Semiconductor companies need to post EBIT and EBITDA margins that are way above average (which they do) because they tie up huge amounts of capital.

FORBES: Are You Being Misled By Profit Margins?

Internet and catalog retailers, in contrast, can and do get by with below-average EBIT and EBITDA margins precisely because they employ less capital than the average company.

FORBES: Are You Being Misled By Profit Margins?

Above, the average forecast of Trefis members for mobile phones EBIT margin for emerging markets indicates that margins will stay flat at around 12.5%, compared to the baseline Trefis estimate of a decrease from 10.5% in 2010 to 7.5% during the same period.

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