Stocks & indices
Analysts warn Apple's margins may be squeezed by pricier iPhones
Bernstein analysts say Wall Street isn't fully pricing in how rising component costs could hurt Apple's profit margins despite higher new iPhone prices.
The new iPhones cost more, but component costs are rising faster than many models assume, putting pressure on gross margin — the share of revenue left after direct production costs.
For beginners Even when a company raises prices, profit may not grow if costs rise even faster — which is why investors watch margins, not just revenue.