What we learned from today’s Apple shareholders meeting

Passing along notes and photos from the Steve Jobs Theater.

apple shareholders meeting 2020From MacRumors‘ Juli Clover:

During his opening remarks, Apple CEO Tim Cook commented on the ongoing coronavirus outbreak that has caused Apple to lower its March revenue forecast due to device shortages and store closures in China.

Cook said that the outbreak is a “fairly dynamic situation” and that it is causing “a challenge” for Apple. He went on to say that Apple’s first priority is the health and safety of its employees. “That’s where our energies are,” he said.

Cook was asked why Apple didn’t make an effort to get the rights to the upcoming Friends reunion show that’s going to be on HBO Max when it launches in May 2020. Cook said that recycled content is “not what Apple TV+ is about.” ‌Apple TV‌+ is “about original programming,” said Cook. “It doesn’t feel right for Apple to just go out and take a rerun.”

During the meeting, Cook confirmed Apple’s plans to open an online store in India in 2020 and a retail store in 2021. Apple has been working for years to establish a presence in India.

On the topic of the environment, Cook reiterated a goal that Apple executives have mentioned many times in the past. Apple’s aim is to “create an Apple product without taking anything from the earth” as part of a closed-loop supply chain, which is why Apple has established robust recycling methods. “This is one of those things people say you can’t do. We’re going to find a way to do it,” he said.

apple shareholders meeting 2020

apple shareholders meeting 2020

apple shareholders meeting 2020

Below: Friends of the blog lunching at Cupertino’s Jupiter Hotel:

apple shareholders meeting 2020

apple shareholders meeting 2020

My take: Oh how I wish I were there! I may have to buy a share of Apple, just to get an invite.

10 Comments

  1. Gregg Thurman said:
    Eager to hear from the friends of the blog in attendance.

    I’d like to hear if TC addressed the buyback questions raised here.

    0
    February 26, 2020
  2. Fred Stein said:
    Great after party at Juniper Hotel. Thanks Joseph for organizing, and Philip for creating the on-line salon, Apple 3.0. Our conversations reinforced Apple’s leadership. Apple is so far ahead in so many areas, that even the most bullish analysts barely get it.

    3
    February 26, 2020
    • David Emery said:
      Any particularly interesting insights, or funny quotes, to report?

      0
      February 26, 2020
  3. Gregg Thurman said:
    Looks like average is ~66(?).

    1
    February 27, 2020
  4. Kirk DeBernardi said:
    Not too much humor on display today.

    Enjoyed two Tim Cook “subdued-exuberance” comments. One about his strong faith in the promise of becoming established in India and the his firm belief in Apple’s excellent positioning for the future.

    2
    February 27, 2020
  5. John Konopka said:
    Tidbits from my notes:

    The iPhone 11 has the toughest glass in a cell phone. Interesting.
    Customer satisfaction 98%
    Night mode is very popular.

    2019 calendar year the services revenue reached $48B. In 2016 Apple set a target to double services revenue by 2020. On track to meet this target.

    $155B has been paid to developers over the years.

    On target to invest $350B in US by 2023.

    AppleTV+ is about original content, not streaming content from others. First time I’ve heard this mission statement.

    14 acquisitions in calendar 2019.
    >$16B in R&D
    Tim repeated last years description of R&D including many things which will never see the light of day.

    Apple now using 100% renewable energy. Now pushing suppliers to use more renewables.

    There was a target to build out 4 GW of solar power (not sure of the details of this). Tim said they actually built 5 GW. That is an impressive amount. It is not a totally fair comparison, but a nuclear reactor typically produces about 1 GW.

    They have a target to use only recycled materials. There was a question about recycling AirPods.
    Tim didn’t address this directly. Apple’s general policy is:
    1. Make products last a long time.
    2. Develop a trade-in market so that unused products can be resold instead of being discarded.
    3. Recycle products and reuse materials when possible.

    Craig Federighi made a brief appearance and said that we should expect good things for iPad OS.

    Tim said something about the health care area that I think was new. It went by a little fast but he said that in the enterprise market for medical records Apple would not make a product to compete in this area. Instead, he wanted other companies to create solutions that allowed people to carry all of their own medical records on the iPhone.

    In the recent past Tim has said that he expects Apple to be strongly involved in the health care area. I’m not sure how to square these two statements.

    Wearables: Apple Watch and AirPods together could stand alone as a Fortune 150 company. Impressive as AW is less than 5 years old and AirPods are about 3 years old.

    Tim gets letters every day from people telling him how AW has greatly helped them, sometimes saving their lives.

    Privacy and the Florida terrorist. Apple has done everything possible to help the FBI. They are not holding back. Apple will not make a back-door to iOS. This was met with long and loud applause.

    I felt that this years meeting was more low key than past meetings. Tim Cook didn’t provide as much guidance on the future of Apple has he has in the past. I expected to hear a lot more about the effect of the COVID-19 virus than we did. We got no guidance about how this affects production this spring.

    10
    February 27, 2020
    • Fred Stein said:
      Thanks. I especially like $166B paid to developers; And working with incumbents in medical records.

      Being the best partner to others, Apple gives us consumers (and stockholders) great value. Android can’t do this.

      3
      February 27, 2020
  6. Romeo A Esparrago Jr said:
    GREAT notes and GREAT group pix!
    I, too, wish I was there, at least at the get-together of The Brainy Bunch. All’s y’all’s are beautiful! :-)❣️

    0
    February 27, 2020

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