Analyst: Apple’s margins to overcome increased component prices

“Pacific Crest analyst Andy Hargreaves said Monday that despite component-price increases, Apple Inc. still should be able to grow its gross margins by almost 5% for its 2007 fiscal year,” Rex Crum reports for MarketWatch.

Crum reports, “Hargreaves said that [despite expected increases in the costs of items such as flash memory and LCD panels], gains Apple has made due to lower component prices earlier this year, as well as being at the early stage of a new product cycle, should help the company’s margins improve from a year ago.”

Full article here.


  1. I used to work as a microelectronics package engineer. These fluctuations in prices are temporary. Nobody at Apple needs to lose sleep over this. There was one year that Tantalum bypass capacitors where at a premium ( as tech watchers may remember this is famous component that gave Asus a black eye). This too shall pass.
    One year all memory was pricey. This happened because there was a fire at the only chemical plant that made the encapsulant plastic used for all RAM. That fire drove up the prices of all 128MB and 256MB memory modules. Now 1GB will cost you less than the market price of 256MB in 1995.

    Just my $0.02

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