According to Cowen & Company analyst Timothy Arcuri, Apple's move to OLED displays for the iPhone 8 model will hit its gross margins with the power of a $50 million expense. The margin are expected to stay a flat 39% year-on-year in the March quarter precisely because of this OLED outlay. Otherwise it would have been higher since the price of components typically falls over time, and the profit from an iPhone sold becomes larger with each passing quarter.
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