Apple executives speak: On toaster-fridges, financial guidance, and lawsuits

25.04.2012

On the iPhone 4S, our target is to be between four and six, the addition of the 12.6 million allowed us to get within that range by the end of the quarter. We feel that we exited the quarter at supply and demand balance. Because our execution of the option was so good, the vast majority of supply/demand in the different countries was reached in the end of January.

We had the mother of all Januarys with really getting out the vast majority of the iPhone 4S backlog and launching China as well, so it was an incredible start to the quarter for us.

We're just learning about the elasticity of demand, and the $399 price point. It's doing well, but I have to tell you, the new iPad is on fire, and we're selling them as fast as we can make them. We'll learn more over this quarter especially as we get through the education buying season, which looks terrific for us, especially on the iPad.

On iPad 2, with the change in the entry price to $399, we're actually thrilled with the results that we've seen; although as Peter said, it's only been a few weeks and so it's too early to come to a clear conclusion. But from what we are seeing, this unlocked some education demand--that is, probably a more price-sensitive customer--also in several other countries there was a marked change in demand at that price point. And so on the early going, we feel great about it.