Apple Margins: Cheap iPhone Saves the Day?


Perhaps the single greatest concern for Apple investors is the company's ability to defend its margin moving forward. While some have expressed worries that the introduction of a cheap iPhone would harm these margins, a recent research note from Morgan Stanley's Katy Huberty suggests that the device could actually help. Taking a completely different approach, Andy Hargreaves of Pacific Crest sees margins being protected with a cheap iPhone.

In the video below, contributor Doug Ehrman discusses these two views of Apple's margins and why either case is bullish for shareholders and the company.

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