Tim Cook: iPhone rumors are dampening sales

Here are five noteworthy statements made by Tim Cook during Apple's Q2 2017 earnings conference call.
Written by Adrian Kingsley-Hughes, Senior Contributing Editor

Apple's earnings conference call offers up some interesting tidbits about how the company operates. Here are five noteworthy statements made by Tim Cook during Apple's Q2 2017 earnings conference call.

Must read: Just how bad were those iPhone sales?

#1: Apple Watch and AirPods are big business (literally)

"Building on the momentum from the holiday quarter, Apple Watch sales nearly doubled year over year. Apple Watch is the best-selling and most loved smartwatch in the world, and we hear wonderful stories from our customers about its impact on their fitness and health."

"Demand for AirPods significantly exceeds supply, and growth in Beats products has also been very strong. In fact, when we combine Apple Watch, AirPods, and Beats headphones, our revenue from wearable products in the last four quarters was the size of a Fortune 500 company."

#2: Apple is gunning for Qualcomm

"The reason that we're pursuing this is that Qualcomm's trying to charge Apple a percentage of the total iPhone value. And they do some really great work around standards-essential patents, but it's one small part of what an iPhone is. It's not - it has nothing do with the display or the Touch ID or a gazillion other innovations that Apple has done. And so we don't think that's right, and so we're taking a principled stand on it."

#3: Apple underestimated demand for iPhone 7 Plus

"...we did not get right was the mix between the iPhone 7 and the iPhone 7 Plus. There was - wound up that demand was much stronger to the iPhone 7 Plus than we had predicted."

#4: iPhone rumors are dampening iPhone purchases

"...we're seeing what we believe to be a pause in purchases on iPhone, which we believe are due to the earlier and much more frequent reports about future iPhones."

#5: iPad sales could be showing signs of recovery

"iPad results were ahead of our expectations, and we believe we gained share during the March quarter in a number of major markets, including the U.S., Japan, and Australia."

Conference call transcript excerpts courtesy of Seeking Alpha.

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