"AI makes it more and more important, as the phone becomes your assistant," said Cook. "In terms of AR [augmented reality] and the Pokemon phenomenon, it's incredible what has happened there."
Apple was investing to make sure its products worked well with products like Nintendo's AR game "Pokemon Go," Cook said.
"That's the reason you see so many of the iPhones out in the wild right now chasing Pokemon," he said.
The game's success was a testament to the strong app ecosystem Apple had built, which encouraged developers to invest in building apps for the platform, he said. Cook mispronounced the app's name, repeatedly calling it "Poke-man Go" on the call - a hint that even the biggest tech stars can find it tough to keep up with the sector's trends - but analysts knew what he meant.