In recent years, probity has eroded. Many major corporations still play things straight, but a significant and growing number... have come to the view that it's okay to manipulate earnings to satisfy what they believe are Wall Street's desires... many CEOs think this kind of manipulation is not only okay, but actually their duty.

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We have a very simple, clear organization. It's very easy to know who has authority for what, who has responsibility for what. There's no politics about it, they're virtually politics-free organizations.

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We had to lay some people off...every one that I had to do it personally, I thought, 'A lot of these fathers and mothers are going to have to...tell their families they just lost their jobs.' And I'd never really thought about that before.

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There's nothing wrong with big companies. A lot of people think big business in America is a bad thing. I think it's a really good thing. Most people in business are ethical, hard-working, good people. And it's a meritocracy.

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That's been one of my mantras - focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it's worth it in the end because once you get there, you can move mountains.

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Apple's the only company left in this industry that designs the whole widget. Hardware, software, developer relations, marketing. It turns out that that... is Apple's greatest strategic advantage... if you believe that there's still room for innovation in this industry.

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But 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 realized something that shoots holes in how we've been thinking about a problem.

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Innovation distinguishes between a leader and a follower.

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Innovation has nothing to do with how many R & D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R & D. It's not about money. It's about the people you have, how you're led, and how much you get it.

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Large companies not paying attention to change will get hurt. The Web will be one more area of significant change and those who don't pay attention will get hurt, while those who see it early enough will get rewarded. The Web is just going to be one more of those major change factors that businesses face every decade.

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