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.