Apple's Cook on iPad, Asia, Apple TV, and more

20.07.2011

In terms of cannibalization, we do believe that some customers chose to purchase an iPad instead of new a Mac in the quarter. But we also believe that even more customers chose to purchase an iPad over Windows PC. As I've said before, there's a lot more of the Windows PC business to cannibalize than the Mac. Also we believe that the Mac has many other attributes that would make it continue to do well in the market. We're very happy that we grew 14 percent versus the market's growth of 2.6, which is about five times. So that's what we see with iPad.

We were still selling every unit we can make during the quarter, and that was the situation as we ended the quarter. As we've stepped into July, over the initial weeks, to give you a more current update, we have been able to increase the supply further, and some SKUs in some countries are at a supply/demand balance. But we're still working very hard on the balance of the world. The sales of iPad 2 have absolutely been a frenzy for people to get one, and we feel very good about the progress that we've made about ramping up and the reception that we've received in the marketplace.

China was very key to our results. As a reminder, for Greater China--mainland China, Hong Kong, and Taiwan--year-over-year it was up over 6 times. And the revenue was approximately $3.8 billion during the quarter. And that makes the year-to-date numbers through the three quarters we've had thus far around $8.8 billion. So this has been a substantial opportunity for Apple, and I firmly believe that we're just scratching the surface right now. I think there is an incredible opportunity for Apple there.