Apple Inc. stock research
FY2023 Q4
Apple (AAPL) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was lower than the same quarter one year earlier but higher than the immediately preceding quarter. Gross profit improved compared to both prior periods, while cost of revenue decreased year over year and increased sequentially, resulting in a gross margin that strengthened relative to both the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q4
Revenue was lower than the same quarter one year earlier but higher than the immediately preceding quarter. Gross profit improved compared to both prior periods, while cost of revenue decreased year over year and increased sequentially, resulting in a gross margin that strengthened relative to both the prior quarter and the year-ago quarter.
- The gross margin improved sequentially and year over year, driven by a combination of higher revenue and lower cost of revenue relative to the year-ago period, and by revenue growth outpacing cost growth compared to the prior quarter.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, revenue was slightly lower, gross profit was higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.2%
Gross profit
$40.4B
Revenue
$89.5B
Cost of revenue
$49.1B
Quarter-over-quarter change
+0.7 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% |
| Sep 30, 2023 | $89.5B | $40.4B | $49.1B | 45.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 1, 2023
+0.7 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 improved sequentially and year over year, driven by a combination of higher revenue and lower cost of revenue relative to the year-ago period, and by revenue growth outpacing cost growth compared to the prior quarter.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, revenue was slightly lower, gross profit was higher, cost of revenue was lower, and gross margin improved.
Monitor the relationship between revenue and cost of revenue in upcoming quarters to assess whether gross margin can sustain its improvement.