♪ >> it hasn't been nearly six years since tim cook took over cofounder, iconic steve jobs. there will be apple watch and apple music, he pulled off the largest acquisition in history buying beats. he takes on social issues like equality and education. he stood up to president obama and maintains a relationship with president trump despite their disagreement on climate change. now, question remains where the

big -- will come from at apple. he stakes out new territory for the company's future from tv to cars and apple's worst new category in years, a smart speaker called home pod, a direct challenger to amazon and google. jim, thank you for joining us. tim: it is great to see you and unbelievable to be here. smart's start with the speaker. why should people by apple home pod? tim: we tried to develop a breakthrough speaker first. music is deep in our dna, dating back to itunes and ipod. that peoplemething found unbelievable.

things,e it does other and those are important, but we wanted and -- a high quality audio component. able to make a phone call, call a car, order groceries? tim: there are a lot of things you can do with it. there the advantage is are a lot of things that siri knows how to do from the phone. >> i can order paper towels on my amazon echo, does this tell us about aspirations -- tim: i wouldn't read into it in aat regard, but apple is company that wants to deliver a

great audio experience from the home. we feel like we reinvented it in the portable player arena, and we think we can reinvented in the home speaker as well. we want a speaker to do more than that, and so we are combining what has been thought of to be two distinctly different things until now. emily: how long have you been working on this? multiple years. the underlying technology is something to behold and to get the experience that we wanted at the quality we wanted -- you know, like apple products in general take multiple years to do starting with core technology and building up to the product. emily: you have people saying, what took so long? tim: for us it has never been about being first in anything.

we didn't have the first mp3 layer, the first smartphone, we didn't have the first tablet. arguably, we shipped the first player, the first modern smartphone, the first modern tablet, but we were not first. it's not about being first, it's about being the best. emily: it is the 10th anniversary of the iphone. you have unveiled the new ios. what is next? tim: i can tell you ios 11 is unbelievable. iphone and ipad, there are peer-to-peer payments. it is the biggest ios release ever. i am excited about all of it, but i am really excited about ar.

let me get this in the hands of developers, we will have the largest augmented reality platform in the world. with: you talk about ar regards to developers, but what about consumers? technology, and as a platform owner, the first thing, and arguably the most aportant, is to build foundation. from the foundation, you can do many things. emily: peter keels says that innovation in smartphones is over. are the days of quantum leaps in smartphones over? tim: i don't agree with that view at all. the thing that drives quantum leaps is the core technology. when i think about all of the things that are going to change from a court technology point of view, i think we are just getting started.

i am incredibly excited, and clearly there is nothing that i think of virtually anybody will say will replace smartphones anytime soon. theime has gone on, smartphone has become more important to people's lives. when it started, the phone call was still a dominant reason or having it, now if you look at what people are doing on smart case ofit is a minor what a phone is now. the helpok at that and kit, the use in the car, i am controlling all of my house with siri using my iphone. when i think about all of these things, the usage of it, now, you do not leave your home

without your iphone. i think it is in the early stages, still. emily: controlling your home with your device is still a fairly niche behavior. when you see it becoming mainstream? tim: i think this year, honestly. 10, aftert into ios that you solve more accessories coming to the market that are home kit enabled. we made it easier for vendors to be compatible with home kit, because you now can use software encryption. you do not have to have hardware encryption to go. i think that unleashes more accessory guys to join. i think people will increasingly want to automate different parts of their home. i wouldn't live without it at this point. emily: in the past you said, the

ipad is the clearest expression of our vision of computing. sales are high, ipad are following. tim: some people only by mac, and some people only by ipad. many of us want to both. he tried to bring more productivity features to ipad. i think people buying pcs look at this and think they want to have an ipad pro, i think people with an ipad will want to upgrade. but the mac remains a very important to us. both of them are computing devices, and where going to keep investing in both, because we think both have a great future. one of the reasons that ipad on

the surface -- just look at the numbers, the units are going down, keep in mind the ipad mini came out at a point in time that smartphones were fairly small. and so, one of the things you are seeing is a natural move to a smart phone not taking all of the market, but taking a piece of it and obviously we are ok with that, too. the seven-plus has been phenomenal. we are seeing growth rates that have shocked us there. ♪ emily: you called president trump and urged him not to pull out of the paris accord. he didn't listen. what does that mean for your relationship? this is bloomberg. ♪

emily: you have been engaged

with the white house, you called president trump and arched him not to pull out of the paris accord. tim: i did. i would say it differently, he did listen to me. he didn't decide what i wanted him to decide. i think he decided wrong. i think it is not in the best interest of the united states what he decided. do you interact with politicians, or do you not, my foremost,at first and things are about can you help your country. if you can help your country and do that by interacting, then you do it. country eclipses politics. and so, you know, if there is something that we can work together that helps people in the united states, then of course we would do it. emily: you have other people

leading -- like bob eloner, like musk -- the first one is a judgment call that people make. i didn't join a council, and so it is not a decision i had to make, but i understand both sides of that. but advising on something that you believe will help america, i think is a requirement as a ceo. you definitely do that. honestly, if i get the chance to go pitch the paris agreement again, i'm going to do it again. i think it is a very important that we engage to fight climate change on a global basis. this is an something where you

can solve it country by country. it requires a global action. countrys created in one -- emissions created in one country affect another. it is something we feel strongly about and i wanted to do every single thing that we could do to tell how important it was to stay in the agreement. importantly, he decided something different. emily: why didn't you join a council? two reasons, my primary job is being ceo of a company. i spend the bulk of my waking hours doing that. i love the company and people in it, and so traveling back east is an something that i've look forward to doing except when i need to. secondly, i do not find the

