Analysis of Reportable Segments
Apple Inc. operates in 5 segments: Americas; Europe; Greater China; Japan; and Rest of Asia Pacific.
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- Analysis of Geographic Areas
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Segment Profit Margin
Apple Inc., profit margin by reportable segment
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| Americas | ||||||
| Europe | ||||||
| Greater China | ||||||
| Japan | ||||||
| Rest of Asia Pacific |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
- Americas Segment Profit Margin
- The profit margin in the Americas segment demonstrates a consistent upward trend over the six-year period. Starting at 30.02% in 2019, it gradually increased each year, reaching 40.5% by 2024. This steady growth indicates improving profitability and possibly enhanced operational efficiency or favorable market conditions in this region.
- Europe Segment Profit Margin
- Europe’s profit margin shows a similar positive trend, beginning at 31.84% in 2019 and rising steadily to 41.24% in 2024. The progression suggests continued strengthening of profit dynamics in this segment, with the margin increasing at a pace closely aligned to that of the Americas.
- Greater China Segment Profit Margin
- Greater China experiences a different pattern where the profit margin starts relatively high at 37.16% in 2019 and increases to a peak of 41.99% in 2022. However, after 2022, the margin slightly declines to 40.45% by 2024. This indicates that while profitability was strong initially and improved over the first part of the period, there may have been challenges or market changes impacting profitability in the later years.
- Japan Segment Profit Margin
- The Japan segment consistently holds the highest profit margins among all regions. The margin increased from 43.56% in 2019 to 49.71% in 2024, reflecting robust profitability and a continual upward trajectory over the entire period. This demonstrates a strong and growing profit position in Japan.
- Rest of Asia Pacific Segment Profit Margin
- This segment also exhibits steady margin growth, starting at 34.04% in 2019 and reaching 42.61% in 2024. The consistent increase suggests expanding profitability and positive operational outcomes in this diverse geographic segment.
- Overall Observations
- Across all reportable segments, profit margins show predominantly positive trends over the six-year span. The Americas, Europe, Japan, and Rest of Asia Pacific segments display continuous margin improvement without any periods of decline, indicating broad-based profitability gains. The Greater China segment is notable for its mid-period peak followed by a slight decline, which may warrant attention to underlying causes. Japan maintains the highest profit margins throughout, highlighting it as a particularly strong contributor to overall profitability.
Segment Profit Margin: Americas
Apple Inc.; Americas; segment profit margin calculation
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × ÷ =
- Operating Income
- Operating income showed a consistent upward trend over the six-year period. Starting at $35,099 million in 2019, it increased steadily each year, peaking at $67,656 million in 2024. Notably, there was a sizable jump between 2020 and 2021, and again between 2022 and 2024, despite a slight decline in 2023.
- Net Sales
- Net sales experienced overall growth from $116,914 million in 2019 to $167,045 million in 2024. The increase was most significant between 2020 and 2022, reaching a high of $169,658 million in 2022, before a marginal decline in 2023, then a slight recovery in 2024. This indicates a positive revenue trend with minor fluctuations in recent years.
- Segment Profit Margin
- The segment profit margin demonstrated a clear and steady improvement throughout the period. Starting at 30.02% in 2019, the margin progressively rose each year, reaching 40.5% in 2024. This reflects increasing operational efficiency and profitability within the Americas segment.
- Summary
- The data indicates strong and consistent growth in both operating income and net sales within the Americas segment over the six years, accompanied by significant enhancement in profit margins. While net sales experienced minor fluctuations in the latter years, the margin's steady increase suggests improved cost management and profitability. The overall trend points to a robust financial performance in the segment.
Segment Profit Margin: Europe
Apple Inc.; Europe; segment profit margin calculation
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × ÷ =
- Operating Income
- The operating income has demonstrated a consistent upward trend over the six-year period. Starting at 19,195 million US dollars in 2019, it increased steadily each year, reaching 41,790 million US dollars by 2024. This represents more than a doubling of operating income, indicating strong growth in profitability within the segment.
- Net Sales
- Net sales also show a positive growth trajectory. Beginning at 60,288 million US dollars in 2019, net sales rose year-over-year with the exception of a slight decline between 2022 and 2023. The highest sales figure was recorded in 2024 at 101,328 million US dollars, reflecting a substantial increase compared to the initial year. The minor dip in 2023 suggests some volatility but the overall trend remains robust.
- Segment Profit Margin
- The segment profit margin exhibited continuous improvement throughout the time frame. Starting at 31.84% in 2019, it incrementally increased each year, reaching 41.24% in 2024. This consistent rise in profit margin indicates enhanced efficiency and cost management within the segment, contributing to higher profitability relative to sales.
- Overall Analysis
- The data reveals strong financial performance and growth in the Europe segment. Both operating income and net sales grew significantly over the years, accompanied by an improving profit margin. This suggests not only increased revenue generation but also more effective management of costs and resources, leading to improved profitability. The brief decline in net sales in 2023 may warrant further investigation, but it does not appear to have adversely affected overall segment profitability.
