Apple's share prices have been dipping in recent months as analysts have predicted the company's pace of remarkable growth is starting to slow. At their all time high Apple margins were at 50%, but in the most recent quarter they had shrunk to 37.5%. So why exactly is Apple's margin shrinking?
Asymco analyst Horace Dediu has posted an interesting examination of Apple's margins since 2005 to find the reason for their recent reduction. When his prediction that the company's margins would improve in quarter four of 2012 proved false, Dediu looked at the data to see what went wrong. His analysis takes into account the three major factors effecting margin changes for Apple: price changes, cost of components, and a mix of high and low margin produc