[ Music ]

[ Cheers and Applause ]

>> Good morning.

Good morning.

Good morning.

Thank you so much for joining us.

Welcome to our Town Hall on the Infinite Loop Campus.

Normally, we don't spend a lot of time looking back

but yes we are about to celebrate Apple's 40th birthday

on April 1st.

[ Applause ]

That video lists some of the amazing products

and epic moments in our history

and reminds us just how many times Apple has changed

the world.

Recently, we passed a major milestone

that no one could've ever imagined.

There are now more than 1 billion Apple devices

in use around the world.

[ Applause ]

This is an incredible milestone for us and an indicator

of how much impact Apple has on people around the world.

Our products are such an important part

of people's daily lives.

And with that, comes a significant responsibility.

So before we get started today, I'd like to address something

that I know is on the minds of many people this morning.

We built the iPhone for you, our customers,

and we know that it is a deeply personal device.

For many of us, the iPhone is an extension of ourselves.

About a month ago, we asked Americans across the country

to join in a conversation.

We need to decide as a nation how much power the government

should have over our data and over our privacy.

I've been humbled and deeply grateful for the outpouring

of support that we've received from Americans

across the country from all walks of life.

We did not expect to be in this position at odds

with our own government, but we believe strongly

that we have a responsibility to help you protect your data

and protect your privacy.

We owe it to our customers and we owe it to our country.

This is an issue that impacts all of us,

and we will not shrink from this responsibility.

[ Applause ]

Thank you.

Thank you.

Thank you.

Thank you.

OK. So let's get back to why you're here this morning.

Because so many people use our products every day,

we understand that we have an opportunity and a responsibility

to impact things for the better.

So we want to get started this morning by talking

about two initiatives where we are working hard

to leave the world better than we found it.

We'd like to start with the environment and I'd

like to invite Lisa Jackson up to tell you what we're doing

to preserve and protect the environment.

Lisa.

[ Applause ]

>> Thank you.

Thanks so much.

Well, you know, just like everything we do at Apple,

when we think about the environment,

we think about innovation.

You see, we want to change the world for the better

and we think there's no greater challenge in the world

than our changing climate.

Now, the solution is energy efficiency and renewable energy,

and the time for action is right now.

So two years ago, we told you about our ambitious goal,

one that we hope others will adopt.

We told you that our goal was to be 100% renewable in 100%

of our operations worldwide.

That's all of our offices, all of our retail stores

and every single one of our data centers.

So two years later, how are we doing?

Well, currently, 93%

of our facilities worldwide run on renewable energy.

[ Applause ]

And just last year, we reached our goal

of using 100% renewable power to power our operations

in the United States, as well as our offices and stores in China.

In fact, we're now a 100% renewable

in 23 countries around the world.

Now, in some places we're able

to purchase renewable energy right from the grid,

from existing sources, but that's not always possible,

which has led us to some pretty innovative solutions.

In Sichuan Province, China, we found a way

to build a 40-megawatt solar farm

without disturbing the local population.

Yeah.

[ Applause ]

The innovation is in building a system that allows

for electricity generation and hay production

for the local yak ranchers.

That solar project is producing more than enough electricity

to power our 34 retail stores

and our 19 offices in the country.

That makes our facilities there carbon-neutral.

In Singapore where there's not enough room to put solar panels

on the ground, we looked up.

Solar arrays on more than 800 rooftops will cover the

electricity use of our offices and our future stores.

We're really proud to be a 100% renewable in Singapore.

We're also really proud of the fact that 100%

of our data centers are powered by clean sources of energy

like the sun, wind and water.

Now, think for a second about what that means.

It means every time you send an iMessage

or make a FaceTime video call or ask Siri a question,

you can feel really good

about reducing your impact on the environment.

Now, let's talk about another way

that we're reducing our impact on the environment and that's

by protecting forests

that produce the paper we use especially for our packaging.

You see, we believe that paper

like energy can be a renewable resource.

So we're proud to announce that today 99% of our packaging comes

from paper that is recycled or is coming

from sustainably managed forests.

[ Applause ]

This is especially important as we continue our move

to all paper packaging but we're not stopping there.

