“For the June quarter—and what is embedded in the guidance that Kevan went through earlier—we expect significantly higher memory costs.”

In context

“s. Is there some overarching philosophy you want us to think about? Do you or maybe Kevan see a lot of variability in the model, or is 47%–48% kind of a range you think you might be able to stay in? Is there just no visibility beyond June to answer this? Any comfort level there would be so helpful. Thanks. Timothy D. Cook: Ben, let me talk about memory specifically, which I think is the root of the question. I will go back to December for a moment and walk you through the chronology. In the December quarter, we really had a minimal impact due to memory, and you can see that in the gross margin results. We said it would be a bit more in the March quarter, and we did see higher memory costs in the March quarter, and they were partially offset by benefits from carry-in inventory that we had. For the June quarter—and what is embedded in the guidance that Kevan went through earlier—we expect significantly higher memory costs. They are also partly offset by the benefit of carry-in inventory. And while we do not give color beyond June, I can tell you that beyond the June quarter, we believe memory costs will drive an increasing impact on our business, and we will continue to evaluate this. As we have said before, we will look at a range of options. Suhasini Chandramouli: Thank you, Ben. Operator, could we have the next question, please? Operator: Our next question comes from Michael Ng with Goldman Sachs. Please go ahead. Michael Ng: Good afternoon, thank you for the questions. I have two as well. First, given the success of the MacBook Neo, could you talk about how it has helped drive penetration with new customer segments—whether education, value, or emerging markets? And then, how do you think about opportuni”