Tim Cook

On the availability portion, Toni, the iPhone 3GS demand outstripped the supply of the iPhone 3GS, and so I think you would probably put that in your first category of a good old fashioned, a demand issue, which is a nice problem to have in the scheme of things. Now, because we, because it was outstripping supply, it creates component shortages as we go out to the market to secure more components and generally speaking, the ones that are hardest to get is silicon, and so it takes a little longer.

However, I was really happy that we were able to solve the bulk of these, the vast majority of them in September or in early October. So, I feel good about how we're positioned now. The air freight is not related to the iPhone. So, these are unrelated topics. But generally speaking, the air freight is planned to get enough units into the channel in time for the holidays and is necessary for that reason.

Toni Sacconaghi - Sanford Bernstein

Now, is that air freight non -- I would imagine that you had that typically in most Q4s and accordingly, is that larger than usual for this quarter because your demand perception may have changed over the last 30 or 60 days or is that just a normal sequential seasonal headwind to margins that you always experience?

Tim Cook

It's more than normal. And so you're correct that in general, we spend more in freight in Q1. However, this increase is larger than usual. And I'm sorry, I can't be specific on the product, but it's an abnormal sequential increase.

Toni Sacconaghi - Sanford Bernstein

Okay. Thank you.

Nancy Paxton

Thanks, Toni. Could we have the next question, please?

Operator

From UBS, we'll hear from Maynard Um.

Maynard Um - UBS

Thanks. Can you just talk about how many non-Apple retail store distribution points you have and whether there's more growth there. I'm just trying to think about the mix of your retail stores versus your indirect going forward and then as a follow-up question on CapEx.

Tim Cook

Maynard, is that specific to the Mac or…?

Maynard Um - UBS

For the Mac, yes.

Tim Cook