Earlier this week, Apple reported mostly solid earnings for the first three months of 2013. One negative number: margins. They used to be miraculous for Apple, especially since it’s a hardware-maker. Now they’ve shrunk for two quarters in a row.
This surprised some Apple analysts, including Horace Dediu of Asymco. In a blog post published today, he writes, “I expected Apple’s margins to improve last quarter. They didn’t.”
His best guess as to why they continue to shrink: “the increased cost of components.”