Jobs then took issue with the geeky argument of open versus closed, which refers to how transparent a system's source code is to developers.

"Google loves to characterize Android as open, and iOS and iPhone as closed," Jobs said. "We find this a bit disingenuous and clouding the differences between our two approaches."

He called Android "fragmented." He highlighted how Android handset makers install layers on top of Google's software, which can introduce unexpected problems. And Amazon, Verizon Wireless and Vodafone say they intend to create their own digital stores to sell applications to Android users, despite Google's own Marketplace.

"This is going to be a mess for both users and developers," Jobs said. "We believe integrated will trump fragmented every time."

On Nokia, which sells the most cell phones worldwide, Jobs said: "Nokia is the biggest, and we admire them for being able to ship the number of handsets that they do. But we don't aspire to be like them."

"Nokia makes $50 handsets, and we don't know how to make a great smartphone for $50," Jobs said. "We're not smart enough to figure that one out yet."