TECHNICALLY IN BEAR MARKET TERRITORY, FALLING 20% OR MORE

TERRITORY, FALLING 20% OR MORE FROM HIGHS.

FROM HIGHS. TIM COOK SAT DOWN WITH OUR OWN

TIM COOK SAT DOWN WITH OUR OWN SUSAN LEE TALKING ABOUT THE

SUSAN LEE TALKING ABOUT THE CORONAVIRUS AND SAYING I GUESS

CORONAVIRUS AND SAYING I GUESS THAT, LOOK, IT’S A PASSING

THAT, LOOK, IT’S A PASSING THING, IT’S NOT A LONG-TERM

THING, IT’S NOT A LONG-TERM THING, THAT WAS THE GIST --

THING, THAT WAS THE GIST -- >> THE DEMAND IS THERE.

>> THE DEMAND IS THERE. PEOPLE WANT TO BUY THE iPHONES

PEOPLE WANT TO BUY THE iPHONES AND THE APPLE SERVICES, BUT

AND THE APPLE SERVICES, BUT BECAUSE OF FACTORIES BEING

BECAUSE OF FACTORIES BEING CLOSED, STORES BEING SHUT, THEY

CLOSED, STORES BEING SHUT, THEY CAN’T GET ACCESS.

CAN’T GET ACCESS. THE DEMAND IS THERE, IT WILL

THE DEMAND IS THERE, IT WILL COME BACK, AND I THINK MOST

COME BACK, AND I THINK MOST ECONOMISTS BELIEVE THE

ECONOMISTS BELIEVE THE CONSUMPTION WILL RETURN.

CONSUMPTION WILL RETURN. BUT WEED HAD EXCLUSIVE ACCESS

BUT WEED HAD EXCLUSIVE ACCESS WITH TIM COOK IN BIRMINGHAM,

WITH TIM COOK IN BIRMINGHAM, ALABAMA, A HOMECOMING OF SORTS

ALABAMA, A HOMECOMING OF SORTS FOR A LOCAL HERO.

FOR A LOCAL HERO. HE GREW UP IN ALABAMA, WENT TO

HE GREW UP IN ALABAMA, WENT TO AUBURN, AND NOW HE’S PUSHING

AUBURN, AND NOW HE’S PUSHING TEASE NEW PHILANTHROPIC

TEASE NEW PHILANTHROPIC EDUCATIONAL INITIATIVES AT APPLE

EDUCATIONAL INITIATIVES AT APPLE AND BASICALLY SUPPLYING CODING

AND BASICALLY SUPPLYING CODING OPPORTUNITIES FOR THE

OPPORTUNITIES FOR THE UNDERREPRESENTED.

UNDERREPRESENTED. WE HAD A CHAT WITH HIM, AND WE

WE HAD A CHAT WITH HIM, AND WE TALKED ALL THINGS APPLE, STOCK

TALKED ALL THINGS APPLE, STOCK MARKET, CORONAVIRUS AND, YES,

MARKET, CORONAVIRUS AND, YES, EVEN HIS RELATIONSHIP WITH

EVEN HIS RELATIONSHIP WITH PRESIDENT TRUMP.

PRESIDENT TRUMP. LISTEN.

LISTEN. >> THINGS ARE GOING PRETTY MUCH

>> THINGS ARE GOING PRETTY MUCH LIKE WE THOUGHT THEY WOULD GO

LIKE WE THOUGHT THEY WOULD GO THERE IN TERMS OF BRINGING

THERE IN TERMS OF BRINGING THINGS BACK.

THINGS BACK. AND SO IT’LL, IT WILL TAKE SOME

AND SO IT’LL, IT WILL TAKE SOME TIME.

TIME. BUT, BY AND LARGE, I THINK THIS

BUT, BY AND LARGE, I THINK THIS IS A TEMPORARY CONDITION, NOT A

IS A TEMPORARY CONDITION, NOT A LONG-TERM KIND OF THING.

LONG-TERM KIND OF THING. APPLE IS FUNDAMENTALLY STRONG,

APPLE IS FUNDAMENTALLY STRONG, AND THAT’S --

AND THAT’S -- >> DO YOU ANTICIPATE DISRUPTION

>> DO YOU ANTICIPATE DISRUPTION AT THE LAST PASS THE SECOND

AT THE LAST PASS THE SECOND QUARTER?

