Originally Posted by city
Apple is also a retailer of its products, so we should expect a higher margin. They have expensive locations and expensive build outs.
For the last quarter, Apple retail was $6 B of the total $46 B in revenue - so 13% of sales were through Apple retail.
Considering that retail margins are typically relatively low (or, at least, lower than Apple's average 44% margin), this probably had only a modest impact on the total margin figure.
I had to change my numbers - originally, I said that if the retail store had a lower gross margin than Apple that it would bring down the total GM. That's not the case:
Let's use an average retail margin of 33%.
Say Apple sells $1 M worth of product at 40%. That's $400 K in gross margin and $600 K in cost.
Now, let's say that they sell that product through an Apple store which gets 33% gross margin. The total selling price would be $1.5 M and Apple would make $900 K - or 60% gross margin based on the same $600 K in cost.
If those numbers are typical and if retail is 13% of the total, then retail would have added just over 1% to Apple's gross margin last quarter.