That brings us to iPad. We think the iPad is the poster-child of the post-PC world.

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.

Apple Watch is the most personal device we've ever created.

If you're worried about messaging, people will just move to something else. You know if you legislate against Facebook and Apple and Google and whatever else in the US, they'll just use something else. So are we really safer then? I would say no. I would say we're less safe, because now we've opened up all of the infrastructure for people to go wacko at.

Price is rarely the most important thing. A cheap product might sell some units. Somebody gets it home and they feel great when they pay the money, but then they get it home and use it and the joy is gone.

I don't think Apple has to own a content business.

If I'm working with you for several months on things, if I have a relationship with you, and I decide one day I'm going to sue you, I'm a country boy at the end of the day. I'm going to pick up the phone and tell you I'm going to sue you.