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BARTIROMO: Right.

Dr. SCHMIDT: We'd like to, but we haven't done it. And people don't like to kind of go like this. So you need a certain size screen. But there's other technology. For example, the processors in the phones have gotten faster. The batteries have gotten longer last--longer lasting. The screens have gotten brighter. The whole device has gotten lighter. So all of that has been happening while people have been talking about this. We know that these things are working now. We know because we measure it that there's been a huge increase in maps, Google Maps, hugely successful. These phones have GPSes in them. So when I want to go to the equivalent of a Starbucks, I just type "Starbucks," it says it's over there. For me, that's just a huge--a huge improvement. And that service is available almost everywhere in the world.

BARTIROMO: That's amazing. Let's--that transitions right to the rest of the world. Global has been really the hot spot for Google. Tell me how you keep that going. Where are the biggest opportunities for Google right now outside of the United States?

Dr. SCHMIDT: Well, first place, the Internet is growing faster outside the United States than in the United States. Also advertising online growth rates are higher outside the United States than they are in the United States. You've got--and of course you have a weak dollar strategy--because the US has a very weak dollar--so that also helps. For all of those reasons, revenue outside of the United States should grow dramatically over the next while, and that's great.

In our case, the biggest difference--and, in fact, perhaps the only difference--between people in the US and other people is language. Other than that, simple rule: Everybody wants the same thing. They want fashion, they want information, they want products, they want e-commerce, they want it now, they want to have fun, they want to use credit cards or debit cards. So we work very hard to make that true globally. I think most of the large, successful US corporations, the ones that you certainly cover all day, all are going to see that kind of growth if they'll well positioned internationally.

BARTIROMO: So when you look around the world, what's the most important, sort of richest area for you right here?

Dr. SCHMIDT: Well, for us, of course, Europe has been our stronghold for a long time. And Europe is just very, very strong for Google. They have relatively higher market share, they're very sophisticated consumers, and a very mature advertising rate. If you look at the global advertising market, it's the United States, Japan, China, Britain, France and Europe--and Great Britain. Those are the sort of the big five or six. Well, of course, we're doing very well in Europe, we're doing well in Japan, and we've been in the process of entering China for a while, and we're growing there nicely.

BARTIROMO: What's happening there, though? You're number one in every market except a handful in Asia. How do you break in, and really with a solid foothold.

Dr. SCHMIDT: Well, in each case, they're different. In China, of course, there's all the issues of regulation and censorship. We delayed our entry for good reasons, and as a result we're not number one there. In some of the other countries, it's because we didn't get the language right. It turns out Asian languages often have what you and I would think of are nonsensical ways in which words are put together. So, for example, all the words in Thai are put into one very long sentence. They don't have word breaks. So developing the technology to do that right and then search and index against it took us a little while longer. We've now addressed that, so we think we should do well now.

BARTIROMO: Fascinating. So what's the biggest challenge that you're facing today?

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