Apple's Q4 2025 margin on Services was 76.5%
3 days ago
- #Gross Margin
- #Apple
- #Supply Chain
- Apple reported a gross margin of 48.2% last quarter, exceeding guidance and showing sequential growth.
- Product gross margin rose to 40.7%, while services gross margin reached 76.5%, both driven by favorable mix and leverage.
- Apple's guidance for the next quarter projects gross margins between 48-49%, indicating continued strength.
- Supply constraints, particularly in advanced silicon nodes, are impacting production, but memory costs have minimal current impact.
- Apple's vertical integration and internal silicon development contribute to cost savings and margin improvements.
- Analysts expressed surprise at Apple's ability to maintain high margins despite industry challenges.
- Apple's scale, supply chain leverage, and engineering capabilities help navigate market pressures effectively.