Apple's other services include subscription-based Apple News, Apple Card, Apple Arcade, new Apple TV app, Apple TV channels and Apple TV, a new subscription service. Apple's gross margin 2005-2023 | Statista Apple's (AAPL) Gross Profit Margin at 43.31% (2012-2022) - Netcials The key to Apples profitability is how its strong brand has allowed it to tap into an excellent gross margin percentage. Change value during other periods is calculated as the difference between the last trade and the most recent settle. Strong sales across all product categories led to a better gross margin, and Apple expects the high margin to continue into the June quarter. Now let us see a table containing the quarterly gross margin values of AAPL. Apple Apple takes 75% of smartphone profits despite 13% market share, says report By Stephen Warwick published 14 October 2021 Apple Iphone Ipad Availability Beijing Iphone 13 Pro Close Up (Image credit: Apple) What you need to know A new report says that Apple captured 75% of smartphone profits and 40% of the revenue in Q2 of 2021. Charting Apple's Profit of Nearly $100 Billion in 2022 - Visual Capitalist Apple Inc. annual income statement. It can be difficult to choose the best MacBook Pro or MacBook Air, given the wide range of prices and features. Out of all of Apples revenue streams, its clear the iPhone is the companys cash cow. However, a tightly competitive market or saturated demand may make maintaining gross margin a tedious task. Moreover, the full impact of the new iPhone 12 is only likely to be seen in the coming quarters, as production picks up and the devices see full quarters of availability. Here's what we've found. Strong demand for the iPhone 12 Pro and iPhone 12 Pro Max was a contributing factor. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). Apple also likely saw a large percentage of commission-driven revenues such as App sales and subscriptions, which are much more profitable. We estimate that Apples Operating Income would be about 10% lower if commissions were reduced, considering Apple posted about $64 billion in Operating Income in FY19. Hence, a comparison between industry peers should help you assess the relative potential of an organization in creating and maintaining margins. Solid uptake of Apple Watch also helps Apple to strengthen its presence in the personal health monitoring space. The historical rank and industry rank for Apple's Gross Margin % or its related term are . The companys sales increased in every geographic area, led by its Greater China region, with 58 percent growth, the third consecutive quarter in which sales increased by more than 50 percent there. No breakthrough technological change, just other looks and a cheaper to make chip. Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Equity (ROE) Return on Assets (ROA) Paying users area Try for free Apple Inc. pages available for free this week: Common-Size Balance Sheet: Liabilities and Stockholders' Equity Analysis of Short-term (Operating) Activity Ratios For a product like the iPhone, component costs dominate production costs. However, will reducing commissions by half impact the performance of Apples highly lucrative and fast-growing Services business? ADVERTISEMENT Here's how the specs differ from the existing 13-inch model. Statista. So what does this mean for Apple stock? The April-through-June period was the third consecutive quarter of double-digit increases in iPhone sales, with much of the growth coming from existing customers upgrading their phones. Apple gross profit for the quarter ending March 31, 2023 was, Apple gross profit for the twelve months ending March 31, 2023 was. Apple's business primarily runs around its flagship iPhone. )Just to put in perspective, in the past, Mac pricing ~2012 was more realistic/had much less margin due to novel technologies but its the same old technology by now. Apple Gross Profit Margin (Quarterly) Apple Inc (AAPL) 192.61 +0.15 ( +0.08%) USD | NASDAQ | Jul 05, 10:43 Switch to: Reports Actions Quote Performance Key Stats Financials Estimates News Events Y-Rating Valuation More Data Leverage your fund or stock analysis with YCharts' extensive library of over 4,000 financial data points. Chart: Automakers Adoption of Fuel-Saving Technologies. If you use our datasets on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. Gross Margin % is calculated as gross profit divided by its revenue. Apples trailing P/E multiple has soared and almost doubled over the past year to levels of around 38x currently which is in line with other Internet players such as Alphabet. A combination of several factors affected the gross margin, with popular high-end iPhones being a major contributor. Apple's profits nearly doubled in the latest quarter. The key to Apple's profitability is how its strong brand has allowed it to tap into an excellent gross margin percentage. We hope the above report will help you analyze the gross margin performance of AAPL. Show sources information The company has posted growth rates in recent quarters that resemble a much smaller upstart rather than a corporate titan worth nearly $2.5 trillion. Apple's Gross Profit for the three months ended in Mar. These devices are powered by software applications including iOS, macOS, watchOS and tvOS operating systems. Stocks: Real-time U.S. stock quotes reflect trades reported through Nasdaq only; comprehensive quotes and volume reflect trading in all markets and are delayed at least 15 minutes. