Last quarter, Apple generated gross margins of 36.9%, compared to 42.8% in the year-ago quarter. Much of the company's revenue comes from hardware sales such as the iPhone and iPad, which have caused the gross margin concerns. However, as software and services continue to become a bigger focus at Apple, the margin pressures may subside as software tends to have higher margins than hardware. Apple had been in a lull with its advertising, and has only recently started to appeal again to the consumer with its advertising campaign. The new FaceTime "Every Day" ad is a continuation of that trend. That's something that shareholders will be keen to see more of in the coming months, as Apple and Cook continue to focus on not just the latest iDevice but the latest software and service features as well.
-- Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia