Operator: Good day, everyone, and welcome to this Apple Incorporated Third Quarter Fiscal Year 2011 Earnings Release Conference Call. Today's call is being recorded.
At this time, for opening remarks and introductions, I would now like to turn the call over to Ms. Nancy Paxton, Senior Director of Investor Relations. Please go ahead, ma'am.
Nancy Paxton - IR: Thank you. Good afternoon, and thanks to everyone for joining us. Speaking today is Apple's CFO, Peter Oppenheimer and he will be joined by Apple's COO, Tim Cook; and Treasurer, (Gary Wipfler) for the Q&A session with analysts.
Please note that some of the information you'll 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, earnings per share, 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 2010, the Form 10-Q for the first two quarters of fiscal 2011, 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.
With that, I’d like to turn the call over to Peter Oppenheimer for introductory remarks.
Peter Oppenheimer - SVP and CFO: Thank you, Nancy. Thank you for joining us. We’re thrilled to report the highest quarterly revenue and earnings in Apple’s history. We also set a new all time quarterly record for iPhone and iPad sales and the new June quarter record for Mac sales and we are extremely pleased with the momentum of our business.
Revenue for the quarter was $28.6 billion, representing year-over-year growth of 82%. This record quarterly revenue tops the previous record established in the most recent December quarter by $1.8 billion and was almost $13 billion over the year-ago quarter’s results.
The tremendous year-over-year increase was fueled primarily by dramatic growth in iPhone and iPad sales in addition to strong growth in Mac sales. Operating margin was a record high of $9.4 billion, representing 32.8% of revenue.
Net income was $7.3 billion, topping the previous quarterly record set in the December quarter by $1.3 billion. Net income grew even faster than revenue, increasing 125% year-over-year and translated to earnings per share of $7.79.
Turning to the details of the quarter, I’d like to begin with our Mac products and services. We established a new June quarter record with sales of 3.95 million Macs, representing a 14% increased over the year-ago quarter’s result. This growth is more than four times IDC’s most recently published forecast of 3% growth for the PC market overall.
Mac sales were particularly strong in our Asia Pacific segment, where we experienced a 57% year-over-year increase in total Mac sold. We generated healthy Mac growth in both desktop and portable categories. In May, we updated the iMac with the next generation quad-core processors, powerful new graphics, high speed Thunderbolt I/O technology and a new FaceTime HD camera.