From records set to supply-demand controversy, Tim Cook opened up about Apple’s business with \u00ab\u00a0Mad Money\u00a0\u00bb host Jim Cramer.<\/b>
\nInvestors may be buzzing about Tim Cook’s announcement that Apple will invest $1 billion in U. S. manufacturing jobs, but here are five things from the CEO’s Wednesday interview with CNBC \u00a0\u00bb Mad Money \u00a0\u00bb host Jim Cramer that may have slipped under your radar:
Cook revealed that to fund Apple’s advanced manufacturing project, Apple will have to borrow $1 billion, so it does not have to pay taxes on its $256 billion it has stashed overseas. The CEO said that both repatriation and comprehensive tax reform would help make sense of this convoluted system.
\u00ab\u00a0If you sell globally, you earn money globally. If you earn money globally, you can’t bring it back into the United States unless you pay 35 percent plus your state tax, \u00a0\u00bb Cook said. \u00ab\u00a0You look at this and you go, ‘This is kind of bizarre.’ You want people to use this money in the United States to invest more.\u00a0\u00bb
As Apple’s massive developer community grows, Cook said that the company never stops asking itself key questions such as, \u00ab\u00a0How can we empower the next generation of developers? How can we touch even more people? How can we train more people to code so they can pursue their passion?\u00a0\u00bb
When Cramer asked if Cook would ever put money behind this mission, Cook replied:
\u00ab\u00a0We would. We would, and we will, and you’ll be hearing more about that across the summer.\u00a0\u00bb
Aside from Wall Street’s bearishness on iPhone sales, which Cook said were caused by rumors of a new phone coming in late 2017, the company saw growth across the board.
\u00ab\u00a0We had a great quarter. If you get into the numbers just a little bit for a few minutes, the Mac grew 14 percent. This is huge. Services continued this really fast growth. It grew 18 percent year on year and we continue to be on target to be a Fortune 100 company this year with our services business. The Watch almost doubled year on year, \u00a0\u00bb Cook told Cramer.
During the first quarter of this year, the Apple Watch grew so dramatically that it overtook the struggling Fitbit to become the largest wearable tech vendor .
When Cook mentioned that the iPhone 7 Plus was doing incredibly well in China, seeing double-digit growth year on year, Cramer asked the CEO if the quarter would have looked different had Apple produced more of that smartphone model.
\u00ab\u00a0No, I wouldn’t say that, because I feel that we were in supply-demand balance at the beginning of the quarter, \u00a0\u00bb Cook replied.
Though Samsung seems to have recovered from its exploding phone scare, Cook was not worried about Apple customers switching to the Galaxy phones.
Instead, the CEO said that Apple actually set records both for how many people switched to Apple from other providers, and for how many people in the world upgraded their phones.
\u00ab\u00a0On the switcher side, we were very pleased that we set a record for switchers outside of China for the first six months of this fiscal year. As you know, we start in October and we just finished the first half in March, \u00a0\u00bb the CEO explained. \u00ab\u00a0We set a record there and we set a record for upgraders across the world. And so this felt really good.\u00a0\u00bb
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