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$AAPL

Analyze AAPL. Use tables where helpful. Cover the following sections: ## Business Model & Value Drivers Provide a detailed business model overview, including revenue streams, customer segments, product or service offerings, and operational structure. Identify and elaborate on the key value drivers, such as pricing power, brand strength, intellectual property, operational efficiencies, or network effects, and quantify their impact where possible. --- ## Industry & Competitive Position Conduct an in-depth analysis of the relevant industry, encompassing market size, growth rates (historical and projected), key trends (e.g., technological advancements, regulatory changes, shifts in consumer behavior), and the overall competitive landscape. Evaluate the company's competitive positioning, assessing its market share, differentiation strategies, barriers to entry, and the intensity of rivalry from direct competitors and substitutes. --- ## Recent Developments & Strategy Summarize the most significant recent developments, including major product launches, strategic partnerships, mergers and acquisitions, leadership changes, or operational milestones. Detail current strategic initiatives, outlining their objectives, timelines, and potential impact on financial performance and market position. --- ## Growth Catalysts & Risks Identify specific growth catalysts, such as new market expansion, pipeline developments, or macro tailwinds, and analyze their potential magnitude. Identify and assess potential risks, categorizing them as operational, financial, competitive, regulatory, or macroeconomic, and describe their potential impact severity. --- ## Debt Analysis & Financial Health Perform a thorough analysis of the company's current debt structure and its ability to service that debt. Quantify the absolute debt level and relevant leverage ratios (e.g., Net Debt to EBITDA, Debt to Equity). Evaluate the company's debt servicing capability by analyzing interest coverage ratios (e.g., EBITDA/Interest Expense), Free Cash Flow generation relative to debt obligations, and liquidity metrics. Provide a detailed debt maturity profile, outlining significant upcoming repayment schedules and major tranches of debt by year. Assess compliance with key debt covenants and the company's overall financial flexibility, considering available cash, undrawn credit facilities, and potential for future capital raises. Based on this analysis, categorize the company into one of the following four debt profiles: 1. Opportunistically issuing debt, exhibiting extremely high confidence of repayment due to robust cash flows and strong financial position. 2. Issuing for convenience, where current Free Cash Flow trends are sufficient to cover debt repayment if those trends continue. 3. Issuing for growth, where current Free Cash Flow does not fully support immediate debt repayment, but strong trends in revenue growth and margin expansion indicate future repayment capability will be close. 4. Issuing for survival, where current Free Cash Flow does not support debt repayment, trends are not supportive, and the company will likely require favorable market conditions, successful debt refinancing, or significant operational improvements to avoid distress.

I'll conduct a comprehensive analysis of Apple covering all requested sections. Given the scope, let me organize this systematically.

Todo write

Input

Get financial data for Apple's debt analysis, cash flow, and profitability metrics over recent periods
Search for Apple's business model, revenue streams, and key value drivers in recent filings
Search for industry analysis, competitive positioning, and market share information
Search for recent developments including product launches, strategic initiatives, and major announcements
Search for growth catalysts, strategic opportunities, and forward-looking initiatives
Search for risk factors, challenges, and potential headwinds
Search for detailed debt structure, maturity profile, and covenant information

Output

{
  "success": true,
  "message": "Todo list updated successfully",
  "all_tasks_completed": false,
  "summary": {
    "total": 7,
    "pending": 6,
    "in_progress": 1,
    "completed": 0
  },
  "todos": [
    {
      "content": "Get financial data for Apple's debt analysis, cash flow, and profitability metrics over recent periods",
      "status": "in_progress"
    },
    {
      "content": "Search for Apple's business model, revenue streams, and key value drivers in recent filings",
      "status": "pending"
    },
    {
      "content": "Search for industry analysis, competitive positioning, and market share information",
      "status": "pending"
    },
    {
      "content": "Search for recent developments including product launches, strategic initiatives, and major announcements",
      "status": "pending"
    },
    {
      "content": "Search for growth catalysts, strategic opportunities, and forward-looking initiatives",
      "status": "pending"
    },
    {
      "content": "Search for risk factors, challenges, and potential headwinds",
      "status": "pending"
    },
    {
      "content": "Search for detailed debt structure, maturity profile, and covenant information",
      "status": "pending"
    }
  ],
  "current_task": {
    "content": "Get financial data for Apple's debt analysis, cash flow, and profitability metrics over recent periods"
  },
  "reminder": "Complete all information gathering tasks before analyzing and answering"
}

Get financials

Input

{
  "ticker": "AAPL",
  "metrics": [
    "Total Debt",
    "Net Debt",
    "EBITDA",
    "Interest Expense, Total",
    "Levered Free Cash Flow",
    "Cash And Equivalents",
    "Total Cash And Short Term Investments",
    "Total Assets",
    "Total Equity",
    "Total Liabilities - (Standard / Utility Template)",
    "Operating Income",
    "Revenues",
    "Net Income - (IS)",
    "Cash from Operations",
    "Capital Expenditure"
  ],
  "period_type": "quarter",
  "relative_periods": [
    0,
    -1,
    -2,
    -3,
    -4,
    -5,
    -6,
    -7
  ]
}

