The PC market is an enormous opportunity for Apple, Cook says. We do think the iPad mini, iPad, and iPad 2 will be all extremely attractive offerings in lieu of PCs.

Cook: We can't wait to start selling the first units.

Cook: In terms of what we've seen in China, revenue was $5.7B, Mac was up 47 percent. We launched portables for the first time there in July a month after U.S. launch. iPhone was up 38 percent for the quarter. That brings us to a full fiscal year revenue number of $23.8b in China, up $10b year over year, and now represents 15 percent for the fiscal year.

COok: I haven't personally played with a Surface yet, but what we're reading about it, is that it's a failrly compromised, confusing product.

Next question: Can you go through a bit more on tablets and how the iPad Mini will do? How do you want to differentiate it from the iPad? Will it sell better than the original?

Cook: We've learned over the years to not fear cannibalization. We'd rather do it ourselves than let someone else do it.

Cook: I don't look at it as cannibalizing ourselves, but the broader market as an opportunity.

Cook: We sold 1.3 million Apple TV units.

Cook still labels Apple TV as a hobby, but a beloved one.

Next question from Gene Munster from Piper Jaffray. Asks about the iPad slowdown.

Cook: All that's versus the quarter right after we announce the new product in March. Also, it's clear people delayed purchases due to new product rumors, and these intensified in August and September. SOme of that was anticipated, and some of that I wish would not occur, but it did occur. So that would explain the sequential difference.

Follow up on margins: as these devices become more expensive, would you be okay with passing on increases to customers?

From JP Morgan: How does iPad revenue growth work with sequential revenue growth forecast?

Oppenheimer: We have just announcement amazing new products, and we expect huge sequential increases. We are thrilled about the outlook.

Cook: We planned a roll out initially across 30 initial countries with two different dates.

Next question comes from UBS on iPad pricing. Can you talk about pricing philosophy?

And other specs like A5 chip, dual-band Wi-Fi, and "fit and finish" of the "breathtaking" unibody enclosure.

"So that's what we've done," he says. It has a higher cost, and the gross margin is "significantly below" and "at the height of the cost curve," however that's something the company is trying to bring down.

Cook adds: One of the things we try to do is create a product that people will love for months and years and continue using it in a robust way. SO that's what iPad mini has been designed to do. You can see that more broadly on the iPad by looking at the usage stats. Like I said earlier this week more than 90 percent of the Web usage comes from the iPad. That's versus competitors tablets where people buy it and stop using it.

I would encourage you to use an iPad mini, and I don't think you'll use anything else than an iPad mini after.

Bank of America: Wants details on the component environment and possible constraints.

Cook: We solved some challenges there and feel good about it.

There will be a short amount of time in the quarter to manufacturer and ramp up the iMac, he says, warning of significant shortage.

Next question from ISI group's Brian Marshall about iPhone growth versus iPad.

Follow-up on international sales being so big.

Bank of Montreal: Clarification on iPhone 5: Will it launch in mainland China in December? Cook: Yes.

Cook: I feel great about manufacturing ramp, and output is much higher. I'm confident we'll supply quite a few. In terms of when that balance occurs, I can't tell at this point. "Demand is very robust," he stressed again.

Cook: We've seen low cost challengers before, and iPad continues to beat every other tablet on the market at any price. We think customers are very smart, and have very high expectations, and want a device that can do more. We are confident that our vision of making the best product will win at the end of the day.

Cook: I'm not sure what you're trying to get at there, but I Wouldn't say there's been a significant change in our supplier partners. There's been some change, but I wouldn't describe any of them as significant, and I wouldn't say any of them changed costs.

Cook: I wouldn't say that LCD changed any costs, and Samsung, we continue to be a customer of Samsung, and continue to have a commercial relationship.

Cook: We would not make a 7-inch tablet. We don't think they're good products. We would never make one.