margins ▪ October 28, 2014
margins ▪ March 25, 2013
Fortune reported that Apple is likely to achieve record revenues in Q2—but the first fall in its earnings in a decade.
Apple’s revenues are expected to grow from $41 billion to $43 billion, another record for Q2, but margins are expected to have fallen substantially from a peak of just over 47 percent last year to ‘between 37.5 and 38.5 percent’ this year.
Margins tend to fall with new products, due to high initial investments and reduced yields when pushing the limits of what can be achieved (as with the new iMacs), and it’s this falling margin that has impacted Apple’s earnings per share…