We are obviously making bets on the demand already and so we are predicting. It’s just hard for us to forecast for external consumption.

Bill Fearnley - FTN Midwest

Okay. Thanks for the details, folks.

Nancy Paxton

Thank you, Bill. Could we have the next question, please?

Operator

Your next question will come from Mike Abramsky with RBC Capital Markets.

Mike Abramsky - RBC Capital Markets

Thanks very much. Steve, you only have really one SKU in the phone biz, and the phone market is 10 times the size of the PC market. So I think you clearly as you said strive to be the best. At the same time, what might be the opportunities for further innovation or market opportunities within that market?

Steven P. Jobs

Well, I wasn’t alive then but from everything I heard, Babe Ruth had only one homerun, he just kept hitting it over and over again. So I think the traditional game in the phone market has been to produce a voice phone in a hundred different varieties. But as software starts to become the differentiating technology of this product category, I think that people are going to find that a hundred variations presented to a software developer is not very enticing and most of the competitors in this phone business do not really have much experience in a software platform business. So, we are extremely comfortable with our strategy, our product strategy going forward and we approach it as a software platform company, which is pretty different than most of our competitors.

Mike Abramsky - RBC Capital Markets

And I think earlier, there’s been lots of discussion about limited visibility on whether there are delays to purchases or the economy. When do you think you get better visibility to things like Mac upgrade or uptake cycles versus economy related headwinds or changes in buyer patterns here, given so much uncertainty? Is that first quarter next year and is your price point comment about we are going to restrict ourselves to certain markets we want to play in, is that firm or are there alternative strategies you might employ if you don’t get the upgrade cycles, or response to the price point stance that you are looking for?

Timothy D. Cook

Mike, I think the answer to your question is different by product. On iPod, historically about half of our sell-through occurs in December and so the question of iPod visibility, we’ll get a lot better visibility as we head into December on this quarter. Before then, the visibility will be limited. In the Mac area, the question is how much was purchasing delay versus economy, if at all, and we’ll gain knowledge on that each week but it will take some number of weeks before we are able to meet the demand in that space, and so I think it will take a little while longer.

Mike Abramsky - RBC Capital Markets

Okay. Thank you very much.

Nancy Paxton

Thank you, Mike. A replay of today’s call will be available for two weeks as a podcast on the iTunes store, as a webcast on www.apple.com/investor, and via telephone. And the numbers for the telephone replay are 888-203-1112 or 719-457-0820, and the confirmation code is 5643095, and these replays will be available beginning at approximately 5:00 p.m. Pacific Time today. Members of the press with additional questions can contact Steve Dowling at 408-974-1896, and financial analysts can contact either Joan Hoover or me with additional questions. Joan is at 408-974-4570 and I am at 408-974-5420. Thanks again for joining us.

Operator