Chicky Moves

Thanks to price cuts across notebook range, apple’s margin has been under pressure for a while. Come iPhone 3G/3GS, it has substantially helped improved  overall margin of the company which has been reflected in increased stock prices. Stock prices has going up consistently from march and now stands double of what it was then. The stock price shoot to $156 yesterday where it was almost double of its price in march which was around $83.

Right now the profit margin apple commands is source of envy from many others in the industry. In the market where experts are convinced that people are spending less in consumer electronics, apple’s continued growth in profit is nothing but a feat. This season has turned the table for many. Our traditional cell phone makers like Nokia, Motorola and others has not been able to keep pace with customer’s expectation where as new “off the street players” like Apple and RIM has taken a bigger chunk of profit.

Apple and RIM which caters to 3% in terms of volume commands 35% of profits, which tells the story in nutshell.