And so here's the way I see us on iPad mini: When we looked at iPad, what you would find if you looked at some data, you would find that over 50 percent of the people in countries like China and Brazil that are buying an iPad don't own an Apple product. This is a huge thing for us, to go out and show people what Apple is, to introduce them to the company.
And as you probably know, through the years, we've found a very clear correlation between people getting in and being introduced to Apple and buying their first Apple product, and some percentage of them buying other Apple products. We saw that with iPod, creating a halo for the Mac, we've seen that with iPhone, creating a halo for iPad, we've seen that with iPad, creating a halo for iPhone. All of these things have synergies and stuff. It's not about just selling a point product, it's about looking at the total, and as you can probably tell from my response on the tablet question, I think this is a huge opportunity.
It seems perfectly reasonable to me to have an iPad and an iPad mini. I would argue it probably wouldn't be smart not to. I mean, I think this is going to be the mother of all markets. And so I think we did the right thing. Of course, our customers are voting and they're buying; we had a difficult time last quarter with satisfying everyone, but we're working really hard on that.
On revenues vs gross margins
I don't want to get into projecting margins beyond what we do in conference calls and those sorts of things. But here's kind of the way we look at it. You can always--and we've done this many times--you can go in and accept a lower margin on any product at any given time for a strategic reason, and that strategic reason may be it's our entry into that area, or it may be other things, but in the background, we always know that this halo effect plays. We have confidence in our ability to execute the supply chain and work down cost curves.
In the area of tablets, we think that the market is huge, and that it makes sense to have another product there because people wanted a full iPad experience but in something smaller and lighter.
Because we're not [just] a hardware company, we have other ways to make money and reward shareholders. This doesn't get noticed very much for some reason, but last quarter, if you looked at our services and software revenues, it was $3.7 billion. And so I know some people look at that and say "Well, that's 3.7 divided by 54-something," but if you look at that versus software and services companies, that's an incredible amount of revenue!
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