By John Gruber
1Password — Secure every sign-in for every app on every device.
Horace Dediu, on Apple’s drop in margin last quarter:
Relative to adjusted 4th quarter 2011 Sales increased by 27% while Cost of Sales increased by 30.5%. Margins shrank in late 2012 because the products were more expensive to make.
It’s simple arithmetic.
We can at a glance see that the cost of sales increased as a proportion of sales. Therefore the margin decreased as a percent of sales. The cause is higher costs, not lower pricing.
Or lower demand, which many people apparently still think is Apple’s problem.
★ Wednesday, 6 February 2013