Through our partnership with The Conversation Fund,

we've permanently preserved over 36,000 acres of working forests

in Maine, in North Carolina and we're partnering

with World Wildlife Fund to improve the management of up

to 1 million acres in China.

You see, our goal is to add to the world's supply

of responsibly sourced paper rather than take from it.

Now, while we're focused on conservation, let me tell you

about another way we're working

to preserve our planet's resources,

and that's through reuse and recycling.

You see, we worked really hard

to make sure our products don't end up in places like this,

and we think the best way to do that is to have them be reused.

That's why we design our products to last,

and we're happy to say that thanks to their durability,

the vast majority of iPhones that we get back end

up being reused, including the phones we get back

from our iPhone upgrade and trade up programs.

But at some point, even our products need to be recycled.

Many recycling systems today waste much

of the materials they collect, so it can't be reused.

We think it's time for a new approach.

We put an incredible amount of energy

into designing the best products in the world and we put

that same kind of energy into thinking about what happens

when they can no longer be used.

Let me introduce you to a pretty cool R&D project,

we call him Liam.

>> The iPhone is the result of years of innovation

but true innovation means considering what happens

to a product at every stage of its life cycle.

Meet Liam.

When it's time, Liam deconstructs your iPhone.

Parts are detected and removed and separated,

so the materials inside those parts can be repurposed.

To rescue cobalt and lithium from the battery,

separate the gold and copper in the camera, extract silver

and platinum from the main logic board, so the materials

in your iPhone can live on.

Because in a world with limited resources,

some things can't be replaced.

[ Music ]

[ Applause ]

>> He is pretty cool, right?

There's no other machine in the world

that can do what Liam can do, and it was conceived

and designed by Apple engineers right here in California.

The things we've learned

from this project will help us make even bigger strides

in the area of reuse and recycling as we go forward.

As you saw on the video,

Liam separates the iPhone into its components.

This allows us to recover the materials,

high quality materials, and reintroduce them

into the global supply, and that saves natural resources.

So that tungsten from the iPhone alert module can be used

to make a precision cutting tool, and the silver

from the motherboard can be used to, in a solar panel.

Now, ultimately, our goal is to create breakthroughs

that allow us to use those high quality materials

in our own products because reuse and recycling is

so important, and that's where you can come in.

With Apple Renew, you can recycle your devices easily

and quickly in a way that's safe for your data

and safe for the planet.

All you have to do is take them into an Apple retail store

or send them to us for free by visiting apple.com/recycling

to print a prepaid mailing label.

We're making great progress in our environmental efforts

but we have a lot more to do and we promise

to keep you updated along the way.

Now back to Tim.

Thanks.

[ Cheering and Applause ]

>> Thank you, Lisa.

[ Applause ]

Powering Apple on a 100% renewable energy,

it is an incredible, ambitious and bold objective

but we are determined to meet it and we hope others will join us.

The second initiative we'd like to talk

about this morning is health.

With the launch of ResearchKit last year,

we've seen that Apple technology can have a positive impact

on people's health.

And to tell us about some progress in this area,

I'd like to invite Jeff Williams.

Jeff.

[ Applause ]

>> Last year, we introduced ResearchKit and our goal was

to use technology to solve some

of the biggest problems facing medical research.

We wanted to make it easier for people

to participate and research studies.

And we wanted to make it easier to gather accurate

and frequent data from the devices we're all already

carrying in our hands.

So what happened?

Virtually overnight, the research studies

that we launched became some of the largest in history with tens

of thousands of people signing up.

Like in this Parkinson's study

which became the largest Parkinson's study in history

in less than 24 hours.

[ Applause ]

Studies broke geographical boundaries.

Traditionally, studies are centered

around the research institution but with ResearchKit, anyone,

anywhere can participate.

Mount Sinai's Asthma app actually discovered asthma

triggers from all 50 states.

But more important than any of that,

researchers are gaining insights

that just weren't possible before.

Take diabetes.

You and I know diabetes as type 1 and type 2

but Mass General's study of type 2 diabetes found

that some people respond completely differently

to therapies than others, supporting the theory

that there are actually subtypes of type 2 diabetes,

helping pave the way

for precision medicine for the future.

Some of the world's most respected institutions have