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Kate Middleton, Prince William and Prince Harry set to be part of mental health documentary
Kate Middleton will visit EACH hospice at Quidenham
Kate Middleton at first 2017 engagement: ‘Parenting is tough’
Prince Harry and Meghan Markle spent first holiday together in Norway
Kate Middleton and Prince William’s 2016 Christmas card revealed

iPhone 5 higher quality control costs to be partially absorbed by Apple

by Nicole
October 22, 2012 at 2:33 pm

Cupertino is expected to absorb some of the quality control costs associated with manufacturing the device.

Credit: Apple

On Thursday, Apple will announce its quarterly earnings report.

Sterne Agee analyst Shaw Wu expects the company to partially absorb quality control costs associated with the iPhone 5.

He predicts Apple’s gross margins for the near term will vary between 40.5 percent and 41.5 percent, which is below Wall Street estimates between 42 percent and 43 percent.

Wu also expects Apple’s margins to decrease due to the release of the rumored iPad mini.

He predicts the mini tablet will be sold at lower margins than the full-size iPad, which will help the company get a lower price point and face competitors like Amazon’s Kindle Fire HD and Google’s Nexus 7.

The analyst estimates that Cupertino sold between 25 million and 26 million iPhones for the September quarter, which is below Wall Street consensus of 27 million.

He also expects iPad sales to reach 16.5 million and Mac sales of 4.8 million units.

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