Apple’s gross margins expected to rebound as iPhone 4 ‘antennagate’ case giveaway ends
Sam Oliver reports for AppleInsider, “Apple Chief Financial Officer Peter Oppenheimer last week participated in a conference call with New York-based investment firm Gleacher & Company. Unsurprisingly, Oppenheimer did not reveal any incremental information about Apple, but analyst Brian Marshall did state he believes Apple’s gross margin profile is in the process of bottoming. ‘In fact, if we are correct in our assessment that ‘antenna-gate’ is behind us and the bumper give-away will cease soon, AAPL’s gross margin will automatically improve 100bps assuming all else equal (due to $175mil revenue deferral reversal),’ he wrote. ‘If this happens, in our view, one of the greatest investor concerns will be lifted.'”
“In the company’s last quarterly earnings conference call, Apple said it would defer about $175 million to buy cases for the iPhone 4 Case Program,” Oliver reports. “That cost will be recognized upon delivery to customers.”
Oliver reports, “In July, Apple Chief Executive Steve Jobs announced that his company would give away free cases to all iPhone 4 buyers through Sept. 30. After that date, the company will review the situation and conclude whether or not it will continue the giveaway.”
