Gross Margin % is calculated as gross profit divided by its revenue. Apple's Gross Profit for the
three
months ended in Mar. 2021 was $38,079 Mil. Apple's Revenue for the
three
months ended in Mar. 2021 was $89,584 Mil. Therefore, Apple's Gross Margin % for the quarter that ended in Mar. 2021 was 42.51%.
NAS:AAPL'
s Gross Margin % Range Over the Past 10 Years
Min: 37.62 Med: 38.53 Max: 43.87
Current: 39.88
37.62
-
43.87
During the past 13 years, the highestGross Margin % of Apple was 43.87%. The lowest was 37.62%. And the median was 38.53%.
NAS:AAPL's Gross Margin % is ranked higher than
78% of the 2314
Companies
in the Hardware industry.
( Industry Median: 24.62
vs. NAS:AAPL: 39.88
)
Apple had a gross margin of 42.51% for the quarter that ended in Mar. 2021 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Apple was -1.00% per year.
Apple Gross Margin % Historical Data
* 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
Sep11
Sep12
Sep13
Sep14
Sep15
Sep16
Sep17
Sep18
Sep19
Sep20
Gross Margin %
39.08
38.47
38.34
37.82
38.23
Apple Quarterly Data
Jun16
Sep16
Dec16
Mar17
Jun17
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Gross Margin %
38.36
38.00
38.16
39.78
42.51
Competitive Comparison
* 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.
Apple Gross Margin % Distribution
* 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 42.51% for the quarter that ended in Mar. 2021 => 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.
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