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Larger-screened iPhones will see AAPL’s gross margin continue to decline, say analysts

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<p>Analysts are predicting that there is no end in sight to the decline in gross margin on the iPhone. Bernstein Research analysts (via <a href="http://uk.businessinsider.com/apple-profitability-eps-gross-margins-2016-11" target="_blank">Business Insider[/url]) are predicting that it will fall below 40% for the first time next year, and fall again to 39% in 2018. Other analysts agree.</p>
<p>A chart put together by the firm shows iPhone margins falling from 57.7% in 2009 to 40.8% this year, arguing that the costs of making <a href="https://9to5mac.com/guides/iphone-7/" target="_blank">next year’s iPhone[/url] and difficulty in charging more for it in a much more competitive environment will see it fall further over the next couple of years.</p>
<p>Morgan Stanley’s Katy Huberty, says that, ironically, the popularity of the iPhone 7 may have contributed to pressure on margins …</p>
<p> <a href="https://9to5mac.com/2016/11/21/aapl-gross-margin-decline-2017-2018/#more-455278" class="more-link">more…[/url]</p>
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