QUARTER? >> WELL, OUR SECOND QUARTER’S

>> WELL, OUR SECOND QUARTER’S THE QUARTER WE’RE IN, JUST TO

THE QUARTER WE’RE IN, JUST TO DECLARE WITH OUR INVESTORS, THE

DECLARE WITH OUR INVESTORS, THE MARCH QUARTER.

MARCH QUARTER. YOUR CALENDAR FIRST QUARTER.

YOUR CALENDAR FIRST QUARTER. AND SO I DON’T KNOW THE ANSWER

AND SO I DON’T KNOW THE ANSWER TO THAT YET.

TO THAT YET. WE’RE STILL IN FEBRUARY, AND,

WE’RE STILL IN FEBRUARY, AND, YOU KNOW, THERE’S REASON FOR

YOU KNOW, THERE’S REASON FOR OPTIMISM.

OPTIMISM. BUT WE’LL SEE, YOU KNOW?

BUT WE’LL SEE, YOU KNOW? I THINK THE FOCUS IN THE LAST

I THINK THE FOCUS IN THE LAST FEW DAYS HAS TURN OFF OF CHINA

FEW DAYS HAS TURN OFF OF CHINA ON TO KOREA AND ITALY.

ON TO KOREA AND ITALY. SO I THINK IT’S VERY IMPORTANT

SO I THINK IT’S VERY IMPORTANT TO SEE WHAT HAPPENS THERE AND

TO SEE WHAT HAPPENS THERE AND WHETHER SOMETHING NEW COMES

WHETHER SOMETHING NEW COMES OCCUPANT OF -- OUT OF THAT.

OCCUPANT OF -- OUT OF THAT. OUR SUPPLY CHAIN IS RELATIVELY

OUR SUPPLY CHAIN IS RELATIVELY MORE IMPORTANT IN CHINA, BUT WE

MORE IMPORTANT IN CHINA, BUT WE HAVE GREAT BUSINESSES IN KOREA,

HAVE GREAT BUSINESSES IN KOREA, AND WE HAVE SUPPLIERS IN KOREA

AND WE HAVE SUPPLIERS IN KOREA AS WELL AND SUPPLIERS IN ITALY

AS WELL AND SUPPLIERS IN ITALY AND A GREAT BUSINESS THERE AS

AND A GREAT BUSINESS THERE AS WELL.

WELL. SO WE NEED TO SEE AS THAT

SO WE NEED TO SEE AS THAT UNFOLDS.

UNFOLDS. >> THE STOCK MARKET, OBVIOUSLY,

>> THE STOCK MARKET, OBVIOUSLY, IS REACTING, AND APPLE --

IS REACTING, AND APPLE -- [LAUGHTER]

[LAUGHTER] HAS BEEN DOWN --

HAS BEEN DOWN -- >> YEAH.

>> YEAH. >> IN -- IN THE PAST FEW WEEKS.

>> IN -- IN THE PAST FEW WEEKS. THAT CREATES VALUE INSIDE

THAT CREATES VALUE INSIDE AMERICA’S LARGEST COMPANY.

AMERICA’S LARGEST COMPANY. DO YOU THINK THERE’S VALUE THAT

DO YOU THINK THERE’S VALUE THAT INVESTORS ARE MISSING?

INVESTORS ARE MISSING? >> WELL, MY PERSPECTIVE, FIRST

>> WELL, MY PERSPECTIVE, FIRST OF ALL, I DON’T FOCUS ON THE

OF ALL, I DON’T FOCUS ON THE SHORT-TERM GYRATIONS OF THE

SHORT-TERM GYRATIONS OF THE MARKET.

MARKET. I THINK FOR ME AND WITH THE WAY

I THINK FOR ME AND WITH THE WAY WE HAVE RUN THE COMPANY, WE WORK

WE HAVE RUN THE COMPANY, WE WORK FOR THE LONG TERM.

FOR THE LONG TERM. AND I SEE NO LONG-TERM

AND I SEE NO LONG-TERM DIFFERENCE BETWEEN WHAT WAS

DIFFERENCE BETWEEN WHAT WAS HAPPENING FOUR WEEKS AGO VERSUS

HAPPENING FOUR WEEKS AGO VERSUS WHAT’S HAPPENING TODAY.

WHAT’S HAPPENING TODAY. AND SO, NO, THE MARKET TAKES

AND SO, NO, THE MARKET TAKES TIME TO RECOGNIZE THAT AND SO

TIME TO RECOGNIZE THAT AND SO FORTH, AND IT’LL DO WHAT IT’S

FORTH, AND IT’LL DO WHAT IT’S GOING TO DO.