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. . Apple ( AAPL 2.31%) is one of the world's most profitable companies and certainly the most profitable smartphone maker. You will also find how gross margin figures differed between successive quarters. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. So American. [1] App sales growth over the same period last year was about 16%. Moreover, non-iPhone devices like Apple Watch and AirPod have gained significant traction. Moreover, Apple will see a favorable comparison with Q2 FY20 when sales were impacted by the first set of Covid-19 related lockdowns. Please check your download folder. Please check your download folder. If you use our datasets on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. More about Jack Nicas. The below table will help you compare the gross profit margin of AAPL with 3 industry peers. Now let us see those quarters when APPLE INC recorded the lowest gross margin figures. International stock quotes are delayed as per exchange requirements. So what could be the financial impact of Apple reducing commissions across the board? Want to know the highest quarterly gross margin recorded by APPLE INC? Also, a company may try different pricing and discount strategies based on seasonality. Please check your download folder. So what are the key trends that are likely to drive Apples results? Apple also sold more of all of its other products, including iPads, Macs and wearable devices such as the Apple Watch and AirPods. Now Apples services have much thicker margins compared to hardware products. Source: FactSet, Indexes: Index quotes may be real-time or delayed as per exchange requirements; refer to time stamps for information on any delays. Fundamental company data and analyst estimates provided by FactSet. Mac and services such as Apple Music and Apple TV also saw higher growth in 2021-2022, both up nearly 14% year-over-year. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. Apple also designs, manufactures and sells iPad, MacBookand HomePod. Apple takes 75% of smartphone profits despite 13% market share - iMore Our estimates are marginally below the consensus. Apple Inc (AAPL) Gross Profit Margin starting from the first quarter 2022 to first quarter 2021, Profitability Trends and Ranking, Fundamental Ratios - CSIMarket Apple Inc 's Gross Profit Margin by quarter Trends, Rankings, Statistics Select the Comparisons : 2022 Current 2021 2020 2019 2018 2017 2016 2015 2014 Select the Ratio: Below is a table of contents to help you. Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. Sources: FactSet, Dow Jones, Bonds: Bond quotes are updated in real-time. By using our website or by closing this message box, you agree to our use of browser capability checks, and to our use of cookies as described in our Cookie Policy. Revenues should see a nice bump year-over-year driven by the higher-priced iPhone 12 handsets which will see their first full quarter of availability. The current gross profit margin for Apple as of December 31, 1969 is %. Gross Margin % is calculated as gross profit divided by its revenue. "Apple's gross margin as percentage of revenue from 1st quarter 2005 to 2nd quarter 2023." 2023 was $41,976 Mil.Apple's Revenue for the three months ended in Mar. Apples profits nearly doubled in the latest quarter. Apple Profit Margin 2010-2023 | AAPL | MacroTrends See allTrefis Price EstimatesandDownloadTrefis Datahere, Whats behind Trefis? The gross margin of AAPL attained its peak value of 43.87 during 2012. Over FY20, Apples product Gross Margins stood at 31.5% versus about 66% for Services. The Mac pricing is somewhat ridiculous considering the processor must cost less than ~50$ (There is a site where you can, if you are accurate enough and use correct numbers for N7/N7P by TSMC themselves, precisely estimate the cost:https://caly-technologies.com/die-yield-calculator/)a pop at that scale to manufacture. If you use our datasets on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. Sources: FactSet, Tullett Prebon, Commodities & Futures: Futures prices are delayed at least 10 minutes as per exchange requirements. Apple said on Tuesday that its profits increased 93 percent to $21.7 billion in its fiscal third quarter compared with a year earlier, while sales rose 36 percent to $81.4 billion, both outpacing analysts expectations. Apples gross margins expanded by a remarkable 420 basis points year over year to 42.5%, reaching their highest levels in almost nine years. The Apple Vision Pro