Output

{
  "ticker": "AAPL",
  "currency": "USD",
  "data": {
    "Total Debt": {
      "Q3 2025": {
        "value": 101698000000.0
      },
      "Q2 2025": {
        "value": 98186000000.0
      },
      "Q1 2025": {
        "value": 96799000000.0
      },
      "Q4 2024": {
        "value": 119059000000.0
      },
      "Q3 2024": {
        "value": 101304000000.0
      },
      "Q2 2024": {
        "value": 104590000000.0
      },
      "Q1 2024": {
        "value": 108040000000.0,
        "citation": "[40:5]"
      },
      "Q4 2023": {
        "value": 123930000000.0
      }
    },
    "Net Debt": {
      "Q3 2025": {
        "value": -31288000000.0
      },
      "Q2 2025": {
        "value": -34736000000.0
      },
      "Q1 2025": {
        "value": -44569000000.0
      },
      "Q4 2024": {
        "value": -37591000000.0
      },
      "Q3 2024": {
        "value": -51737000000.0
      },
      "Q2 2024": {
        "value": -57747000000.0
      },
      "Q1 2024": {
        "value": -64535000000.0
      },
      "Q4 2023": {
        "value": -38169000000.0
      }
    },
    "EBITDA": {
      "Q3 2025": {
        "value": 31032000000.0
      },
      "Q2 2025": {
        "value": 32250000000.0
      },
      "Q1 2025": {
        "value": 45912000000.0
      },
      "Q4 2024": {
        "value": 32502000000.0
      },
      "Q3 2024": {
        "value": 28202000000.0
      },
      "Q2 2024": {
        "value": 30736000000.0
      },
      "Q1 2024": {
        "value": 43221000000.0
      },
      "Q4 2023": {
        "value": 29622000000.0
      }
    },
    "Interest Expense, Total": {
      "Q3 2025": {
        "value": null
      },
      "Q2 2025": {
        "value": null
      },
      "Q1 2025": {
        "value": null
      },
      "Q4 2024": {
        "value": null
      },
      "Q3 2024": {
        "value": null
      },
      "Q2 2024": {
        "value": null
      },
      "Q1 2024": {
        "value": null
      },
      "Q4 2023": {
        "value": null
      }
    },
    "Levered Free Cash Flow": {
      "Q3 2025": {
        "value": 20120250000.0
      },
      "Q2 2025": {
        "value": 24027125000.0
      },
      "Q1 2025": {
        "value": 16188000000.0
      },
      "Q4 2024": {
        "value": 34538375000.0
      },
      "Q3 2024": {
        "value": 22498000000.0
      },
      "Q2 2024": {
        "value": 20609500000.0
      },
      "Q1 2024": {
        "value": 33200125000.0
      },
      "Q4 2023": {
        "value": 12308625000.0
      }
    },
    "Cash And Equivalents": {
      "Q3 2025": {
        "value": 36269000000.0,
        "citation": "[23:5]"
      },
      "Q2 2025": {
        "value": 28162000000.0,
        "citation": "[26:5]"
      },
      "Q1 2025": {
        "value": 30299000000.0,
        "citation": "[29:28]"
      },
      "Q4 2024": {
        "value": 29943000000.0,
        "citation": "[32:118]"
      },
      "Q3 2024": {
        "value": 25565000000.0,
        "citation": "[35:5]"
      },
      "Q2 2024": {
        "value": 32695000000.0,
        "citation": "[38:5]"
      },
      "Q1 2024": {
        "value": 40760000000.0,
        "citation": "[41:5]"
      },
      "Q4 2023": {
        "value": 29965000000.0,
        "citation": "[44:72]"
      }
    },
    "Total Cash And Short Term Investments": {
      "Q3 2025": {
        "value": 55372000000.0
      },
      "Q2 2025": {
        "value": 48498000000.0
      },
      "Q1 2025": {
        "value": 53775000000.0
      },
      "Q4 2024": {
        "value": 65171000000.0
      },
      "Q3 2024": {
        "value": 61801000000.0
      },
      "Q2 2024": {
        "value": 67150000000.0
      },
      "Q1 2024": {
        "value": 73100000000.0
      },
      "Q4 2023": {
        "value": 61555000000.0
      }
    },
    "Total Assets": {
      "Q3 2025": {
        "value": 331495000000.0,
        "citation": "[23:5]"
      },
      "Q2 2025": {
        "value": 331233000000.0,
        "citation": "[26:5]"
      },
      "Q1 2025": {
        "value": 344085000000.0,
        "citation": "[29:28]"
      },
      "Q4 2024": {
        "value": 364980000000.0,
        "citation": "[32:117]"
      },
      "Q3 2024": {
        "value": 331612000000.0,
        "citation": "[35:5]"
      },
      "Q2 2024": {
        "value": 337411000000.0,
        "citation": "[38:5]"
      },
      "Q1 2024": {
        "value": 353514000000.0,
        "citation": "[41:5]"
      },
      "Q4 2023": {
        "value": 352583000000.0,
        "citation": "[44:72]"
      }
    },
    "Total Equity": {
      "Q3 2025": {
        "value": 65830000000.0,
        "citation": "[23:5]"
      },
      "Q2 2025": {
        "value": 66796000000.0,
        "citation": "[26:5]"
      },
      "Q1 2025": {
        "value": 66758000000.0,
        "citation": "[29:28]"
      },
      "Q4 2024": {