GOING TO DO. I’M THE LAST PERSON TO BE ABLE

I’M THE LAST PERSON TO BE ABLE TO PREDICT IT.

TO PREDICT IT. FINISH.

FINISH. [LAUGHTER]

[LAUGHTER] BUT I WOULD, YOU KNOW, FOR ME, I

BUT I WOULD, YOU KNOW, FOR ME, I LOOK THROUGH THAT, LOOK THROUGH

LOOK THROUGH THAT, LOOK THROUGH THE NOISE AND CONCENTRATE ON THE

THE NOISE AND CONCENTRATE ON THE FUTURE.

FUTURE. AND THE FUTURE LOOKS VERY

AND THE FUTURE LOOKS VERY BRIGHT.

BRIGHT. >> YOU MIGHT BE ABLE TO GET

>> YOU MIGHT BE ABLE TO GET APPLE AT A DISCOUNT, A 15%

APPLE AT A DISCOUNT, A 15% DISCOUNT.

DISCOUNT. >> WE ARE A BUYER, RIGHT?

>> WE ARE A BUYER, RIGHT? WE HAVE A SHARE REPURCHASE PLAN,

WE HAVE A SHARE REPURCHASE PLAN, AND SO, YES.

AND SO, YES. >> THIS MIGHT BE AN OPPORTUNITY

>> THIS MIGHT BE AN OPPORTUNITY TO MAYBE UP THOSE SHARE

TO MAYBE UP THOSE SHARE REPURCHASES FOR APPLE.

REPURCHASES FOR APPLE. >> I DON’T WANT TO ANNOUNCE

>> I DON’T WANT TO ANNOUNCE ANYTHING ON THE AIR, BUT

ANYTHING ON THE AIR, BUT EVERYBODY KNOWS THAT WE’RE

EVERYBODY KNOWS THAT WE’RE BUYING SHARES, AND IF THE STOCK

BUYING SHARES, AND IF THE STOCK IS LOWER, YOU BUY MORE SHARES

IS LOWER, YOU BUY MORE SHARES FOR THE SAME AMOUNT OF MONEY.

FOR THE SAME AMOUNT OF MONEY. >> NOW, YOU’RE THE ARCHITECT OF

>> NOW, YOU’RE THE ARCHITECT OF THIS LOW INVENTORY, FAST MOVING

THIS LOW INVENTORY, FAST MOVING SUPPLY CHAIN THAT APPLE

SUPPLY CHAIN THAT APPLE CURRENTLY HAS.

CURRENTLY HAS. DO YOU HAVE ANY, I GUESS, IDEAS

DO YOU HAVE ANY, I GUESS, IDEAS TO MAYBE BRING BACK OR MOVE SOME

TO MAYBE BRING BACK OR MOVE SOME OF THAT SUPPLY CHAIN OUTSIDE OF

OF THAT SUPPLY CHAIN OUTSIDE OF CHINA MORE?

CHINA MORE? >> WELL, IT IS IMPORTANT TO

>> WELL, IT IS IMPORTANT TO RECOGNIZE THAT OUR PARTS ARE

RECOGNIZE THAT OUR PARTS ARE BUILT EVERYWHERE.

BUILT EVERYWHERE. THEY ARE TRULY GLOBAL PRODUCTS.

THEY ARE TRULY GLOBAL PRODUCTS. SO YOU HAVE SEVERAL PARTS THAT

SO YOU HAVE SEVERAL PARTS THAT ARE MADE IN THE UNITED STATES

ARE MADE IN THE UNITED STATES THAT SERVE THE WORLD.

THAT SERVE THE WORLD. SO NOT ONLY FOR THE iPHONE

SO NOT ONLY FOR THE iPHONE SOLD IN THE UNITED STATES, BUT

SOLD IN THE UNITED STATES, BUT THOSE SOLD AROUND THE WORLD.

THOSE SOLD AROUND THE WORLD. AND SO WHAT WILL HAPPEN TO THE

AND SO WHAT WILL HAPPEN TO THE SUPPLY CHAIN AS WE LOOK BACK ON

SUPPLY CHAIN AS WE LOOK BACK ON THIS, I WOULDN’T WANT TO SAY AT

THIS, I WOULDN’T WANT TO SAY AT THIS POINT BECAUSE THE QUESTION

THIS POINT BECAUSE THE QUESTION FOR US ALWAYS IS WHAT KIND OF

FOR US ALWAYS IS WHAT KIND OF RESILIENCE DOES THE SUPPLY CHAIN

RESILIENCE DOES THE SUPPLY CHAIN HAVE.

