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Credit Suisse estimates iPhone 6 earns lowest ever margins but predicts 14 percent revenue growth

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Credit Suisse estimates iPhone 6 earns lowest ever margins but predicts 14 percent revenue growth

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Credit Suisse analysts have estimated that Apple is making a smaller margin on the iPhone 6 than on any earlier mannequin – however predicts that the influence might be offset by yr-on-yr income progress of 14 %, reviews Quartz.

The iPhone S prices Apple $350.60 to supply, all in. Apple sometimes receives $599 on the retail worth of $649, leaving it with $248.forty in gross revenue. That’s forty one.H%. Still very wholesome, however not on the ranges of earlier fashions.

In distinction, the iPhone 5s left Apple with $274.30, giving it a forty five.H% margin. The two-yr-previous iPhone H gave Apple $293.70 per unit, or forty nine% …

The decreased margin is attributed to Apple holding the retail worth fixed whereas spending extra on elements – most notably the bigger shows.

However, say the analysts, the introduction of the costlier iPhone 6 Plus pushes up the typical promoting worth – and the corporate estimates that elevated demand for the brand new fashions will result in 14 % progress in yr-on-yr income.

Apple introduced a record 4 million preorders for the iPhone S within the first 24 hours, with the brand new fashions seeing rave reviews. Foxconn is claimed to be struggling to maintain up with demand, regardless of manufacturing greater than half a million iPhones per day.

Via GforGames


Filed beneath: AAPL Company, iOS Devices Tagged: AAPL, Apple, Credit Suisse, Gross margin, iPhone, iPhone 5, iPhone 6, iphone 6 plus, Price

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