While Wall Street may have been slightly disappointed by some of the numbers Apple reported yesterday, they should feel reassured by Apple stabilising and growing its gross margins, say Apple bulls – analysts who expect the stock price to rise.

Business Insider noted the above chart tweeted by Benedict Evans with the commentary:

Very stable long-term gross margins. Painful contrast to rest of the industry …

The sentiment was echoed by other Apple bears.

Katy Huberty at Morgan Stanley says Apple’s gross margin was the “highlight” of the quarter, and it “removes the margin bear case” […]

“Apple’s performance in the margin department was one of the best over the past couple of years relative to our estimates, driven by stronger-than-expected cost improvements and solid product quality,” said Brian White of Cantor Fitzgerald.

While some analysts expect pressure on margins as the iPhone 6 rolls out, this would not be unexpected: Apple’s costs tend to increase as it invests in the setup costs associated with launching new models, and fall again afterwards.

FTC: We use income earning auto affiliate links. More.

Check out 9to5Mac on YouTube for more Apple news:

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

About the Author

Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!

Ben Lovejoy's favorite gear