Briefly: Apple may see $3 of added profit on each nano this quarter
AppleInsider StaffGross margins for Apple's second fiscal quarter ending March should once see help from tumbling commodity pricing, particularly NAND flash memory.
The analyst said he expects the trend to continue in the coming months, likely generating Apple an extra $3.00 of profit for every iPod nano it sells in the three-month period ending March.
Hargreaves went on to say that the favorable flash price declines should lift the Cupertino-based company's gross margin by 30 basis points (or 3/10ths of a percent) and a penny per-share for every 5 million iPod nanos it sells.
However, the analyst said he does not expect the trend to carry over to Apple's 1GB iPod shuffle, as 1 GB flash memory pricing has remained relatively stable as of late.
During Apple's first fiscal quarter ended December, the company reported gross margin significantly above guidance at 31.2 percent. However, it guided conservatively to 28.4 percent for the March quarter, despite expectations of a continued favorable commodity environment during the quarter.
Malcolm Owen
Amber Neely
Marko Zivkovic
David Schloss
Wesley Hilliard
Mike Wuerthele and Malcolm Owen
7 Comments
If Apple expects lower margins in the face of falling commodities might they be intending to be placing more goodies in every box, soon.
good for consumers, flash is very good for all the consumer gadgets
what was Intel doing on the flash? only developing Robson or they are into producing Flash? Intel and Apple has any special deal on Flash memory?
if 1GB is price stable and costlier, we shall see 2GB Shuffle soon ...
$3 wow. So if they sell 10million iPod nono's this quarter (which they wont) that's $30Million. Great and all but it's really a small addition to the amount they will make. Now what the hell is keepin' Leopard?
If Apple expects lower margins in the face of falling commodities might they be intending to be placing more goodies in every box, soon.
Over the years, they've been removing things from the box. It's likely that the latest quarter is going to have lower margins because of lower overall sales. Holiday sales, if a company doesn't have to lower its prices, results in higher margins. Apple is going to find that its running expenses are a higher percentage than before because of lower sales. That lowers overall margins. There are other reasons as well. Ramping up production for new products also results in lower margins, for example.
Now what the hell is keepin' Leopard?
Bugs, unfinished features. You've seen plenty of evidence for that in the info released with each infrequently released update.