Segment Profit Margin: Greater China
Apple Inc.; Greater China; segment profit margin calculation
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × ÷ =
The "Greater China" segment exhibits notable fluctuations in financial performance over the analyzed periods. Net sales demonstrate a significant rise between 2019 and 2022, increasing from 43,678 million US dollars in 2019 to a peak of 74,200 million US dollars in 2022. This upward trend indicates substantial growth in revenue generation within this segment during this time frame. However, the subsequent years reveal a decline, with net sales falling to 72,559 million in 2023 and further to 66,952 million in 2024, suggesting challenges in maintaining the earlier growth momentum.
Operating income follows a somewhat similar trajectory but with more pronounced volatility. After a slight decrease from 16,232 million US dollars in 2019 to 15,261 million in 2020, operating income substantially increased to 31,153 million by 2022. This represents an approximate doubling over three years, consonant with the net sales growth. Nonetheless, this metric shows a downward trend after 2022, dropping to 30,328 million in 2023 and further to 27,082 million in 2024, which could indicate increasing operational costs or pressure on profitability despite still high sales figures.
The segment profit margin percentage reflects the efficiency and profitability of the segment relative to its sales. It shows a generally positive trend from 37.16% in 2019 to a peak of 41.99% in 2022, signifying improved operational efficiency and profitability. After this peak, there is a slight decline to 41.8% in 2023 and a more noticeable decrease to 40.45% in 2024. Although still relatively strong, this downward movement may imply emerging profitability pressures, potentially linked to market conditions or cost structure changes.
- Summary of Trends:
- 1. Net sales increased sharply between 2019 and 2022 before declining in the subsequent two years.
- 2. Operating income mirrored sales trends but showed greater volatility, with a substantial increase through 2022 followed by a decline.
- 3. Segment profit margin improved steadily up to 2022, reaching over 41%, then slightly decreased through 2024.
- 4. The post-2022 performance suggests potential challenges impacting profitability and sales growth within the segment.
Segment Profit Margin: Japan
Apple Inc.; Japan; segment profit margin calculation
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × ÷ =
The financial data for the Japan reportable segment reveals several notable trends over the observed periods. Both net sales and operating income demonstrate some fluctuations but overall reflect a pattern of growth and resilience in the market.
- Net Sales
- Net sales saw a significant increase from 21,506 million US dollars in September 2019 to a peak of 28,482 million US dollars in September 2021. Following this peak, there was a decline to 25,977 million in September 2022 and a further decrease to 24,257 million in September 2023. However, net sales recovered slightly to 25,052 million in September 2024. This indicates a period of rapid growth followed by a moderate contraction, with signs of stabilization toward the latest period.
- Operating Income
- Operating income remained relatively stable between 2019 and 2020, with a slight decrease from 9,369 million to 9,279 million US dollars. It then sharply increased to 12,798 million in 2021, aligning with the peak in net sales. After a marginal decline in 2022 and 2023, operating income rose again to 12,454 million in 2024. These fluctuations suggest a strong correlation between sales performance and operating profitability, with operating income displaying resilience despite fluctuations in sales.
- Segment Profit Margin
- The segment profit margin exhibited a consistent upward trend throughout the period. Starting from 43.56% in 2019, it slightly dipped to 43.32% in 2020 but thereafter showed steady improvement, reaching 44.93% in 2021, rising more sharply to 47.18% in 2022, then 49.01% in 2023, and finally 49.71% in 2024. This rising margin indicates enhanced operational efficiency or improved pricing strategies, resulting in a higher proportion of income relative to net sales.
Overall, the Japan segment reflects a business that experienced strong sales growth until 2021, followed by some contraction but with signs of recovery in the latest year. Operating income trends broadly mirror the sales developments but with relatively high stability. The gradually increasing profit margins indicate improved profitability and effective cost management or revenue quality over the years analyzed.
Segment Profit Margin: Rest of Asia Pacific
Apple Inc.; Rest of Asia Pacific; segment profit margin calculation
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × ÷ =
- Operating Income
- The operating income has demonstrated a consistent upward trend from 2019 to 2024. Starting at $6,055 million in 2019, it increased steadily each year, reaching $13,062 million in 2024. This represents more than a twofold increase over the six-year period, indicating improved profitability within the segment.
- Net Sales
- Net sales have also shown a substantial improvement over the analyzed period. Beginning at $17,788 million in 2019, net sales grew consistently each year, albeit with varying growth rates. The sales peaked at $30,658 million in 2024. The growth size indicates a strong market demand and effective revenue-generating operations within the region.
- Segment Profit Margin
- The segment profit margin reveals a positive and steady increase over time. Starting at 34.04% in 2019, the margin improved incrementally each year, culminating at 42.61% in 2024. This increase in profit margin suggests enhanced operational efficiency and cost management, contributing to higher profitability relative to sales.
