AAPLNEUTRAL

AAPL Gross Margin Analysis

49.3%

Higher than 23% of Technology sector peers

Updated 2865h ago·SEC filings & market data

Key Takeaway

Apple’s gross margin of 49.3% means that for every dollar of revenue, the company keeps $0.493 after covering the direct costs of producing its products.

Sector Performance

23th percentile

AAPL

49.3%

Sector Median

66.3%

Sector Avg

62.2%

Prior Period

48.2%(Apr 2026)

↑ Improving

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Deep Analysis

Apple’s gross margin of 49.3% means that for every dollar of revenue, the company keeps $0.493 after covering the direct costs of producing its products.

That figure sits well below the Technology sector median of 65.9%, placing Apple in the 22nd percentile among its peers. The metric has been perfectly stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A gross margin that is both below the sector norm and completely flat suggests limited competitive pricing power or cost advantages, but also no deterioration. For an investor, this combination points to a low‑risk profile—the margin is not eroding—but also a constrained opportunity for margin‑driven earnings expansion. This stable but below‑median gross margin does not directly support the overall BULLISH verdict; it is a neutral factor rather than a confirming catalyst.

Frequently Asked Questions

What does the Gross Margin tell investors about AAPL?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AAPL's Gross Margin compare to its sector?

AAPL's Gross Margin of 49.3% compares to a Technology sector median of 66.3%, placing it in the 23th percentile.

Who are AAPL's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: MDB (72.2%), NVDA (74.9%), CRWD (75.3%), ESTC (75.4%), CRM (76.9%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.