AAPL
TechnologyApple Inc.
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Market Data
Financials
XBRL · SEC EDGAR2007–2025(19yr)| Metric | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $24.0B | $32.5B | $36.5B | $65.2B | $108.2B | $156.5B | $170.9B | $182.8B | $233.7B | $215.6B | $229.2B | $265.6B | $260.2B | $274.5B | $365.8B | $394.3B | $383.3B | $391.0B | $416.2B | +6.4% |
| Gross Profit | $8.2B | $11.1B | $13.1B | $25.7B | $43.8B | $68.7B | $64.3B | $70.5B | $93.6B | $84.3B | $88.2B | $101.8B | $98.4B | $105.0B | $152.8B | $170.8B | $169.1B | $180.7B | $195.2B | +8.0% |
| Gross Margin | 34.0% | 34.3% | 36.0% | 39.4% | 40.5% | 43.9% | 37.6% | 38.6% | 40.1% | 39.1% | 38.5% | 38.3% | 37.8% | 38.2% | 41.8% | 43.3% | 44.1% | 46.2% | 46.9% | +0.7pp |
| Operating Income | $4.4B | $6.3B | $7.7B | $18.4B | $33.8B | $55.2B | $49.0B | $52.5B | $71.2B | $60.0B | $61.3B | $70.9B | $63.9B | $66.3B | $108.9B | $119.4B | $114.3B | $123.2B | $133.1B | +8.0% |
| Operating Margin | 18.4% | 19.3% | 21.0% | 28.2% | 31.2% | 35.3% | 28.7% | 28.7% | 30.5% | 27.8% | 26.8% | 26.7% | 24.6% | 24.1% | 29.8% | 30.3% | 29.8% | 31.5% | 32.0% | +0.5pp |
| Net Income | $3.5B | $4.8B | $5.7B | $14.0B | $25.9B | $41.7B | $37.0B | $39.5B | $53.4B | $45.7B | $48.4B | $59.5B | $55.3B | $57.4B | $94.7B | $99.8B | $97.0B | $93.7B | $112.0B | +19.5% |
| Net Margin | 14.6% | 14.9% | 15.6% | 21.5% | 23.9% | 26.7% | 21.7% | 21.6% | 22.8% | 21.2% | 21.1% | 22.4% | 21.2% | 20.9% | 25.9% | 25.3% | 25.3% | 24.0% | 26.9% | +2.9pp |
| Free Cash Flow | $4.7B | $8.5B | $9.0B | $16.6B | $33.3B | $42.6B | $45.5B | — | $70.0B | $53.1B | $51.1B | $64.1B | $58.9B | $73.4B | $93.0B | $111.4B | $99.6B | $108.8B | $98.8B | -9.2% |
| FCF Margin | 19.7% | 26.2% | 24.7% | 25.4% | 30.7% | 27.2% | 26.6% | — | 30.0% | 24.6% | 22.3% | 24.1% | 22.6% | 26.7% | 25.4% | 28.3% | 26.0% | 27.8% | 23.7% | -4.1pp |
| EPS (Diluted) | $3.93 | $5.36 | $6.29 | $15.15 | $27.68 | $44.15 | $39.75 | $6.45 | $9.22 | $8.31 | $9.21 | $11.91 | $11.89 | $3.28 | $5.61 | $6.11 | $6.13 | $6.08 | $7.46 | +22.7% |
1. THE BIG PICTURE
Apple has evolved into a defensive powerhouse that prioritizes capital efficiency over raw expansion, using its massive 2.5-billion-device installed base to extract high-margin recurring revenue. While it is currently the slowest-growing firm among its Big Tech peers, it leads the group in returning cash to shareholders, effectively using its $124 billion in annual free cash flow to manufacture earnings growth through share retirements.
