It's retail, they will never have big gross margins, unless they make some of their own products.
US retail cooked their books by skimping on inventory. Consumer sales were lower because nothing was on the shelves worth buying. iPhone sales show that the high end demand is alive and well.
A good sign they have to pay staff more, it means competition for good labor is getting tougher, good for the economy. They are ahead of the US for sure.