Gross Margin % is calculated as gross profit divided by its revenue. Apple's Gross Profit for the
three
months ended in Dec. 2023 was $54,855 Mil. Apple's Revenue for the
three
months ended in Dec. 2023 was $119,575 Mil. Therefore, Apple's Gross Margin % for the quarter that ended in Dec. 2023 was 45.87%.
The historical rank and industry rank for Apple's Gross Margin % or its related term are showing as below:
AAPL'
s Gross Margin % Range Over the Past 10 Years
Min: 37.82 Med: 38.84 Max: 45.03
Current: 45.03
During the past 13 years, the highestGross Margin % of Apple was 45.03%. The lowest was 37.82%. And the median was 38.84%.
AAPL's Gross Margin % is ranked better than 83.84% of 2438
companies
in the Hardware industry
Industry Median: 24.43
vs AAPL: 45.03
Apple had a gross margin of 45.87% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Apple was 3.50% per year.
Apple Gross Margin % Historical Data
The historical data trend for Apple's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Apple Annual Data
Trend
Sep14
Sep15
Sep16
Sep17
Sep18
Sep19
Sep20
Sep21
Sep22
Sep23
Gross Margin %
37.82
38.23
41.78
43.31
44.13
Apple Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
42.96
44.26
44.52
45.17
45.87
Competitive Comparison
For the Consumer Electronics subindustry, Apple's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Apple Gross Margin % Distribution
For the Hardware industry and Technology sector, Apple's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Apple's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Apple (NAS:AAPL) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Apple had a gross margin of 45.87% for the quarter that ended in Dec. 2023 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Apple Gross Margin % Related Terms
Thank you for viewing the detailed overview of Apple's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's iPhone makes up a majority of the firm sales, and Apple's other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.
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