Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Apple Inc., consolidated income statement
US$ in millions
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).
The financial data reflects the performance trends over a six-year period, showing several key observations across different financial metrics.
- Net Sales and Revenue Composition
- Net sales experienced consistent growth from US$260,174 million in 2019 to US$394,328 million in 2022, followed by a slight decline in 2023 and a modest recovery in 2024, reaching US$391,035 million. Product sales showed a rise through 2022 but decreased in the subsequent years to US$294,866 million in 2024. Conversely, services revenue demonstrated a steady increase throughout the period, culminating at US$96,169 million in 2024, indicating a growing contribution of services to overall revenue.
- Cost of Sales and Gross Margin
- Cost of sales steadily increased from US$161,782 million in 2019 to US$223,546 million in 2022, then declined slightly to US$210,352 million by 2024. Despite the fluctuations in sales volume, gross margin rose substantially from US$98,392 million in 2019 to US$180,683 million in 2024, reflecting improved profitability and possibly greater operational efficiency or favorable product/service mix.
- Operating Expenses and Income
- Operating expenses grew steadily from US$34,462 million in 2019 to US$57,467 million in 2024. This increase was driven by rises in both research and development costs and selling, general, and administrative expenses. Research and development expenditure increased from US$16,217 million to US$31,370 million, underlining a significant and continuous investment in innovation. Selling, general, and administrative costs also increased but at a somewhat slower pace. Despite rising expenses, operating income expanded from US$63,930 million in 2019 to US$123,216 million in 2024, nearly doubling and indicating effective management of costs relative to revenue growth.
- Other Income and Expenses
- Interest and dividend income showed a decreasing trend from US$4,961 million in 2019 to US$3,750 million in 2023, with data for 2024 missing. Interest expense remained relatively stable but increased in 2023, reaching US$3,933 million. Other income (expense) showed volatility, with a negative impact in 2020, 2022, and 2023 but a positive reversal to US$269 million in 2024. These fluctuations suggest variability in non-operating financial activities.
- Income Before Taxes and Net Income
- Income before provision for income taxes followed a trajectory mirroring operating income, increasing from US$65,737 million in 2019 to US$123,485 million in 2024. The provision for income taxes increased notably in 2024 to US$29,749 million, which is a significant rise compared to prior years, indicating higher taxable income or changes in tax rates or policies. Net income rose steadily until 2022, peaking at US$99,803 million, then slightly decreased in the last two years, ending at US$93,736 million in 2024.
Overall, the financial data demonstrates strong revenue growth primarily driven by products until 2022, after which services continue to gain prominence. Profit margins improved despite increasing costs and investments in research and development. The company maintained robust operating income growth, although net income exhibited a minor decline more recently, potentially influenced by higher tax provisions. Non-operating income and expenses showed variability but did not materially disrupt the overall positive earnings trend over the period analyzed.