A bobbin apparatus and associated magnetic component is configured to reduce gap losses associated with a core air gap in a bobbin-wound magnetic component such as an inductor or transformer. The bobbin includes a step structure protruding from the winding surface between bobbin ends. The step is operable to provide spacing between the conductive windings disposed on the bobbin and the core air gap inside the bobbin axial passage. The spacing reduces stray flux interactions with the conductive winding, thereby reducing gap losses and preventing undesirable heating of the winding and core. Additional winding configurations and methods for use with the bobbin apparatus are also provided.