It all began in the last quarter of 2012. Apple's (NASDAQ: AAPL ) gross margin declined by a whopping 600 basis points year over year. The trigger? 80% of revenue during the quarter came from products that didn't exist 60 days earlier. This is the main reason, according to Tim Cook -- but there's more to the story.
In the video below, Fool contributor Daniel Sparks breaks down the backstory on Apple's margins, and he explains to Motley Fool analyst Rex Moore what investors can expect going forward.
There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.