uploads///APPL QRLY PROFIT MARGINS

How Has Apple Performed Year-to-Date?

By

Sep. 27 2018, Updated 10:30 a.m. ET

What are Apple’s revenue drivers?

Apple’s (AAPL) net sales rose by 15.0% to $202.7 billion in the nine months ended June 30. Apple’s fiscal 2018 ends on September 30.

The Americas, Europe, and Greater China constituted 42.0%, 23.0%, and 20.0%, respectively of the company’s net sales for the period. Japan and the rest of the Asia-Pacific region contributed 8.0% and 7.0%, respectively, of net sales.

Apple’s iPhone, iPad, Mac, and Services generated 64.0%, 7.0%, 9.0%, and 13.0%, respectively, of the company’s net sales for the nine months of fiscal 2018 ended June 30.

Article continues below advertisement

How have the profit margins of Apple grown in 2018?

Apple’s (AAPL) cost of sales rose by 15.0% to $124.9 billion in the nine months ended June 30. These costs consumed 61.0%–62.0% of the company’s net sales for the nine months ended June 30, 2017, as well as the nine months ended June 30.

The company’s sales growth and cost controls led to gross profit growth of 14.0% in the nine months ended June 30. Its gross profit totaled $77.8 billion. Its gross margin was 38.0%–39.0% in the nine months ended June 30, 2017, and the nine months ended June 30.

Apple’s operating expenses rose 15.0% to $23.0 billion in the nine months ended June 30. Research and development expenses drove these expenses, along with selling, general, and administrative expenses. However, the operating expenses margin remained at 11.0% in the nine months ended June 30, 2017, as well as the nine months ended June 30.

The company’s revenue growth, gross profit growth, and cost controls generated operating income growth of 14.0% in the nine months ended June 30. Its operating income totaled $54.8 billion at that time. Its operating margin remained at 27.0% for the nine months ended June 30, 2017, as well as the nine months ended June 30.

Apple’s non-operating income totaled 1.0% of net sales for the nine months ended June 30, 2017, as well as the nine months ended June 30. This translated into net income growth of 21.0% to $45.4 billion in the nine months ended June 30.

The company’s net margin was 21.0%–22.0% in the nine months ended June 30, 2017, and the nine months ended June 30. Apple’s EPS grew 26.0% to $9.00 in the nine months ended June 30. Its share buybacks enhanced its earnings per share.

Apple’s operating expense and operating income margins reached 11.0% and 27.0%, respectively, in the nine months ended June 30. Among Apple’s peers, Amazon (AMZN) had an operating expense margin of 36.0% and an operating income margin of 5.0% in the first half of 2018.

Netflix’s (NFLX) operating expense and operating income margins stood at 29.0% and 12.0%, respectively, in the first half of 2018. Alphabet (GOOG) had operating expense and operating income margins of 42.0% and 15.0%, respectively, in the first half of 2018. Facebook’s (FB) operating expense and operating income margins stood at 39.0% and 45.0%, respectively, in the first half of 2018.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.