The Mix and iPhone ASPs
Toni Sacconaghi – Sanford Bernstein: But Peter the mix ultimately was not that different I think iPhones were 52.5% last quarter, they were 51.5%. So, it actually seems like your mix was perhaps better than you had anticipated. So, I appreciate the volume revenue mix but was your mix exactly in line (indiscernible)
Peter Oppenheimer – SVP and CFO: Some puts and takes within the quarter, but it ultimately ended up within the range that we (indiscernible) and we hit the high end.
Toni Sacconaghi – Sanford Bernstein: The second one I was wondering, whether you could comment on was, just iPhone ASPs, they were down about 5% sequentially or down about 10% over the last two quarters. I presume that’s principally due to a higher mix of 4s and 4Ss, but I was wondering if you could comment on what’s driving that change in ASP and whether it’s more pronounced in certain geographies versus others.
Peter Oppenheimer – SVP and CFO: We were down 4% year-on-year on the iPhone ASP, about $27 and that was primarily (indiscernible) to the products that we’re selling and FX headwinds. As we anticipated, iPhone 4S sales accelerated as we offered more affordable pricing in emerging – in other markets, so that – on a year-over-year basis and then sequentially it was down about $32, and again that was driven by mix as well, in part iPhone 4. Tim, do you want to make a comment about what we may have seen in the regions?
Tim Cook – CEO: From an iPhone point of view Tony, with the moves that we made on 4 and with iPhone 5 continuing to be the most popular model, we saw very strong sales in several of the emerging markets, sort of pre-pay markets, India was up over 400%, Turkey and Poland were both up over 60%. The Philippines were up about 140% and these were – in addition we saw very strong iPhone sales in several of the developing markets, for example the U.S. was up over 50%, Japan up over 60%, the U.K. about 50% and so we had several regions where iPhone actually accelerated from the previous quarter which is a unusual pattern for us. And we were very happy with those.
Toni Sacconaghi – Sanford Bernstein: And notably absent from that list was China. Was that, was your pricing (indiscernible) to change pricing this quarter relative to previous quarters, any different in China than the rest of the world?
Tim Cook – CEO: China was weaker in the quarter. Although the data sheet that obviously focuses on revenue doesn’t really tell the complete story here. If you look at sell through as we’d mentioned earlier with the inventory changes it’s important to do that and so our sell through in China was only down 4% from the year ago quarter. When you normalize for channel inventory, Hong Kong was actually down more significantly than that, Mainland China was actually up year-over-year was up 5%. But that is a lower growth rate than we have been seeing and I attribute it to many things. Including the economy there clearly doesn’t help us nor others. In Hong Kong, Hong Kong is an international shopping haven as you know for not only tourist but also some resellers. And we saw more dramatic downturn there (indiscernible) it’s not totally clear exactly why that occurred but it was down on a sell through basis by about 20%. So, that weighed Greater China down as you can see.
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