Thank you. Good afternoon, and thanks to everyone for joining us. Speaking today are Apple’s CEO, Tim Cook and CFO, Peter Oppenheimer, and they will be joined by Treasurer, Gary Wipfler for the Q&A session with the analysts.Please note that some of the information you will hear during our discussion today will consist of forward-looking statements, including without limitation, those regarding revenue, gross margin, operating expenses, other income and expense, stock-based compensation expense, taxes, and future products. Actual results or trends could differ materially from our forecast. For more information, please refer to the Risk Factors discussed in Apple’s Form 10-K for 2012 and the Form 8-K filed with the SEC today along with the attached press release. Apple assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.I’d now like to turn the call over to Tim Cook for introductory remarks.

Thank you. Good afternoon, and thanks to everyone for joining us. Speaking today are Apple’s CEO, Tim Cook and CFO, Peter Oppenheimer, and they will be joined by Treasurer, Gary Wipfler for the Q&A session with the analysts.Please note that some of the information you will hear during our discussion today will consist of forward-looking statements, including without limitation, those regarding revenue, gross margin, operating expenses, other income and expense, stock-based compensation expense, taxes, and future products. Actual results or trends could differ materially from our forecast. For more information, please refer to the Risk Factors discussed in Apple’s Form 10-K for 2012 and the Form 8-K filed with the SEC today along with the attached press release. Apple assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.I’d now like to turn the call over to Tim Cook for introductory remarks.

Thanks Tim. We’re very pleased to report the results of Apple’s first fiscal quarter. We established new all-time quarterly records for iPhone and iPad sales, significantly broadened our eco-system and generated Apple’s highest quarterly revenue and net income ever. Revenue for the quarter was 54.5 billion compared to 46.3 billion in the year ago quarter, an increase of 8.2 billion year-over-year. As a remainder our first quarter this fiscal year spanned 13 weeks whereas the first quarter last year included a 14th week. As such average weekly revenue was 4.2 billion in the current year quarter compared to 3.3 billion in the year ago quarter, an increase of 27%. The strong year-over-year growth was fuelled by record iPhone, iPad and iTune sales.Operating margin was 17.2 billion representing 31.6% of revenue. Net income was a record 13.1 billion just ahead of the amount generated in last year’s 14 week quarter and translated to diluted earnings per share of $13.81. Beginning this fiscal year we’re reorganizing the presentation of our results to provide greater transparency. First, we’ve established a new operating segment of Greater China given the very significant contribution of that region to our overall business. We define Greater China to include Mainland China, Hong Kong and Taiwan. Second, for segment reporting purposes we’re allocating certain manufacturing cost and variances including cost related to product tooling and manufacturing process equipment to our operating segments instead of including these expenditures in corporate expenses as we have done in the past.We have recast our operating income for each quarter in fiscal 2011 and 2012 to reflect this change and have provided a reconciliation on Apple.com/Investor. These changes have no impact in overall reported operating income. And third, we have realigned the presentation of product information in our summary data schedule to provide greater…

Thanks Tim. We’re very pleased to report the results of Apple’s first fiscal quarter. We established new all-time quarterly records for iPhone and iPad sales, significantly broadened our eco-system and generated Apple’s highest quarterly revenue and net income ever. Revenue for the quarter was 54.5 billion compared to 46.3 billion in the year ago quarter, an increase of 8.2 billion year-over-year. As a remainder our first quarter this fiscal year spanned 13 weeks whereas the first quarter last year included a 14th week. As such average weekly revenue was 4.2 billion in the current year quarter compared to 3.3 billion in the year ago quarter, an increase of 27%. The strong year-over-year growth was fuelled by record iPhone, iPad and iTune sales.Operating margin was 17.2 billion representing 31.6% of revenue. Net income was a record 13.1 billion just ahead of the amount generated in last year’s 14 week quarter and translated to diluted earnings per share of $13.81. Beginning this fiscal year we’re reorganizing the presentation of our results to provide greater transparency. First, we’ve established a new operating segment of Greater China given the very significant contribution of that region to our overall business. We define Greater China to include Mainland China, Hong Kong and Taiwan. Second, for segment reporting purposes we’re allocating certain manufacturing cost and variances including cost related to product tooling and manufacturing process equipment to our operating segments instead of including these expenditures in corporate expenses as we have done in the past.We have recast our operating income for each quarter in fiscal 2011 and 2012 to reflect this change and have provided a reconciliation on Apple.com/Investor. These changes have no impact in overall reported operating income. And third, we have realigned the presentation of product information in our summary data schedule to provide greater…

Steve Milunovich – UBS:

Scott Craig - Bank of America/Merrill Lynch: Thanks. Good afternoon. Hey, Tim can you maybe discuss the tablet market a little bit in relation to Macs and other PCs is sort of how you are thinking about the cannibalization of that market for the iPad relative to the PC market? And then secondly, typically each quarter, you sort of talk about some of the component constraints and you certainly talked about iPhone 4 being constrained and the iPad mini is better, so as you enter into the quarter where do you see the challenges for meeting demand for the calendar first quarter? Thanks.

