Apple Inc. stock research
FY2024 Q3
Apple (AAPL) Gross Margin — Quarter Ended Jun 29, 2024
Revenue and gross profit both decreased from the previous quarter but increased compared to the same quarter last year. Gross margin weakened slightly from the prior quarter but improved year-over-year.
Gross margin takeaway
Quarter ended Jun 29, 2024 · FY2024 Q3
Revenue and gross profit both decreased from the previous quarter but increased compared to the same quarter last year. Gross margin weakened slightly from the prior quarter but improved year-over-year.
- The year-over-year improvement in gross margin was driven by a higher proportion of services revenue, which carries a lower cost of revenue relative to products.
- Compared to the previous quarter, revenue and gross profit were lower, while cost of revenue also decreased, resulting in a slightly weakened gross margin. Versus the same quarter last year, revenue and gross profit were higher, with gross margin improving.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.3%
Gross profit
$39.7B
Revenue
$85.8B
Cost of revenue
$46.1B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+1.7 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 |
|---|---|---|---|---|
| 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% |
| Jun 29, 2024 | $85.8B | $39.7B | $46.1B | 46.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2024
-0.3 pts
Year-over-year change
Jul 1, 2023
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was driven by a higher proportion of services revenue, which carries a lower cost of revenue relative to products.
Compared to the previous quarter, revenue and gross profit were lower, while cost of revenue also decreased, resulting in a slightly weakened gross margin. Versus the same quarter last year, revenue and gross profit were higher, with gross margin improving.
Monitor the trend in services revenue growth relative to products, as it directly influences gross margin expansion.