        "value": 56950000000.0,
        "citation": "[32:117]"
      },
      "Q3 2024": {
        "value": 66708000000.0,
        "citation": "[35:5]"
      },
      "Q2 2024": {
        "value": 74194000000.0,
        "citation": "[38:5]"
      },
      "Q1 2024": {
        "value": 74100000000.0,
        "citation": "[41:5]"
      },
      "Q4 2023": {
        "value": 62146000000.0,
        "citation": "[44:72]"
      }
    },
    "Total Liabilities - (Standard / Utility Template)": {
      "Q3 2025": {
        "value": 265665000000.0,
        "citation": "[23:5]"
      },
      "Q2 2025": {
        "value": 264437000000.0,
        "citation": "[26:5]"
      },
      "Q1 2025": {
        "value": 277327000000.0,
        "citation": "[29:28]"
      },
      "Q4 2024": {
        "value": 308030000000.0,
        "citation": "[32:117]"
      },
      "Q3 2024": {
        "value": 264904000000.0,
        "citation": "[35:5]"
      },
      "Q2 2024": {
        "value": 263217000000.0,
        "citation": "[38:5]"
      },
      "Q1 2024": {
        "value": 279414000000.0,
        "citation": "[41:5]"
      },
      "Q4 2023": {
        "value": 290437000000.0,
        "citation": "[44:72]"
      }
    },
    "Operating Income": {
      "Q3 2025": {
        "value": 28202000000.0,
        "citation": "[23:4]"
      },
      "Q2 2025": {
        "value": 29589000000.0,
        "citation": "[26:4]"
      },
      "Q1 2025": {
        "value": 42832000000.0,
        "citation": "[29:27]"
      },
      "Q4 2024": {
        "value": 29591000000.0,
        "citation": "[30:3]"
      },
      "Q3 2024": {
        "value": 25352000000.0,
        "citation": "[35:4]"
      },
      "Q2 2024": {
        "value": 27900000000.0,
        "citation": "[38:4]"
      },
      "Q1 2024": {
        "value": 40373000000.0,
        "citation": "[41:4]"
      },
      "Q4 2023": {
        "value": 26969000000.0,
        "citation": "[42:3]"
      }
    },
    "Revenues": {
      "Q3 2025": {
        "value": 94036000000.0,
        "citation": "[23:7]"
      },
      "Q2 2025": {
        "value": 95359000000.0,
        "citation": "[26:7]"
      },
      "Q1 2025": {
        "value": 124300000000.0,
        "citation": "[29:30]"
      },
      "Q4 2024": {
        "value": 94930000000.0,
        "citation": "[30:3]"
      },
      "Q3 2024": {
        "value": 85777000000.0,
        "citation": "[35:7]"
      },
      "Q2 2024": {
        "value": 90753000000.0,
        "citation": "[38:7]"
      },
      "Q1 2024": {
        "value": 119575000000.0,
        "citation": "[41:7]"
      },
      "Q4 2023": {
        "value": 89498000000.0,
        "citation": "[42:3]"
      }
    },
    "Net Income - (IS)": {
      "Q3 2025": {
        "value": 23434000000.0,
        "citation": "[23:4]"
      },
      "Q2 2025": {
        "value": 24780000000.0,
        "citation": "[26:4]"
      },
      "Q1 2025": {
        "value": 36330000000.0,
        "citation": "[29:27]"
      },
      "Q4 2024": {
        "value": 14736000000.0,
        "citation": "[32:110]"
      },
      "Q3 2024": {
        "value": 21448000000.0,
        "citation": "[35:4]"
      },
      "Q2 2024": {
        "value": 23636000000.0,
        "citation": "[38:4]"
      },
      "Q1 2024": {
        "value": 33916000000.0,
        "citation": "[41:4]"
      },
      "Q4 2023": {
        "value": 22956000000.0,
        "citation": "[44:81]"
      }
    },
    "Cash from Operations": {
      "Q3 2025": {
        "value": 27867000000.0
      },
      "Q2 2025": {
        "value": 23952000000.0
      },
      "Q1 2025": {
        "value": 29935000000.0,
        "citation": "[29:29]"
      },
      "Q4 2024": {
        "value": 26811000000.0,
        "citation": "[31:4]"
      },
      "Q3 2024": {
        "value": 28858000000.0,
        "citation": "[34:4]"
      },
      "Q2 2024": {
        "value": 22690000000.0,
        "citation": "[37:4]"
      },
      "Q1 2024": {
        "value": 39895000000.0,
        "citation": "[41:6]"
      },
      "Q4 2023": {
        "value": 21598000000.0,
        "citation": "[43:4]"
      }
    },
    "Capital Expenditure": {
      "Q3 2025": {
        "value": -3462000000.0
      },
      "Q2 2025": {
        "value": -3071000000.0
      },
      "Q1 2025": {
        "value": -2940000000.0,
        "citation": "[29:29]"
      },
      "Q4 2024": {
        "value": -2908000000.0
      },
      "Q3 2024": {
        "value": -2151000000.0
      },
      "Q2 2024": {
        "value": -1996000000.0,
        "citation": "[38:8]"
      },
      "Q1 2024": {
        "value": -2392000000.0,
        "citation": "[41:6]"
      },
      "Q4 2023": {
        "value": -2163000000.0
      }
    }
  },
  "periods": [
    "Q3 2025",
    "Q2 2025",
    "Q1 2025",
    "Q4 2024",
    "Q3 2024",
    "Q2 2024",
    "Q1 2024",
    "Q4 2023"
  ]
}

