World’s most profitable phone is not earning much as it used to have margin of more than 58%. This data was revealed at the economic results of the company for several consecutive quarter. Declining margins on the iPhone and the latest data analysts from Bernstein Research on this trend will not change anything. Gone are the days when the margin of the iPhone at 58%. That was back in 2009. Today, after about seven years, margins have fallen to a level less than 41%. And according to many experts, this number will continue to decline.
Apple recorded the largest decrease between 2012 and 2013, when margins fell from 56.2% to 45.1%. Since then more or less fall on the current state of moving around 40.8%. In the following years, the level of margins for the first time fall below 40%.
The reasons for this decline are several. First, increase production costs. Furthermore, the fact that Apple phones with prices more or less moving. Another big factor is underestimating the demand for new models.Apple had to additionally increase the production capacity, which in total costs also reflected. According to analysts, Apple also will not be able to just raise prices. The market for high-end smartphones is full of competition and such a step would be the company did not have to pay. Another important factor that affects the value of margins, are warranty repairs, which are added to how a growing number of devices sold.