The Future of Apple After Steve Jobs
This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.
Good evening, I'm Saijal Patel and you're watching "Asia Market Daily".
Apple shareholders have rejected plans for the tech giant to release a succession plan - despite questions over Steve Jobs' health.
CNBC's Jon Fortt was at Apple's AGM in Cupertino, California - where he filed this report.
John Fortt, CNBC:
An eventful Apple shareholders meeting, shareholders voted out one controversial proposal and voted down another. Here's what they did. On the proposal that Apple reveal its succession plan for the CEO, the shareholders voted no. They don't have to reveal what the plan is, for after Steve Jobs.
(SOT) Joe Magyer, Senior Analyst, The Motley Fool:
Apple has an obligation to shareholders to have a plan in place, but it would be foolish for them to actually reveal what that plan is. One, they don't want to reveal what their actual strategies are to competitors. And two, they're trying to motivate the guys who are trying to get Steve Jobs' job. So for them to come out & say who might be an heir apparent is probably bad strategy.
But on another plan, one presented by CalPERS, shareholders voted yes, and that is directors who are uncontested have to get a majority of shareholder votes, they can't just be shuttled in without the majority vote. So Apple wanted shareholders to vote that one down, they voted it up. A few interesting details came out in this meeting something that Tim Cook who is running the company in Steve Jobs absence pointed out. One is growth in China, Tim Cook pointed out how in fiscal 2009 Apple had about $1 billion of revenue in China, in fiscal 2010, 3 billion in revenue, and in the last holiday quarter, the holiday quarter, just in that quarter alone, Apple had $2.5 billion in revenue. so he is highlighting hina as a particularly high growth market. Other topics that came up, were Apple market share versus android. Tim Cook saying he still likes Apple strategy of integrating the entire device plus software servers versus android which is an operating system that other device manufacturers pick up. Shareholders were also concern about the 70/30 split in revenue with publishers. Apple taking 30 percent of subscription revenue under the new app store policy. Tim Cook again, sticking by Apple's position there saying, if Apple bring the subscriber to the app, Apple wants 30 percent of that revenue. Other things highlighted included Apple's use of cash. Apple executives continuing to say they intend to hold on to that cash, just in case they need it for a big acquisition. In general Apple shareholders seemed happy with the way the management is running the company. Here's what one had to say.
"Taking the time to really put together a team of just super folks looking at Tim Cook on down. So I think he has a strong bench of management behind him to takeover if the need arises. But from a corporate governance stand point it is important to have a succession plan in place."
And this was a quick shareholder meeting, the main business was done in 25 minutes. The rest of the time was up for Q&A, when they talked about a number of things, including the manufacturing policy. Tim Cook pointing out that Apple's taking special care to make sure that manufacturers in Asia are following Apple's guidelines. For CNBC Asia, I'm Jon Fortt.
Speaking of Apple suppliers, it seems hard for them to keep up with demand.
On Tuesday, a report from Yuanta securities claimed Apple might have to delay the launch of its iPad Two, due to "production bottlenecks" at its contractor, Hon Hai.
But tech analysts say that's unlikely, given Apple has already sent out invites, for what's widely expected to be the launch in San Francisco on March the 2nd.
(SOT) Rob Enderle, Principal Analyst, Enderle Group:
Those production bottlenecks seem to be at least somewhat unlikely, given the fact that Apple announced when they were going to announce the iPad 2, and they wouldn't do that, were they going to see a delay. So the Samsung contract likely addressed whatever problems there were. And they fully expect to have supply in market in time for the product launch, hopefully this month.
Thanks for joining me for the latest "Asia Market Daily".
I'm Saijal Patel from CNBC.
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