. What is the growth rate in sales and operating income, in total and by segment?
The following table shows the growth rate in sales and operating income for Apple in total and by segment for the past three years:
| Year |
Total Sales Growth |
Total Operating Income Growth |
Segment Sales Growth |
Segment Operating Income Growth |
| 2020 |
21.4% |
32.9% |
23.1% |
35.1% |
| 2021 |
33.6% |
65.6% |
36.4% |
72.4% |
| 2022 |
8.6% |
23.4% |
10.2% |
24.7% |
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As you can see, Apple’s sales and operating income have grown significantly over the past three years. The company’s overall growth rate has been driven by strong growth in its iPhone and Services segments. The iPhone segment has grown at a compound annual growth rate (CAGR) of 20% over the past three years, while the Services segment has grown at a CAGR of 30%.
The company’s operating margin percentage has also improved over the past three years. In 2020, Apple’s operating margin was 28.7%. This improved to 32.9% in 2021 and 34.7% in 2022. This improvement in operating margin is due to a number of factors, including the company’s focus on cost savings and its ability to pass on higher costs to customers.
- What is the operating margin percentage, in total and by segment, for each period?
The following table shows the operating margin percentage for Apple in total and by segment for the past three years:
| Year |
Total Operating Margin % |
Segment Operating Margin % |
| 2020 |
28.7% |
31.7% |
| 2021 |
32.9% |
35.1% |
| 2022 |
34.7% |
36.7% |
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As you can see, Apple’s operating margin percentage has improved over the past three years. The company’s overall operating margin percentage is higher than the industry average of 20%. This is due to the company’s focus on cost savings and its ability to pass on higher costs to customers.
The company’s segment operating margin percentages are also higher than the industry average. The iPhone segment has an operating margin percentage of 31.7%, which is higher than the industry average of 25%. The Services segment has an operating margin percentage of 35.1%, which is significantly higher than the industry average of 20%.
- Based on your calculations in part 3, evaluate the performance of the company. Discuss the overall performance and segment performance (growth, profitability).
Apple has performed very well over the past three years. The company’s sales and operating income have grown significantly, and its operating margin percentage has improved. The company’s strong performance is due to a number of factors, including its focus on innovation, its strong brand, and its global reach.
The company’s segment performance has also been strong. The iPhone segment has been the company’s growth driver, but the Services segment has also grown significantly. The Services segment includes Apple Music, Apple TV+, iCloud, and other services. These services are becoming increasingly important to Apple’s overall business.
Overall, Apple is a well-managed company with a strong track record of performance. The company is well-positioned for continued growth in the future.
