Apple CEO Tim Cook took the stage with the WSJ’s Gerard Baker at Wall Street Journal Live to discuss the growth of Apple and the new products. In the Q&A, Cook cautioned retailers about the new Apple Pay solution: You will only stay relevant if you adopt the technology your customers want to use.
The iPhone currently stands as the company’s revenue and profit runner (about 50%), which also has an $18 Billion software and services business that hardly gets noticed but is a huge part of the Apple ecosystem.
Cook noted that within the first 72 hours of the Apple Pay rollout on Oct. 20, over 1 million users signed up. Apple Pay currently runs on the iPhone 6 and 6 Plus, and will also be available for 5, 5C, and 5S models when paired with the upcoming Apple Watch, due out early next year. The Apple Watch will also be able to run Apple Pay on its own, but without the Touch ID security feature.
The new Apple payment solution, said Cook, hits all three key consumer concerns about mobile payments: Ease, privacy, and security.
In terms of the merchants, Cook recognized that their objectives might be different, referencing the “skirmish” with CVS and Rite Aid over their decision to disable Apple Pay. Cook stated that customers want to use Apple’s new payments service, saying that in “the long arc of time, you are only relevant as a merchant if customers love you.”
Tim Cook ended the Apple Pay segment by emphasizing the convenience of the new payment solution, calling it easier to use than a credit card. “That’s the first design point. It must be easy or consumers aren’t going to use it.
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