olivLaw · US equity research
Apple Inc. AAPL
Electronic Computers · SIC 3571 · Vertical: Electronic Computers (SIC 3571)
Apple designs and sells smartphones, personal computers, tablets, wearables and accessories, plus a fast-growing set of digital services. It matters because its large active device base and rising services revenue shape the company's margin profile. Third-quarter fiscal 2026 revenue reached 109.4 billion USD, and annual net sales were 416.2 billion USD in fiscal 2025.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 03 Nov 2026, Apple Inc. (AAPL) stock was 331.90 USD (−1.90% on the day), with market capitalisation 4,823.2 bn USD, P/E 37.0 on diluted EPS of 8.98 USD over the last 12 months, dividend yield 0.32%, beta 1.07, 52-week range 246.63–348.91 USD. Latest reported quarter (Q4 2026): revenue of 114.5 bn USD (+11.7% YoY), net income of 30.7 bn USD (+11.8% YoY), diluted EPS 2.10 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 41.7
- weak (30–45)
- Bollinger (20, 2)
- 333.92 – 350.62
- below the lower band · %B -0.12 · band width 4.9%
- SMA 50 / 200
- 334.05 / 297.34
- mixed trend
- MACD (12, 26, 9)
- 1.88 / 3.42
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −0.5% | −2.0% | +1.5 pp | — |
| 3 months | +7.3% | −2.2% | +9.4 pp | — |
| 6 months | +16.8% | +4.3% | +12.5 pp | — |
| Year to date | +22.1% | +10.6% | +11.5 pp | — |
| 1 year | +23.4% | +10.5% | +12.9 pp | −15.4% |
| 3 years | +87.9% | +73.7% | +14.2 pp | +16.5% |
| 5 years | +119.9% | +61.7% | +58.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q4 2026 · 26 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 124.3 bn | 95.4 bn | 94.0 bn | 102.5 bn | 143.8 bn | 111.2 bn | 109.4 bn | 114.5 bn |
| Cost of revenue | 66.0 bn | 50.5 bn | 50.3 bn | 54.1 bn | 74.5 bn | 56.4 bn | 54.6 bn | 59.7 bn |
| Gross profit | 58.3 bn | 44.9 bn | 43.7 bn | 48.3 bn | 69.2 bn | 54.8 bn | 54.8 bn | 54.8 bn |
| Research & development | 8.3 bn | 8.6 bn | 8.9 bn | 8.9 bn | 10.9 bn | 11.4 bn | 11.7 bn | 11.7 bn |
| SG&A | 7.2 bn | 6.7 bn | 6.7 bn | 7.0 bn | 7.5 bn | 7.5 bn | 7.3 bn | 7.5 bn |
| Operating income | 42.8 bn | 29.6 bn | 28.2 bn | 32.4 bn | 50.9 bn | 35.9 bn | 35.7 bn | 35.6 bn |
| Depreciation & amortisation | 3.1 bn | 2.7 bn ≈ | 2.8 bn ≈ | 3.1 bn | 3.2 bn | 3.4 bn ≈ | 3.3 bn ≈ | 3.5 bn |
| Pre-tax income | 42.6 bn | 29.3 bn | 28.0 bn | 32.8 bn | 51.0 bn | 35.8 bn | 36.3 bn | 36.1 bn |
| Income tax | 6.3 bn | 4.5 bn | 4.6 bn | 5.3 bn | 8.9 bn | 6.3 bn | 6.5 bn | 5.4 bn |
| Net income | 36.3 bn | 24.8 bn | 23.4 bn | 27.5 bn | 42.1 bn | 29.6 bn | 29.8 bn | 30.7 bn |
| Diluted EPS | 2.40 | 1.65 | 1.57 | 1.85 ≈ | 2.84 | 2.01 | 2.02 | 2.10 ≈ |
| Operating cash flow | 29.9 bn | 24.0 bn ≈ | 27.9 bn ≈ | 29.7 bn | 53.9 bn | 28.7 bn ≈ | 34.4 bn ≈ | 28.1 bn |
| Capex | 2.9 bn | 3.1 bn ≈ | 3.5 bn ≈ | 3.2 bn | 2.4 bn | 2.0 bn ≈ | 2.5 bn ≈ | 2.2 bn |
