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.

And it comes from saying no to 1,000 things to make sure we don't get on the wrong track or try to do too much. We're always thinking about new markets we could enter, but it's only by saying no that you can concentrate on the things that are really important.

You know, Dr. Edwin Land was a troublemaker. He dropped out of Harvard and founded Polaroid. Not only was he one of the great inventors of our time but, more important, he saw the intersection of art and science and business and built an organization to reflect that. Polaroid did that for some years, but eventually Dr. Land, one of those brilliant troublemakers, was asked to leave his own company - which is one of the dumbest things I've ever heard of.

Oh wow. Oh wow. Oh wow.

First was the mouse. The second was the click wheel. And now, we're going to bring multi-touch to the market. And each of these revolutionary interfaces has made possible a revolutionary product - the Mac, the iPod and now the iPhone.

Focusing is about saying No.

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.