Apple Inc. stock research
FY2023 Q2
Apple (AAPL) Gross Margin — Quarter Ended Apr 1, 2023
Revenue decreased compared to the prior quarter and was slightly lower than the same quarter last year. Gross profit and cost of revenue both declined from the prior quarter, while gross margin improved relative to the prior quarter but weakened compared to the same quarter last year.
Gross margin takeaway
Quarter ended Apr 1, 2023 · FY2023 Q2
Revenue decreased compared to the prior quarter and was slightly lower than the same quarter last year. Gross profit and cost of revenue both declined from the prior quarter, while gross margin improved relative to the prior quarter but weakened compared to the same quarter last year.
- The improvement in gross margin from the prior quarter was driven by a proportionally larger decline in cost of revenue relative to revenue. This suggests a favorable shift in the relationship between costs and sales.
- Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue was slightly lower, gross profit was slightly lower, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.3%
Gross profit
$42.0B
Revenue
$94.8B
Cost of revenue
$52.9B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
n/a
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2022 | $117.2B | $50.3B | $66.8B | 43.0% |
| Apr 1, 2023 | $94.8B | $42.0B | $52.9B | 44.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2022
+1.3 pts
Year-over-year change
Year-ago quarter unavailable
n/a
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was driven by a proportionally larger decline in cost of revenue relative to revenue. This suggests a favorable shift in the relationship between costs and sales.
Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue was slightly lower, gross profit was slightly lower, and gross margin was slightly lower.
Monitor the trajectory of cost of revenue relative to revenue, as its proportion declined this quarter and was a key factor in margin improvement.