Apple Margins: Cheap iPhone Saves the Day?

Perhaps the single greatest concern for Apple investors is the company's ability to defend its margin moving forward. While some have expressed worries that the introduction of a cheap iPhone would harm these margins, a recent research note from Morgan Stanley's Katy Huberty suggests that the device could actually help. Taking a completely different approach, Andy Hargreaves of Pacific Crest sees margins being protected with a cheap iPhone.

In the video below, Fool.com contributor Doug Ehrman discusses these two views of Apple's margins and why either case is bullish for shareholders and the company.

Apple has a history of cranking out revolutionary products... and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.


The article Apple Margins: Cheap iPhone Saves the Day? originally appeared on Fool.com.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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