councils in general and committees to be terribly productive. not wantingt about to advise on something where i know, we couldou help or we had a point of view that should be heard. latter. i am doing the i can't imagine a situation where i wouldn't do the latter. i am first and foremost an american. on repatriation, how would you like a repatriation bill to be structured? tim: an hour of view it should be a deemed repatriation. meaning it should be a required pact. you are not asking people who had international subsidiaries if they would like to bring back money, you are saying you must

pay the government x percent now or over some medal of time. my own advice would be that the u.s. use that money for a itnificant infrastructure, creates jobs. i think people would argue we do not need investment in america. that is what should be done, i think it should have been done years ago, but it hasn't. so, tomorrow is good. emily: you have made it clear that apple users' privacy is of utmost importance to you. strengthenw i/os user security? attacks --terror first of all, our heart goes out to everyone affected by them. --y are redness and the u.k.

for us, we have been in the u.k. pre-much beholden the time for our company, -- pretty much the whole time for our company, and it feels like they are our neighbor. we have employees there and our heart goes out. what do we do helping with this, we have done one thing since the beginning of the app store is we curate the app store, we do not their, theseak on it recruiting things on there, so we have been careful from the beginning about not having that step on their. re i am not saying. butill never make a mistake i do not know of a case where anything has gotten through. we have also been cooperating not the u.k. government, only in law enforcement matters, attacks.me of the

i cannot speak in detail about that, but in cases where we have information and they have gone through the lawful process, we but wet just given it, do it very promptly. i think -- i would hope that they would say that we have been cooperating well. know, there is some valuable information. i think there is a misunderstanding about -- encryption doesn't mean there is no information, right? likely metadata exists. and metadata, if you are putting together a profile, is important. emily: can we assume that apple is working to make encryption stronger? tim: the reality is be cyberattacks on people and government -- it is happening

left and right everywhere -- these affect your safety, your security, so it is not just privacy. it is not privacy versus security, it is policy and security versus security. we are always working to stay the attackers of who frankly speaking, have gone from the guy in the basement that is a hobbyist, to a sophisticated enterprise. and it takes all that we can do to do it, and we do not think our users should have to think through all of this stuff. people,t practical for so we try to stand up for users and stay one step ahead of these guys. an areaou said cars are ripe for -- how important is it that apple not miss out on cars? this is bloomberg. ♪

emily: let's talk about the world's second-biggest economy, china. how does apple navigate the waters there? tim: we make all decisions for the long-term. we are not investing for next quarter or next year, we are thinking many years out. megai look at china, i see -trends that make china and incredible market, not just to sell in, i also mean for application developers. we have 1.5 million application developers now, trouble be closer to 2 million. it has been an incredible market place for talent and in terms of the size of the marketplace. terms kinds of economic

moves up and down, i do not get too excited about. it to how realistic is expect double-digit growth to continue for apple? tim: it didn't continue last year. emily: are those days over? tim: i think we will do better this quarter than the last several. i think it will be better year-over-year comp over the previous ones. popular phonemost in china, iphone seven-plus is the third most popular smartphone in china. we are to stick added, because i think china is a huge opportunity over time. emily: how would you characterize tim cook's apple

apple?teve a jobs' tim: steve at's dna will always be the dna of apple, or it will ceo. long as i am i think it is deeply embedded in the company and we celebrate it. it should be like that and stay like that. as theyvolve over time would have if he were sitting here interviewing with you today. clearly unsure, but that is a better question to ask somebody who worked for both of us. emily: you said cars are an area ripe for disruption. how important is it that apple not miss out on cars? tim: i think there is a major disruption looming there, not

only for self driving cars, but also the electrification. if you have driven and all electric car, it is a marvelous experience. it is a marvelous experience not to stop at the gas station, whatever you call it, and so -- plus, you have ridesharing on top of this. you have three vectors of the change happening generally in the same timeframe. as we look at it, what we are focusing on, what we have talked about publicly, is we are focusing on an autonomous system. per biz of autonomous systems are self driving cars, there are others. we see it as the mother of all ai projects i'm a one of the most difficult to work on.

autonomy is something that is , butdibly exciting for us we will see where it takes us. we are not really saying from a product point of view what we will do, but we are being straightforward that it is a core technology that we view as very important. working across so many different platforms, tv, watch, iphone, mac, what you see now as your vision for the future of personal computing over all platforms? tim: they are all built on the same core technology, right? as how they are used and the experience needed to get the best experience for the user in each of the cases, out of phone ios,atch ios, and mac ios.

when you begin to merge, the risk is the lowest common denominator approach in we are staying away from that. i know others have a different view on that, but that is our view and we are straightforward with it. with tv, we wanted to give an update that amazon was joining tv'sv at and all apple later in the year, and we will have more to say about that later. i will keep you in suspense a while there. i think everyone will be speculating after that comment. thank you so much. tim: great to see you and spend time with you. this is bloomberg. ♪

♪ emily: i'm emily chang and this is the "best of bloomberg technology," where we bring our top interviews from this week in tech. coming up tim cook opens up , about apple's par ambitions -- car ambitions for the first time. more from our exclusive conversation with the apple ceo about the company's focus on autonomous tech and the push into cars. plus, travis takes an indefinite timeout. why the ceo says he takes a break from the company he cofounded and what it means for