Apple investors are looking to margins for Q4.
Apple Inc. (NASDAQ:AAPL) finished its 2013 fiscal year last weekend. The company has performed strongly in the last year, with the most impressive moment coming after sales of the new iPhone began. Apple Inc. (NASDAQ:AAPL) is expected to release its earnings numbers for the fourth quarter and the full year on October 18, a little over two weeks away. The most important number will be gross margin.
A new report from Deutsche Bank analyst Chris Whitmore, which was initially picked up by AppleInsider, takes a look at the Bill Of Materials for the new iPhone models. He finds very positive numbers for Apple Inc. (NASDAQ:AAPL) investors, and not just in the iPhone 5c. The iPhone 5s is also a significant margin booster for Apple Inc. (NASDAQ:AAPL).
iPhone 5s and iPhone 5c margins
The new smartphones from Apple Inc. (NASDAQ:AAPL) will be one of the least important parts of its Q4 report. They will, however, be a significant indicator for the company’s performance in FY2014. Of particular importance will be the margin of the iPhone 5c. The phone disappointed analysts on price, but its margins may be enough to reignite value in Apple Inc. (NASDAQ:AAPL).
According to Whitmore, the Apple Inc. (NASDAQ:AAPL) iPhone 5s and iPhone 5c cost $199 and $174 respectively. The iPhone 5 cost around $207 per unit to make. That means that Apple Inc. (NASDAQ:AAPL) should see a certain amount of margin increase this quarter, but the December quarter should be much more impressive.
The margin numbers from Deutsche Bank AG (NYSE:DB) (ETR:DBK) are not written in stone, and there has been a wide variation in the BOM numbers being put out there by analysts. It seems certain, however, that Apple Inc. (NASDAQ:AAPL) margins are likely to rise once more in the coming quarter, and next year may see significant improvements.
Apple 2013 earnings
Apple Inc. (NASDAQ:AAPL) has already earned $31.37 this year. The firm’s fourth quarter is just over, and Apple Inc. (NASDAQ:AAPL) said that FY2013 earnings should come in at the high end of its projections. Before the company revealed the sale of 9 million iPhones in one weekend, analysts were looking for earnings of around $39.22 for the full year.
Those numbers have been jumping up in the analyst report. Apple Inc. (NASDAQ:AAPL) said that it expects margins to come in at the higher end of its previous estimation. That means 36-37 percent gross margins.