When you start looking at a problem and it seems really simple, you don't really understand the complexity of the problem. Then you get into the problem, and you see that it's really complicated, and you come up with all these convoluted solutions. That's sort of the middle, and that's where most people stop... But the really great person will keep on going and find the key, the underlying principle of the problem - and come up with an elegant, really beautiful solution that works.

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.

The over-all point is that new technology will not necessarily replace old technology, but it will date it. By definition. Eventually, it will replace it. But it's like people who had black-and-white TVs when color came out. They eventually decided whether or not the new technology was worth the investment.

When the sales guys run the company, the product guys do not matter so much, and a lot of them just turn off.

In order to learn how to do something well, you have to fail sometimes. In order to fail, there has to be a measurement system. And that's the problem with most philanthropy - there's no measurement system. You give somebody some money to do something and most of the time you can really never measure whether you failed or succeeded in your judgment of that person or his ideas or their implementation.

I've read something that Bill Gates said about six months ago. He said, ‘I worked really, really hard in my 20s.’ And I know what he means, because I worked really, really hard in my 20s too. Literally, you know, 7 days a week, a lot of hours every day. And it actually is a wonderful thing to do, because you can get a lot done. But you can't do it forever, and you don't want to do it forever, and you have to come up with ways of figuring out what the most important things are and working with other people even more.

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.