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October 16 2014 5 16 /10 /October /2014 11:23

 

Profit margins and success of the iPhone 6 will be a big boost for Apple in bag

Apple is experiencing a great moment and according to analyst Katy Huberty of Mogan Stanley even more good times come close, at least in terms of market value of the shares of the company.

The analyst has published its estimates of the changes that could suffer the shares soon and is really optimistic. According to Huberty, Apple shares could suffer a big raise because the profit margins of the iPhone 6 and iPhone 6 Plus and its good performance in terms of sales.

 

Some experts have claimed that the profit margin of the iPhone 6 and iPhone 6 Plus(cute iphone cases) is lower than in previous models like the iPhone 5s or iPhone 5c, but it seems this only happens with the 16GB model, the most basic. However, the change in strategy by Apple with storage capacities, from the settings of 16, 32 and 64GB to 16, 64 and 128GB has led more clients to buy the midrange, which is helping to improve margins benefit of the product.

Increases the price of Apple iPhone 6 or iPhone 6 Plus at € 100 and € 200 for devices with capacities of 64GB and 128GB respectively. This difference is important, but for the company the difference in price of flash storage is only a fraction of that price. As a result, Apple would be making a better profit margins and is something that, in complete safety, investors love to know.

Increased profit margins usually be matched by growth in the value of the shares

In the chart below you can see how the performance of the shares of a company is directly related to the gross margins they work. This is one area in which Apple has been able to move very well and in recent years the company has been continuously increasing its gross profit margin and, with it, the price of its shares as explained in iPhone Hacks.

 

The analyst also expects Apple Watch move in numbers similar to the iPhone 6 and iPhone 6 Plus gross margins. Thus, the analyst believes that the margin will be between 40% and 50% as with the iPhone and not between 20 and 30% as with the iPad. This will further strengthen Apple's profitability and help further expand the value of the shares of the Cupertino company.

Nor can we overlook the fact the blockbuster being new iPhone 6(iPhone 6 Cases) Apple sold 10 million units of both models combined in the first weekend and the number has continued to grow since then. In addition, China has already surpassed 20 million units reserved. The Christmas season is just around the corner and looks to be a very strong campaign to Apple and its iPhone.

Do you think Huberty's predictions come true? Is it really a good time to buy Apple shares? It seems that other and that the coming years will be very good for the company.

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