Apple Inc. stock research
FY2024 Q2
Apple (AAPL) Gross Margin — Quarter Ended Mar 30, 2024
Revenue decreased compared to both the prior quarter and the same quarter last year. Gross profit fell less sharply than revenue, leading to a gross margin that improved relative to the prior quarter and the year-ago quarter, as cost of revenue declined proportionally more.
Gross margin takeaway
Quarter ended Mar 30, 2024 · FY2024 Q2
Revenue decreased compared to both the prior quarter and the same quarter last year. Gross profit fell less sharply than revenue, leading to a gross margin that improved relative to the prior quarter and the year-ago quarter, as cost of revenue declined proportionally more.
- The gross margin strengthened compared to both comparison periods, driven by a relatively larger decline in cost of revenue versus revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue all were lower, while gross margin was higher. Compared to the same quarter one year earlier, revenue was lower, gross profit was slightly higher, and cost of revenue was lower, with gross margin higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.6%
Gross profit
$42.3B
Revenue
$90.8B
Cost of revenue
$48.5B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+2.3 pts
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 |
|---|---|---|---|---|
| Jul 1, 2023 | $81.8B | $36.4B | $45.4B | 44.5% |
| Sep 30, 2023 | $89.5B | $40.4B | $49.1B | 45.2% |
| Dec 30, 2023 | $119.6B | $54.9B | $64.7B | 45.9% |
| Mar 30, 2024 | $90.8B | $42.3B | $48.5B | 46.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 30, 2023
+0.7 pts
Year-over-year change
Apr 1, 2023
+2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened compared to both comparison periods, driven by a relatively larger decline in cost of revenue versus revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue all were lower, while gross margin was higher. Compared to the same quarter one year earlier, revenue was lower, gross profit was slightly higher, and cost of revenue was lower, with gross margin higher.
Monitor the trajectory of cost of revenue as it declined more than revenue, supporting margin improvement.