And so, at the macro level, I see the opportunity of the market — and getting more people into the Apple ecosystem — much larger than any of the noise around the different carrier plans. Some of which I think help, and some of which I think work the opposite way, and it's completely unclear to me how those net.
It's probably also important to know that the bulk of the things you're seeing in the U.S. are not occurring in many of the other geos, in terms of the upgrade polices and so forth. I mean, each country has its own kind of cadence associated with this; the U.S. is in the 30 percentages of our business, not 100, so it's important to weigh it with the proper perspective.
On creating great products that increase upgrading
The most important thing that we do is to make great products that really get our users excited to want the next one, and that will always be the case. And you can bet that that's where the vast majority of all of our attention is, on doing those things.
In terms of the pressure of getting new products, you have seen in the past that exists, I think you've also seen that we have a way of working down the cost curve. That was certainly very key in achieving the 39.3 percent gross margin for this past quarter.
And as I've said before, we price things at a level that is fair for the value that we're providing, and so we're certainly not stuck on certain price points. We price at values that are fair for the value that we're delivering.
On the iPad and its decline year over year
It's a good question. Let's talk about iPad a little more than we did in the comments.
When I back up from iPad, here's what I see: It absolutely has been the fastest-growing product in Apple's history. And it's been the only product that we've ever made that was instantly a hit in three of our key markets, from consumer to business, including the enterprise and education.
And so, if you really look at it, in just four years after we launched the very first iPad, we've sold over 210 million, which is more than we or I think anyone thought was possible over that period of time.
And it's interesting to note that that's almost twice as many iPhones as we'd sold in a comparable period of time, and over seven times as many iPods as we had sold in the period of time. And so I think it's important to kind of put that in perspective. We've come a long way very very quickly.
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