AAPL is slowing down wrote:
AAPL was getting something like 60-65% margins with the iPhone back in the day and now it's down to 40% and heading lower.
I hate to admit it but this is true.
Apple was very good at milking its customers. The 16GB/64GB tiers (no 32GB option) was brilliant at first, because most customers paid the $100 extra. Also having the plus at $100 extra worked really well. With the iPhone 6/Plus they were able to raise the ASP considerably.
But now customers are fed up with this. When you already have an iPhone 6Plus with 64GB you realize to upgrade early is $900. No way.
When a huge company like Apple can bring home 40% margins and still grow considerably, you know the market can't be efficient. Something is clearly wrong, like a monopoly or lack of competition.
Now Android has (for the most part) caught up and many me-too devices are "good enough". Too bad for Samsung that this is also true for their flagships.
Re: services, yes they grew from $4b to $5b, but Apple Musci operates on razor thin margins, maybe 5% right now.