Apple's new Pro-lineup iPhones and its first foldable phone, the Duo, carry higher price tags, but Bernstein analysts say Wall Street may be underestimating the hit to profitability from rising component costs. The foldable device's screen is particularly expensive to produce, the analysts say.
Apple's newest iPhones could weigh on the company's own profitability even as it charges more for them. Bernstein analysts suggest Wall Street isn't properly modeling the extent to which gross margins could take a hit due to the rising costs of smartphone components.
New Pro-lineup iPhones and Apple's first-ever foldable smartphone, the Duo, carry higher price tags than earlier models. Component costs for these devices have become especially elevated, and foldable iPhone screens are expensive to produce, according to the Bernstein analysts.
The situation may be a mixed bag for Apple if the new iPhones prove highly popular with consumers. Any hit to profit margins would trace back to that same rise in component costs.
Source: MarketWatch (snippet-based)
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