We've demonstrated a strong track record of being very disciplined with the use of our cash. We don't let it burn a hole in our pocket, we don't allow it to motivate us to do stupid acquisitions. And so I think that we'd like to continue to keep our powder dry, because we do feel that there are one or more strategic opportunities in the future.

We don't believe it's possible to protect digital content. What's new is this amazingly efficient distribution system for stolen property called the Internet-- and no one's gonna shut down the Internet. And it only takes one stolen copy to be on the Internet. And the way we expressed it to them is: Pick one lock--open every door. It only takes one person to pick a lock. Worst case: Somebody just takes the analog outputs of their CD player and rerecords it-- puts it on the Internet. You'll never stop that. So what you have to do is compete with it.

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

You can't win on innovation unless you have a way to communicate it to customers.

I was at Reed [College] for only a few months. My parents intended for me to stay there for all four years but I decided that college wasn't right for me. I had no idea what I wanted to do I didn't see how college was going to help me.

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.

You'll see more and more perfection of that - computer as servant. But the next thing is going to be computer as a guide or agent.