Apple Slips On Margin Worries (AAPL)

Shares of Apple AAPL are lower this morning after Stifel Nicolaus analyst Doug Reid cautioned that gross margins could miss analyst estimates. Mr. Reid believes gross margins are tracking below Street estimates "based on evidence of ongoing component shortages and ASP erosion". He sees third quarter gross margins of 38.8%, below the 39.5% Street consensus. Mr. Reid still believes strong Mac sales could trigger higher fiscal 2010 and 2011 revenues and repeats his Buy rating on the stock. Shares of Apple are lower by $6.76, or 2.71%, to $243.14.