Broadcom Uses Operating Leverage to Improve Profit Margins

Broadcom Uses Operating Leverage to Improve Profit Margins

In the previous part of the series, we saw that Broadcom’s (AVGO) revenue is more or less stable, and the seasonality that it sees is in fiscal Q4 and Q1 when orders from Apple (AAPL) for iPhone components increase. During this time, Broadcom’s gross margin also increases. For fiscal Q3 2018, Broadcom expects its gross margin to remain sequentially flat at 66.5% as the product mix is expected to be skewed towards high-margin data center products.

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