Harsh Kumar: Understood. And for my follow-up, I had a sort of interesting theoretical question on pricing. Assuming we get the CHIPS Act passed, and there’s a whole bunch of manufacturing that happens in U.S. and other territories that are potentially somewhat more expensive than the ones you might be now, have you — has the company done any studies to gauge the elasticity of demand relative to small price increases in your products?
Timothy Cook: We have experience in that, but I wouldn’t necessarily draw the same conclusion that you have in terms of the cost of the product. I — we don’t know at this point exactly what that will be, but we’re all in, in terms of being the largest customer for TSMC in Arizona. I’m very proud to take part in that. That’s what I would say about that.
Operator: Our next question comes from Wamsi Mohan of Bank of America.
Wamsi Mohan: Tim, you’ve done a phenomenal job of driving consumer choice towards higher-end products within your portfolio. How would you compare this cycle for iPhones if you were to segment the Pro versus non-Pro models versus the cycles from the past few years? And do you think this move to higher ASPs is sustainable? Or do you think it reverses in a tighter consumer spending environment? And I have a follow-up.
Timothy Cook: The Pro has been a — the 14 Pro and the 14 Pro Max have done extremely well up until the point where we had a supply shortage and couldn’t provide them — couldn’t provide the total of the demand. And so it’s definitely a strong Pro cycle. I think there’s a number of reasons for that, but the most important one is always the product. And I think the innovations and the product speak for themselves. And we feel very good about the product that we announced back in September and are happy to now be at a point where we’re shipping to the demand.
Wamsi Mohan: And Tim, do you think that this move to sort of higher ASPs that has happened over the last few years is sustainable? Or could it sustain in this very tough macro environment that you’ve cited?
Timothy Cook: I wouldn’t want to predict, but I would say that the smartphone for us, the iPhone has become so integral into people’s lives. It contains their contacts and their health information and their banking information and their smart home and so many different parts of their lives, their payment vehicle and — for many people. And so I think people are willing to really stretch to get the best they can afford in that category.
Wamsi Mohan: Okay. Great. And Tim, you clearly emphasize the focus and importance of the installed base. If we think about the absolute grit of the installed base from 1 billion to 2 billion over 7 years from a device standpoint, how should we think about the penetration of services or the growth in paying customers on services or that time frame? Is that penetration rate increasing or decreasing? How fast is that growing relative to the growth of the overall installed base?
