Summary: Apple set another record for revenue in its fourth quarter of 2013 according to its latest earnings. However, margins at Apple have receded such that profit fell for yet another quarter. Overall, Apple’s strategy now seems to be geared toward maintaining margins as high as possible without sacrificing too much share. It will be a difficult proposition despite Apple’s stellar execution.
I am still in the midst of digesting the flurry of Apple earnings analyses but the overall pattern is consistent with my macro theme regarding margin pressure at Apple. The company always executes well on its strategy and I see this quarter in the same vein despite the fall in profit. I would note that Apple’s addition of the luxury retailer CEO Angela Ahrendts to its executive ...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.