Gross Margin The year-on-year decline in our Mobile Phones gross margin in the first quarter 2012 was primarily due to greater price erosion than cost erosion, a negative product mix shift towards lower gross margin feature phones, partially offset by lower warranty costs.
Gross Margin The significant year-on-year decline in our Smart Devices gross margin in the first quarter 2012 was driven primarily by greater price erosion than cost erosion within our Symbian portfolio due to the competitive environment, partially offset by a positive impact related to deferred revenue related on services sold in combination with our devices and lower warranty costs.
On a sequential basis, the decline in our Smart Devices gross margin in the first quarter 2012 was primarily driven by greater price erosion than cost erosion mainly related to our Symbian and Nokia N9 smartphones, targeted price reductions of the Nokia Lumia 710 to accelerate growth as well as higher per unit fixed costs related to our Symbian devices due to declining volumes.
Miller, K. G., Wright, J. & Fairbanks, R. G. Unlocking the ice house: Oligocene Miocene oxygen isotopes, eustasy, and margin erosion.
A. There has not been as much margin erosion as some had feared.
The banks have been keen to protect their big "back book" from margin erosion.
The company said it was suffering from "margin erosion" in Italy, Greece and Portugal – suggesting that people are simply giving up their handsets.
It cited reduced demand for its semiconductors and continuing profit margin erosion in its cell phone business.
Hargreaves Lansdown, in our opinion, is also likely to surprise on the upside on flows, whilst displaying a low degree of revenue margin erosion.
To illustrate the sales/margin trade off, we estimate a third quarter 1.7% like for like sales [increase] might have delivered an extra £0.9m of EBIT but the 50 basis point margin erosion cost £1.9m.
