Along with the increased marketing budget, sorting out supply chain issues and stock shortages will quickly drive down a company's gross margin
bottom line depends mostly on the gross margin
percent of the products you sell.
Institutional investors believed that increased gross margin
of Hon Hai in the third quarter may be associated with subsidies provided by Apple to its suppliers, as a response to the labor problem plaguing the Chinese factories of Foxconn, a subsidiary of Hon Hai, earlier this year and compensation for other suppliers, which turned down orders from other clients to meet the demand of Apple.
Ericsson's gross margin
climbed to 33.3 percent in the first three months of the year, from 30.2 percent in the fourth quarter of 2011, but remained below the 2011 first quarter level of 38.5 percent.
Trina Solar, China's largest solar panel maker by market value, has forecast falling raw materials prices and firmer demand for solar products will aid a rebound in third-quarter gross margins
after this quarter's slip, while it maintains its panel shipment targets for the full year.
The company's gross margin
was 57.2% for the second quarter, while for the first six months of the fiscal year it was 60.5%.
The gross margin
is the value of sales less the direct cost of sales.
Reported gross margin
contracted 58 basis points to 22.44%, while FIFO gross margin
(which excludes the LIFO charge) declined 60 basis points to 22.51%.
* Are we able to determine the gross margin
for the different type of service offering by line of business, customers and region in real time?
This capital expenditure will drop its gross margin
by 130 basis points.
The gross margin
averaged 7.8% of revenue, with North American gross margins
falling over 7 points to 4.1%.