- Overall Trends and Insights
- Across all key financial metrics—operating income, net sales, and profit margin—the segment exhibits strong and consistent growth. The data points to increasing sales volumes accompanied by expanding profitability, both in absolute terms and margin percentages. The improvement in profit margin alongside rising operating income and sales implies that the segment is not only growing in scale but also improving in cost efficiency or value realization. These trends collectively indicate a robust business performance and positive market positioning within the Rest of Asia Pacific region.
Net sales
Apple Inc., net sales by reportable segment
US$ in millions
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| Americas | ||||||
| Europe | ||||||
| Greater China | ||||||
| Japan | ||||||
| Rest of Asia Pacific | ||||||
| Total |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
- Overall Net Sales Trend
- The total annual net sales exhibit a clear upward trajectory over the six-year period, increasing from approximately $260 billion in 2019 to nearly $391 billion in 2024. Although there was a slight decline in 2023, the general pattern remains one of growth, reflecting an expanding business footprint.
- Americas Segment
- Net sales in the Americas consistently grew from $116.9 billion in 2019 to $169.7 billion in 2022. A decrease was observed in 2023, with sales dropping to $162.6 billion, followed by a modest recovery to $167.0 billion in 2024. The region remains the largest contributor to total sales, despite the fluctuations in the latter years.
- Europe Segment
- Sales in Europe showed steady growth every year except for a slight dip in 2023. The segment grew from $60.3 billion in 2019 to $95.1 billion in 2022, then decreased marginally to $94.3 billion in 2023 before increasing again to $101.3 billion in 2024. The trajectory indicates resilience and consistent demand within the European market.
- Greater China Segment
- This segment experienced volatility over the period. After a decline from $43.7 billion in 2019 to $40.3 billion in 2020, sales surged to $68.4 billion in 2021 and $74.2 billion in 2022. However, sales contracted subsequently to $72.6 billion in 2023 and further to $66.9 billion in 2024, suggesting market challenges impacting recent performance.
- Japan Segment
- Japan's sales were relatively stable, fluctuating modestly from $21.5 billion in 2019 to a peak of $28.5 billion in 2021. This was followed by a decline to $25.0 billion in 2024. The variation indicates mild instability but generally steady contribution from the Japanese market.
- Rest of Asia Pacific Segment
- Sales in the Rest of Asia Pacific region demonstrated continual growth over the period, rising from $17.8 billion in 2019 to $30.7 billion in 2024. The steady upward trend highlights expanding market presence and increasing demand in this area.
Operating income
Apple Inc., operating income by reportable segment
US$ in millions
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | |
|---|---|---|---|---|---|---|
| Americas | ||||||
| Europe | ||||||
| Greater China | ||||||
| Japan | ||||||
| Rest of Asia Pacific | ||||||
| Total |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
- Overall Operating Income Trend
- The total operating income from reportable segments shows a consistent upward trend over the six-year period. Starting from 85,950 million US dollars in fiscal year 2019, the operating income increased steadily each year except for a slight decrease in 2023. The most recent year recorded the highest total at 162,044 million US dollars, indicating substantial growth.
- Americas Segment
- The Americas segment demonstrated strong growth overall, with operating income rising from 35,099 million in 2019 to 67,656 million in 2024. Notably, there was a marked increase between 2020 and 2021, followed by continued increases except for a slight dip in 2023. This indicates the Americas remained the largest and fastest-growing contributor to operating income.
- Europe Segment
- Europe's operating income also exhibited steady growth throughout the period. Beginning at 19,195 million in 2019, it increased to 41,790 million by 2024. The segment showed consistent annual growth, without any declining years, highlighting a stable expansion in this region.
- Greater China Segment
- The Greater China segment's operating income showed more fluctuation compared to others. After a decrease from 16,232 million in 2019 to 15,261 million in 2020, it sharply increased to 28,504 million in 2021 and peaked at 31,153 million in 2022. However, the segment experienced a decline over the following two years, falling to 27,082 million in 2024. This indicates volatility in performance within this region during the period.
- Japan Segment
- Operating income in Japan maintained moderate stability, fluctuating between 9,279 million and 12,798 million. After a slight decline following 2021, the segment’s income rebounded in 2024 to 12,454 million, suggesting relatively steady performance with minor variations.
- Rest of Asia Pacific Segment
- This segment showed consistent growth across all years, increasing operating income from 6,055 million in 2019 to 13,062 million in 2024. The trend indicates steady expansion in this region, without any downturns during the period.
- Summary of Regional Contributions
- All regions except Greater China displayed sustained growth in operating income. The Americas contributed the largest share, followed by Europe. Greater China displayed the most volatility, with a peak in 2022 followed by declines. Japan and Rest of Asia Pacific showed steady but smaller incremental changes. Overall, the data reflects robust expansion in most geographic segments, underpinning the total operating income growth.