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We estimate gross margins to be in the low to mid 30s consistent with this past year with continued improvement in efficiencies and product development offsetting increases we have seen in some power related components.We estimate the new tax law will result in an estimated effective tax rate of 27% which includes the federal tax rate of 21% plus state and international taxes. Because of the complexity of this new law, accounting rules allow companies to provide an estimate based on current facts and circumstances that have upto one year to refine them. We will keep you updated on future calls if there are any notable iPhone Cases changes in this estimate.

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