500 dollars? Fully subsidized? With a plan? I said that is the most expensive phone in the world. And it doesn't appeal to business customers because it doesn't have a keyboard. Which makes it not a very good email machine.

I think there are lots of opportunities to improve the product. When you read the press, people say, "Oh, the product needs improvement." I look at that and say, "Hey, that's an exciting thing to get behind!" Because they can improve that product. That leaves more upside from an innovation and revenue potential than you're gonna find in a lot of places. So you could say that's a downside, I see that as an opportunity.

Our goal in making these changes is to enable Microsoft to achieve greater agility in managing the incredible growth ahead and executing our software-based services strategy.

We're going to think big, we're going to bet big.

Computer science is the operating system for all innovation.

I think PCs are going to continue to shift in form factor. The real question is: What's a PC?

Not only because the product wasn't a great product, but remember it took us five or six years to ship it. Then we had to sort of fix it. That was what I might call Windows 7.