And no, we don't know where it will lead. We just know there's something much bigger than any of us here.

There’s a temptation in our networked age to think that ideas can be developed by email and iChat. That’s crazy. Creativity comes from spontaneous meetings, from random discussions. You run into someone, you ask what they’re doing, you say ‘wow,’ and soon you’re cooking up all sorts of ideas.

The iPod is not a new category. Music is not new. It's not a speculative market. It's a very, very large market. It's been around for thousands of years and will be around as long as humans exist.

There's no other company that could make a MacBook Air and the reason is that not only do we control the hardware, but we control the operating system. And it is the intimate interaction between the operating system and the hardware that allows us to do that. There is no intimate interaction between Windows and a Dell notebook.

The desktop metaphor was invented because one, you were a stand-alone device, and two, you had to manage your own storage. That's a very big thing in a desktop world. And that may go away. You may not have to manage your own storage. You may not store much before too long.

Microsoft has had two goals in the last 10 years. One was to copy the Mac, and the other was to copy Lotus' success in the spreadsheet - basically, the applications business. And over the course of the last 10 years, Microsoft accomplished both of those goals. And now they are completely lost.

We did not enter the search business. Google entered the phone business. Make no mistake they want to kill the iPhone. We won't let them.