and Meta's existing headset efforts vary not just in hardware, but in philosophy. Apple's Gross Profit for the three months ended in Mar. Use Ask Statista Research Service. We have provided a few examples below that you can copy and paste to your site: Your data export is now complete. Organizations from the same industry face similar challenges. All rights reserved. In the prior. Gross Margin vs. Profit Margin: What's the Difference? - Investopedia Learn more about how Statista can support your business. This is what's different between two Macs that are both very different, but also strikingly similar. Apple (AAPL) Gross Margin - GuruFocus (Photo by Alexander Pohl/NurPhoto via Getty Images), The Long And Variable Lag A Dangerous Monetary Policy Myth, How The Recent Supreme Court Ruling Is Hurting Business, The Other Important Board Director Qualifications, Janet Yellens Visit To Beijing: National Security Versus Economic Cooperation. In fact, Apple raised the price of its iPhone 12 versus last years iPhone 11, making its iPhone 12 Pro models (priced at $1,000 and up) look like better value compared to last year. Today, he is Assistant Editor, Podcast Cohost, SEO Specialist, and Social Media Manager for AppleInsider. InfiRay attempts to unlock more from your iPhone with the compact P2 Pro thermal camera, allowing you to peer into the infrared range. Whos Still Buying Russian Fossil Fuels in 2023? However, a company may still grow financially if it manages to increase the number of goods (volume). So can Apple sustain margins at these levels? If you are an admin, please authenticate by logging in again. Firstly, Apple has a certain level of fixed costs in its product cost structures and with the product Revenue soaring by about 21%, it benefited from some leverage gains. to incorporate the statistic into your presentation at any time. The below table contains the gross margin percentages used in the above graph. APPLE INC's 5 Highest Quarterly Gross Profit Margin Figures, AAPL's 5 Lowest Quarterly Gross Profit Margin Figures. The number of years covered is 11 until 2022. Last week, Epic Games sued Apple for antitrust violations, after its popular Fortnite game was removed from the AppStore shortly after Epic let players bypass Apples in-app purchase system, avoiding the 30% commission on sales. If you find data inaccuracies kindly let us know using the contact form so that we can act promptly. Apple is slated to publish its Q1 FY21 earnings on January 27, reporting on a quarter that saw the launch of its much anticipated 5G iPhone 12. Show publisher information Cryptocurrencies: Cryptocurrency quotes are updated in real-time. Annual revenue, gross margin, net income. Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Equity (ROE) Return on Assets (ROA) Profitability Ratios (Summary) Annual Data Quarterly Data Apple Inc., profitability ratios (quarterly data) Apple Inc. (NASDAQ:AAPL) | Analysis of Profitability Ratios Can Apple sustain these margins going forward? Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. And, if you're interested in Apple-centric home automation, say "Hey, Siri, play HomeKit Insider," and you'll be listening to our newest specialized podcast in moments. However, in its latest report, Apple did warn of downward pressure on its marginswhich will impact profitability in 2023because of currency fluctuations. The pandemic has been a windfall for Apple and its peers, as people buy even more gadgets to work, study and socialize. You will also see the yearly increase or decrease of the margin. Apple Operating Margin Historical Data. Secondly, Apples product mix has been more favorable than previous quarters, with Apple nudging customers towards Pro versions of its devices, which likely have thicker margins. For its first fiscal quarter of 2017, which coincides with the fourth calendar quarter of 2016, Apple management expects gross margin to be between 38 . Here's how the specs compare. Solid uptake of Apple Watch also helps Apple to strengthen its presence in the personal health monitoring space. Last week, Apple indicated that it would be cutting its commissions on app sales and in-app purchases from 30% to 15% for smaller developers, who earn less than $1 million annually from the AppStore. Apple Inc. (AAPL) Income Statement - Yahoo Finance Solid uptake of Apple Watch also helps Apple to strengthen its presence in the personal health monitoring space. Apple stock has rallied by almost 90% over the last 12 months, driven by growing demand for consumer electronics through Covid-19, anticipation surrounding the 5G iPhones, and Apples position as a safe haven stock. It offers essential calculations such as annual profit, gross margin, sales margin, net profit margin, discount, business valuation, and sales tax. Firstly, Revenues should see a bump driven by strong demand for the 5G iPhones, which saw multiple models remain back-ordered through the holidays. Apples Operating Margins also soared by a remarkable 220 basis