Piper Jaffray: Apple’s Narrowing Margin No Call For Worry

Piper Jaffray: Apple’s Narrowing Margin No Call For Worry

 
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Apple’s (NASDAQ: AAPL) forecast of a narrowing profit margin in the current quarter shouldn’t shake the faith of true-believing bulls, one analyst said Tuesday.

The company last month forecast a fiscal fourth-quarter profit margin of 37 to 38 percent, down from 39.4 percent posted in the third quarter.

Piper Jaffray’s Gene Munster figures that’s because of start-up costs for its new iPhone slated for release September 9. Munster said margins will slip even more in the fiscal first quarter, perhaps as low as 35.5 percent.

But not to worry as “Margins should rebound in the March quarter,” Munster said in a note.

Taking a historical view, Apple’s margin narrowed temporarily by 1.1 percent with the 2013 launch of the iPhone 5, Munster said.

Apple traded recently at $96.14, nearly unchanged.