Timothy D. Cook

On the iPod side, iPod was up 8% for the full quarter, as Peter had mentioned earlier. In the final weeks of September and the early weeks of October, we were running flat year-over-year on a worldwide perspective and as we look forward, it’s very difficult to predict whether the usual seasonal holiday lift will exist in the same pattern as it has before. As we said, forecasting is very difficult. On the Mac, I commented that we did see what we believe were purchasing delays due to last week’s portable transition and also the K-12 institutional business was down year over year last quarter.

Gene Munster - Piper Jaffray

Would it be safe to summarize your comments as that you have seen some sort of an impact, it looks like it’s more a slow-down ahead of the Mac cycle and so it’s less economy related and more just your general conservatism?

Timothy D. Cook

It’s difficult to separate how much was the purchase delay versus economy. It could have all been delay. It could be some part due to the economy. We just don’t know. What we are very excited about is the rebound last week was great and, however, forecasting that going forward with the visibility that we have is just very difficult.

Gene Munster - Piper Jaffray

Thank you.

Nancy Paxton

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

Operator

Your next question will come from Charles Wolf with Needham.

Charles Wolf - Needham & Company

Yes, I have a question for Steve and for well, for anybody but the performance of the iPhone was absolutely astonishing, but it was probably more so in this respect that most of the phones sold in the quarter were probably net activations as opposed to re-upgrades from the first-gen. I was wondering, do you have any percentages on how many of the iPhones went to new users and how many, what percentage went to the first-gen people?

Timothy D. Cook

Charlie it is Tim. That’s confidential information to our carrier partners but I would point out that we expanded the number of countries that we sold in from six to 51 and so there was an extraordinary amount of iPhone being sold to people for the first time.

Charles Wolf - Needham & Company

Yes, well my point is simply that over half of RIM’s sales, BlackBerry sales, are upgrades, not to new users. So I would argue that Apple did better than it would appear, given the numbers.

Steven P. Jobs

We’re happy just to, we’re just happy to beat them on a number-to-number comparison.