| Dividends paid | 3.9 bn | 3.8 bn ≈ | 3.9 bn ≈ | 3.9 bn | 3.9 bn | 3.8 bn ≈ | 4.0 bn ≈ | 3.9 bn |
| Share repurchases | 23.6 bn | 25.9 bn ≈ | 21.1 bn ≈ | 20.1 bn | 24.7 bn | 12.3 bn ≈ | 25.1 bn ≈ | 24.3 bn |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 93 percentile of its own 44-quarter history (min 2.7, median 26.1, max 40.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 260.2 bn | 274.5 bn | 365.8 bn | 394.3 bn | 383.3 bn | 391.0 bn | 416.2 bn | 478.8 bn |
| Revenue YoY | −2.0% | +5.5% | +33.3% | +7.8% | −2.8% | +2.0% | +6.4% | +15.1% |
| Net income | 55.3 bn | 57.4 bn | 94.7 bn | 99.8 bn | 97.0 bn | 93.7 bn | 112.0 bn | 132.2 bn |
| Net income YoY | −7.2% | +3.9% | +64.9% | +5.4% | −2.8% | −3.4% | +19.5% | +18.0% |
| Diluted EPS | 2.97 | 3.28 | 5.61 | 6.11 | 6.13 | 6.08 | 7.46 | 8.98 |
| Diluted EPS YoY | −0.3% | +10.4% | +71.0% | +8.9% | +0.3% | −0.8% | +22.7% | +20.4% |
| net % | 21.2% | 20.9% | 25.9% | 25.3% | 25.3% | 24.0% | 26.9% | 27.6% |
| Free cash flow | 58.9 bn | 73.4 bn | 93.0 bn | 111.4 bn | 99.6 bn | 108.8 bn | 98.8 bn | 136.1 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 26 Sept 2026
- Cash
- 36.3 bn USD
- Financial debt
- 78.1 bn USD
- Net debt
- 41.8 bn USD
- Equity
- 112.1 bn USD
- Total assets
- 404.5 bn USD
- Debt / equity
- 0.70x
- Current ratio
- 1.02x
- ROE
- 142.3%
- ROA
- 34.6%
- FCF margin
- 28.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 365.8 bn | 394.3 bn | 383.3 bn | 391.0 bn | 416.2 bn | 478.8 bn | SEC (XBRL)· 03 Nov 2026verified |
| Cost of revenue | 213.0 bn | 223.5 bn | 214.1 bn | 210.4 bn | 221.0 bn | 245.2 bn | SEC (XBRL)· 03 Nov 2026verified |
| Gross profit | 152.8 bn | 170.8 bn | 169.1 bn | 180.7 bn | 195.2 bn | 233.6 bn | SEC (XBRL)· 03 Nov 2026verified |
| Research & development | 21.9 bn | 26.3 bn | 29.9 bn | 31.4 bn | 34.6 bn | 45.8 bn | SEC (XBRL)· 03 Nov 2026verified |
| SG&A | 22.0 bn | 25.1 bn | 24.9 bn | 26.1 bn | 27.6 bn | 29.8 bn | SEC (XBRL)· 03 Nov 2026verified |
| Operating income | 108.9 bn | 119.4 bn | 114.3 bn | 123.2 bn | 133.1 bn | 158.1 bn | SEC (XBRL)· 03 Nov 2026verified |
| Depreciation & amortisation | 11.3 bn | 11.1 bn | 11.5 bn | 11.4 bn | 11.7 bn | 13.4 bn | SEC (XBRL)· 03 Nov 2026verified |
| EBITDA | 120.2 bn ≈ | 130.5 bn ≈ | 125.8 bn ≈ | 134.7 bn ≈ | 144.7 bn ≈ | 171.5 bn ≈ | SEC (XBRL)· 03 Nov 2026derived |
| Interest expense | 2.6 bn | 2.9 bn | 3.9 bn | — | — | — | SEC (XBRL)· 03 Nov 2023verified |
| Pre-tax income | 109.2 bn | 119.1 bn | 113.7 bn | 123.5 bn | 132.7 bn | 159.2 bn | SEC (XBRL)· 03 Nov 2026verified |
| Income tax | 14.5 bn | 19.3 bn | 16.7 bn | 29.7 bn | 20.7 bn | 27.1 bn | SEC (XBRL)· 03 Nov 2026verified |
| Net income | 94.7 bn | 99.8 bn | 97.0 bn | 93.7 bn | 112.0 bn | 132.2 bn | SEC (XBRL)· 03 Nov 2026verified |
| Diluted EPS | 5.61 | 6.11 | 6.13 | 6.08 | 7.46 | 8.98 | SEC (XBRL)· 03 Nov 2026verified |
