I don't see why Apple has to reduce the margins on the iPad or the iPhone when they can't keep up with demand. They sold 5 million iPhone 5s the first weekend and they could have sold a lot more if they could have made more.

The growth trajectory of the iPad is unprecedented--100 million in 2.5 years.

Apple is smart about not getting into the situation of having to reduce margins on products--they use economies of scale to reduce costs.