Apple Falls on Lower Gross Margins

A news report that highlighted Apple's upcoming gross margin squeeze pushed shares lower in afterhours trading.
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NEW YORK (TheStreet) -- Shares of Apple (AAPL) - Get Report were trading lower in extended trading Wednesday after CNBC reported that the company filed an SEC form noting that future gross margins will decline.

Apple shares were down afterhours $2 to $305.85.

The report cited that the margin decline will come from Apple's continued drive to put out a higher mix of products that cost more to make -- something that the company already gave guidance for during its

fourth-quarter earnings report

last week.

On the earnings conference call, Apple executives guided its first-quarter gross margin to 36%, lower than consensus estimates of 39.3%. Apple is blaming the anticipated squeeze on more iPods and an expected increase in iPad sales.

--Written by James Rogers in New York.

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