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Technology Stocks : Apple Inc.
AAPL 260.21+0.3%3:59 PM EST
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To: Ryan Bartholomew who wrote (154910)6/6/2013 9:37:01 AM
From: pyslent4 Recommendations

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slacker711

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"For #2, you seriously see margins increasing despite the fact that their downfall has been intense margin pressure from competitors"

The iPhone is not seeing any real pricing pressure. ASP has been steady and unchanging for years-- there was a slight dip to $600 in the mrq, but management attributed that to mix, not price cuts (although the 4 was discounted for sure in emerging markets). We'll see if there's a trend in Q3. The margin pressure on the iPhone has only been because the iPhone 5 appears to be fairly expensive to make, and its cost should come down over time, as Slacker predicted.
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