The seven-inch tablets are tweeners: too big to compete with a smartphone, and too small to compete with an iPad.

The reason that Apple is able to create products like the iPad is because we've always tried to be at the intersection of technology and the liberal arts.

The desktop metaphor was invented because one, you were a stand-alone device, and two, you had to manage your own storage. That's a very big thing in a desktop world. And that may go away. You may not have to manage your own storage. You may not store much before too long.

I think this is the start of something really big. Sometimes that first step is the hardest one, and we've just taken it.

And it comes from saying no to 1,000 things to make sure we don't get on the wrong track or try to do too much. We're always thinking about new markets we could enter, but it's only by saying no that you can concentrate on the things that are really important.

For the past 33 years, I have looked in the mirror every morning and asked myself: 'If today were the last day of my life, would I want to do what I am about to do today?' And whenever the answer has been 'No' for too many days in a row, I know I need to change something.