The desktop computer industry is dead. Innovation has virtually ceased. Microsoft dominates with very little innovation. That's over. Apple lost. The desktop market has entered the dark ages, and it's going to be in the dark ages for the next 10 years, or certainly for the rest of this decade.

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.

There's nothing that makes my day more than getting an e-mail from some random person in the universe who just bought an iPad over in the UK and tells me the story about how it's the coolest product they've ever brought home in their lives. That's what keeps me going. It's what kept me five years ago [when he was diagnosed with cancer], it's what kept me going 10 years ago when the doors were almost closed. And it's what will keep me going five years from now whatever happens.

In most people's vocabularies, design means veneer. It's interior decorating. It's the fabric of the curtains and the sofa. But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation that ends up expressing itself in successive outer layers of the product or service.

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.

You know, I was showing this to somebody -- I was giving a demo to somebody a while ago, who had never seen this before, inside Apple. And I finished the demo, and I said what do you think. They told me this, they said, You had me at scrolling. So, the iPhone with the most amazing iPod ever. You can now touch your music.

So, 2007 is going to be a great year for the Mac. But this is all we're going to talk about the Mac today. We're going to move on to some other things and over the course of the next several months we're going to roll out some awesome stuff for the Mac. But for today, we're going to move on.

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