Apple Inc. stock research
FY2025 Q1
Apple (AAPL) Gross Margin — Quarter Ended Dec 28, 2024
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. Cost of revenue also rose, but at a slower pace relative to revenue, supporting the margin improvement.
Gross margin takeaway
Quarter ended Dec 28, 2024 · FY2025 Q1
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. Cost of revenue also rose, but at a slower pace relative to revenue, supporting the margin improvement.
- The strongest observable margin driver is the improved gross margin percentage, which rose sequentially and year over year. The filing context shows that Services revenue grew faster than Products revenue, and Services carries a higher gross margin, which likely supported the overall margin.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved slightly. Compared to the same quarter last year, all metrics were higher, with gross margin showing a more notable improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.9%
Gross profit
$58.3B
Revenue
$124.3B
Cost of revenue
$66.0B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+1.0 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 |
|---|---|---|---|---|
| Mar 30, 2024 | $90.8B | $42.3B | $48.5B | 46.6% |
| Jun 29, 2024 | $85.8B | $39.7B | $46.1B | 46.3% |
| Sep 28, 2024 | $94.9B | $43.9B | $51.1B | 46.2% |
| Dec 28, 2024 | $124.3B | $58.3B | $66.0B | 46.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 28, 2024
+0.7 pts
Year-over-year change
Dec 30, 2023
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improved gross margin percentage, which rose sequentially and year over year. The filing context shows that Services revenue grew faster than Products revenue, and Services carries a higher gross margin, which likely supported the overall margin.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved slightly. Compared to the same quarter last year, all metrics were higher, with gross margin showing a more notable improvement.
Monitor the proportion of Services revenue to total revenue, as shifts in revenue mix can influence gross margin.