| Weighted average diluted shares | 16.9 bn | 16.3 bn | 15.8 bn | 15.4 bn | 15.0 bn | 14.7 bn | SEC (XBRL)· 03 Nov 2026verified |
| Dividend per share | 0.85 | 0.90 | 0.94 | 0.98 | 1.02 | 1.06 | SEC (XBRL)· 03 Nov 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 34.9 bn | 23.6 bn | 30.0 bn | 29.9 bn | 35.9 bn | 36.3 bn | SEC (XBRL)· 03 Nov 2026verified |
| Receivables | 26.3 bn | 28.2 bn | 29.5 bn | 33.4 bn | 39.8 bn | 43.8 bn | SEC (XBRL)· 03 Nov 2026verified |
| Inventories | 6.6 bn | 4.9 bn | 6.3 bn | 7.3 bn | 5.7 bn | 14.5 bn | SEC (XBRL)· 03 Nov 2026verified |
| Current assets | 134.8 bn | 135.4 bn | 143.6 bn | 153.0 bn | 148.0 bn | 173.9 bn | SEC (XBRL)· 03 Nov 2026verified |
| Property, plant & equipment, net | 39.4 bn | 42.1 bn | 43.7 bn | 45.7 bn | 49.8 bn | 52.1 bn | SEC (XBRL)· 03 Nov 2026verified |
| Intangibles (excl. goodwill) | — | — | — | — | 13.3 bn | 25.7 bn | SEC (XBRL)· 03 Nov 2026verified |
| Total assets | 351.0 bn | 352.8 bn | 352.6 bn | 365.0 bn | 359.2 bn | 404.5 bn | SEC (XBRL)· 03 Nov 2026verified |
| Accounts payable | 54.8 bn | 64.1 bn | 62.6 bn | 69.0 bn | 69.9 bn | 82.3 bn | SEC (XBRL)· 03 Nov 2026verified |
| Short-term debt | 9.6 bn | 11.1 bn | 9.8 bn | 10.9 bn | 12.4 bn | 9.9 bn | SEC (XBRL)· 03 Nov 2026verified |
| Long-term debt | 109.1 bn | 99.0 bn | 95.3 bn | 85.8 bn | 78.3 bn | 68.2 bn | SEC (XBRL)· 03 Nov 2026verified |
| Current liabilities | 125.5 bn | 154.0 bn | 145.3 bn | 176.4 bn | 165.6 bn | 169.9 bn | SEC (XBRL)· 03 Nov 2026verified |
| Total liabilities | 287.9 bn | 302.1 bn | 290.4 bn | 308.0 bn | 285.5 bn | 292.5 bn | SEC (XBRL)· 03 Nov 2026verified |
| Equity | 63.1 bn † | 50.7 bn † | 62.1 bn † | 57.0 bn † | 73.7 bn † | 112.1 bn † | SEC (XBRL)· 03 Nov 2026verified |
| Shares outstanding at year end | 16.4 bn | 15.9 bn | 15.6 bn | 15.1 bn | 14.8 bn | — | SEC (XBRL)· 01 Aug 2025verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 104.0 bn | 122.2 bn | 110.5 bn | 118.3 bn | 111.5 bn | 145.1 bn | SEC (XBRL)· 03 Nov 2026verified |
| Capex | 11.1 bn | 10.7 bn | 11.0 bn | 9.4 bn | 12.7 bn | 9.0 bn | SEC (XBRL)· 03 Nov 2026verified |
| Free cash flow | 93.0 bn ≈ | 111.4 bn ≈ | 99.6 bn ≈ | 108.8 bn ≈ | 98.8 bn ≈ | 136.1 bn ≈ | SEC (XBRL)· 03 Nov 2026derived |
| Investing cash flow | -14.5 bn | -22.4 bn | 3.7 bn | 2.9 bn | 15.2 bn | -17.3 bn | SEC (XBRL)· 03 Nov 2026verified |
| Financing cash flow | -93.4 bn | -110.7 bn | -108.5 bn | -122.0 bn | -120.7 bn | -127.4 bn | SEC (XBRL)· 03 Nov 2026verified |
| Dividends paid | 14.5 bn | 14.8 bn | 15.0 bn | 15.2 bn | 15.4 bn | 15.7 bn | SEC (XBRL)· 03 Nov 2026verified |
| Share repurchases | 86.0 bn | 89.4 bn | 77.6 bn | 94.9 bn | 90.7 bn | 86.4 bn | SEC (XBRL)· 03 Nov 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
03 Nov 2026Source: olivLaw, closing series
Market cap: 4,823.2 bn USD
Key indicators
Coverage and freshness
