APPLE Reduces Future Margin Forecast (AAPL)
AAPL trading down 2% or so after hours trading as low at 304.
Apple computers just announced they are decreasing their gross margin for future periods. “They expect gross margins to decreased compared to levels achieved during 2010 and anticipate gross margin levels around 36% in quarter 1.” They are citing higher costs of doing business in the innovation space and the higher cost of brining these products to market.
Sounds like more excuses to keep their stock price lofty will satisfying regulatory and disclosure policy. The real story is the cost of paying their sweat shop workers more than a real living wage.. I know that is probably a bit harder in practice then theory.. “Designed by Apple in California, Manufactured in China”
LINK TO FILING search “margins”
Remember AAPL is 20% of the NDX 100 so watch the QLD.. Interesting enough that they Q’s were up today
as the S&Ps were down a percent at one point. before the JPYAUD ramping pushed up equities and pulled down the dollar. These interesting correlations precisely what is going to bring our markets to their knees.
The NDX’s largest component is AAPL coming in at 20%, many ETFs are tied to the NDX including the qqqq’s and the QLD and the QID which are all tied to together via arbitrage desks running extremely quick algorithms. If apple comes in hard tomorrow or anytime in the future, or rockets up for that matter the greater unrelated market will be greatly affected.