Apple Inc.'s (AAPL) better than expected earnings results and rallying stock price have caused investors to overlook an Achilles heel that clouds the company’s long-term outlook. Apple's sharp slowdown in sales growth and higher costs have caused a drastic big dip in operating margins - a key measure of profitability - to 21.5% in the third quarter, its lowest in more than a decade, according to data from S&P Capital IQ, per a detailed column in the Wall Street Journal as outlined below. Apple’s slowing sales and lower margins largely reflect pressures from the steep decline in sales of iPhones, which contribute about half of the company's sales. Read More...
Apple’s Earnings Conceal Hidden Achilles Heel as Stock Rebounds
Apple Inc.’s (AAPL) better than expected earnings results and rallying stock price have caused investors to overlook an Achilles heel that clouds the company’s long-term outlook. Apple’s sharp slowdown in sales growth and higher costs have caused a drastic big dip in operating margins – a key measure of profitability – to 21.5% in the third quarter, its lowest in more than a decade, according to data from S&P Capital IQ, per a detailed column in the Wall Street Journal as outlined below. Apple’s slowing sales and lower margins largely reflect pressures from the steep decline in sales of iPhones, which contribute about half of the company’s sales.
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