2. WHERE THE RISKS HIT HARDEST
Apple’s "unmatched innovation" in designing an integrated hardware and software stack is structurally threatened by its "supply chain concentration" (10-K Item 1). Because Apple relies on "single or limited sources" for critical components, a geopolitical flare-up or industrial accident in its primary manufacturing hubs—China, India, or Vietnam—could make it "impossible to manufacture" the very products that drive its 47.2% gross margin. Furthermore, the high-margin Services segment (+14% growth) is under direct fire from "antitrust investigations" and the "Digital Markets Act" (10-Q). These regulatory shifts threaten the "closed" nature of the App Store, which Apple cites as a primary competitive advantage for protecting its intellectual property and user experience.
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a company successfully "upselling" its existing users to offset maturing hardware cycles. While TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth sits at a modest 6.4%, the most recent quarter saw a 16% jump in net sales, fueled by a 23% surge in iPhone revenue (8-K). This divergence is explained by "higher sales of Pro models," suggesting that even as Mac and Wearables sales contract, Apple is successfully extracting more revenue per device (10-Q).
Apple’s efficiency is exceptional for a hardware-heavy business; its 27.1% FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin is the second-highest in its peer group, trailing only Nvidia (XBRL). However, Apple’s reliance on buybacks is unparalleled. By deploying $90.71B toward share repurchases in a single year, Apple achieved a 2.5% buyback yield—the highest among its peers—which compensates for the fact that its revenue growth lags significantly behind Meta (+22.2%) and Google (+15.1%).
4. IS IT WORTH IT AT THIS PRICE?
At 28.1x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Apple trades at a 23% premium to the peer median of 22.9x. According to the provided analysis, the market is pricing in approximately 7.1% long-term growth (CAPM analysis). This valuation appears to be a "quality premium" for Apple’s 27.1% FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin and its status as the top-ranked peer for buyback yield.
However, the fundamentals suggest this price requires perfection in the "Pro" product cycle. If long-term growth were to slow to a GDP-pace of 2.5%, the justified multiple would fall to 12.3x—representing a potential 56% downside from current levels (CAPM analysis). The current premium is only justified if Apple can maintain its 47.2% gross margin against "aggressive price competition" from rivals with "very low cost structures" who seek to imitate its designs (10-K Item 1).
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if Services revenue growth falls into the single digits, indicating that regulatory challenges like the Digital Markets Act are successfully eroding the ecosystem's profitability.
- Constructive if the decline in Mac (-7%) and Wearables (-2%) sales reverses, proving that Apple can grow beyond its dependence on the iPhone Pro cycle (10-Q).
- Cautious if the "concentration risk" in China leads to a measurable "industry-wide shortage" of components that delays a major product launch (10-K Item 1).
6. BOTTOM LINE
Structural Advantage: Vertical integration of proprietary hardware, operating systems, and a 2.5-billion-device services ecosystem that creates high switching costs.
Bottom Line: Apple is a high-yield capital return vehicle that is currently priced for growth it is not yet delivering through top-line sales.
1. Top 5 Material Risks
- Macroeconomic Sensitivity: Apple Inc. relies on international operations for a majority of its net sales and maintains a complex global supply chain. Adverse conditions—including recession, inflation, and currency fluctuations—can reduce consumer demand and disrupt the operations of suppliers, carriers, and channel partners.
- Geopolitical and Trade Disruptions: A significant majority of manufacturing occurs in China, India, Japan, South Korea, Taiwan, and Vietnam. New U.S. tariffs and retaliatory measures from other countries can increase costs, limit product availability, and force expensive, time-consuming restructuring of the supply chain.
- Competitive Pressure: Apple Inc. operates in markets characterized by aggressive price competition and short product life cycles. Competitors with lower cost structures or larger installed bases can force Apple Inc. to cut prices, which exerts downward pressure on gross margins.
- Supply Chain Concentration: Apple Inc. relies on single or limited sources for many critical components and final assembly. Any business interruption at these sites—whether due to natural disasters, industrial accidents, or public health issues—can make it impossible to manufacture and deliver products.