Get financials

Input

{
  "ticker": "AAPL",
  "metrics": [
    "Total Debt",
    "Net Debt",
    "EBITDA",
    "Interest Expense, Total",
    "Levered Free Cash Flow",
    "Total Debt/Equity",
    "Total Debt / Total Capital",
    "Return On Equity %",
    "EBITDA Margin %",
    "Net Income Margin %"
  ],
  "period_type": "year",
  "relative_periods": [
    0,
    -1,
    -2,
    -3
  ]
}

Output

{
  "ticker": "AAPL",
  "currency": "USD",
  "data": {
    "Total Debt": {
      "FY 2024": {
        "value": 119059000000.0
      },
      "FY 2023": {
        "value": 123930000000.0
      },
      "FY 2022": {
        "value": 132480000000.0
      },
      "FY 2021": {
        "value": 136522000000.0
      }
    },
    "Net Debt": {
      "FY 2024": {
        "value": -37591000000.0
      },
      "FY 2023": {
        "value": -38169000000.0
      },
      "FY 2022": {
        "value": -36629000000.0
      },
      "FY 2021": {
        "value": -53994000000.0,
        "citation": "[57:5]"
      }
    },
    "EBITDA": {
      "FY 2024": {
        "value": 134661000000.0
      },
      "FY 2023": {
        "value": 125820000000.0
      },
      "FY 2022": {
        "value": 130541000000.0
      },
      "FY 2021": {
        "value": 120233000000.0
      }
    },
    "Interest Expense, Total": {
      "FY 2024": {
        "value": null
      },
      "FY 2023": {
        "value": null
      },
      "FY 2022": {
        "value": null
      },
      "FY 2021": {
        "value": -2645000000.0,
        "citation": "[58:66]"
      }
    },
    "Levered Free Cash Flow": {
      "FY 2024": {
        "value": 110846000000.0
      },
      "FY 2023": {
        "value": 84638125000.0
      },
      "FY 2022": {
        "value": 92047125000.0
      },
      "FY 2021": {
        "value": 73295000000.0
      }
    },
    "Total Debt/Equity": {
      "FY 2024": {
        "value": 209.0588
      },
      "FY 2023": {
        "value": 199.4175
      },
      "FY 2022": {
        "value": 261.4461
      },
      "FY 2021": {
        "value": 216.3924
      }
    },
    "Total Debt / Total Capital": {
      "FY 2024": {
        "value": 67.6437
      },
      "FY 2023": {
        "value": 66.6018
      },
      "FY 2022": {
        "value": 72.3333
      },
      "FY 2021": {
        "value": 68.3936
      }
    },
    "Return On Equity %": {
      "FY 2024": {
        "value": 157.4125
      },
      "FY 2023": {
        "value": 171.9495
      },
      "FY 2022": {
        "value": 175.4592
      },
      "FY 2021": {
        "value": 147.4433
      }
    },
    "EBITDA Margin %": {
      "FY 2024": {
        "value": 34.437
      },
      "FY 2023": {
        "value": 32.8267
      },
      "FY 2022": {
        "value": 33.1046
      },
      "FY 2021": {
        "value": 32.8669
      }
    },
    "Net Income Margin %": {
      "FY 2024": {
        "value": 23.9712
      },
      "FY 2023": {
        "value": 25.3062
      },
      "FY 2022": {
        "value": 25.3096
      },
      "FY 2021": {
        "value": 25.8817
      }
    }
  },
  "periods": [
    "FY 2024",
    "FY 2023",
    "FY 2022",
    "FY 2021"
  ]
}

Todo write

Input

Get financial data for Apple's debt analysis, cash flow, and profitability metrics over recent periods
Search for Apple's business model, revenue streams, and key value drivers in recent filings
Search for industry analysis, competitive positioning, and market share information
Search for recent developments including product launches, strategic initiatives, and major announcements
Search for growth catalysts, strategic opportunities, and forward-looking initiatives
Search for risk factors, challenges, and potential headwinds
Search for detailed debt structure, maturity profile, and covenant information

Output

{
  "success": true,
  "message": "Todo list updated successfully",
  "all_tasks_completed": false,
  "summary": {
    "total": 7,
    "pending": 5,
    "in_progress": 1,
    "completed": 1
  },
  "todos": [
    {
      "content": "Get financial data for Apple's debt analysis, cash flow, and profitability metrics over recent periods",
      "status": "completed"
    },
    {
      "content": "Search for Apple's business model, revenue streams, and key value drivers in recent filings",
      "status": "in_progress"
    },
    {
      "content": "Search for industry analysis, competitive positioning, and market share information",
      "status": "pending"
    },
    {
      "content": "Search for recent developments including product launches, strategic initiatives, and major announcements",
      "status": "pending"
    },
    {
      "content": "Search for growth catalysts, strategic opportunities, and forward-looking initiatives",
      "status": "pending"
    },
    {
      "content": "Search for risk factors, challenges, and potential headwinds",
      "status": "pending"
    },
    {
      "content": "Search for detailed debt structure, maturity profile, and covenant information",
      "status": "pending"
    }
  ],
  "current_task": {
    "content": "Search for Apple's business model, revenue streams, and key value drivers in recent filings"
  },
  "reminder": "Complete all information gathering tasks before analyzing and answering"
}

Search documents

Input

business model revenue streams products services segments +(product revenue) +(services revenue) +iPhone +Mac +iPad +Wearables +(customer segments) --QDF=3

Output

[Total chunks returned: 8]

<chunk>
[Document ID: Index]: [32:74]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Business
Doc Type: 10-K
Period: FY 2024
Highlighted Text: Item 1. Business

Company Background

The Company designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September.

Products

iPhone

iPhone® is the Company’s line of smartphones based on its iOS operating system. The iPhone line includes iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14 and iPhone SE®.

Mac

Mac® is the Company’s line of personal computers based on its macOS® operating system. The Mac line includes laptops MacBook Air® and MacBook Pro®, as well as desktops iMac®, Mac mini®, Mac Studio® and Mac Pro®.

iPad

iPad® is the Company’s line of multipurpose tablets based on its iPadOS® operating system. The iPad line includes iPad Pro®, iPad Air®, iPad and iPad mini®.

Wearables, Home and Accessories

Wearables includes smartwatches, wireless headphones and spatial computers. The Company’s line of smartwatches, based on its watchOS® operating system, includes Apple Watch Ultra® 2, Apple Watch® Series 10 and Apple Watch SE®. The Company’s line of wireless headphones includes AirPods®, AirPods Pro®, AirPods Max® and Beats® products. Apple Vision Pro™ is the Company’s first spatial computer based on its visionOS™ operating system.

Home includes Apple TV®, the Company’s media streaming and gaming device based on its tvOS® operating system, and HomePod® and HomePod mini®, high-fidelity wireless smart speakers.

