WHEN: Today, Tuesday, July 26th
WHERE: CNBC's "Closing Bell"
Following is the unofficial transcript of a CNBC interview with Apple CEO Tim Cook today, Tuesday, July 26th.
All references must be sourced to CNBC.
JOSH LIPTON: APPLE JUST REPORTING. SO LET'S GET YOU THOSE NUMBERS. APPLE REPORTING EPS OF $1.42, KELLY. THE STREET WAS AT $1.38. REVENUE OF 42.4 VERSUS EXPECTATIONS OF 42.1. GROSS MARGIN OF 38%. iPHONE UNITS, 40.4 MILLION, KELLY, VERSUS EXPECTATIONS OF 40 MILLION. iPAD AT 10 MILLION. THAT'S THE FIRST TIME IN TEN QUARTERS YOU HAVE SEEN REVENUE GROWTH THERE IN THE iPAD. MAC 4.3 MILLION. OTHER PRODUCTS CATEGORY, KELLY, REMEMBER THAT INCLUDES THE WATCH, REVENUE THERE OF $2.2 BILLION SERVICES AT $6 BILLION. THAT WAS A 19% POP. TURNING TO THAT Q4 GUIDE, APPLE GUIDING Q4 REVENUE OF $45.5 BILLION TO $47.5 BILLION. THE STREET WAS AT 45.9 AND GROSS MARGINS, THE GUIDE IS 37.5% TO 38%. I DID JUST HAVE THE CHANCE TO TO TALK TO APPLE CEO TIM COOK. HE SAID HE THOUGHT THE iPHONE'S PERFORMANCE IN Q3 WAS FANTASTIC. HE MAKES THE CASE THAT THIS IPHONE FRANCHISE DOES REMAIN HEALTHY AND STRONG. HE SAID IN Q3 THEY SAW A RECORD NUMBER OF ANDROID SWITCHERS, THE HIGHEST EVER. IN FACT, HE SAID FOR THE FIRST NINE MONTHS IT'S BEEN THE HIGHEST EVER. HE SAID THAT WAS TRUE IN VIRTUALLY EVERY COUNTRY THEY TRACK. HE TALKED ABOUT THE iPHONE SE WHICH IS THEIR LATEST FOUR-INCH MODEL. HE SAYS THAT'S REALLY HELPING THEM ATTRACT NEW USERS TO THE IOS COMMUNITY. TWO OTHER POINTS TO TOUCH ON QUICKLY. SERVICES. COOK TELLING ME HE EXPECTS SERVICES TO BE THE SIZE OF A FORTUNE 100 COMPANY BY NEXT YEAR. HE POINTED OUT THAT APP STORE GROWTH POPPED 37%. ALSO SAID APPLE MUSIC AND iCLOUD GREW AND FINALLY IN TERMS OF GEOGRAPHIES, GREATER CHINA YOU'LL NOTICE DOWN MORE THAN 30%. COOK MAKING THE CASE TO ME THAT MAINLAND CHINA THOUGH SO FAR THIS FISCAL YEAR DOWN 2% IN CONSTANT CURRENCY. HIS POINT TO ME WAS GIVEN TOUGH COMPS AND ECONOMIC CHALLENGES, HE STILL IN HIS WORDS FEELS REALLY GOOD ABOUT THE BUSINESS THERE. BACK TO YOU.
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