Apple Inc. (AAPL): Low-end iPhone at This Price May Not Affect Margins

Apple Inc. (NASDAQ:AAPL) is not likely to see margins in the 42-45 percent range anymore. Those days could very well be over, but certainly if Huberty’s calculations are somewhat reliable, this could mean that Apple may have an opportunity to get margins back near 40 percent with the right mix of devices and price points that can increase market share without sacrificing too much of the premium-priced devices that drive margins in the first place. It’s likely we could see very strategically priced devices in the coming months, and perhaps some new premium devices in the pipeline – rumors of a 13-inch iPad have been swirling – may be enough to get Apple margins closer to 40 percent again, which would increase investor confidence in the company as volume numbers and market share increase.

What are your thoughts about Apple Inc. (NASDAQ:AAPL) and its low-cost iPhone? Do you have faith in Huberty’s numbers, and do you think Apple can pull this off? Give us your feedback in the comments section below.

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