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With that, I would like to turn the call over to Peter Oppenheimer for introductory remarks.Peter Oppenheimer Thank you, Nancy. Thank you for joining us. We are extremely pleased to report outstanding results for the June quarter. During the quarter, we began shipping iPad to millions of delighted customers in 10 countries, we’ve launched the very popular iPhone 4, we shipped iOS 4 with many great new features, and we set a new all-time record for quarterly Mac sales. We are shipping the best products in Apple’s history, and response from our customers has been terrific. And as a result, we are thrilled to announce today our highest quarterly revenue ever, surpassing the previous record set in the most recent holiday quarter. Revenue was $15.7 billion, an increase of $6 billion or 61% over the prior June quarter’s results. The tremendous revenue growth was driven primarily by the very successful launch of iPad, in addition to the strong sales of iPhone and Mac. Operating margin was $4.23 billion representing 27% of revenue. Net income was $3.25 billion up 78% over the year-ago quarter and earnings per share were $3.51. Turning to the details of our results, I would like to begin with our Mac products and services. We generated record quarterly sales of 3.47 million Macs, exceeding the previous record established in the most recent December quarter by over 100,000. This represents 33% year-over-year growth compared to IDCs latest published estimate of 22% growth for the market overall in the June quarter. We are pleased to have outgrown the global market in both the desktop and portable categories. We experienced strong double-digit Mac growth in each of our geographies, led by both the continued momentum of iMac, and the very popular MacBook Pro family, which was updated in April with faster processors, more powerful graphics and even longer battery life.
We are also pleased to report record Mac sales in our US education institution business despite state budget constraints. We began and ended the quarter with between 3 and 4 weeks of Mac channel inventory.Moving onto our music products, we sold 9.4 million iPods, compared to 10.2 million in the year ago quarter. Sales of iPod Touch continued to be very strong with sales growing 48% year-over-year. The continued mix shift towards iPod Touch resulted in an overall iPod ASP increase of 12%, generating total iPod revenue growth of 4%. iPod’s share of the U.S. market for MP3 players remains at over 70% based on the latest monthly data published by NPD. iPod was continued to be the top selling MP3 player and to gain share internationally year-over-year in nearly every country we track based on the latest data published by GFK. The iTunes store had another great quarter with revenue exceeding $1 billion and growing 25% year-over-year. The App Store continues to be an unparalleled success with more than 225,000 apps available including more than 11,000 apps specifically for iPad. iPhone, iPod Touch, and iPad users have downloaded over 5 billion apps from the App Store. We ended the quarter within our target range of 4 to 6 weeks of iPod channel inventory. I would now like to turn to iPhone. We were very pleased with iPhone sales of 8.4 million, including over 1.7 million iPhone’s 4s in the initial five countries where it was launched. This represents 61% year-over-year growth and is considerably higher than IDCs published estimate of 38% growth for the global Smart Phone market overall in the June quarter. Customers are loving the great new features of iPhone’s 4, including face time for video calling, the high resolution Retina display, HD video recording, and the beautiful new glass and stainless steel design. Read the rest of this transcript for free on seekingalpha.com