Why Apple’s margins are eroding as it tries to maintain share

In March, I wrote you about my concerns about Apple's ability to maintain growth expectations without margin slippage. My view was then and still is today that Apple faces a choice of maintaining either margins or growth in both handsets and tablets because Android, Google's mobile platform, has finally caught up to and, in some cases, surpassed iOS, Apple's mobile platform.
Here's what I wrote then:

Here is my basic thesis from on Apple. Apple is a monster company, the largest cap company in the world. And this is for good reason as Apple is executing perfectly on its strategy and throwing off so much cash that it now has over $100 billion that it could invest or distribute. The fact that Apple has finally done what I have been encouraging it to do for a while, provide a dividend, is ...


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