Steve Jobs CNBC Interview MacWorld 2007
Transcript
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Well, it is another momentous day in Apple's history.
The company changed its name today to Apple Inc.
And it introduced snazzy new iPhones.
But major issues like the options backdating scandal still lurk in the background.
And CEO Steve Jobs today talked about it exclusively with CNBC.
Take a look at the stock.
It soared on the new product news.
The iPhone, good enough for a gain of more than 8% on Apple stock.
Apple CEO, as I mentioned, Steve Jobs spoke to CNBC Silicon Valley Bureau Chief Jim Goldman in a first on CNBC interview at Macworld.
Jim.
Hey, Maria, good evening to you. Indeed, these are heady times for Apple Computer.
The company quick to point out today that this is not merely another cell phone, but an important new product platform for Apple Computer,
changing industries in much the same way that Macintosh did in 1984 and then iPod in 2001.
Now it's iPhone's turn.
This is an extremely important product for Apple's future,
something I asked Steve Jobs about in this first on CNBC interview.
First of all, you look at handsets.
This is probably not only the most vibrant technology sector there is out in the globe,
this is also one of the most competitive.
Why in the world would Apple Computer want to jump into the handset market
with so much competition and already so many players.
You know, one of the biggest motivations for working so hard for a few years to make
a great product is you want one yourself.
And we use all the handsets out there.
And boy, is it frustrating.
It's really frustrating.
It's a category that needs to be reinvented, needs to be made not only more powerful but
much easier to use.
So we thought we could contribute something.
And we don't mind the fact that there's other good companies making products out
there.
The fact is that there's a billion handsets that were sold in 2006.
And so if we just got 1% market share, that's 10 million units.
And we think what we've done is to reinvent the phone and completely change what your
expectations are going to be for what you can carry in your pocket.
You mentioned in your keynote, you talked about the Mac, you talked about the iPod,
and now there's this.
What makes this such a product that would enjoy such lofty company?
How important is this to Apple Computer and why?
You know, time will tell.
The Mac changed the whole computer industry, and it really made computers easy to use
for the first time and brought graphics into the personal computer for the first
time.
The iPod changed the way we listen to music and changed the whole music industry.
I think the iPhone may really change the whole phone industry.
And I think give us something that's vastly more powerful in terms of making phone calls and keeping all your contacts on it,
having the best iPod we've ever made fully integrated into it,
and having the Internet in your pocket with a real browser and real email and the best implementation of Google Maps on the planet.
the world's going.
You mentioned during the speech as well, you kept coming back to it too.
You kept showing the competitors.
You kept showing Palm and Rim and Nokia and Motorola.
What message are you sending not only to your immediate competitors but to the entire
industry?
We're a financial network obviously so from an investor standpoint, I don't know
I don't know if you've been seeing what your comments have been doing today, but
research in motion is getting clobbered.
And I would imagine the other smartphone manufacturers are also feeling an enormous
amount of pressure because you have now officially entered the game.
Well, we don't really think in those terms.
We're a product company.
We love great products.
And so in order to explain what our product is, we have to contrast it to what's out
there right now and what people use.
So that's what we do.
looking at this also when you and I talked about the video iPod when that finally I'm sorry
the iPod that also does video you were careful to correct me that last time you said you know
you would never manufactured so many of these things before and we'll see how it goes we don't
know if video is going to be a killer app but we'll see what happens yes what's your under
plane statement today about downplaying the potential and opportunity for this device well
Well, to go back to our prior conversation, we can now say that video worked.
It is a killer app.
We've sold over 50 million TV show episodes.
And in four months, we've sold 1.3 million feature films off iTunes.
So it's definitely working.
As far as this goes, this is the future.
And it's not, I wish you-
I wish we could sell it for $100 today.
We can't.
It's a little more expensive than that.
But as we bring the cost down year over year
and can appeal to more and more people,
I don't see why everybody wouldn't want one of these.
Last question for you.
Again, I mentioned we are a financial network,
and you know the question is coming
because you read the press just as much as I do
about you and your stature here at Apple Computer.
There is this ongoing stock options backdating controversy
that you're dealing with.
What message do you have for shareholders and investors and consumers and employees
that this particular controversy is what is going to happen in terms of your tenure at the company?
How is it going to affect you?
How do you reassure people that this is not going to taint you?
Well, you know, it's a little frustrating sometimes what the press is writing.
A lot of these folks just have no idea what they're talking about, and it is frustrating to read it.
But, you know, we did our own internal investigation,
and then we actually got an independent investigator,
a former federal prosecutor who's extremely highly
regarded.
And they looked at, jeez, is the better part
of a million documents?
And they took several months.
And they came out with their report that said what it said.
And one of the things it said was that no current management
had any misconduct.
We did find some things that I wish we hadn't found,
that I, as CEO, to some extent, am responsible for.
But we've turned that all over to the SEC,
and they'll take a look at some of those things that we found.
But I don't think they're going to affect current management,
and I think everything's going to be just fine.
Steve Jobs here to stay.
Well, again, I serve at the pleasure of the board and the shareholders,
and as long as they want me, I'd love to keep doing this job.
Yeah, I think they want you.
Thanks very much.
Okay.
A candid and comfortable Steve Jobs, no question about it, basking in the glow of what promises to be Apple's next big red-hot product,
but again, trying to make sure that that glow isn't eclipsed by this ongoing stock options backdating scandal.