Apple's goal isn't to make money. Our goal is to design and develop and bring to market good products... We trust as a consequence of that, people will like them, and as another consequence, we'll make some money. But we're really clear about what our goals are.

Our approach is to think of companies not as businesses but as collections of people. We [Apple]want to qualitatively change the way people work. We don't just want to help them do word processing faster or add numbers faster. We want to change the way they can communicate with one another. We're seeing less paper flying around and more quality of communication.

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.

I'm as proud of many of the things we haven't done as the things we have done. Innovation is saying no to a thousand things.

A-plus players like to work together and they don't like it if you tolerate B work.

We're cautious. We'd rather exceed expectations than miss but I think it's going to be a continued difficult economy. Apple is trying a different way to navigate out of this, we're trying to innovate.

The system is that there is no system. That doesn't mean we don't have process. Apple is a very disciplined company, and we have great processes. But that's not what it's about. Process makes you more efficient ... But innovation comes from people meeting up in the hallways or calling each other at 10:30 at night with a new idea, or because they realized something that shoots holes in how we've been thinking about a problem. It's ad hoc meetings of six people called by someone who thinks he has figured out the coolest new thing ever and who wants to know what other people think of his idea.