Okay. Peter, could I ask one more, and that is we have seen a 35% decline in aluminum pricing so far. Well, since you gave the guidance for fiscal ’09 gross margin, aluminum is down 35%. How quickly can we expect that to start flowing through the P&L? Thank you.

Peter Oppenheimer

We would certainly sell our new MacBooks cheaper if we just delivered them with a block of aluminum but we have to machine that aluminum and it’s a fairly precision operation. So the cost of the aluminum matters some but is not a dominant cost.

Richard Gardner – Citigroup

Okay, all right, thank you.

Nancy Paxton

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

Operator

Your next question will come from Ben Reitzes, Barclays Capital.

Ben Reitzes - Barclays Capital

Thanks a lot. Steve, can you talk about the pricing of your Mac line right now and how you feel that is positioned going into this economy? And in particular as well, maybe your thoughts, there’s this new NetBook category that’s getting a lot of hype and just where do you see that playing out in the marketplace and your position in the market there?

Steven P. Jobs

Well, again this particular downturn is not creating a market of cheaper computers. That market has existed for some time and there are parts of that market that we choose not to play in. I think when people want a product of the class that we make, over and over again people have done the price comparisons and we’re actually quite competitive. So we choose to be in certain segments of the market and we choose not to be in certain segments of the market. And the question is, is the downturn going to drive some of our customers to those lower segments of the marketplace and get to buy lesser products? And I will be surprised if that happens in large numbers and I actually think that there are still a tremendous number of customers that we don’t have in the Windows world or in the other 99% of the phone market we don’t have who would like to and can afford to buy Apple products. So we’ll see what the ratio of those two things are, but we’re not tremendously worried.

As we look at the NetBook category, that’s a nascent category. There’s as best as we can tell not a lot of them getting sold. One of our entrants into that category, if you will, is the iPhone for browsing the Internet and doing e-mail and all the other things that a NetBook lets you do, and being connected via the cellular net wherever you are, an iPhone is a pretty good solution for that, and it fits in your pocket. But we’ll wait and see how that nascent category evolves and we’ve got some pretty interesting ideas if it does evolve.

Ben Reitzes - Barclays Capital

Okay, great, thanks and just a quick follow-up on the iPhone, I mean, given it’s so new for you, Steve, do you have any view on how it will do in this economy, and in particular you still have some international expansion going on. So just given the iPhone is new, we’ve been through downturns maybe with Macs before, although a long time ago, and maybe even consumer devices, this iPhone is so new, how do you see it doing in this economy?

Steven P. Jobs

We’ll be glad to tell you how it does.

Ben Reitzes - Barclays Capital

Okay. Thanks a lot.