Operator: Good day, everyone and welcome to the Apple Incorporated Second Quarter Fiscal Year 2012 Earnings Release Conference Call. Today's call is being recorded.
At this time, for opening remarks and introductions, I would like to turn the call over to 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'll be joined by Apple's CEO, 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 2011, the Form 10-Q for the first quarter of fiscal 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 Peter Oppenheimer for introductory remarks.
Peter Oppenheimer - SVP and CFO: Thank you, Nancy. We are very pleased to report the results of our outstanding second fiscal quarter. We established new March quarter records for iPhone, iPad and Mac sales leading to our highest March quarter revenue and earnings ever. Revenue for the quarter was $39.2 billion representing year-over-year growth of 59%. That’s a new record for our March quarter and the second only to the all time record revenue we recorded in the most recent December quarter. The year-over-year increase in March quarter revenue was fueled primarily by very strong growth in iPhone and iPad sales.
Operating margin was $15.4 billion representing 39.3% of revenue. Net income was $11.6 billion increasing 94% over the prior March quarter's results.
The quarter's net income translated to earnings per share of $12.30. Turning to the details of the quarter I'd like to begin with our Mac products and services. We established new March quarter records for both desktops and portables combining for a total of 4 million Macs sold. This represents growth of 7% year-over-year compared to IDC's latest published forecast of 2% growth for the global personal computer market in the March quarter.
We began and ended the quarter with between three and four weeks of Mac channel inventory which is below our target range of 4 to 5 weeks. In February we released a developer preview of Mountain Lion. The ninth major release of Mac OS X.
Mountain Lion will bring popular apps and features from iPads to Mac including messages, notes, reminders, game center, notification center, share sheets, Twitter integration and AirPlay mirroring. We expect Mountain Lion to be available from the Mac App Store in late summer this year.