Score by group
100% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/Salesunavailable · not enough peers
- Peers: EV/EBITDAunavailable · not enough peers
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 48.8% | 22 (on a fixed band) | 11% |
| EBIT margin · Quality | 33.0% | 100 (vs peers) | 9% |
| FCF margin · Quality | 28.4% | 100 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 7.7% | 31 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 15.1% | 33 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | 0.2x | 92 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.0x | 13 (on a fixed band) | 6% |
| EV/Sales · Valuation | 10.2x | 18 (on a fixed band) | 17% |
| FCF yield · Valuation | 2.8% | 56 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 2.1% | 69 (on a fixed band) | 4% |
Score groups
- Balance sheet53/100 · 2/2 factors with a value
- Growth32/100 · 2/2 factors with a value
- Quality70/100 · 3/3 factors with a value
- Returns69/100 · 1/1 factors with a value
- Valuation35/100 · 2/2 factors with a value
Memo
Apple Inc. (AAPL). Latest full fiscal year: 2026; data up to 2026-09-26.
Figures computed from the financial statements: revenue 478.8 bn USD in 2026; YoY growth 15.1%; net margin 27.6%; ROE 142.3%; net debt/EBITDA 0.2x.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 33.0%
- FCF margin: 28.4%
- Net debt / EBITDA: 0.2x
What contradicts it
- Gross margin: 48.8%
- Current ratio: 1.0x
- EV/Sales: 10.2x
Versus the vertical median
Electronic Computers (SIC 3571) · same industry (4-digit SIC) · compared with 6 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AAPLApple Inc. | 4,823.2 bn | 37.0 | 142.3% | 27.6% | +15.1% | +23% / +88% |
| DELLDell Technologies Inc. | 261.4 bn | 23.7 | — | 7.5% | +18.8% | +206% / +438% |
| SMCISuper Micro Computer, Inc. | 20.6 bn | 9.6 | 21.5% | 5.7% | +77.8% | −7% / +15% |
| OMCLOmnicell, Inc | 1.8 bn | 46.6 | 3.1% | 3.1% | +6.5% | +8% / +18% |
| OSSOne Stop Systems, Inc. | 116.7 m | 369.1 | 1.3% | 1.0% | +31.2% | −23% / +126% |
| SCKTSocket Mobile, Inc. | 2.5 m | — | -155.7% | -107.5% | −19.6% | −77% / −79% |
| ZEPPZepp Health Corp | 0 | — | -17.2% | -15.5% | +41.8% | −92% / −59% |
1- and 3-year price returns: for AAPL from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 205.10 Total return -38% · Per year -38% | 362.05 Total return 9% · Per year 9% | 544.61 Total return 65% · Per year 65% |
| 3 years | 212.06 Total return -35% · Per year -14% | 419.96 Total return 28% · Per year 8% | 691.74 Total return 110% · Per year 28% |
| 5 years | 219.27 Total return -33% · Per year -8% | 487.14 Total return 49% · Per year 8% | 878.62 Total return 167% · Per year 22% |
- Exit P/E± 104.99
- Net margin± 73.49
- Annual revenue growth± 58.53
- Annual dilution± 6.18
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 10-K (03 Nov 2026), 8-K (02 Nov 2026 · results).
