Apple Inc. stock research
FY2023 Q3
Apple (AAPL) Gross Margin — Quarter Ended Jul 1, 2023
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross margin improved compared to both periods, as cost of revenue declined more than revenue relative to the prior year and remained proportionally lower relative to the prior quarter.
Gross margin takeaway
Quarter ended Jul 1, 2023 · FY2023 Q3
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross margin improved compared to both periods, as cost of revenue declined more than revenue relative to the prior year and remained proportionally lower relative to the prior quarter.
- The gross margin improvement was supported by a proportionally larger decline in cost of revenue relative to revenue from the prior quarter, and an even more favorable comparison with the year-ago quarter where cost of revenue fell while revenue rose.
- Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.5%
Gross profit
$36.4B
Revenue
$81.8B
Cost of revenue
$45.4B
Quarter-over-quarter change
+0.3 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% |
| Jul 1, 2023 | $81.8B | $36.4B | $45.4B | 44.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
+0.3 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 gross margin improvement was supported by a proportionally larger decline in cost of revenue relative to revenue from the prior quarter, and an even more favorable comparison with the year-ago quarter where cost of revenue fell while revenue rose.
Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor the level of manufacturing purchase obligations, which the filing notes are primarily noncancelable and cover periods up to 150 days.