Goldman Sachs Technology and Internet Conference Keynote by Apple CEO Tim Cook

Tim Cook’s keynote is up on Apple. If you’d rather read, Jordan Golson at MacRumors has done a bang up job of transcribing the Q&A with Goldman Sachs analyst Bill Shope.

Law of Large Numbers and iPhones:

37 million is a big number. It was a decent quarter. It was 17 million more than we’d ever done before. We were pretty happy with that, but let me give you the way I look at the numbers. As I see it, that 37 million for last quarter represented 24% of the smartphone market. There’s 3 out of 4 people buying something else. 9 out of 10 phone buyers are buying something else.

Handset market is projected to go from 1.5 to 2 billion units. Take it in the context of these numbers, the truth is that this is a jaw-dropping industry with enormous opportunity. Up against those numbers, the numbers don’t seem so large anymore. What seems so large to me is the opportunity.

What we’re focusing on is the same thing we’ve always focused on. Making the world’s best products. We think if we stay laser-focused on that, and continue to develop the ecosystem around the iPhone, that we have a pretty good opportunity to take advantage of this enormous market.

Why the iPad is so large:

The reason that it is so large in my view is that the iPad has stood on the shoulders of everything that came before it. The iTunes Store was already in play, the App Store was already in play. People were trained on iPhone. They already knew about multitouch. Lots of things that became intuitive when you used a tablet, came from before. I gave one to my mother and she knew how to use it from watching the commercial.

Larger than the PC market?

We started using it at Apple well before it was launched. We had our shades pulled so no one could see us, but it quickly became that 80-90% of my consumption and work was done on the iPad. From the first day it shipped, we thought that the tablet market would become larger than the PC market and it was just a matter of the time it took for that to occur. I feel that stronger today than I did then.