“Apple is now trying to give a better deal to customers by offering massive discounts,” Bluesea Research writes. “However, the management would need to walk a tightrope on this aspect. If they over-emphasize on the discounts, it will end up hurting the margins and not to mention the long-term branding for the company.”
“Apple could show another quarter of operating margin decline in the next earnings call. The company had reported 11 straight quarters of year-on-year operating margin decline which was broken in the last quarter due to different launch dates of pricier iPhone models,” Bluesea Research writes. “If the company reports substantial revenue as well as margin decline, we should see another round of correction in the stock.”
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MacDailyNews Take: Suffice to say that Apple’s Q119 earnings results and subsequent conference call on January 29th will be very, very interesting!