With the release of the 4" iPhone SE, the market immediately started questioning whether Apple (AAPL) could maintain margins and ASPs. The main question surrounds the $399 price for the 16GB version considering the lower price point to the $450 price for the iPhone 5s. The lower price will help sales in emerging markets and price sensitive consumers in the U.S. Investors though shouldn't question the margins as Apple is a master in controlling costs. The company averages a gross margin above 39% and one should expect this phone to be no different as iPhone SE utilizes a lot of technology from previous phone versions. The ASP will decline due to the lower price point, but the more important number is the total margin generated from more phone sales. If anything, margins could improve if this phone helps with volumes. Either way, don't fret margins. Buy the stock trading at 9x EPS estimates with a ton of cash on the balance sheet. Disclosure: Long AAPL