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They're facing actual competition, and with actual competition Apple has to start to compete with themselves (the iPad Mini, a very strong emphasis on the last
by corresation 14y ago
They're facing actual competition, and with actual competition Apple has to start to compete with themselves (the iPad Mini, a very strong emphasis on the last generation of smartphone as a discount device), and they have to iterate quicker: See that the iPad 3 lasted for 6 months before it was replaced. Apple's margins have always been an extraordinarily out of line with the industry, so really it's just falling back to Earth.
- alwaysinshade 14y agoI agree re: faster iteration to keep up with competition, but my point is in line with what was said in the earnings call - Supply of the iPhone 5, ipad Mini and new iMacs was constrained, so they were unable to meet demand. Combine it with a shorter quarter and you can account for a good amount of the shortfall in margin.