“We think looking forward that the Mac mini and the Mac Studio may take several months to reach supply-demand balance.”

In context

“y of the advanced nodes our SoCs are produced on. If you look forward to June, the majority of our supply constraints will be on several Mac models, given the continued high levels of demand that we are seeing, and we have less flexibility in the supply chain than we normally would. For Mac in June, there are two factors that are driving the constraint. One is that on the Mac mini and the Mac Studio, both of these are amazing platforms for AI and agentic tools, and the customer recognition of that is happening faster than what we had predicted, and so we saw higher-than-expected demand. The second reason is that the customer response to MacBook Neo has just been off the charts, with higher-than-expected demand. And we set a March record for customers new to the Mac, partly due to the Neo. We think looking forward that the Mac mini and the Mac Studio may take several months to reach supply-demand balance. And so, hopefully, that gives you a view of both Q2 and Q3 on the supply side. Erik Woodring: Thank you very much for that color, Tim. And then, Kevan, I would love to turn to you and the surprise little announcement there talking about net cash—great path, but no longer providing this as a formal target. Could you maybe expand on that a bit? Are we thinking about any different type of capital return policy? It does not seem so, but maybe give a little bit more detail when you talk about making investments. Is that organic versus inorganic? Just tease that comment out a little bit more for us. Be super helpful. Thank you so much, guys. Kevan Parekh: Sure, Erik. Thanks for the question. Let me reiterate what we said, which is really more of a comment on the capital structure. Our goal of n”