Wamsi Mohan: Yes, thank you so much. I was wondering maybe you could help us think through the seasonality. Obviously, it’s been — for the first half versus second half, what’s implied in your guidance? If we go back a few years, the low 50% of EPS was recognized in the second half versus first half. So, I’m wondering if you could maybe either characterize it that way or second half versus first half on a growth basis on earnings. And maybe within that context you can just give us some sense the commercial PC market continues to be quite weak. I know, Marie, you said that the guidance for fiscal ’24 bakes an in-line with market performance. But can you be somewhat explicit about what that performance is in commercial PCs in your fiscal year guide? Thank you so much.
Enrique Lores: Yeah. So, Wamsi, hi, this is Enrique. Let me provide a view on macro, and then Marie will be more specific about seasonality on EPS, because I think it will help to understand it better. So, from a macro perspective, what we saw in Q4 is an increase in seasonality, especially for PCs, between Q3 and Q4. And also, on the commercial side, we saw stability of sales. Market continued to remain soft, but especially when we look at real end user demand, we saw demand being stable. And somehow this helps us in the projection that we have for next year. As we discussed before, we expect the PC market to be slightly growing from 2024 to 2023, and the print market to be about flat to slightly decline between ’24 and ’25 — ’24 and ’23, and we expect both segments to improve gradually through the year. So, having said that context, Marie will address the EPS question.
Marie Myers: Yeah, no, good afternoon. So, let me walk you through how to think about seasonality. If you take the midpoint of that guide, which is what we gave at SAM, which is the $3.45, if you take the midpoint, basically you can assume the macro is stabilizing. And also, we expect the revenue to improve over the course of the year. So, I would just say we’re not back yet quite to normal seasonal patterns, but we’re definitely expecting the back half to improve over the first half. So, think about a gradual recovery over the year. But I’ll just add, as we think about the Q1 guide, particularly for Personal Systems, I would say at this point, we don’t expect that normal seasonality yet due to the pace of the market recovery. So, we’re going to see that quarter-on-quarter differential relative to the Q4 period that we’ve just come out of. So, same guide unchanged, but definitely still not quite back to normal seasonality yet throughout the year.
Wamsi Mohan: Thanks, Enrique. Thanks, Marie.
Enrique Lores: Thank you.
Marie Myers: Thank you.
Operator: Your next question comes from the line of Amit Daryani from Evercore ISI. Please go ahead.
Amit Daryani: Thanks a lot. Good afternoon, everyone. I guess my question is just on the Print side. Enrique, I’m hoping you could just touch on what do you seeing from a competitive perspective, given a lot of your peers are in Japan, who are probably leveraging the weaker currency, I think, on the pricing side. I’d love to understand how you’re reacting to that. And then really how do you maintain the operating margin of this run rate, given the pricing headwinds — or competitive headwinds that you have? Maybe you can just touch up on that. And then, Marie, could you just maybe flush out free cash flow? If there are any seasonality we should be cognizant about in Q1 versus rest of the year, that would be helpful. Thank you.
Enrique Lores: So, let me start on Print. So, not much has changed since we met a few weeks ago. So, we continue to see a competitive environment on the Print side, especially driven by the current situation between yen and dollar. But I have to say, between Q3 and Q4, we didn’t see more aggressive pricing. If anything, prices sequentially improved Q3 to Q4. We have not seen an increase in competition from that perspective. When we look at ’24 and the actions that we are taking to compensate for a potential more pricing increase, we are going to be executing the plan that we described before. We have an aggressive cost reduction plan that will help us to manage that. We continue to drive the shift toward HP+ units and profit upfront units that will also help from that perspective.
And we continue to drive — and we expect to grow share in the office space, which will be a contributor of margin improvement. And finally, as we shared in our prepared remarks, we have seen an improvement of the performance of the industrial business. We have seen a recovery of the market. And within the market, we have grown both hardware and consumption. And we think this is going to help us also in 2024.
Marie Myers: Yeah, and just a couple of points on the Print rate. So, as we guided in SAM, we’re still very confident in the outlook we gave around the revised range on Print. And as a result of that, we do expect in Q1 to still be at the high-end of that range, and then in ’24, we expect to be solidly in the range. So, just keep that in mind as you’re working through your model. And then, with respect to cash flow and the comments on seasonalities, we’re reiterating our guide that we had at SAM of $3.10 to $3.60. And I just add from a seasonality perspective, just always bear in mind that Q1, we do expect cash flow to be lower, and that’s due to the fact that we always accrue for our bonus in the prior period, and we typically pay that out in Q1 of the current year.