Accessories includes Apple-branded and third-party accessories.

Services

Advertising

The Company’s advertising services include third-party licensing arrangements and the Company’s own advertising platforms.

AppleCare

The Company offers a portfolio of fee-based service and support products under the AppleCare® brand. The offerings provide priority access to Apple technical support, access to the global Apple authorized service network for repair and replacement services, and in many cases additional coverage for instances of accidental damage or theft and loss, depending on the country and type of product.

Cloud Services

The Company’s cloud services store and keep customers’ content up-to-date and available across multiple Apple devices and Windows personal computers.

Digital Content

The Company operates various platforms, including the App Store®, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts.

The Company also offers digital content through subscription-based services, including Apple Arcade®, a game subscription service; Apple Fitness+SM, a personalized fitness service; Apple Music®, which offers users a curated listening experience with on-demand radio stations; Apple News+®, a subscription news and magazine service; and Apple TV+®, which offers exclusive original content and live sports.

Payment Services

The Company offers payment services, including Apple Card®, a co-branded credit card, and Apple Pay®, a cashless payment service.

Segments

The Company manages its business primarily on a geographic basis. The Company’s reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China mainland, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company’s other reportable segments. Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company’s customers and distribution partners and the unique market dynamics of each geographic region.
</chunk>

<chunk>
[Document ID: Index]: [26:7]
Ticker: AAPL
Publication Date: 2025-05-02
Section: Financial Statements
Doc Type: 10-Q
Period: Q2 2025
Highlighted Text: Note 2 – Revenue

The following table shows disaggregated net sales, as well as the portion of total net sales that was previously deferred, for the three- and six-month periods ended March 29, 2025 and March 30, 2024 (in millions):
```csv
,Three Months Ended,Three Months Ended,Six Months Ended,Six Months Ended
,"March 29, 2025","March 30, 2024","March 29, 2025","March 30, 2024"
iPhone ®,"$ 46,841","$ 45,963","$ 115,979","$ 115,665"
Mac ®,"7,949","7,451","16,936","15,231"
iPad ®,"6,402","5,559","14,490","12,582"
"Wearables, Home and Accessories","7,522","7,913","19,269","19,866"
Services,"26,645","23,867","52,985","46,984"
Total net sales,"$ 95,359","$ 90,753","$ 219,659","$ 210,328"
Portion of total net sales that was included in deferred revenue as of the beginning of the period,"$ 3,672","$ 3,282","$ 5,440","$ 5,135"
```

The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 10, “Segment Information and Geographic Data” for the three- and six-month periods ended March 29, 2025 and March 30, 2024, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

As of March 29, 2025 and September 28, 2024, the Company had total deferred revenue of $13.6 billion and $12.8 billion, respectively. As of March 29, 2025, the Company expects 66% of total deferred revenue to be realized in less than a year, 24% within one-to-two years, 9% within two-to-three years and 1% in greater than three years.

Note 3 – Earnings Per Share

The following table shows the computation of basic and diluted earnings per share for the three- and six-month periods ended March 29, 2025 and March 30, 2024 (net income in millions and shares in thousands):
```csv
,Three Months Ended,Three Months Ended,Six Months Ended,Six Months Ended
,"March 29, 2025","March 30, 2024","March 29, 2025","March 30, 2024"
Numerator:,,,,
Net income,"$ 24,780","$ 23,636","$ 61,110","$ 57,552"
Denominator:,,,,
Weighted-average basic shares outstanding,"14,994,082","15,405,856","15,037,903","15,457,810"
Effect of dilutive share-based awards,"62,051","58,853","65,596","62,865"
Weighted-average diluted shares,"15,056,133","15,464,709","15,103,499","15,520,675"
Basic earnings per share,$ 1.65,$ 1.53,$ 4.06,$ 3.72
Diluted earnings per share,$ 1.65,$ 1.53,$ 4.05,$ 3.71
```

Note 4 – Financial Instruments
</chunk>

<chunk>
[Document ID: Index]: [29:30]
Ticker: AAPL
Publication Date: 2025-01-31
Section: Financial Statements
Doc Type: 10-Q
Period: Q1 2025
Highlighted Text: Note 2 – Revenue

Net sales disaggregated by significant products and services for the three months ended December 28, 2024 and December 30, 2023 were as follows (in millions):
```csv
,Three Months Ended,Three Months Ended
,"December 28, 2024","December 30, 2023"
iPhone ®,"$ 69,138","$ 69,702"
Mac ®,"8,987","7,780"
iPad ®,"8,088","7,023"
"Wearables, Home and Accessories","11,747","11,953"
Services,"26,340","23,117"
Total net sales,"$ 124,300","$ 119,575"
```

Total net sales include $3.7 billion of revenue recognized in the three months ended December 28, 2024 that was included in deferred revenue as of September 28, 2024 and $3.5 billion of revenue recognized in the three months ended December 30, 2023 that was included in deferred revenue as of September 30, 2023.

The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 10, “Segment Information and Geographic Data” for the three months ended December 28, 2024 and December 30, 2023, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

As of December 28, 2024 and September 28, 2024, the Company had total deferred revenue of $13.2 billion and $12.8 billion, respectively. As of December 28, 2024, the Company expects 64% of total deferred revenue to be realized in less than a year, 25% within one-to-two years, 9% within two-to-three years and 2% in greater than three years.