- Product and Service Defects: Complex hardware and software, including new artificial intelligence features, are subject to design and manufacturing defects. Such issues can lead to product liability claims, inventory write-offs, and significant warranty expenses, while harming Apple Inc.’s reputation.
2. Company-Specific Risks
- Third-Party Developer Dependence: Apple Inc.’s hardware sales depend on the availability of third-party software. Because Apple Inc. holds a minority market share in smartphones, PCs, and tablets, developers may prioritize competing platforms like Android or Windows, potentially degrading the quality of the Apple Inc. ecosystem.
- Digital Content Licensing: Apple Inc. relies on short-term licensing agreements to offer third-party digital content. If content owners increase costs or restrict access, Apple Inc. may be unable to maintain its service offerings at commercially reasonable prices.
- Key Personnel Retention: Apple Inc.’s success is tied to the service of its CEO, executive team, and highly skilled employees, particularly in Silicon Valley. Intense competition for this talent can drive up compensation costs and threaten Apple Inc.’s strategic execution.
- Information Security Profile: Due to its high profile and the value of the data it manages, Apple Inc. is at a relatively greater risk of targeted cyberattacks, ransomware, and unauthorized access to confidential customer and health information.
3. Regulatory/Legal Risks
- Antitrust and Competition Law: Apple Inc. is subject to civil antitrust lawsuits in the U.S. regarding smartphone market monopolization and investigations in Europe regarding App Store terms. Adverse outcomes could result in significant fines and mandatory changes to business practices.
- Digital Markets Act (DMA): Compliance with the EU’s DMA has required Apple Inc. to implement new business terms, alternative fee structures, and alternative payment processing. These changes pose new privacy and security risks and could negatively impact profit margins.
- Search Licensing Arrangements: Apple Inc. earns revenue from licensing arrangements with Google LLC to offer search services on its platforms. Following a U.S. court finding that Google violated antitrust laws, potential remedies—such as prohibiting Google from offering commercial terms for search distribution—could materially reduce this revenue.
- Data Privacy and Online Safety: Apple Inc. faces an increasing number of global laws regarding the collection and transfer of personal data, including sensitive health and biometric information. Noncompliance with these evolving standards, or with new online safety and age-verification requirements, can lead to significant penalties and operational disruptions.
4. Financial Impact Map
Macroeconomic Conditions → Net Sales → Majority of sales are international, making them sensitive to regional economic downturns and currency fluctuations. Trade Restrictions and Tariffs → Cost of Sales → Restrictive measures increase the cost of components and raw materials, and require expensive supply chain restructuring. Aggressive Price Competition → Gross Margins → Competitors with lower cost structures force price cuts, creating downward pressure on margins. Search Licensing Arrangements → Services Revenue → Revenue earned from Google LLC for search distribution is subject to potential loss due to U.S. antitrust remedies. Inventory and Asset Impairment → Operating Expenses → Rapid product obsolescence and incorrect demand forecasting can lead to write-downs of inventory and long-lived assets.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-Q | Jan 2026 | Dec 2025 |
| 8-K | Jan 2026 | — |
| 14A | Jan 2026 | — |
| 10-K | Oct 2025 | Sep 2025 |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Apple to integrate third-party AI assistants into Siri via new extensions marketplace
