All consumer companies have decreasing margins as they get bigger. B-to-B companies have much larger margins, but much smaller revenues. Distributors, like Amazon to consumers or Ingram to the trade, operate on tiny margins. Supermarkets are a 3% business, but they have huge cash flow.
Wall Street wants it all ways: They don't want Apple to retain so much cash, they want them to have less expensive products to gain (or stop losing) market share AND they want them to increase margins. You can't have it all. But I don't care...if the stock drops, I'll buy some more.
As I've posted many times before, it used to take a year for a consumer electronics company to sell a million units of anything. Now it takes Apple a few hours. And still Wall Street isn't satisfied. Even Macs sold well and no one expected that. With all the new products, even though only evolutionary, 4 th Q should be great.
I don't think Wall Street wants Apple to have them all.
I think Wall Street wants to see a gain for the plan Apple chooses before the share price will increase.
If Apple lowers margins then Wall Street wants to see increased market share to the point that eps increases.
If Apple increases margins then Wall Street wants to see revenue and earnings increase to the point that eps increases.
This is not to say that Apple is doing poorly.