Tim Cook: I can’t address the data points. I can only address what our results are. And we did accelerate last quarter, and the iPhone grew in Mainland China. So that’s what the results were. I can’t bridge to numbers we didn’t come up with.
Aaron Rakers: Okay. And then as a quick follow-up, I know you guys haven’t talked about this, you know, quantified it in quite some time. But I’m curious how we would characterize the channel inventory dynamics for iPhone?
Tim Cook: Sure. The — for the March quarter, we decreased channel inventory during the quarter. We usually decreased channel inventory during the Q2 timeframe. So that’s not unusual. And we’re very comfortable with the overall channel inventory.
Aaron Rakers: Thank you.
Tim Cook: Yes.
Suhasini Chandramouli: Thank you, Aaron. Operator, we’ll take the next question, please.
Operator: Our next question is from Richard Kramer with Arete Research. Please go ahead.
Richard Kramer: Thanks very much. I’m not going to ask about China, but you regularly call out all the rapid growth in many other emerging markets. So is Apple approaching a point where all of those other emerging markets in aggregate might crossover to become larger than your current $70 billion Greater China segments, and maybe investors could look at that for driving growth for the wider business? And then I have a follow-up for Luca. Thanks.
Luca Maestri: I think, Richard, you’re asking a really interesting question. We were looking at something similar recently. Obviously, China is by far the largest emerging market that we have. But when we started looking at places like India, like Saudi, like Mexico, Turkey, of course, Brazil and Mexico and Indonesia, the numbers are getting large, and we’re very happy because these are markets where our market share is low, the populations are large and growing. And our products are really making a lot of progress with the — in those markets. The level of excitement for the brand is very high. Tim was in Southeast Asia recently, and the level of excitement is incredibly high. So it is very good for us. And then — and certainly, the numbers are getting larger all the time. And so the gap as you compare it to the numbers in China is reducing, and hopefully, that trajectory continues for a long time.
Richard Kramer: Okay. And then as a follow-up, maybe for either of you, I mean, you’re coming up on four years from what was incredibly popular iPhone 12 cycle. And, you know, given you’re struggling to reduce your net — your — reach your net neutral cash position and your margins are sort of near highs, do you see ways to deploy capital more to spur replacement demand in your installed base either with greater device financing, more investment in marketing, more promotions. I mean, do you feel like you needed to produce those sort of margins or is it a more important to spur growth with replacement? Thanks.
Tim Cook: I think innovation spurs the upgrade cycle, and as one thing, of course, there’s economic factors as well that play in there. And what kind of offerings there are from our carrier partners and so forth. And so there’s a number of variables in there. But we work all of those, and you know, we price our products for the value that we’re delivering. And so that’s how we look at it.
Luca Maestri: And if I can add to Tim’s comments, Richard, one of the things that when you look over the long arc of time that maybe is not fully understood is that we’ve gone through a long period of very strong dollar. And what that means given that our company sells more than 60% of our revenue is outside the United States. The demand for our products in those markets is stronger than the results that we report just because of the translation of those local currencies into dollars, right? And so that is something to keep in mind as you look at our results, right? And so we are making all the investments that are needed and Tim has talked about innovation. Obviously, we made a lot of progress with financing solutions, with trading programs and so on, and we will continue to make all those investments.
Richard Kramer: Okay. Super. Thanks, guys.
Suhasini Chandramouli: Thank you, Richard. Operator, can we take our last question, please.
Operator: Our next question is from Atif Malik with Citi. Please go ahead.
Atif Malik: Hi. Thank you for taking my questions, and I have two questions as well. First for Tim, for enterprise, specifically, what are some of the top two or three use cases on Vision Pro you’re hearing most excitement? And then I have a follow-up for Luca.
Tim Cook: Yes, the great thing is, I’m hearing about so many of them. I wouldn’t say that one has emerged as the top, right now. The most impressive thing is that similar to the way people use a Mac, you use it for everything. People are using it for many different things in enterprise, and that varies from field service to training to healthcare related things like preparing a doctor for pre-op surgery or advanced imaging. And so the — it commands control centers. And so it’s an enormous number of different verticals. And you know our focus is on — is growing that ecosystem and getting more apps and more and more enterprises engaged. And the event that we had recently, I can’t overstate the enthusiasm in the room. It was extraordinary. And so we’re off to a good start, I think, with the enterprise.
Atif Malik: Great. And then Luca, I believe you mentioned that for the March quarter, the commodity pricing environment was favorable. Can you talk about what you’re assuming for commodity pricing on memory and et cetera for the June quarter and maybe for the full-year?
Luca Maestri: Yes, we provide guidance just for the current quarter. So I’ll tell you about the, you know, the guidance. We’re guiding to again to a very high level of gross margins, 45.5% to 46.5%. Within that guidance, we expect memory to be a slight headwind, not a very large one, but a slight headwind. And the same applies for foreign exchange. Foreign exchange will have a negative impact sequentially of about 30 basis points.
Atif Malik: Thank you.
Suhasini Chandramouli: Thank you, Atif. A replay of today’s call will be available for two weeks on Apple podcasts as a webcast on apple.com/investor and via telephone. The number for the telephone replay is 866-583-1035. Please enter confirmation code 0467138 followed by the pound sign. These replays will be available by approximately 5:00 P.M. Pacific Time today. Members of the press with additional questions can contact Josh Rosenstock at 408-862-1142, and financial analysts can contact me, Suhasini Chandramouli, with additional questions at 408-974-3123. Thank you again for joining us.