- ▸Siri to support third-party AI models including Google Gemini, Anthropic Claude, and Microsoft Copilot
- ▸Apple to implement revenue-sharing model on third-party AI subscriptions via iOS marketplace
- ▸Strategy shifts Siri to neutral distribution layer across 2 billion active iOS devices
- ▸Architecture combines on-device AI processing with external cloud-based AI providers
- ▸New marketplace expands Apple's high-margin Services segment revenue potential
Apple to open Siri to rival AI models in iOS 27, ending ChatGPT exclusivity
- ▸iOS 27 to feature 'extensions' allowing integration of third-party AI assistants into Siri
- ▸Apple shifting from single-vendor AI strategy to open marketplace model
- ▸Fiscal 2025 capital expenditure $12.7B, down 19% YoY
- ▸Projected fiscal 2026 capital expenditure approximately $14B
- ▸Apple to maintain 30% revenue share on AI subscriptions via App Store
Arm Holdings announces in-house AI data center chip, targets $15B annual revenue
- ▸Announced new AI-focused data center chip for Agentic AI applications
- ▸Meta Platforms signed as anchor customer for new chip architecture
- ▸CEO projects $15B annual revenue from new chip business within five years
- ▸Current annual revenue approximately $4B with 97.5% gross margin
- ▸Armv9 architecture driving higher royalty rates in smartphone and data center segments
Apple Q1 iPhone Revenue $85.27B +23.3%, Services Revenue Hits Record $30.01B
- ▸iPhone revenue $85.27B, up 23.3% YoY
- ▸Services revenue $30.01B, up 14% YoY
- ▸Greater China revenue surged to $25.53B from $18.51B
- ▸Q1 FY2026 capital expenditures totaled $2.37B
- ▸Company executed $24.70B in share buybacks during the quarter
Apple iPhone Upgrade Rates Hit Record 37% Amid Strong Global Demand
- ▸Global iPhone upgrade rates reached record 37%, up 2 percentage points YoY
- ▸China iPhone upgrade rates increased 9% year-over-year
- ▸Demand for higher storage capacity models rose 18% compared to last year
- ▸Morgan Stanley projects 6% iPhone sales growth for fiscal 2026
- ▸Morgan Stanley maintains Overweight rating with $315 price target
Apple China revenue +38% to $25.5B as Cook navigates antitrust scrutiny
- ▸China revenue +38% YoY to $25.5B in December quarter
- ▸Lowered App Store developer fees in China amid antitrust pressure
- ▸Tim Cook emphasizes alignment with Chinese innovation and green development goals
- ▸State media continues to criticize App Store policies as monopolistic
- ▸Supply chain diversification into Vietnam and India continues alongside China production
Neonode FY25 Revenue $2.1M down 33.7%, EPS $0.48 swings to profit
- ▸FY25 revenue $2.1M, down 33.7% YoY
- ▸FY25 income $8.0M or $0.48/share, vs $5.9M loss prior year
- ▸Patent assignment gain of $15.5M from Aequitas Technologies
- ▸Operating expenses $10.2M, up 6.7% YoY
- ▸Cash and accounts receivable $25.7M as of Dec 31, 2025
Neonode FY25 revenue $2.1M down 33.7%, EPS $0.48 driven by patent gain
- ▸Revenue $2.1M, down 33.7% YoY
- ▸Net income $8.0M or $0.48/share, vs $5.9M loss prior year
- ▸Patent assignment gain of $15.5M from Aequitas Technologies
- ▸Operating expenses $10.2M, up 6.7% YoY
- ▸Cash and accounts receivable $25.7M as of year-end
Apple acquires MotionVFX to bolster Final Cut Pro and creator software ecosystem
- ▸Acquired Poland-based MotionVFX, developer of Final Cut Pro plug-ins
- ▸Services segment revenue share grew to over 26% of total revenue
- ▸Creator Studio bundle priced at $12.99/month or $129 annually
- ▸Strategy targets increased competition with Adobe video editing software
- ▸Follows late 2024 acquisition of Pixelmator to expand creative toolset
ANGX Q4 revenue +254% to $110M, net loss widens to $79M
- ▸Q4 revenue $110M, up 254% YoY
- ▸Net loss $79M vs $37M loss in Q4 2024
- ▸Guild membership grew to 2.2 million, generating $360M ARR
- ▸Marketing expenses surged to $121M from $38M YoY
- ▸2026 adjusted EBITDA loss guidance capped at $25M