With hacking getting more and more sophisticated, the hacking community has gone from the hobbyist in the basement to huge sophisticated companies that are essentially doing this, or groups of people or foreign agents inside and outside the United States.

Our message, to people around the country and around the world, is this: Apple is open. Open to everyone, regardless of where they come from, what they look like, how they worship or who they love.

There's a lot of health information available on your smart phone. There's financial information. There's your conversations, there's business secrets. There's an enormous long list of things that there's probably more information about you on here than exists in your home, right. Which makes it a lot more valuable to all the bad guys out there.

Apple doesn't do hobbies as a general rule.

Today, we are pleased to announce the biggest advancement in iPhone.

Certainly some things that are very good can sometimes be used in a bad way.

I believe that if you took privacy and you said, I'm willing to give up all of my privacy to be secure. So you weighted it as a zero. My own view is that encryption is a much better, much better world. And I'm not the only person that thinks that.