AAPL · 10-K · 2025A · Full report
Gross Margin Drivers
Apple Inc. · 2025-10-31 · Importance 49 · Surprise 32 · No source text
Products gross margin increased in absolute dollars to $112,887 million in 2025 but products gross margin percentage decreased to 36.8% primarily due to a different product mix and tariff costs, partially offset by other favorable costs. Services gross margin increased to $82,314 million and Services gross margin percentage improved to 75.4%, driven by higher Services net sales and a more favorable mix, partially offset by higher costs. The filing explicitly links product mix (higher Pro model share) and tariff impacts to margin variability, indicating ongoing margin sensitivity to product transitions and trade measures. Management warns gross margins will face volatility and downward pressure from these and other factors.
Key facts
- Products gross margin for 2025 was $112,887 million and products gross margin percentage was 36.8%. source
- Total gross margin for 2025 was $195,201 million and total gross margin percentage was 46.9%. source
- Products gross margin percentage decreased in 2025 compared to 2024 primarily due to a different mix of products and tariff costs. source
- Products gross margin increased during 2025 compared to 2024 primarily due to favorable costs and a different mix of products, partially offset by tariff costs. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | — | Products gross margin for 2025 was $112,887 million and products gross margin percentage was 36.8%. |
| margin | positive | realized | — | Total gross margin for 2025 was $195,201 million and total gross margin percentage was 46.9%. |