Note 3 – Earnings Per Share

The following table shows the computation of basic and diluted earnings per share for the three months ended December 28, 2024 and December 30, 2023 (net income in millions and shares in thousands):
```csv
,Three Months Ended,Three Months Ended
,"December 28, 2024","December 30, 2023"
Numerator:,,
Net income,"$ 36,330","$ 33,916"
Denominator:,,
Weighted-average basic shares outstanding,"15,081,724","15,509,763"
Effect of dilutive share-based awards,"69,141","66,878"
Weighted-average diluted shares,"15,150,865","15,576,641"
Basic earnings per share,$ 2.41,$ 2.19
Diluted earnings per share,$ 2.40,$ 2.18
```

Note 4 – Financial Instruments
</chunk>

<chunk>
[Document ID: Index]: [26:14]
Ticker: AAPL
Publication Date: 2025-05-02
Section: Management's Discussion and Analysis of Financial Condition and Results of Operations
Doc Type: 10-Q
Period: Q2 2025
Highlighted Text: Beginning in the second quarter of 2025, new tariffs were announced on imports to the U.S. (“U.S. Tariffs”), including additional tariffs on imports from China, India, Japan, South Korea, Taiwan, Vietnam and the European Union (“EU”), among others. In response, several countries have imposed, or threatened to impose, reciprocal tariffs on imports from the U.S. and other retaliatory measures. Various modifications and delays to the U.S. Tariffs have been announced and further changes are expected to be made in the future, which may include additional sector-based tariffs or other measures. For example, the U.S. Department of Commerce has initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended, into, among other things, imports of semiconductors, semiconductor manufacturing equipment, and their derivative products, including downstream products that contain semiconductors. Tariffs and other measures that are applied to the Company’s products or their components can have a material adverse impact on the Company’s business, results of operations and financial condition, including impacting the Company’s supply chain, the availability of rare earths and other raw materials and components, pricing and gross margin. The ultimate impact remains uncertain and will depend on several factors, including whether additional or incremental U.S. Tariffs or other measures are announced or imposed, to what extent other countries implement tariffs or other retaliatory measures in response, and the overall magnitude and duration of these measures. Trade and other international disputes can have an adverse impact on the overall macroeconomic environment and result in shifts and reductions in consumer spending and negative consumer sentiment for the Company’s products and services, all of which can further adversely affect the Company’s business and results of operations.

Segment Operating Performance

The following table shows net sales by reportable segment for the three- and six-month periods ended March 29, 2025 and March 30, 2024 (dollars in millions):
```csv
,Three Months Ended,Three Months Ended,Three Months Ended,Six Months Ended,Six Months Ended,Six Months Ended
,"March 29, 2025","March 30, 2024",Change,"March 29, 2025","March 30, 2024",Change
Americas,"$ 40,315","$ 37,273",8 %,"$ 92,963","$ 87,703",6 %
Europe,"24,454","24,123",1 %,"58,315","54,520",7 %
Greater China,"16,002","16,372",(2) %,"34,515","37,191",(7) %
Japan,"7,298","6,262",17 %,"16,285","14,029",16 %
Rest of Asia Pacific,"7,290","6,723",8 %,"17,581","16,885",4 %
Total net sales,"$ 95,359","$ 90,753",5 %,"$ 219,659","$ 210,328",4 %
```

Americas

Americas net sales increased during the second quarter and first six months of 2025 compared to the same periods in 2024 due primarily to higher net sales of iPhone and Services. The weakness in foreign currencies relative to the U.S. dollar had an unfavorable year-over-year impact on Americas net sales during the second quarter and first six months of 2025.

Europe

Europe net sales were relatively flat during the second quarter of 2025 compared to the second quarter of 2024. Year-over-year Europe net sales increased during the first six months of 2025 due primarily to higher net sales of Services, Mac and iPad. The weakness in foreign currencies relative to the U.S. dollar had a net unfavorable year-over-year impact on Europe net sales during the second quarter of 2025.

Greater China

Greater China net sales decreased during the first six months of 2025 compared to the same period in 2024 due to lower net sales of iPhone. The weakness in the renminbi relative to the U.S. dollar had an unfavorable year-over-year impact on Greater China net sales during the second quarter of 2025.

Japan
</chunk>

<chunk>
[Document ID: Index]: [23:4]
Ticker: AAPL
Publication Date: 2025-08-01
Section: Financial Statements
Doc Type: 10-Q
Period: Q3 2025
Highlighted Text: Item 1. Financial Statements

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In millions, except number of shares, which are reflected in thousands, and per-share amounts)

```csv
,Three Months Ended,Three Months Ended,Nine Months Ended,Nine Months Ended
,"June 28, 2025","June 29, 2024","June 28, 2025","June 29, 2024"
Net sales:,,,,
Products,"$ 66,613","$ 61,564","$ 233,287","$ 224,908"
Services,"27,423","24,213","80,408","71,197"
Total net sales,"94,036","85,777","313,695","296,105"
Cost of sales:,,,,
Products,"43,620","39,803","147,097","140,667"
Services,"6,698","6,296","19,738","18,634"
Total cost of sales,"50,318","46,099","166,835","159,301"
Gross margin,"43,718","39,678","146,860","136,804"
Operating expenses:,,,,
Research and development,"8,866","8,006","25,684","23,605"
"Selling, general and administrative","6,650","6,320","20,553","19,574"
Total operating expenses,"15,516","14,326","46,237","43,179"
Operating income,"28,202","25,352","100,623","93,625"
"Other income/(expense), net",(171),142,(698),250
Income before provision for income taxes,"28,031","25,494","99,925","93,875"
Provision for income taxes,"4,597","4,046","15,381","14,875"
Net income,"$ 23,434","$ 21,448","$ 84,544","$ 79,000"
Earnings per share:,,,,
Basic,$ 1.57,$ 1.40,$ 5.64,$ 5.13
Diluted,$ 1.57,$ 1.40,$ 5.62,$ 5.11
Shares used in computing earnings per share:,,,,
Basic,"14,902,886","15,287,521","14,992,898","15,401,047"
Diluted,"14,948,179","15,348,175","15,051,726","15,463,175"
```