In brief
Apple designs and sells smartphones, personal computers, tablets, wearables and accessories, plus a fast-growing set of digital services. It matters because its large active device base and rising services revenue shape the company's margin profile. Third-quarter fiscal 2026 revenue reached 1 109.4 billion USD, and annual net sales were 2 416.2 billion USD in fiscal 2025.
SWOT
Strengths
- The integrated ecosystem of hardware, software and services and the large active device base support customer loyalty.
- High gross margins, especially in services, provide financial flexibility for research investment.
- Strong cash generation supports share repurchase programs and dividends.
Weaknesses
- Dependence on a small number of suppliers for certain critical components can limit flexibility.
- iPhone revenue remains concentrated, making the company sensitive to model launch cycles.
- Exposure to Greater China has been volatile and declined in fiscal 2025 before recovering.
Opportunities
- Growth in services and advertising could add revenue with higher margins.
- New artificial intelligence features could stimulate device upgrade cycles.
- Sales growth in some regions, such as Europe and Asia Pacific, could offset pressure elsewhere.
Threats
- Tariffs and trade disputes could raise costs and disrupt the supply chain.
- Competitors with aggressive pricing could reduce market share and pressure margins.
- Shortages of advanced components and their rising prices could affect product availability.
Risks
- Tariffs and trade restrictionshigh
Tariffs and retaliatory measures can raise costs and change the supply chain. The ultimate effect remains uncertain.
- Component costs and shortageshigh
Shortages of advanced chips, NAND and DRAM can limit production and raise costs, affecting margins.
- Concentrated manufacturingmedium
Most manufacturing is performed outside the U.S., mainly in China mainland and Asia, which exposes the company to disruptions.
- Competitive pressuremedium
Competitors offering low prices or imitating products could reduce market share and margins.
- Economy and demandlow
Slower growth, inflation and higher interest rates could reduce consumer spending.
Investment thesis
What would need to be true (bull case)
- If growth in services and iPhone revenue is sustained, the company could continue to expand profitability.
- The large active device base and integrated ecosystem may support customer loyalty and recurring sales.
- Tariff refunds and cash generation could support capital return programs.
What would break the thesis
- If tariffs and component costs intensify, gross margins could decline.
- Dependence on iPhone and on the Greater China market remains a risk if demand weakens.
- Aggressive competition, including from rivals that imitate products, could pressure prices.
What to watch
- Trend in gross margin and tariff effectsQ4 2026
- Costs of NAND and DRAM components2027
- Effect of Siri AI on the upgrade cycle2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 10-K (03 Nov 2026), 8-K (02 Nov 2026 · results).
The business
Apple designs, manufactures and markets iPhone, Mac, iPad, wearables, home and accessories, and sells related services such as the App Store, AppleCare, cloud services, advertising, payments and subscriptions. It manages its business mainly geographically through five reportable segments. According to its annual report, net sales were 416.2 billion USD in fiscal 2025, with Services contributing 109.2 billion USD.
Segments
iPhone
iPhone remains the largest sales category, with net sales of 209.6 billion USD in fiscal 2025. In the first nine months of fiscal 2026, iPhone revenue grew 22% year over year.
Services
Services include advertising, the App Store, cloud services, AppleCare and content subscriptions, and carry the highest gross margin in the company. The services gross margin was 75.4% in fiscal 2025, well above the products margin.
Market context
The markets for smartphones, personal computers, tablets and wearables are highly competitive, with price pressure and downward pressure on margins. Apple holds a minority share of these markets globally, while earning revenue from its device and services ecosystem. Some of the markets it competes in have at times seen little growth or contraction.
Customers are mainly consumers, small and mid-sized businesses, education, enterprise and government. Sales go direct through retail and online stores, and indirectly through carriers and resellers, which accounted for 60% of net sales in fiscal 2025.
Trends
- Tariffsmixed
New tariffs on U.S. imports from the second quarter of fiscal 2025 could raise costs and alter the supply chain. After a Supreme Court ruling striking down certain tariffs, refunds recognized helped third-quarter gross margin.
- Component costsheadwind
Shortages of advanced chips, NAND and DRAM have raised component costs, and the company expects these trends to intensify. If price increases cannot fully offset higher costs, margins could come under pressure.
