Scalper1 News
Apple’s (AAPL) upcoming iPhone 6 smartphone could “tank” the company’s gross profit margins, unless it raises prices with the handset, Bernstein Research analyst Toni Sacconaghi said in a research report Friday. The iPhone 6 is likely to cost considerably more to manufacture because it’s rumored to feature a larger-screen display. In recent years, Apple has kept pricing the same for its new smartphones. It has swallowed the additional costs of higher-end components, which has cut into its gross margins, Sacconaghi says. “One issue that we believe has not been fully flushed out in the investment community is the potential for material gross margin erosion associated with the iPhone 6,” Sacconaghi said. “We note that the prior two significant iPhone upgrades (3GS to 4, 4 to 5) each led to an estimated 900-1000 (basis points) of sequential iPhone gross margin pressure. As a result, current iPhone margins are about 1500 bps… Scalper1 News
Scalper1 News