This article is published in collaboration with Statista
by Katharina Buchholz
Hailed as one of the world's most profitable companies, Apple once again posted record margins for Q1 2025 (ended December 28), as it had done for fiscal year 2024. While full-year gross profits had stood at more than $180 billion, margins increased to 46.2 percent for the year and even climbed to 46.9 percent in Q1. This is despite the fact that Apple said its central iPhone business as well as its China operations had suffered setbacks.
Once again, it is the company's growing services segment that is helping Apple out. Profitability margins for services, which includes the likes of Apple Music, the App Store, Apple Care and iCloud as well as licensing, are higher, hitting 74 percent in 2024, according to company documents. This was up 10 percentage points in five years. As Apple is selling more services and growing their profitability at the same time, it was therefore also able to bolster its bottom line thanks to the segment.
When it comes to products, gross profit margins stands at only 37 percent, after a growth of just 5 percentage points since 2019. Combined with sales that are not growing as fast (and for some product categories are falling or stagnating), overall gross margins from sales are flat-lining, rising slightly in 2024 after having fallen in 2023. As products are still the bigger segment for Apple, overall profit margins were up around 8 percentage points in five years.
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