Apple's current line of smartphones has been linked to a higher production cost although analysts believe that this will not affect the company's margin. After claiming sales of 13 million units during the opening weekend, Apple continues to see strong demand for its iPhone 6s series. Coupled with the launch of its services like Apple Music in China, the company is expected to either retain or grow its margin.

According to a report from Forbes, Apple's increase in cost of materials can be linked to more durable casings and new technologies. Although Apple has higher expenses on its current line of smartphones, the company’s iPhone margins are expected to remain the same or grow.

According to the Trefis Team: “Firstly, Apple has maintained its storage mix strategy (16 GB, 64 GB, 128 GB) in a move that will steer customers toward the much higher-margin 64 GB models (the incremental costs of 64 GB model are estimated at just $17 or about AU$24, although it is $100 or about AU$139 more expensive for customers). The shift to the higher tier models is likely to be more evident this time around, given the higher-resolution cameras and video recording capabilities of the new devices."

Secondly, the team also cited Apple's iPhone Upgrade Program, which allows the company to shorten the iPhone cycle effectively. It is also able to sell its high-margin Apple protection plan. China continues to be a promising market with analysts expecting Apple’s numbers to improve if it is able to better penetrate the market.

In another report by the US Commerce Department, August trade data reveals that imports and exports differences have increased 15 per cent from July. The "cell phones and other household goods" category, leading the expansion at 30 per cent, is the biggest monthly gain for the sector since 2001. However, despite the expansion, there are concerns about the latest numbers for August. Imports and exports continue to dip year-over-year even with the strong dollar.

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