMEMBER THAT INCLUDES THE WATCH, REVENUE THERE OF $2.2 BILLION SERVICES AT $6 BILLION. THAT WAS A 19% POP. TURNING TO THAT Q4 GUIDE, APPLE GUIDING Q4 REVENUE OF $45.5 BILLION TO $47.5 BILLION. THE STREET WAS AT 45.9 AND GROSS MARGINS, THE GUIDE IS 37.5% TO 38%. I DID JUST HAVE THE CHANCE TO TO TALK TO APPLE CEO TIM COOK. HE SAID HE THOUGHT THE iPHONE’S PERFORMANCE IN Q3 WAS FANTASTIC. HE MAKES THE CASE THAT THIS IPHONE FRANCHISE DOES REMAIN HEALTHY AND STRONG. HE SAID IN Q3 THEY SAW A RECORD NUMBER OF ANDROID SWITCHERS, THE HIGHEST EVER. IN FACT, HE SAID FOR THE FIRST NINE MONTHS IT’S BEEN THE HIGHEST EVER. HE SAID THAT WAS TRUE IN VIRTUALLY EVERY COUNTRY THEY TRACK. HE TALKED ABOUT THE iPHONE SE WHICH IS THEIR LATEST FOUR-INCH MODEL. HE SAYS THAT’S REALLY HELPING THEM ATTRACT NEW USERS TO THE IOS COMMUNITY. TWO OTHER POINTS TO TOUCH ON QUICKLY. SERVICES. COOK TELLING ME HE EXPECTS SERVICES TO BE THE SIZE OF A FORTUNE 100 COMPANY BY NEXT YEAR. HE POINTED OUT THAT APP STORE GROWTH POPPED 37%. ALSO SAID APPLE MUSIC AND iCLOUD GREW AND FINALLY IN TERMS OF GEOGRAPHIES, GREATER CHINA YOU’LL NOTICE DOWN MORE THAN 30%. COOK MAKING THE CASE TO ME THAT MAINLAND CHINA THOUGH SO FAR THIS FISCAL YEAR DOWN 2% IN CONSTANT CURRENCY. HIS POINT TO ME WAS GIVEN TOUGH COMPS AND ECONOMIC CHALLENGES, HE STILL IN HIS WORDS FEELS REALLY GOOD ABOUT THE BUSINESS THERE. BACK TO YOU.

About CNBC:

With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD, CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 386 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network’s 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. – 7:00 p.m. ET) is produced at CNBC’s global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC’s highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.

CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms including: CNBC.com; CNBC PRO, the premium, integrated desktop/mobile service that provides live access to CNBC programming, exclusive video content and global market data and analysis; a suite of CNBC mobile products including the CNBC Apps for iOS, Android and Windows devices; and additional products such as the CNBC App for the Apple Watch and Apple TV.

[Source:- CNBC]

Saheli