HAVE. IT’S NOT WAS THERE A PROBLEM,

IT’S NOT WAS THERE A PROBLEM, BECAUSE THERE WILL ALWAYS BE

BECAUSE THERE WILL ALWAYS BE UNPREDICTABLE THINGS THAT COME

UNPREDICTABLE THINGS THAT COME UP.

UP. BUT AS YOU KNOW FROM FOLLOWING

BUT AS YOU KNOW FROM FOLLOWING US, WE WORK THROUGH EARTHQUAKES,

US, WE WORK THROUGH EARTHQUAKES, TORNADOES, FIRES, FLOODS,

TORNADOES, FIRES, FLOODS, TSUNAMIS, SARS.

TSUNAMIS, SARS. AND SO WE’VE HAD A LONG LIST OF

AND SO WE’VE HAD A LONG LIST OF THINGS, AND THE OPERATIONAL TEAM

THINGS, AND THE OPERATIONAL TEAM IS VERY GREAT AT WORKING THROUGH

IS VERY GREAT AT WORKING THROUGH THESE.

THESE. SO THE QUESTION FOR US AFTER WE

SO THE QUESTION FOR US AFTER WE GET ON THE OTHER SIDE WILL BE

GET ON THE OTHER SIDE WILL BE WAS THE RESILL YENLS THERE --

WAS THE RESILL YENLS THERE -- RESILL YEANS THERE OR NOT AND DO

RESILL YEANS THERE OR NOT AND DO WE NEED TO MAKE SOME CHANGES.

WE NEED TO MAKE SOME CHANGES. MY PERSPECTIVE SITTING HERE

MY PERSPECTIVE SITTING HERE TODAY IS THAT IF THERE ARE

TODAY IS THAT IF THERE ARE CHANGES, YOU’RE TALKING ABOUT

CHANGES, YOU’RE TALKING ABOUT ADJUSTING SOME KNOBS, NOT SOME

ADJUSTING SOME KNOBS, NOT SOME SORT OF WHOLESALE FUNDAMENTAL

SORT OF WHOLESALE FUNDAMENTAL CHANGE.

CHANGE. >> SO YOU DON’T ANTICIPATE THEN

>> SO YOU DON’T ANTICIPATE THEN MOVING, SAY, TO OTHER LOW COST

MOVING, SAY, TO OTHER LOW COST COUNTRIES LIKE THE SEAT

COUNTRIES LIKE THE SEAT UNANIMOUS OR THE CAMBODIAS?

UNANIMOUS OR THE CAMBODIAS? SOME PEOPLE CALL THIS AN

SOME PEOPLE CALL THIS AN INFLECTION POINT FOR CHINA’S

INFLECTION POINT FOR CHINA’S MANUFACTURING INDUSTRY

MANUFACTURING INDUSTRY ESPECIALLY WITH THE DISRUPTS,

ESPECIALLY WITH THE DISRUPTS, AND PEOPLE ARE UNCERTAIN BECAUSE

AND PEOPLE ARE UNCERTAIN BECAUSE CHINA’S NOT CHEAP ANYMORE, LET’S

CHINA’S NOT CHEAP ANYMORE, LET’S BE HONEST, RIGHT?

BE HONEST, RIGHT? >> YEAH.

>> YEAH. THAT’S THE THING THAT PEOPLE

THAT’S THE THING THAT PEOPLE DON’T UNDERSTAND, I THINK, IS

DON’T UNDERSTAND, I THINK, IS THAT THERE’S A PERSPECTIVE THAT

THAT THERE’S A PERSPECTIVE THAT IS THAT THAT CHINA IS -- IT

IS THAT THAT CHINA IS -- IT HASN’T BEEN FOR A LONG TIME, THE

HASN’T BEEN FOR A LONG TIME, THE AS BOTH OF US KNOW.

AS BOTH OF US KNOW. AND SO BUT FOR US, WE’RE NOT

AND SO BUT FOR US, WE’RE NOT REALLY FIXATED ON COST ONLY.

REALLY FIXATED ON COST ONLY. COST IS ONE FACTOR, CLEARLY.