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(In millions)

```csv
,Three Months Ended,Three Months Ended,Nine Months Ended,Nine Months Ended
,"June 28, 2025","June 29, 2024","June 28, 2025","June 29, 2024"
Net income,"$ 23,434","$ 21,448","$ 84,544","$ 79,000"
Other comprehensive income/(loss):,,,,
"Change in foreign currency translation, net of tax",449,(73),(86),(87)
"Change in unrealized gains/losses on derivative instruments, net of tax:",,,,
Change in fair value of derivative instruments,(523),406,810,331
Adjustment for net (gains)/losses realized and included in net income,(571),(87),(415),(678)
Total change in unrealized gains/losses on derivative instruments,"(1,094)",319,395,(347)
"Change in unrealized gains/losses on marketable debt securities, net of tax:",,,,
Change in fair value of marketable debt securities,640,268,90,"3,306"
Adjustment for net (gains)/losses realized and included in net income,(1),30,404,164
Total change in unrealized gains/losses on marketable debt securities,639,298,494,"3,470"
Total other comprehensive income/(loss),(6),544,803,"3,036"
Total comprehensive income,"$ 23,428","$ 21,992","$ 85,347","$ 82,036"
```

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc.
</chunk>

<chunk>
[Document ID: Index]: [26:4]
Ticker: AAPL
Publication Date: 2025-05-02
Section: Financial Statements
Doc Type: 10-Q
Period: Q2 2025
Highlighted Text: Item 1. Financial Statements

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In millions, except number of shares, which are reflected in thousands, and per-share amounts)

```csv
,Three Months Ended,Three Months Ended,Six Months Ended,Six Months Ended
,"March 29, 2025","March 30, 2024","March 29, 2025","March 30, 2024"
Net sales:,,,,
Products,"$ 68,714","$ 66,886","$ 166,674","$ 163,344"
Services,"26,645","23,867","52,985","46,984"
Total net sales,"95,359","90,753","219,659","210,328"
Cost of sales:,,,,
Products,"44,030","42,424","103,477","100,864"
Services,"6,462","6,058","13,040","12,338"
Total cost of sales,"50,492","48,482","116,517","113,202"
Gross margin,"44,867","42,271","103,142","97,126"
Operating expenses:,,,,
Research and development,"8,550","7,903","16,818","15,599"
"Selling, general and administrative","6,728","6,468","13,903","13,254"
Total operating expenses,"15,278","14,371","30,721","28,853"
Operating income,"29,589","27,900","72,421","68,273"
"Other income/(expense), net",(279),158,(527),108
Income before provision for income taxes,"29,310","28,058","71,894","68,381"
Provision for income taxes,"4,530","4,422","10,784","10,829"
Net income,"$ 24,780","$ 23,636","$ 61,110","$ 57,552"
Earnings per share:,,,,
Basic,$ 1.65,$ 1.53,$ 4.06,$ 3.72
Diluted,$ 1.65,$ 1.53,$ 4.05,$ 3.71
Shares used in computing earnings per share:,,,,
Basic,"14,994,082","15,405,856","15,037,903","15,457,810"
Diluted,"15,056,133","15,464,709","15,103,499","15,520,675"
```

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(In millions)

```csv
,Three Months Ended,Three Months Ended,Six Months Ended,Six Months Ended
,"March 29, 2025","March 30, 2024","March 29, 2025","March 30, 2024"
Net income,"$ 24,780","$ 23,636","$ 61,110","$ 57,552"
Other comprehensive income/(loss):,,,,
"Change in foreign currency translation, net of tax",90,(322),(535),(14)
"Change in unrealized gains/losses on derivative instruments, net of tax:",,,,
Change in fair value of derivative instruments,(318),456,"1,333",(75)
Adjustment for net (gains)/losses realized and included in net income,(628),232,156,(591)
Total change in unrealized gains/losses on derivative instruments,(946),688,"1,489",(666)
"Change in unrealized gains/losses on marketable debt securities, net of tax:",,,,
Change in fair value of marketable debt securities,"1,097",(7),(550),"3,038"
Adjustment for net (gains)/losses realized and included in net income,185,59,405,134
Total change in unrealized gains/losses on marketable debt securities,"1,282",52,(145),"3,172"
Total other comprehensive income,426,418,809,"2,492"
Total comprehensive income,"$ 25,206","$ 24,054","$ 61,919","$ 60,044"
```

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc.
</chunk>

<chunk>
[Document ID: Index]: [32:122]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Financial Statements and Supplementary Data
Doc Type: 10-K
Period: FY 2024
Highlighted Text: Net sales disaggregated by significant products and services for 2024, 2023 and 2022 were as follows (in millions):
```csv
,2024,2023,2022
iPhone,"$ 201,183","$ 200,583","$ 205,489"
Mac,"29,984","29,357","40,177"
iPad,"26,694","28,300","29,292"
"Wearables, Home and Accessories","37,005","39,845","41,241"
Services (1),"96,169","85,200","78,129"
Total net sales,"$ 391,035","$ 383,285","$ 394,328"
```

(1)Services net sales include amortization of the deferred value of services bundled in the sales price of certain products.

Total net sales include $7.7 billion of revenue recognized in 2024 that was included in deferred revenue as of September 30, 2023, $8.2 billion of revenue recognized in 2023 that was included in deferred revenue as of September 24, 2022, and $7.5 billion of revenue recognized in 2022 that was included in deferred revenue as of September 25, 2021.