- Growth in servicestailwind
Services are growing faster than hardware and carry higher margins, and the revenue mix is shifting toward them. If this growth continues, profitability could benefit.
- Artificial intelligencemixed
Apple introduced Siri AI and new software versions in the third quarter of fiscal 2026. The effect on device upgrade cycles is still uncertain and depends on customer adoption.
Competitive position
Competitors include firms with very large technical, marketing and distribution resources, some with low-priced product lines and large installed bases. Some rivals may sell at little or no profit, which intensifies price pressure. Apple differentiates through hardware-software integration and its own ecosystem.
- Samsung Electronics
Competitor in smartphones, tablets and wearables, with product lines at varied price points.
- Low-cost personal computer makers
Competitors with low-priced products and large installed bases in personal computers.
- Digital services and content platforms
Competitors offering content, cloud and advertising platforms that compete with the company's services.
- Firms that imitate product features
Competitors that copy Apple's features and applications to offer more competitive solutions.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Qualcomm’s stock falls as twin forces pressure salesMarketWatch — Top Stories · 04 Nov 2026 · EN
- Apple turns iCloud into spy cloud, will start looking at public share linksThe Register · 04 Nov 2026 · EN
- Apple cements its status as tech’s biggest heavyweight with the stock’s best day in over a yearMarketWatch — Top Stories · 04 Nov 2026 · EN
- Hey, Siri: Plug into my app like you said you'd do way back in 2024The Register · 04 Nov 2026 · EN
- Apple cuts employee AI budgets in cost-control push, Bloomberg News reportsCNA (Channel NewsAsia) · 04 Nov 2026 · EN
- Hyperscalers and Apple surge after election results remove investor uncertaintyCNBC — Top News · 04 Nov 2026 · EN
- Google’s Pixel 11 phones are up to 27 percent offThe Verge · 04 Nov 2026 · EN
- Fedora 45 is finally finished and fitThe Register · 04 Nov 2026 · EN
- Apple will check shared iCloud links for ‘harmful content’The Verge · 04 Nov 2026 · EN
- Momentul perfect pentru a investi? Ce fac diferit investitorii consecvențiSpotMedia.ro · 04 Nov 2026 · RO
- Mélenchon a-t-il déjà son ticket pour le second tour ?Politico EU · 04 Nov 2026 · EN
- Rian Johnson explains why he had to build his own iPhone camera appThe Verge · 04 Nov 2026 · EN
- New Research Tests Whether AI Models Know Their Own ThoughtsQuanta Magazine · 04 Nov 2026 · EN
- Here are Wednesday's biggest analyst calls: SpaceX, AMD, Apple, Adobe, CoreWeave & moreCNBC — Top News · 04 Nov 2026 · EN
- The Download: blended meat, restored sight, and the agentic webMIT Technology Review · 04 Nov 2026 · EN
- Als Weidel noch gegen Sexismus kämpftePolitico EU · 04 Nov 2026 · EN
- This fruit fly's aphrodisiac reveals how social and environmental context shape mating practicesPhys.org · 04 Nov 2026 · EN
- What Trump’s double defeat means for the UKPolitico EU · 04 Nov 2026 · EN
- Primul raport Apple cu John Ternus la conducere: venituri record, acțiuni în scădere și cerere mare pentru iPhone Duo - MobilissimoSurge — Google News · 04 Nov 2026 · RO
- Apple begins AI trial in China, powered by AlibabaEuronews Next · 04 Nov 2026 · EN
SEC filings
- Annual report03 Nov 2026
- Current report02 Nov 2026Results of operations · Financial statements and exhibits
- Current report (amendment)01 Sept 2026Departure or appointment of officers
- Quarterly report31 Jul 2026
- Current report30 Jul 2026Results of operations · Financial statements and exhibits
- Quarterly report01 May 2026
- Current report30 Apr 2026Results of operations · Financial statements and exhibits
- Current report20 Apr 2026Departure or appointment of officers
- Current report24 Feb 2026Shareholder vote · Financial statements and exhibits
- Quarterly report30 Jan 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-09-27 · SEC / Apple Inc. · 31 Oct 2025
- [2] Form 10-Q, quarter ended 2026-06-27 · SEC / Apple Inc. · 31 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Apple Inc. · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.