Apple Achieves Record 48.2% Gross Margin, Exceeding Guidance with Strong Product and Services Performance
By
zdw
A baker's-dozen of insight crammed into one ring.
Summary
Apple achieved record gross margins of 48.2% last quarter, exceeding guidance and showing sequential improvement. The strong performance was driven by favorable product mix and leverage, with products gross margin at 40.7% (up 450 basis points) and services gross margin at 76.5% (up 120 basis points). The article highlights Apple's ability to deliver exceptional financial results despite market challenges and negative expectations from commentators.
Key quotes
· 5 pulledLast quarter Apple delivered a gross margin of 48.2%. This was above the high end of their guidance range and up 100 basis points sequentially.
Management commented that this was 'driven by favorable mix and leverage.'
Products gross margin was 40.7%, up 450 basis points sequentially, driven by favorable mix and leverage.
Services gross margin was 76.5%, up 120 basis points sequentially, driven by mix.
This performance is even more astonishing considering the history shown below. Apple is quite simply, delivering the best.
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