points year over year to about 30.1%. Lets take a closer look at what drove Apples Products and Services Gross Margins and Operating Expenses to find out. First, let us see a graph followed by a table. And revenue from iPhone sales is still growing, by 7% from 2021 and nearly 40% compared to 2020. Find out the revenue, expenses and profit or loss over the last fiscal year. Get quick analyses with our professional research service. People in the Apple Store. You'll be able to capture, edit, share, and enjoy your photos and videos better than ever in iOS 17 thanks to a litany of new features and changes Apple is introducing. Now commissions of 30% are actually pretty standard across the industry Alphabets Google, which also faces a similar lawsuit from Epic, as well as Microsoft and Amazon, charge roughly the same fees on app sales on their respective market places. If you buy through our links, we may get a commission. So what's driving Apple's surging margins and. Apple annual/quarterly gross profit history and growth rate from 2010 to 2023. Solid uptake of Apple Watch also helps Apple to strengthen its presence in the personal health monitoring space. The first section will show you the gross margin of AAPL by year. Directly accessible data for 170 industries from 150+ countries [2/2/2021] Whats Driving Apples Expanding Margins? A. Although our iPhone cameras are at the cutting edge of clarity and quality, they can only capture light from the visible range of the spectrum. He said Apples gross margins on its devices were 36 percent in the quarter. Theres a possibility that the U.S. Justice Departments antitrust lawsuit against Google could jeopardize these payments, hurting Apples services growth. This report will help you learn the gross profit margin of APPLE INC for both recent and past years. Think Apple stock is pricey at current levels, but still want to play the upside in iPhone sales? Wesley Hilliard served ten years as a Nuclear Power Electrician in the US Navy, then jumped careers in 2019. "So from March, we were up 270 basis points sequentially really driven by three major factors," said Maestri. "Apple's Gross Margin as Percentage of Revenue from 1st Quarter 2005 to 2nd Quarter 2023. However, there are a few caveats. Sales of iPhones had declined in recent years in a saturated smartphone market, but the pandemic mostly changed that. The shortage is affecting the production of a wide array of products, from cars to washing machines. 166,871,000 . The company also posted one of its largest gross profit margins ever, at 43.3 percent, showing how efficient its enormous business has become. Accessed July 09, 2023. https://www.statista.com/statistics/263436/apples-gross-margin-since-2005/, Apple, and Statista. The statistic shows the gross profit margin forecast of the Apple company worldwide from 2017 to 2019, broken down by segment. On the other hand, we expect iPhone Revenues to grow at an average rate of about 5% each year over the next four years to about $167 billion (iPhone Revenue remained almost flat between 2016 and 2020). Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. Starting in iOS 17, Apple allows users to create a Personal Voice that when used in conjunction with Live Speech can help users communicate with others by reading text and phrases. Apple net profit margin for the three months ending March 31, 2023 was. Apple said its iPhone sales grew 50 percent to $39.6 billion over the quarter from a year ago, an increase that was high by even its lofty standards. Apple also designs, manufactures and sells iPad, MacBookand HomePod. Hence, for better insights, you may have to look at the net margin analysis of APPLE INC. We have validated the data to the best of our knowledge. Opinions expressed by Forbes Contributors are their own. fixed vs. variable costs). [Online]. Per Share Data Apple Inc. . In fact, Apple dominates the Wearables and Hearables markets due to the growing adoption of Watch and AirPods. Apple's Product Gross Margins, or the profits it makes after accounting for direct costs related to making its iDevices, computers, and accessories, rose by around 90 basis points year over. If Apple reduced commissions to say 20% from 30%, it would reduced total commissions by about $7 billion to roughly $13 billion. As you may know, the net margin is the one that accounts for both interest and taxes in addition to the cost of goods sold. The iPad was the only product that saw a contraction in revenue growth compared to 2021. See our pre-earnings analysis Apple Earnings Preview: Will Apple Beat Expectations? TTM Revenue. Its very likely that Apples Q2 results will determine the near-term trajectory for Apples stock. Business Solutions including all features. These devices are powered by software applications including iOS, macOS, watchOS and tvOS operating systems. The increase was particularly surprising considering the company is set to release new phones in September, which often causes many people to wait to buy new