In the following video, senior technology analyst Eric Bleeker discusses where Apple stands after its most recent quarter. While the company slightly missed earnings expectations, Eric discusses that margin pressures are less about competition and more due to product lifecycles. As iPhone 5 launched in the quarter and was an especially challenging product to manufacture, which led to lower margins, the natural effect is decreasing margins. As iPhone 5 production continues, yields should rise and help bring back margins with them.
Eric notes that Apple's forward guidance brings up some interesting questions about how fast the company can globally roll out products this quarter. However, the biggest question mark heading into the holiday quarter remains the iPad. Its 14 million units sold last quarter was disappointing, so the holiday quarter with the inclusion of iPad Mini sales will go a long way toward demonstrating how quickly the device's growth trajectory has slowed. To see Eric's full thoughts, check out the video.
Eric Bleeker has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Amazon.com, and Google. Motley Fool newsletter services recommend Apple, Amazon.com, and Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.