Apple Gross Profit Margin (Annual) - YCharts The company's total gross margin was $171 billion in 2022 or 43.3%, which means for every dollar of revenue earned, Apple made 43 cents in gross profit. Currently, you are using a shared account. How Apple Stock Has Benefited From Margin Expansion Opinions expressed by Forbes Contributors are their own. The shortage is affecting the production of a wide array of products, from cars to washing machines. While Apple's gross profit margins are close to 40 percent, Foxconn's profit margins are in the single-digit percentage points, leading Foxconn to employ questionable tactics in an. And by god, this government is doing their damndest to destroy them. Solid uptake of Apple Watch also helps Apple to strengthen its presence in the personal health monitoring space. Life Cycle Emissions: EVs vs. 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. To use individual functions (e.g., mark statistics as favourites, set Apples margins could also trend higher, driven by a growing mix of services revenues and higher average prices on iPhones, although the supply crunch in the semiconductor market could put some pressure on the company. Feel free to access them. EPS is likely to stand at about $0.97 per share, an increase of about 51% compared to last year. The new iPhone 12 handsets saw their first full quarter of sales over Q2 FY21, helping iPhone revenue rise 65% compared to last year. If so, the gross margin will improve as well. That gave it a net profit of $99.8 billion, up 5.4% from 2021 and 73% from 2020. Whether you're looking for a stable backup power generator or reliability during your most grueling off-grid adventures, Bluetti's Prime Day deals are the perfect opportunity to save big on the whole lineup of portable power solutions. Sources: FactSet, Tullett Prebon, Commodities & Futures: Futures prices are delayed at least 10 minutes as per exchange requirements. 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. Below is the annual gross margin graph of APPLE INC. Apples services business also had a solid quarter, with sales growing by about 26% compared to last year, with services gross margins rising to 70% from about 65% last year, driven by a more favorable revenue mix, likely skewed toward more commission generating businesses such as apps and third-party subscriptions. AAPL | Apple Inc. Annual Income Statement - WSJ The below table will help you compare the gross profit margin of AAPL with 3 industry peers. Mr. Maestri said that while Apple had mostly avoided a major impact so far, the company expected a lack of chips to hurt its iPhone and iPad sales in the current quarter. The 24-inch iMac with an M1 processor goes on sale during Q3 and will also attribute to a strong gross margin. The gross profit metric can be standardized by dividing by net revenue - resulting in gross margin - which facilitates comparisons among industry peers to determine the company's operating efficiency and understanding its cost structure (i.e. Mac and services such as Apple Music and Apple TV also saw higher growth in 2021-2022, both up nearly 14% year-over-year. 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. 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. You will see both annual and quarterly data. Secondly, Apple is increasingly investing in content production with services such as AppleTV+ and these offerings could also have lower margins. The worlds largest company, and Americas most profitable, earned a massive $394.3 billion in revenue in 2022 against expenditures of $295.5 billion. The current gross profit margin for Apple as of March 31, 2023 is. The timeframe of data used in this report is between 2012 and 2022. A good organization is expected to work continuously to decrease the cost of goods sold while improving the revenue. On the other side of the balance sheet, cost of sales (the total cost of manufacturing and selling a product or service) was the biggest expense for Apple, coming in at $223.5 billion or 76% of the companys expenditures. Yes the margins on the MBA and M1 MBP in particular must be among the best for a notebook in the industry.but if people are prepared to pay. Be careful how you emoji in the future, after a Canadian judge ruled that sending someone a "thumbs-up" symbol in a message can potentially enter you into a legally binding contract. The only key expense this margin takes care of is the COGS or Cost of Goods Sold. Separately, Apple said that it also benefited from a favorable foreign exchange environment. Moreover, non-iPhone devices like Apple Watch and AirPod have gained significant traction. Apple's gross margin for Q2 2021 was 42.5%, achieved in large part through a strong iPhone sales mix. See our pre-earnings analysis Apple Earnings Preview: Will Apple Beat Expectations? 2023 was $94,836 Mil.Therefore, Apple's Gross Margin % for the quarter that ended in Mar. Apple: Gross Margin Conundrum Explained (NASDAQ:AAPL) Moreover, the discounted fee will only apply until developers cross the $1 million threshold, after which Apple will bill them at the higher 30% commission rate. fixed vs. variable costs). Quarterly smartphone market share worldwide by vendor 2009-2023, Apple's revenue broken down by geographical region 2012-2023, by quarter, To download this statistic in XLS format you need a Statista Account, To download this statistic in PNG format you need a Statista Account, To download this statistic in PDF format you need a Statista Account. Apples profits nearly doubled in the latest quarter, showing that the worlds richest and most valuable public company is exhibiting little sign of slowing down. Current and historical net profit margin for Apple (AAPL) from 2010 to 2023. Apple Net Profit Margin 2010-2023 | AAPL | MacroTrends Sales of iPhones had declined in recent years in a saturated smartphone market, but the pandemic mostly changed that. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 1000+ markets in 190+ countries & territories, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. 166,871,000 . Apple's Gross Profit for the three months ended in Mar. Current and historical operating margin for Apple (AAPL) over the last 10 years. Current and historical gross margin, operating margin and net profit margin for Apple (AAPL) over the last 10 years. 