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One of the things that's interesting is that the PC has always had a huge amount of scalability. It was sort of the wild dog that moved into Australia and killed all the local life because it could just adapt. There used to be these dedicated devices, like dedicated word processors.

The chips are in production, the machines aren't. So we've got a little bit of work left to do.

Look at what Silicon Valley has done - the advance of computers.

I continue to see a healthy PC market, very healthy. The machines will continue to morph; you'll see smaller machines that have more capability.

Think about technological float: it took centuries for the wheel to gain universal acceptance. Now any microchip device can be in use around the world in weeks.

The whole hardware industry has experienced the phenomenon in which every time computers get cheaper, they appeal to a new set of users; every time they get more powerful, old customers upgrade.

We've been working now with computers and education for 30 years, computers in developing countries for 20 years, and trying to make low-cost machines for 10 years. This is not a sudden turn down the road.

I'm a massive believer in brands. Silicon Valley has tried to reprogram everybody to think brands aren't valuable. Or theirs are, but yours aren't.

If I designed a computer with 200 chips, I tried to design it with 150. And then I would try to design it with 100. I just tried to find every trick I could in life to design things real tiny.

Apple makes great hardware. The reality is, in the OS, we see things differently.