Apple CEO Tim Cook says he believes that his company’s culture of innovation is “probably underappreciated” by naysayers.
“In terms of the naysayer, I’ve heard this over and over again,” Cook said in an interview Tuesday with Jim Cramer on CNBC. “I’ve heard it in 2001, I’ve heard it in 2005, in ‘7, in ‘8, in ’10, in ’12 and ’13. You can probably find the same quotes from the same people over and over again.”
Cook went on to say that he’s “not defensive on it,” adding that he believes “there is a culture of innovation in Apple and that culture of innovation combined with these incredible, loyal customers, happy customers, this ecosystem, this virtuous ecosystem, is something that is probably underappreciated.”
Its announcement that it now sees sales of $84 billion, well below the range of $89 billion to $94 billion that it forecast in November, sent company shares down nearly 10 percent.
Cook said he wasn’t surprised by the market reaction, calling it “quite emotional in the short term.”
“We think about the long-term,” he said. “And so when I look at the long-term health of the company, it has never been better. The product pipeline has never been better. The ecosystem has never been stronger. The services are on a tear.”
In his letter to investors, Cook blamed much of the shortfall on China, where the company underestimated a decelerating economy. Apple saw a decline in sales of iPhones, Macs and iPads there.
In his interview with Cramer, Cook said trade tensions between China and the US created the sharp downturn, but he said he believes the situation is temporary.
“It’s in both countries’ best interests to come to an agreement,” Cook said. “I’m very optimistic that this will happen.”