24-hour Apple Watch challenge: Can it replace the iPhone? Get quick analyses with our professional research service. As the incidence is over 50 and is rising, one has to register before buying. 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. 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. Apple's gross margin is highest its been in 9 years Jun 9, 2023 As of the second quarter of 2023, Apple's gross margin amounted to around 41.98 percent. 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. Visualizing 1 Billion Square Feet of Empty Office Space, Brand Reputations: Ranking the Best and Worst in 2023, Ranked: The Most Profitable U.S. Companies, by Sector, Chart: U.S. Home Price Growth Over 50 Years, Meet the Competing Apps Battling for Twitters Market Share, Ranked: The Most Innovative Companies in 2023, Ranked: Americas Largest Semiconductor Companies, Visualizing the Top U.S. States for AI Jobs, Ranked: The Most Affordable U.S. Cities for Home Buyers, Charted: Public Trust in the Federal Reserve, Charting the Rise of Americas Debt Ceiling, Ranked: The Worlds Top 50 Endowment Funds, Comparing the Speed of Interest Rate Hikes (1988-2023), Ranked: The Best U.S. States for Retirement. This report will help you learn the gross profit margin of APPLE INC for both recent and past years. We have provided a few examples below that you can copy and paste to your site: Your data export is now complete. Show publisher information Gross Margin Definition: Understanding Profitability | Agicap Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services. Apple Inc. (NASDAQ:AAPL) | Analysis of Profitability Ratios Business Solutions including all features. So what are the key trends that are likely to drive earnings? BLS Nos. Apple's business primarily runs around its flagship iPhone. The historical rank and industry rank for Apple's Gross Margin % or its related term are . Apple, & Statista. In fact, Apple dominates the Wearables and Hearables markets due to the growing adoption of Watch and AirPods. That said, Apples margins could see some pressure, as the new iPhones are likely to be more expensive to produce compared to last year as 5G components are pricier. Solid uptake of Apple Watch also helps Apple to strengthen its presence in the personal health monitoring space. However, the Services portfolio that includes cloud services, App store, Apple Music, AppleCare, Apple Pay & licensing and other services which become the cash cow. )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. [1/25/2021] Will The iPhone 12 Deliver For Apple? Combustion Engine Vehicles, Visualizing the Worlds Largest Lithium Producers, Vintage Viz: The Worlds Rivers and Lakes, Organized Neatly, Ranked: The Cities with the Best Work-Life Balance in the World, Mapped: The Growth in House Prices by Country, Mapped: Renewable Energy and Battery Installations in the U.S. in 2023, Ranked: The Cities with the Most Skyscrapers in 2023, Ranked: The Worlds Biggest Steel Producers, by Country, Charted: 30 Years of Central Bank Gold Demand, Visualizing U.S. Gross Margin % is calculated as gross profit divided by its revenue. Gross profit margin is a function of how much a product sells for and how much that product costs to make. Yahoo. On Wednesday, Apple has released the third developer beta of iOS 17 and it contains several new features and changes, including credits for Apple Music and many UI changes. Source: FactSet, Indexes: Index quotes may be real-time or delayed as per exchange requirements; refer to time stamps for information on any delays. Apple's latest twelve months gross profit margin is 43.2% Apple's gross profit margin for fiscal years ending September 2018 to 2022 averaged 39.9%. In its quarterly earnings report on Wednesday, Apple said that its gross margin the percentage of revenue left after accounting for the cost of goods sold jumped to 42.5%. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. The current operating profit margin for Apple as of March 31, 2023 is 24.49%. Please check your download folder. Copyright 2023 Netcials. How gross profit can help you assess the profitability of your company; Contribution margin: How to calculate; Subscribe to our newsletter. See How Its Powering New Collaboration and What-Ifs ForCFOs and Finance Teams |Product, R&D, and Marketing Teams, This is a BETA experience. The orange line is operating margin per. The companys total gross margin was $171 billion in 2022 or 43.3%, which means for every dollar of revenue earned, Apple made 43 cents in gross profit. and over 1Mio. Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. Now you will see the quarterly gross margin figures of APPLE INC. First, you will see a line graph followed by a table with numerical values. Thus the margin may be higher in a high demand quarter and vice versa. App analytics company Sensor Tower estimates that about 98% of the developers that pay Apple commissions will benefit. www.netcials.com does not make any warranties about the completeness, reliability and accuracy of this information. Operating Income EBITDA Net Income EPS Shares Outstanding Apple annual/quarterly gross profit history and growth rate from 1970 to 1969. These devices are powered by software applications including iOS, macOS, watchOS and tvOS operating systems. Apples profits nearly doubled in the latest quarter. statistic alerts) please log in with your personal account. You will see both annual and quarterly data. Apple should also see higher average selling prices for the iconic smartphone, as it raised base pricing on the iPhone 12 versus the iPhone 11, while nudging customers toward the more premium iPhone Pro models (priced at $1,000 and up), which appear to be a better value compared to last year. Why Apple Inc. Is So Profitable | The Motley Fool Organizations from the same industry face similar challenges. Apple also likely saw a large percentage of commission-driven revenues such as App sales and subscriptions, which are much more profitable. Here's how the approaches vary. Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. Apple updated the Mac Studio to M2 during WWDC 2023, at the same time as introducing an Apple Silicon Mac Pro. Apple, Inc.'s Gross Profit Margin Is Faring Better Than You May Think Strong demand for the iPhone 12 Pro and iPhone 12 Pro Max was a contributing factor. Gross Profit. 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.