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# Apple: Insourcing Can Structurally Lift Gross Margins (Archive)
- URL: https://www.huntingalphas.com/apple-insourcing-can-structurally-lift-gross-margins-archive/
- Published: 2024-12-19T08:48:00.000Z
- Updated: 2026-02-28T05:45:33.000Z
- Description: Apple’s insourcing of networking components can structurally enhance long-term gross margins and returns.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, AAPL, Consumer

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- My last 'Buy' view on Apple has been playing out, and recent developments have increased my confidence in the stock, prompting me to upgrade my stance to a 'Strong Buy'.
- In-house manufacturing of networking components can reduce reliance on suppliers such as Broadcom and Qualcomm and boost long-term gross margins.
- AAPL trades at a premium vs comps but after 2 years of stagnant earnings expectations, it is seeing upgraded estimates in recent times.
- Relative technicals signal a breakout above previous highs following a period of consolidation/re-accumulation.
- iPhone sales have been broadly stagnant over the past 3 years. Apple plans to reinfuse growth via a launch of a premium foldable iPhone. However, I am a bit skeptical given higher adoption rates for lower-priced models in recent iPhone Series.

Read the full article [here](https://seekingalpha.com/article/4745238-apple-insourcing-can-structurally-lift-gross-margins?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*