$100 billion beyond the iPhone: Apple CEO Tim Cook talks giant's move past hardware

  • Apple CEO Tim Cook and CNBC's Jim Cramer discuss business in China, pessimism on Wall Street, disputes with Qualcomm and what's next for the consumer tech giant.
  • In Apple's last fiscal year, the company generated $100 billion in revenue not tied to the iPhone, Cook says.
  • That, combined with new ventures into the health-care space, paints a picture of Apple's future.

In its last fiscal year, Apple generated $100 billion in revenue that was not tied to what has long been considered its flagship product, the iPhone, CEO Tim Cook told CNBC on Tuesday in a wide-ranging interview with Jim Cramer.

"In this last quarter, if you take everything outside of iPhone, it grew at 19 percent, 19 percent on a huge business," Cook said on "Mad Money."

Apple's services, which include the App Store, iTunes, Apple Pay, Apple Music and iCloud, have been growing rapidly quarter over quarter. In 2017, Cook said he wanted Apple's services revenue to double by the end of 2020, a sentiment he reiterated in Tuesday's interview.

That growth, combined with the success of the company's wearable products and its ventures into health and wellness, could be a sign of what's next for the consumer technology giant.

Here's what Cook thinks about what's next for his company, U.S.-China trade, naysayers on Wall Street, Apple's ongoing dispute with Qualcomm, and the success of the Apple Watch and the AirPods.

Apple in 2019

Apple will announce "material" new additions to its growing roster of services in 2019, Cook told Cramer.

"You will see us announce new services this year. There will more things coming," Cook said in the interview. "I believe it'll be material over time."

The new services will be ones that Apple has "been working on for multiple years," especially in the realm of health care, he continued.

"If you zoom out into the future, and you look back, and you ask the question, 'What was Apple's greatest contribution to mankind?' It will be about health," Cook said.

Cook was notably reassuring when asked about the prospects of U.S.-China trade talks. He cast the trade-related economic weakness in China as "temporary," saying it was in both countries' "best interests" to reach an agreement.

"It is a very complex trade agreement and it needs to be updated, but as I've said before, I'm very optimistic that this will happen," Cook told Cramer.


click CNBC link for full report and interview video


source: CNBC