Will Apple Inc (NASDAQ:AAPL)’s Margin Decrease?
The iPhone 5S and iPhone 5c launches are two important things that took place in Apple Inc (NASDAQ:AAPL)’s September quarter. The company will report its earnings results for this quarter next month. Both these handsets are going strong post the record- breaking 9 million handsets sales that took place within 3 days of their launch, just last week.
The demand for the 5S is so high in the U.K, U.S and Australia that the handsets are all out of stock. Reports have it that almost 80-90% of stores in these countries do not have the iPhone5S on their store-shelves and the average wait time for the new orders to be delivered is a minimum of 3 weeks, if not more.
Gross margin increase
Apple Inc (NASDAQ:AAPL)’s iPhone 5c has not faced similar supply issue and is easily available. Though markets watchers are saying that the dearth of the 5S’s in the market may pose to be a concern, the fact is that the company’s earnings result for the December quarter is going to get a definite boost. Another notable fact is that the margins on both these handsets are pretty high and the company will see a significant improvement in its gross margins. The analyst projection is that the 5S will contribute around an additional 1 point margin and 50 basis-points of margin will come from the 5C.
In Monday’s trading session, Apple Inc (NASDAQ:AAPL) dropped by 1.24%. The company’s shares opened at a price of $477.25, climbed to an intraday high of $481.66 and dropped to a close of $476.75. Approximately 9.29 million shares were traded on Monday while an average volume of 14.27 million shares were traded over 30 days. The 52 week low of the shares is $385.10 and the 52-week high is $681.11. The company has a market cap of $433.10 billion.