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Consumer Electronics AAPL

Apple (AAPL) Operating Margin History: Quarterly Data (2017–2025)

Apple quarterly operating margin percentage from 2017 Q1 through 2025 Q4. Apple's operating margin has expanded from 26% to 35% as Services leverage grows.

Operating Margin %
QuarterOperating Margin (%)YoY Change

Source: SEC EDGAR XBRL (OperatingIncomeLoss/Revenue). Quarters marked * are derived (annual filing minus prior three quarters). Calendar year quarters shown.

Apple Operating Margin: 2017–2025

Apple (AAPL) reported a quarterly operating margin of 35.4% in Q4 2025 (October–December 2025), up from 34.5% in Q4 2024 — its highest ever operating margin. Operating margin is operating income divided by revenue, and measures operational efficiency before financing costs and taxes.

The expansion from a 26.3% annual average in 2017 to a 32.0% annual average in 2025 reflects Apple’s transition from a pure hardware company to a hybrid hardware-and-services business. Services revenue carries minimal incremental cost of delivery, making each additional Services dollar highly accretive to operating margin.

Apple Annual Operating Margin by Year

YearValueYoY Change
202532.0%+1.6%
202431.5%+3.3%
202330.5%+4.5%
202229.2%-4.6%
202130.6%+26.4%
202024.2%+0.0%
201924.2%-6.2%
201825.8%-1.9%
201726.3%—

Annual averages across four calendar quarters. Source: SEC EDGAR XBRL.

Apple’s operating margin trough in this period was 21.5% in Q2 2019 (April–June 2019), reflecting the double impact of weak iPhone unit volumes and heavy R&D spending on Apple Silicon. Apple’s practice of maintaining R&D investment through down-cycles compresses margins during soft revenue periods but preserves the innovation pipeline that drives subsequent expansion.

The 2021 step-change from 24.2% to 30.6% annual average is Apple’s most significant margin expansion year. Operating leverage materialized as iPhone 12 / 5G-driven revenue surged while operating expenses grew at single-digit rates. This dynamic — where revenue growth dramatically outpaces opex growth — is characteristic of businesses with a growing software and services component.

At 35.4%, Apple’s Q4 2025 operating margin is elite even by technology sector standards. The consumer electronics sector average is approximately 10–15%, and Apple’s margin premium reflects the pricing power and high-margin Services revenue streams that no comparable hardware maker has replicated.

Frequently Asked Questions

What is Apple’s operating margin for Q4 2025?

Apple’s operating margin was 35.4% in Q4 2025 (October–December 2025), an all-time high. This means Apple earned $0.354 of operating profit for every $1.00 of revenue in that quarter.

Why is Apple’s operating margin expanding?

Apple’s operating margin is expanding because Services revenue (App Store, iCloud, Apple TV+) is growing faster than total revenue. Services carry margins above 70%, and as they represent a larger share of the total, the blended operating margin rises with minimal additional operating expense.

What is Apple’s lowest operating margin on record?

Apple’s lowest operating margin in this dataset was 21.5% in Q2 2019 (April–June 2019), reflecting weak iPhone XS/XR sales combined with peak R&D spending on Apple Silicon development.

How does Apple’s operating margin compare to the industry?

At ~32% annual average in 2025, Apple’s operating margin far exceeds the consumer electronics industry average of 10–15%. It is more comparable to leading software companies than to hardware-first peers.

Data sourced from SEC EDGAR XBRL. Calendar year quarters shown. Last updated: April 2026.