Scalper1 News
The gross profit margin for the Apple Watch is below Apple’s (AAPL) company average but has the potential to well exceed that average, UBS said in a research report Wednesday. Based on a teardown analysis of the smartwatch, UBS estimates that the product’s gross margin initially will be about 34% but could rise to 57% when it hits an annual volume of 40 million to 50 million units. UBS is modeling for 31 million units in fiscal 2016, which starts Sept. 27. Apple said that it expects the Apple Watch’s gross margin will be below the corporate average of about 39% in the June quarter. Apple’s gross margin was 40.8% in the March quarter. “Over time we expect Watch margins to be accretive and possibly the highest of any hardware offering, even with our analysis excluding likely highly profitable Edition models and band sales,” the equity… Scalper1 News
Scalper1 News