Stock Analysis on Net

Apple Inc. (NASDAQ:AAPL)

Analysis of Reportable Segments 

Microsoft Excel

Apple Inc. operates in 5 segments: Americas; Europe; Greater China; Japan; and Rest of Asia Pacific.


Segment Profit Margin

Apple Inc., profit margin by reportable segment

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Americas 34.82% 30.29% 30.02% 31.10% 31.76% 32.53%
Europe 36.40% 32.30% 31.84% 31.97% 30.06% 30.73%
Greater China 41.69% 37.86% 37.16% 38.01% 38.05% 38.84%
Japan 44.93% 43.32% 43.56% 43.71% 45.66% 42.33%
Rest of Asia Pacific 37.25% 34.75% 34.04% 35.51% 34.90% 35.02%

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

Segment profitability ratio Reportable segment The company
Segment profit margin Americas Americas segment profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Europe Europe segment profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Greater China Greater China segment profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Japan Japan segment profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Rest of Asia Pacific Rest of Asia Pacific segment profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Segment Profit Margin: Americas

Apple Inc.; Americas; segment profit margin calculation

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Operating income 53,382  37,722  35,099  34,864  30,684  28,172 
Net sales 153,306  124,556  116,914  112,093  96,600  86,613 
Segment Profitability Ratio
Segment profit margin1 34.82% 30.29% 30.02% 31.10% 31.76% 32.53%

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × 53,382 ÷ 153,306 = 34.82%

Segment profitability ratio Reportable segment The company
Segment profit margin Americas Americas segment profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Segment Profit Margin: Europe

Apple Inc.; Europe; segment profit margin calculation

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Operating income 32,505  22,170  19,195  19,955  16,514  15,348 
Net sales 89,307  68,640  60,288  62,420  54,938  49,952 
Segment Profitability Ratio
Segment profit margin1 36.40% 32.30% 31.84% 31.97% 30.06% 30.73%

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × 32,505 ÷ 89,307 = 36.40%

Segment profitability ratio Reportable segment The company
Segment profit margin Europe Europe segment profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Segment Profit Margin: Greater China

Apple Inc.; Greater China; segment profit margin calculation

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Operating income 28,504  15,261  16,232  19,742  17,032  18,835 
Net sales 68,366  40,308  43,678  51,942  44,764  48,492 
Segment Profitability Ratio
Segment profit margin1 41.69% 37.86% 37.16% 38.01% 38.05% 38.84%

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × 28,504 ÷ 68,366 = 41.69%

Segment profitability ratio Reportable segment The company
Segment profit margin Greater China Greater China segment profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Segment Profit Margin: Japan

Apple Inc.; Japan; segment profit margin calculation

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Operating income 12,798  9,279  9,369  9,500  8,097  7,165 
Net sales 28,482  21,418  21,506  21,733  17,733  16,928 
Segment Profitability Ratio
Segment profit margin1 44.93% 43.32% 43.56% 43.71% 45.66% 42.33%

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × 12,798 ÷ 28,482 = 44.93%

Segment profitability ratio Reportable segment The company
Segment profit margin Japan Japan segment profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Segment Profit Margin: Rest of Asia Pacific

Apple Inc.; Rest of Asia Pacific; segment profit margin calculation

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Operating income 9,817  6,808  6,055  6,181  5,304  4,781 
Net sales 26,356  19,593  17,788  17,407  15,199  13,654 
Segment Profitability Ratio
Segment profit margin1 37.25% 34.75% 34.04% 35.51% 34.90% 35.02%

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Segment profit margin = 100 × Operating income ÷ Net sales
= 100 × 9,817 ÷ 26,356 = 37.25%

Segment profitability ratio Reportable segment The company
Segment profit margin Rest of Asia Pacific Rest of Asia Pacific segment profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Net sales

Apple Inc., net sales by reportable segment

US$ in millions

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Americas 153,306  124,556  116,914  112,093  96,600  86,613 
Europe 89,307  68,640  60,288  62,420  54,938  49,952 
Greater China 68,366  40,308  43,678  51,942  44,764  48,492 
Japan 28,482  21,418  21,506  21,733  17,733  16,928 
Rest of Asia Pacific 26,356  19,593  17,788  17,407  15,199  13,654 
Total 365,817  274,515  260,174  265,595  229,234  215,639 

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).


Operating income

Apple Inc., operating income by reportable segment

US$ in millions

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Americas 53,382  37,722  35,099  34,864  30,684  28,172 
Europe 32,505  22,170  19,195  19,955  16,514  15,348 
Greater China 28,504  15,261  16,232  19,742  17,032  18,835 
Japan 12,798  9,279  9,369  9,500  8,097  7,165 
Rest of Asia Pacific 9,817  6,808  6,055  6,181  5,304  4,781 
Total 137,006  91,240  85,950  90,242  77,631  74,301 

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).