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There's been a ton of inflation. Apple makes an OK but not spectacular margin on hardware. These are for Q4 2024: Hardware: 98B revenue, 59.5B cost of sales,
by FredPret 2y ago
There's been a ton of inflation. Apple makes an OK but not spectacular margin on hardware.
These are for Q4 2024:
Hardware: 98B revenue, 59.5B cost of sales, 38.5B gross profit, 40% gross margin
Services: 26B revenue, 6.5B cost of sales, 19.5B gross profit, 75% gross margin
Look on page three of this: https://www.sec.gov/ix?doc=/Archives/edgar/data/320193/000032019325000008/aapl-20241228.htm https://www.sec.gov/ix?doc=/Archives/edgar/data/320193/00003...
- alberth 2y agoNone of those services would exist without Apples hardware business though. So you can't exactly look at the margins in insolation.
- FredPret 2y agoAs an investor, I don't. But your point was about rising hardware prices, and services subsidize the hardware if anything by the mechanism you mention.