Sure. Let me take the second part of that first. I think overall our team did just a fantastic job ramping a record number of new products during the quarter. We did have significant shortages due to robust demand on both iPad mini and both models of the iMac that persisted the entire quarter. And we are still short of both of those today as the matter of fact. Additionally, supply of iPhone 5 which short to demand until late in the quarter and iPhone 4 was short for the entire quarter, we believe that we can achieve a supply demand balance on iPad mini during this quarter and on iPhone 4 during this quarter. On iMac, we are confident that we are going to significantly increase the supply, but the demand here is very strong and we are not certain that we will achieve a supply demand balance during the quarter. In terms of cannibalization and how we think about this, I see cannibalization as a huge opportunity for us. One, our base philosophy is to never fear cannibalization. If we do, somebody else will just cannibalize it and so we never fear it. We know that iPhone has cannibalized some iPod business. It doesn’t worry us, but it’s done that. We know that iPad will cannibalize some Macs that doesn’t worry us. On iPad in particular, we have the mother of all opportunities here, because the Windows market is much, much larger than the Mac market is. And I think it is clear that it is clear that it’s already cannibalizing some and I think there is a tremendous amount more opportunity there. And as you know, I have said for two or three, actually three years now I believe that I believe the tablet market will be larger than the PC market at some point. And I still believe that. And you can see by the growth in tablets and the pressure on PCs that those lines are beginning to converge. And I think the other thing for us maybe not for others, but for us is if somebody will buys an iPad mini or an iPad and it’s their first Apple product, we had great experience through the years of knowing that when somebody buys their first Apple product that a percentage of these people windup buying another type of Apple product. And so if you remember what we had termed the halo effect for some time with the iPod, with the Mac, we are very confident that, that will happen and we are seeing some evidence of that on the iPad as well. And so I see cannibalization as a huge opportunity.

Thank you, Scott. Can we have the next question please?

And we will go to Mark Moskowitz with JPMorgan.

Yes, thanks. Good afternoon. Question Tim around the iPhone, Peter gave some transparency around the qualitative sequential and year-over-year potential increases in the iPad for the March quarter. How should we think about the iPhone family against that in terms of year-over-year and quarter-over-quarter potential increases or decreases, and are there any sort of dynamics around slower pace of LTE rollouts by the network carriers having an impact?

Okay, thank you.

Thanks Mark. Can we have the next question please?

From Deutsche Bank we’ll go to Chris Whitmore.

Thanks. Just a follow-up on the iPhone question with respect to the guidance, just, assuming there is some benefit from the Mac carryover effect and iPad release etcetera, and adjusting for the inventory, it seems you are guiding to kind of mid to high single-digit year-on-year unit growth for the iPhone business from a sell-through standpoint. Is that the right ballpark we should be thinking about and why the big deceleration from the 25% plus kind of weekly sales rate you quoted in your intro comments?

Sure, Chris, it’s Peter. We are not going to talk about guidance at a specific product level, but let me give you some things we thought about in coming up with the range of $41 billion to $43 billion. It is that range is a 5% to 10% year-over-year increase. And there are few factors that are impacting the year-over-year results making the strong performance of the business a little bit harder to see. So, let me point a few of these out. First of all, as we have talked about several times on the call, last year in the March quarter, we’ve built 2.6 million units of iPhone channel inventory, which allowed us to get into our 4 to 6-week range. That increased the revenue in the year ago quarter by $1.6 billion. And as Tim talked about that was sell-in that was not sell-through, we are thinking about the business on a sell-through basis. So, don’t lose sight of the 1.6 billion. Second, the iPhone 5 rollout this year, has been our fastest ever. We are selling in 100 countries by the end of December. Last year, we did not achieve this country distribution until the March quarter, which included China that we launched in January. Third, we made a very good strategic decision to introduce the iPad mini which customers love and to keep the price reduced iPad 2 in the line. As a result of this, we saw a reduction in our iPad ASPs of about $101 year-over-year in the December quarter. And you can see that, our iPad units grew faster than our iPad revenue in the December quarter. We would expect iPad ASPs to be down quite a bit in the March quarter on a year-over-year basis for the same reasons. And then finally, the PC market grew 4% last year in the March quarter, and this year IDC is projecting that to decline by 3%. So, considering these factors, the underlying performance of the business is much stronger than the 5% to 10% year-over-year growth implies and we remain very confident in our business and our new product pipeline.

And for my follow-up I wanted to come back to something Tim said earlier about that you are not fearing cannibalization; I wanted to ask in context of your iPhone business given the strength you are seeing at the low end of your product line the iPhone 4 being stocked out during the quarter. There seems to be a lot of demand at lower price points for the iPhone, why not get more aggressive at lower price bands and move down market in the iPhone business? Thanks.

I am not going to go into our pricing strategy, but we feel great about the opportunity of getting products to customers and a percentage of those buying other Apple products. And that we have obviously seen evidence of that through history and continue to see evidence of that today.