Wednesday, July 23, 2014 10:01:03 AM
That is funny! Didn't iPad start out to be the Giant CPU Killer?
This article says that "Margins are very healthy".
And the following article says: "All told, IHS estimates Apple’s implied gross margins on the iPad to range from 45 percent on the 16GB Wi-Fi only version to 61 percent on the 128GB LTE version."
http://allthingsd.com/20131105/ipad-air-has-spendier-display-costs-less-to-make-than-earlier-models/
I doubt it! Apple total gross margins are less than 40% and no doubt the subsidized iPhone is a major contributor to gross margins. Apple does a good job of breaking out unit sales but they do not breakdown operating income of each product so it is impossible to reasonably determine margins. One factor is known that comes from Apple, that is the iPad in Q210 the unit selling price was $662, the last quarter the unit selling price was $444, a 33% decline. Has Apple's cost of production declined proportionately?
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