Apple TV is still a “hobby,” because it doesn’t sell like the phone, computer and MP3 player, said Apple chief operating officer Tim Cook.
Talking before investors at the Goldman Sachs Technology & Internet Conference in San Francisco Tuesday, Cook said the Apple TV was an outstanding product, and it would not necessarily lay dormant. “We’re continuing to invest in this.”
Cook said that future Apple products will feature custom-built chips, much like the new A4 processor found in the forthcoming iPad. He said Apple became wary of purchasing chips from other companies designed for different tasks.
“We’ve always been about making the best product, not having the highest market share or the highest revenue,” he said.
Apple scaled back building stores during the recession, but is picking up steam again in building new retail outlets. He said forthcoming Apple stores in Shanghai and London will “make your jaw drop.”
Apple has a 22 percent unit share of desktop sales, and 42 percent of revenue, statistics show.
Cook said he believes the new iMac is the best desktop on the market. “I think people will continue to want a very gorgeous, large screen, all-in-one, simple to use, very elegant machine, and we’re going to continue to deliver it.”
With 300 million total worldwide PC sales per year, Cook said there is plenty of room for Apple to grow the Mac platform. The company’s biggest target remains Windows switchers. “What we have to do is convince Windows users to switch, and we can provide a much better experience than they (Microsoft) can.”
In talking about Apple’s success, Cook focused on the company’s efforts to recruit top talent as well as its focus on core products.
Much of the focus of Cook’s talk was on the iPad which is due to make its debut in March. He said he’s been using the iPad for six months now. “The experience is absolutely incredible,” he said.
Besides Apple’s retail stores, Cook said, consumers could buy the iPad from “partners like Best Buy.” But he didn’t mention whether AT&T would be selling the device in its retail locations.
Apple introduced two models of the iPad in January. Priced between $499 and $899, the iPad comes with up to 64GB of disk space, Bluetooth, a microphone, accelerometers, ambient light sensors, and digital compass with assisted GPS technologies.