iPhones. Gross Profit of APPLE INC during the year 2022 = $170.78 Billion. Visualizing Every Company on the S&P 500 Index, Retail Investors Most Popular Stocks of 2023 So Far, Ranked: The 100 Biggest Public Companies in the World, 10-Year Annualized Forecasts for Major Asset Classes, Visualizing Annual Working Hours in OECD Countries, The Worlds Biggest Mutual Fund and ETF Providers, Keen to know how Apples financials stack up against other tech giants? Profit from the additional features of your individual account. Heres how we expect this to play out. Secondly, Apple is increasingly investing in content production with services such as AppleTV+ and these offerings could also have lower margins. Apple stock has rallied by about 65% over the last 12 months, driven largely by anticipation surrounding the 5G iPhones. And by god, this government is doing their damndest to destroy them. How Old Are the Worlds Nuclear Reactors? However, Apple has the most to lose from this given the sheer scale of its business. In a test to see if it was possible to live without an iPhone, one AppleInsider staffer bravely uses just their Apple Watch to see if it was possible, and what limitations they'd run into. The only key expense this margin takes care of is the COGS or Cost of Goods Sold. Compare to Open 193.78 Prior Close 193.97 (06/30/23) 1 Day AAPL -0.78% DJIA 0.03% S&P 500 0.12% Technology -0.12% Overview Earnings & Estimates Apple Inc. Please check your download folder. One of the few challenges for Apple is the global shortage in computer chips, which its devices rely upon. Timeline: Cannabis Legislation in the U.S. Visualizing the Relationship Between Cancer and Lifespan. How to Calculate Gross Profit? If you use our chart images on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. for more details on Apples recent performance and whats driving its valuation. Seasonality may cause varying demand in different quarters. Apple net profit margin as of March 31, 2023 is. Apple also makes billions of dollars each quarter by collecting a commission on other companies app sales, a rapidly growing part of its business that has attracted lawsuits and the attention of regulators. Netcials reports section helps you with deep insights into the performance of various assets over the years. How gross profit can help you assess the profitability of your company; Contribution margin: How to calculate; Subscribe to our newsletter. Although we actually expected margins to face pressure on account of higher costs relating to 5G components on the new iPhones, Apple significantly beat our margin expectations, driven by a couple of factors. Apple Gross Profit Margin - YCharts [1/25/2021] Will The iPhone 12 Deliver For Apple? BLS Nos. Sources: FactSet, Dow Jones, ETF Movers: Includes ETFs & ETNs with volume of at least 50,000. Our revenue estimates are roughly in line with consensus while our EPS estimate is marginally below consensus. AAPL | Apple Inc. Financial Statements - WSJ - FourWeekMBA How Much Profit Does Apple Make Per iPhone? Introduction. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. Our dashboard Breaking Down Apples Services Revenue estimates the revenue figures for AppStore, Apple Music, Apple TV+, iCloud, Third-party Subscriptions, Licensing, Apple Care, and Apple Pay. Ex-Apple design chief Jony Ive approached Scotland's audio firm Linn asking to collaborate on a turntable to mark the company's 50th anniversary. 2023 was 44.26%.. Apple's other services include subscription-based Apple News, Apple Card, Apple Arcade, new Apple TV app, Apple TV channels and Apple TV, a new subscription service. Internet services-led companies have typically commanded higher valuation multiples compared to hardware plays on account of their thicker margins, and associated platform-related lock-ins. Geographically, Apples highest net sales came from the Americas, at nearly $170 billion. The other parts, including the display, are available at a very low price for the required quality compared to when they were introduced in the required specifications (pixel density etc. Compare AAPL With Other Stocks In fact, Apple provided a data point indicating that between Christmas Eve and New Years Eve, a total of $1.8 billion was spent on apps, up 27% versus last year. Apple has been facing significant criticism that its AppStore practices hurt smaller developers and tech giants, including Apple, face increasing scrutiny from regulators regarding their market power. EBITDA Margin. ", Apple & Statista, Apple's gross margin as percentage of revenue from 1st quarter 2005 to 2nd quarter 2023 Statista, https://www.statista.com/statistics/263436/apples-gross-margin-since-2005/ (last visited July 09, 2023), Apple's gross margin as percentage of revenue from 1st quarter 2005 to 2nd quarter 2023 [Graph], Apple, & Statista, May 5, 2023. This section will help you know the best quarters of AAPL when the gross margin hit record highs.
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