Apple CEO Tim Cook is speaking at the Goldman Sachs Technology and Internet Conference in San Francisco today.
We're at the conference to hear what Cook has to say.
Cook is flying high after Apple's last quarter, when the company sold more than 74 million iPhones and turned an $18 billion profit — the biggest profit by any company in history. But the investors in the audience will want to hear him explain how Apple can keep growing from such a massive base.
They'll probably be curious to hear about the Apple Watch, his plans to revitalize the iPad, and the Apple-IBM deal.
Cook's keynote will be moderated by Goldman Sachs president Gary Cohn.
We'll be updating this post live during the keynote. Click here to refresh.
12:25 PT We're about to get started here. It's standing room only in the Palace Hotel ballroom.
12:35 PT We're getting started! Tim Cook and Gary Cohn just walked on stage.
12:36 PT Cohn is "lusting after" Cook's time as CEO. He's listing Cook's accomplishments: "Not a bad start, right?"
12:37 PT Cook is giving the boilerplate disclosure about forward-looking statements.
12:38 PT Cohn: What are some of Apple's biggest accomplishments last year?
Cook: "We're not focused on the numbers, we're focused on the things that produce the numbers."
Cook says Apple hit the ball out of the park with the iPhone 6 rollouts.
"The Mac has been growing and gaining share" even though the PC market is slugging along.
12:40 PT Cook: "You or I could write an app" with Swift, Apple's new developer language.
Cook is driving in how iOS has expanded to the home (HomeKit), the car (CarPlay), and to personal health.
"In emerging markets we saw phenomenal growth," Cook says. Calender year revenue for China was $38 billion. Unclear if that's China specifically or Apple's "Greater China" region.
12:44 PT Now Cook is talking up Apple's environmental initiatives: "We know at Apple that climate change is real," Cook said. "The time for action is now."
Cook is defending how caring for the environment is good for Apple's bottom line: "We're thrilled to continue on a course of doing things that make the world better than we found it."
Cook says Apple is opening up a solar farm south of San Francisco.
12:47 PT Cook says the Apple Watch is about changing people's lives. "We see the Apple Watch doing that. I'm wearing one right now.
Cook says people will be surprised with the breadth of what it will do.
"The customizable nature of the Apple Watch is incredible," said Cook.
"I see too many men in this audience," said Cook to applause.
Cook says looking at your watch is subtle, unlike looking at a phone.
12:50 PT "Everybody's gonna have their favorite thing [to do on the Apple Watch]" like when the App Store came out.
Cook says he uses the Apple Watch while working out to keep him active. Says the Watch will nudge you if you sit down for more than an hour, and that employees at will suddenly stand up because they're nudged by the Apple Watch.
12:52 PT Non-hardware growth: "I don't really think Apple was ever a hardware company." Cook says consumers are buying an experience, the integration of hardware, software, and services.
"The magic in Apple is that we do all of them. The real magic comes up when they integrate," said Cook.
12:53 PT Cohn asks Cook about Apple Pay
Cook: "It's going much faster than I thought it would. When you're going into the holiday retailers don't usually want to change" much at the point of sale.
Cook says retailers are consistently asking to sign up.
Cook says he walked around the hotel and says you can buy a coffee at Peets, lunch at McDonalds or Subway, or go to Bloomingdales, all nearby, all with Apple Pay.
12:57 PT "I think [Apple Pay] is truly profound," said Cook.
Cook says JetBlue just announced that they'll accept Apple Pay beginning at the middle of this month.
"This was only possible because we could control and design the hardware, the software, and the services," said Cook.
Cook makes a joke about Gary Cohn not having much hair left.
12:58 PT Cohn asks about Apple's data collection. Cook says customer's privacy is a value at Apple.
"You are not our product, that is our product," Cook says, pointing to an iPhone.
Cook says knowing what you're buying is "none of my business, frankly."
1:01 PT Cook says that privacy is important because of the personal data people don't realize is online.
Cook says his identity has been stolen three times!
"Panera bread told us that 80% of their mobile transactions are on Apple Pay," said Cook.
1:03 PT Now we're talking about Android-switchers.
"We've always believed that our role in life is to make the best, not the most," said Cook.
Cook says if Apple could make the best product at a lower price it would.
Cook called the idea that a bunch of people in developing countries won't buy iPhones because they're too expensive "a bunch of bull."
1:05 PT In terms of fighting competitors in the smartphone market (like Xiaomi), Cook says Apple has historically had stiff competition.
Now Cook is talking about Apple's success in China.
There are now 19 stores in greater China.
"I think we're still not too far from the surface," in terms of opportunity in China.
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