Apple Forecasts Lower Gross Margins as Costs Rise

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Oct. 29 (Bloomberg) -- Bloomberg international correspondent Hans Nichols examines results from Apple as they forecast gross margins that missed analysts’ projections due to higher costs for the iPhone and iPad. He speaks on Bloomberg Television’s “Countdown.”

That is the challenge.

I want to focus on the average price of an iphone.

It is down to $577. one year ago it was $619. they are being squeezed by the competitors.

They expect profits to be lower than previous years.

They have profit growth in the holiday season.

Let's do the overall numbers.

Revenue is up.

Profit is down.

We should say that it is still a lot of profit and apple is the envy of the tech world.

Let's get into specific vices.

-- devices.

Ipads were flat.

We saw a decline in the ipad division by 13%. mac sales were down.

2012, tablets were shipped.

The expectation is for more tablets in 2013. apple has stayed the same at 14 million tablets.

That is 60 million tablets a year.

They had a bit of a write-down of $900 million.

They will be giving away their software and are deferring those costs.

My favorite apple status is 99 million visitors going to the stores going to -- worldwide.

That is a lot of visitors.

You want to back that out and say how many people are buying products.

When you look at the numbers, is 100 million that high when you look at competitors?

Their market share is shrinking.

Most of the tablets and mobile devices that are being sold are being sold on the android operating system.

They have the biggest market share.

It is a big number.

Overall, they need to grow those numbers.

They need to push into china.

It is the profit that concerns investors.

Use of the stock moving down last night.

-- you saw the stock creeping down last night.

This text has been automatically generated. It may not be 100% accurate.


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