Are compressed margins for the investment in new products a bad thing?
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The grocery business has become a highly competitive one with low margins compressed even further due to competition from Wal-Mart and other large format stores that siphon price-conscious shoppers away from traditional grocers.
Growth rates had come down, margins were compressed and Cisco was facing these issues.
Revenue fell by 11% from the period a year ago, and margins were compressed by almost 9% as a result.
"Severely compressed refining and marketing margins were experienced worldwide and were the primary driver in the decline, " chairman Lee Raymond said.
With rates held low by the Federal Reserve, lending margins have been compressed, which holds down profitability.
In today's competitive business world, margins are being compressed, but speed is still a source of margin.
Margins may be compressed some in fiscal 2011, as iPads, priced relatively cheaply, become a bigger portion of sales.
While margins may be compressed, the launch of the iPad mini and the pent-up demand for the iPhone 5 could make this holiday quarter its best ever.
He said the cheap money has compressed the bank's lending margins, as well as the returns the bank makes on cash and short-term securities.
He said the cheap money has compressed the bank's lending margins and spreads it makes on client transactions, as well as the returns the bank makes on cash and short-term securities.
So although we think Netflix is a wonderful company, the margins are going to be compressed fairly dramatically as they shift to a streaming video company.
As Netflix transitions from a company that sends DVDs through the mail to one that streams video via the Internet or through Apple TV to your television, or to any number of devices, we think their margins are going to be compressed, because they have to pay for the content every time they stream it to a customer.
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