Gross Margin Products and Services gross margin and gross margin percentage for 2022, 2021 and 2020 were as follows (dollars in millions):
2022 2021 2020 Gross margin:
Products
$
114,728 $
105,126 $
69,461
Services
56,054
47,710
35,495
Total gross margin
$
170,782 $
152,836 $
104,956
Gross margin percentage:
Products
36.3%
35.3%
31.5%
Services
71.7%
69.7%
66.0%
Total gross margin percentage
43.3%
41.8%
38.2%
Products Gross Margin Products gross margin increased during 2022 compared to 2021 due primarily to a different Products mix and higher Products
volume, partially offset by the weakness in foreign currencies relative to the U.S. dollar.
Products gross margin percentage increased during 2022 compared to 2021 due primarily to a different Products mix, partially
offset by the weakness in foreign currencies relative to the U.S. dollar.
Services Gross Margin Services gross margin increased during 2022 compared to 2021 due primarily to higher Services net sales, partially offset by the
weakness in foreign currencies relative to the U.S. dollar.
Services gross margin percentage increased during 2022 compared to 2021 due primarily to improved leverage and a different
Services mix, partially offset by the weakness in foreign currencies relative to the U.S. dollar.
The Company’s future gross margins can be impacted by a variety of factors, as discussed in Part I, Item 1A of this Form 10-K
under the heading “Risk Factors.” As a result, the Company believes, in general, gross margins will be subject to volatility and
downward pressure.
Operating Expenses Operating expenses for 2022, 2021 and 2020 were as follows (dollars in millions):
