Citi's Glen Young is raising fresh gross margin concerns about Apple (AAPL +0.1%), which is...

|About: Apple Inc. (AAPL)|By:, SA News Editor

Citi's Glen Young is raising fresh gross margin concerns about Apple (AAPL +0.1%), which is trading near breakeven on an up day for tech. Yeung, who cut Apple to Neutral last December and issued another downbeat note last month, sees margins pressured by the arrival of a cheaper iPhone and a "sub-$250 iPad Mini," as well as an iPhone mix shift towards older models. Apple is guiding for its gross margin to fall to 36%-37% in FQ3 from 37.5% in FQ2 (-990 bps Y/Y), as lower revenue and mix offset a drop in component costs. (more margin commentary: Horace Dediu, Gene Munster, Wells Fargo/BMO)