Apple Inc chief executive officer Tim Cook took a figurative victory lap at his company’s annual shareholder meeting, one day after he announced details about the new smartwatch Apple plans to start selling next month.
Last year, some investors voiced frustration over Apple’s lagging stock and activist Carl Icahn pressed Cook to return more cash to shareholders. However, no complaints were heard on Tuesday.
Apple shares are up 65 percent from a year ago, the company has a market value of more than US$700 billion — making it the most valuable US company in history — and is soon to replace AT&T Inc on the benchmark Dow Jones industrial average.
Apple sold a record 200 million iPhones last year, which provided the bulk of the company’s US$200 billion in revenue. Cook cited those and other milestones in what he called an “unbelievable” year. He also said Apple returned US$57 billion to shareholders through dividends and stock buybacks last year.
The stock fell 1.7 percent on Tuesday, amid a broader market decline, as some analysts questioned whether the company’s new smartwatch would be a hit. Cook has vowed the new wearable gadget is set to change the way people use the Internet, as previous Apple products including the iPhone and iPad have done.
The company also said it had work to do on diversity efforts.
Two speakers, civil rights leader Jesse Jackson and a black Apple shareholder who did not give his name, urged Cook to improve diversity in Apple’s leadership and board. Apple has no black or Latino directors, and 12 of the 15 top executives listed on its Web site are white men.
Cook promised more progress. However, he ducked questions from two investors who urged him to buy or partner with Tesla Motor Inc, the high-end electric car maker. Apple has hired several automotive engineers, but has not confirmed reports it may be working on its own electric car.
“Quite frankly, I’d like to see you guys buy Tesla,” an investor told Cook at the annual meeting.
The comment was followed by laughter in the audience and some applause.
Ever the diplomat, Cook sought to sidestep the question.
“We don’t really have a relationship with Tesla,” he said, quickly pivoting to the subject of Apple’s in-car information and entertainment system, which he had also discussed a day earlier at an event to show off the new Apple Watch. “I’d love Tesla to pick up CarPlay. We now have every major auto brand committing to use CarPlay.”
Cook paused. “Was that a good way to avoid the question?” he asked. “Hey, there are some perks to being CEO.”
Still, investors were not finished with the subject of Tesla. Another shareholder rose to talk about how he has been a fan of Apple since putting a deposit down on its first computer in 1984.
“There’s something else I’m in love with that’s not Apple — that every time I see it just blows my mind — and that’s when I open my garage and see my Model S,” the investor said. “Am I insane to imagine something might happen here?”
The audience laughed.
“We’re very focused on CarPlay,” Cook said.
Additional reporting by Bloomberg
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