COST IS ONE FACTOR, CLEARLY. BUT WE’RE ALSO FOCUSED -- WE’RE

BUT WE’RE ALSO FOCUSED -- WE’RE FIXATED ON QUALITY.

FIXATED ON QUALITY. AND WE’RE FOCUSED ON TIME TO

AND WE’RE FOCUSED ON TIME TO MARKET AND THE SPEED AND THE

MARKET AND THE SPEED AND THE DEPTH OF ENGINEERING IN THE

DEPTH OF ENGINEERING IN THE DIFFERENT PLACES.

DIFFERENT PLACES. AND SO SOMEBODY WOULD HAVE TO

AND SO SOMEBODY WOULD HAVE TO MEET ALL OF THOSE IN ORDER FOR

MEET ALL OF THOSE IN ORDER FOR US TO DO SOMETHING.

US TO DO SOMETHING. >> YEAH.

>> YEAH. IN ANNOUNCING ALSO YOUR FIRST

IN ANNOUNCING ALSO YOUR FIRST RETAIL STORE IN INDIA BY THE

RETAIL STORE IN INDIA BY THE YEAR 2021.

YEAR 2021. >> I’M EXCITED ABOUT THAT,

>> I’M EXCITED ABOUT THAT, BECAUSE THAT’S THE ENGINE,

BECAUSE THAT’S THE ENGINE, THAT’S E A HUGE OPPORTUNITY FOR

THAT’S E A HUGE OPPORTUNITY FOR US.

US. FOR YEARS WE COULD NOT ENTER

FOR YEARS WE COULD NOT ENTER THERE UNLESS WE ENTERED THERE

THERE UNLESS WE ENTERED THERE WITH A PARTNER.

WITH A PARTNER. INTO RETAIL.

INTO RETAIL. AND WE DID NOT WANT TO DO THAT,

AND WE DID NOT WANT TO DO THAT, YOU KNOW?

YOU KNOW? WE WANT TO MAINTAIN CONTROL OF

WE WANT TO MAINTAIN CONTROL OF OUR BRAND AND SO FORTH.

OUR BRAND AND SO FORTH. BUT THE ADMINISTRATION WORKED ON

BUT THE ADMINISTRATION WORKED ON THIS WITH THE INDIAN GOVERNMENT,

THIS WITH THE INDIAN GOVERNMENT, AND THAT CHANGE HAS BEEN MADE.

AND THAT CHANGE HAS BEEN MADE. AND SO WE’RE, WE ARE VERY, VERY

AND SO WE’RE, WE ARE VERY, VERY POSITIVE ABOUT ENTERING ONLINE

POSITIVE ABOUT ENTERING ONLINE THIS YEAR AND RETAIL NEXT YEAR.

THIS YEAR AND RETAIL NEXT YEAR. >> SPEAKING OF THE

>> SPEAKING OF THE ADMINISTRATION, I’M SURE YOU GET

ADMINISTRATION, I’M SURE YOU GET ASKED THIS ALL THE TIME, BUT

ASKED THIS ALL THE TIME, BUT WHEN PEOPLE SEE TIM COOK ON ONE

WHEN PEOPLE SEE TIM COOK ON ONE SIDE, DONALD TRUMP ON THE OTHER,

SIDE, DONALD TRUMP ON THE OTHER, THEY SEE A LOT OF DIFFERENCE.

THEY SEE A LOT OF DIFFERENCE. BUT YOU HAVE BEEN ABLE TO

BUT YOU HAVE BEEN ABLE TO ENGAGING AND WORK TOGETHER --

ENGAGING AND WORK TOGETHER -- ENGAGE AND WORK TOGETHER.

ENGAGE AND WORK TOGETHER. HOW DOES THE RELATIONSHIP WORK?

HOW DOES THE RELATIONSHIP WORK? >> WELL, THERE ARE DIFFERENCES,

>> WELL, THERE ARE DIFFERENCES, THERE’S NO DOUBT ABOUT THAT.

THERE’S NO DOUBT ABOUT THAT. BUT YOU LOOK FOR INTERSECTIONS,

BUT YOU LOOK FOR INTERSECTIONS, AND I CARE A LOT ABOUT CREATING

AND I CARE A LOT ABOUT CREATING JOBS, AND I THINK THE PRESIDENT

JOBS, AND I THINK THE PRESIDENT DOES AS WELL.

DOES AS WELL. I CARE A LOT ABOUT TRAINING THE

I CARE A LOT ABOUT<