Will Apple Inc (NASDAQ:AAPL)’s Margin Decrease?

Posted by Chris Bell October 1, 2013 0 Comment 693 views

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.

Mondays trading

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.

About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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