Why is Apple focusing on margin growth?

Apple is prioritizing margin growth due to significantly increasing market pricing for components, particularly memory, which impacts profitability.

What are Apple's plans for new iPhones?

Apple is reportedly planning more affordable iPhone models, potentially priced at $599, to target emerging markets and enterprise buyers, supported by a MagSafe accessory ecosystem.

What updates can be expected for iPads and Siri?

Upcoming iPads will feature faster chips, and Siri will be reintroduced with Apple Intelligence capabilities, making them suitable for bulk purchases by institutions and businesses.

Home / Business and Economy / Apple Eyes Margin Growth Amid Component Cost Hikes

Apple Eyes Margin Growth Amid Component Cost Hikes

12 Feb

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Summary

Apple faces rising memory costs, prioritizing margins.
New iPhones may target affordability for emerging markets.
Upcoming iPads feature faster chips and revamped Siri.

Apple Eyes Margin Growth Amid Component Cost Hikes

Apple's CEO, Tim Cook, described the recent December quarter as "remarkable" with $143.8 billion in revenue and over 2.5 billion active devices. However, rising memory costs are a significant concern, indicating a shift towards margin protection over aggressive demand expansion in the coming quarters.

The company is reportedly planning more affordable iPhone models, potentially priced at $599, to appeal to emerging markets and enterprise clients who value reliability and total cost of ownership. This strategy may be complemented by an expanded MagSafe accessory ecosystem.