I'd like to thank all of our customers and our long-term shareholders for their loyalty and I'd also like to thank Apple's many talented employees who have worked tirelessly to bring us this far and who are passionately focused on making great products that enrich people’s lives.
I'd now turn the call over to Peter to discuss the details of the most recent quarter. Peter?
Peter Oppenheimer - SVP and CFO: Thank you, Tim. We're pleased to report the results of the final quarter of Apple's fiscal year '13, with record fourth quarter iPhone sales driving our highest September quarter revenue ever.
Revenue for the quarter was $37.5 billion, up $1.5 billion, or 4%, from the year-ago quarter and slightly above the high end of our guidance range. Gross margin was 37%, at the high end of our guidance range, and operating margin was $10 billion, representing 26.8% of revenue. Net income was $7.5 billion, translating to diluted earnings per share of $8.26.
As for the details of the quarter, I'd like to begin with iPhone. We sold 33.8 million iPhones compared to 26.9 million in the year-ago quarter, an increase of 6.9 million, or 26%, and a new September quarter record.
iPhone sales were ahead of our expectations and grew strong strongly year-over-year in each of our geographic segments. We were particularly pleased with growth in a number of developing markets, with unit sales up sharply year-over-year in Latin America, the Middle East, Russia, and India. We were also very happy to add NTT DOCOMO to our carrier lineup in Japan, a country where demand for iPhone has been especially strong.
iPhone sales remain very robust in the U.S., with comScore estimating that Apple was the leading smartphone manufacturer with a 40.7% smartphone subscriber share for the three months ending in August.
Among North American customers polled by ChangeWave late last month who plan to purchase the smartphone within 90 days, 63% indicated they'd planned to purchase an iPhone.
We exited the quarter with about 14.3 million total iPhones in channel inventory, which represented a sequential increase of 3.3 million from the June quarter and placed us at the low end of our target range of four to six weeks of iPhone channel inventory on a look-forward basis.
Customers are loving their iPhones. Based on the most recently published research, ChangeWave measured a 96% customer satisfaction rate among iPhone users and Kantar measured a 92% customer loyalty rate, significantly higher than the competition. We believe that a great customer experience translates to much higher usage.
In fact, Experian reported that iPhone users spend an average of 53% more time each day on their phones than Android phone users.
iPhone continues to be a key productivity tool for organizations around the world, aided by apps from the App Store, as well as those custom built for internal use.
In fact, nearly 35,000 companies representing millions of employees worldwide are building custom apps that address specific workflow improvements with our iPhones and iPad users.