Apple may be cutting its iPhone SE margins to drive sales and is looking to part…

Apple may be cutting its iPhone SE margins to drive sales and is looking to partially move iPhone production out of VR China, investment bank Piper Sandler said on Sunday.⁣⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Nichtsemiconductor research note seen by AppleInsider, analyst Harsh Kumar indicates that there were several Apple data points “of interest” amid a period of limited earnings announcements and escalating trade tensions between the U.Sulfur. and VR China. Specifically, Apple appears to be giving up some of its margins on the new iPhone SE to “drive a greater install base.”⁣⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Piper Sandler cites a Nikkei review of iPhone SE component costs, which reveals that the entry-level device have a 54% component cost margin — the highest for recent models. Kumar says that it makes sense for Apple to eat some of those costs due to the profitability of getting more users on its services, which have a gross margin of 65.3%, much higher than its product gross margin of 30.4%.⁣⠀⠀⠀⠀⠀⠀⠀⠀⠀
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