Wells Fargo analyst Maynard Um may see a positive future for Apple, but that isn't stopping him from downgrading the company's stock from "Outperform" to "Market Perform" over concerns about its gross margins in 2014. His concern is that Apple's gross margin will see pressure thanks to the iPhone 6 and a power shift from handset makers back to cell service providers.
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Mr. Um noted that Apple's gross margins dip following iPhone redesigns, but climb on the midcycle updates. If that pattern holds, we'll see lower margins at the end of the year, but it won't signal the end for the company.