“‘Margins went down, they sold a lot more iPhones SE than they had expected to, and Apple needs to be very careful of that,’ Moor Insights & Strategy’s Patrick Moorhead told CNBC Wednesday,” Clinch reports. “Chief Executive Tim Cook said in a conference call that the strategy of launching the lower cost iPhone SE was working and attracting customers to Apple’s ecosystem. However, some are wary of this bright spot in the report and suggest a popular cheaper model means tighter margins and less consumers buying the more expensive products.”
Clinch reports, “Moorhead believes that if Apple releases a next-generation iPhone 7 this year then that could lead to a much ‘better balance’ for profit margins at the Cupertino, California-based company.”
Read more in the full article here.
MacDailyNews Take: We are highly doubtful that the best supply chain manager the world has ever seen needs advice from, uh, what was it again? Oh, yeah: Moor Insights & Strategy’s Patrick Moorhead. Jack Nicklaus didn’t need putting advice from some duffer sitting in the gallery.
It’s all going to be just fine, Pat – except for your short position in Apple, perhaps. Go outside, take a deep breath, and relax. Leave the iPhone mix to the experts.
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[Thanks to MacDailyNews Reader “RK” for the heads up.]