My position coming back to Apple was that our industry was in a coma. It reminded me of Detroit in the 70s, when American cars were boats on wheels.

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 realised 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.

Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. As with all matters of the heart, you'll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don't settle.

So when these people sell out, even though they get fabulously rich, they're gypping themselves out of one of the potentially most rewarding experiences of their unfolding lives. Without it, they may never know their values or how to keep their newfound wealth in perspective.

So, I want to show you four things. I want to show you the phone app, photos, got a calendar, and SMS messaging. The kind of things you would find on a typical phone, but in a very untypical way. So let's go ahead and take a look. So let's go to our phone first. You see that icon in the lower left-hand corner, the phone? I just push it right here, and boom, I'm in the phone. And I've got five buttons across the bottom: favorites, recents, contacts, keypad and voice mail. I'm in contacts, right now, again. How do I move around my contacts? I just scroll through them. And so, let's say I want to make a call to Jony Ive. I can just push here, and I see Jony Ive's context, with all his information: his three phone numbers, his e-mail, whatever else, his address, whatever else I've got. It's all in one place. And if I want to call Jony, all I do is push his phone number. I'll call his mobile number right now. And now, we are calling Jony here.

So, before we get into it, let me talk about a category of things. The most advanced phones are called smart phones, so they say. And they typically combine a phone plus some e-mail capability, plus they say it's the Internet. It's sort of the baby Internet, into one device, and they all have these little plastic keyboards on them. And the problem is that they're not so smart and they're not so easy to use, and so if you kind of make a Business School 101 graph of the smart axis and the easy-to-use axis, phones, regular cell phones are right there, they're not so smart, and they're not so easy to use. But smart phones are definitely a little smarter, but they actually are harder to use. They're really complicated. Just for the basic stuff people have a hard time figuring out how to use them. Well, we don't want to do either one of these things. What we want to do is make a leapfrog product that is way smarter than any mobile device has ever been, and super-easy to use. This is what iPhone is. OK?

And I've got this little keyboard which was phenomenal. It does error prevention and correction. Not that I won't make some, I probably will. But it's actually really fast to type on. It's faster than all these little plastic keyboards on all these smart phones. So I can just say sounds great, see you there. And I can send that. And there it is. It's that simple. And when Phil messages me back, I'll be alerted, I'll see the dot, and I can just go pick up that conversation where it left off. If I want to send a message to Eddie or Scott, I just push this and send a message and go. It's so simple. So that's SMS messaging, and again, you've seen the keyboard, it's pretty awesome. We'll come back to that a little later.

Select all