Spell It With Me: B-E-L-E-A-G-U-E-R-E-D ⇥ economist.com

The Economist, of all magazines, on Apple’s Q1 earnings:

They got another fright on January 23rd when the firm revealed that its latest quarterly profit of $13 billion was flat because of higher manufacturing costs.

Which means lower profits. With me so far? Great. Here’s their advice on what Apple could do to improve its share price:

The firm has played down reports of a cheaper iPhone, but Apple-watchers expect an announcement this year. Slimmer profit margins in China and India may be worth it to woo millions of new buyers.

Lower profits in Q1 — which tanked the stock — should be countered with a much lower margin product. Genius.