The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 13, “Segment Information and Geographic Data” for 2024, 2023 and 2022, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

As of September 28, 2024 and September 30, 2023, the Company had total deferred revenue of $12.8 billion and $12.1 billion, respectively. As of September 28, 2024, the Company expects 64% of total deferred revenue to be realized in less than a year, 25% within one-to-two years, 9% within two-to-three years and 2% in greater than three years.

Note 3 – Earnings Per Share

The following table shows the computation of basic and diluted earnings per share for 2024, 2023 and 2022 (net income in millions and shares in thousands):
```csv
,2024,2023,2022
Numerator:,,,
Net income,"$ 93,736","$ 96,995","$ 99,803"
Denominator:,,,
Weighted-average basic shares outstanding,"15,343,783","15,744,231","16,215,963"
Effect of dilutive share-based awards,"64,312","68,316","109,856"
Weighted-average diluted shares,"15,408,095","15,812,547","16,325,819"
Basic earnings per share,$ 6.11,$ 6.16,$ 6.15
Diluted earnings per share,$ 6.08,$ 6.13,$ 6.11
```

Approximately 24 million restricted stock units (“RSUs”) were excluded from the computation of diluted earnings per share for 2023 because their effect would have been antidilutive.

Note 4 – Financial Instruments
</chunk>

<chunk>
[Document ID: Index]: [32:73]
Ticker: AAPL
Publication Date: 2024-11-01
Doc Type: 10-K
Period: FY 2024
Highlighted Text: TABLE OF CONTENTS

```csv
,Page
Part I,
Item 1.,Business 1
Item 1A.,Risk Factors 5
Item 1B.,Unresolved Staff Comments 17
Item 1C.,Cybersecurity 17
Item 2.,Properties 18
Item 3.,Legal Proceedings 18
Item 4.,Mine Safety Disclosures 18
Part II,
Item 5.,"Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 19"
Item 6.,[Reserved] 20
Item 7.,Management’s Discussion and Analysis of Financial Condition and Results of Operations 21
Item 7A.,Quantitative and Qualitative Disclosures About Market Risk 27
Item 8.,Financial Statements and Supplementary Data 28
Item 9.,Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 51
Item 9A.,Controls and Procedures 51
Item 9B.,Other Information 52
Item 9C.,Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 52
Part III,
Item 10.,"Directors, Executive Officers and Corporate Governance 52"
Item 11.,Executive Compensation 52
Item 12 .,Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 52
Item 13 .,"Certain Relationships and Related Transactions, and Director Independence 52"
Item 14.,Principal Accountant Fees and Services 52
Part IV,
Item 15.,Exhibit and Financial Statement Schedules 53
Item 16.,Form 10-K Summary 56
```

This Annual Report on Form 10-K (“Form 10-K”) contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Many of the forward-looking statements are located in Part I, Item 1 of this Form 10-K under the heading “Business” and Part II, Item 7 of this Form 10-K under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. For example, statements in this Form 10-K regarding the potential future impact of macroeconomic conditions on the Company’s business and results of operations are forward-looking statements. Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed in Part I, Item 1A of this Form 10-K under the heading “Risk Factors.” The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law.

Unless otherwise stated, all information presented herein is based on the Company’s fiscal calendar, and references to particular years, quarters, months or periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. Each of the terms the “Company” and “Apple” as used herein refers collectively to Apple Inc. and its wholly owned subsidiaries, unless otherwise stated.

PART I
</chunk>

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<chunk>
[Document ID: Index]: [59:4]
Ticker: AAPL
Publication Date: 2025-01-30
Section: remark
Doc Type: earnings-call-transcript
Period: Q1 2025
Highlighted Text: Kevan Parekh (executive)
Thanks, Tim, and good afternoon, everyone. I'm going to cover the results for the first quarter of our fiscal year.
We are very pleased to report an all-time high for revenue with December quarter revenue of $124.3 billion, up 4% year-over-year. We achieved all-time revenue records in the Americas, Europe, Japan and rest of Asia Pacific and grew in the vast majority of markets we track. Products revenue was $98 billion, up 2% year-over-year, driven by growth from iPad and Mac. Thanks to our incredible customer satisfaction and strong loyalty, our installed base of active devices reached an all-time high across all products and geographic segments and is now over 2.35 billion active devices. Services revenue reached an all-time record of $26.3 billion, up 14% year-over-year. We grew in every geographic segment and achieved all-time records in both developed and emerging markets.
Company gross margin was 46.9%, at the high end of our guidance range and up 70 basis points sequentially, primarily driven by favorable mix. Products gross margin was 39.3%, up 300 basis points sequentially, primarily driven by favorable mix and leverage. Services gross margin was 75%, up 100 basis points sequentially, primarily driven by mix.
Operating expenses of $15.4 billion landed at the midpoint of our guidance range and up 7% year-over-year. This strong business performance resulted in all-time records for both net income at $36.3 billion and diluted earnings per share of $2.40, up 10% year-over-year. Operating cash flow was also strong at $29.9 billion, which included the impact of the $11.9 billion we paid during the quarter in connection with the State Aid decision.
Now I'm going to provide some more details for each of our revenue categories. iPhone revenue was $69.1 billion, roughly flat to the prior year. We grew in the majority of markets we track and reached all-time revenue records in several developed markets, including Canada, Western Europe and Japan, and in emerging markets like Latin America, the Middle East and South Asia.
The iPhone active installed base grew to an all-time high in total and in every geographic segment. We also set an all-time record for upgraders. According to a recent survey from Kantar during the December quarter, iPhone was a top-selling model in the U.S., urban China, India, the U.K., France, Australia and Japan. We continue to see high levels of customer satisfaction in the U.S. at 96%, as measured by 451 Research.
Mac generated $9 billion in revenue, up 16% year-over-year. We saw strength across our lineup, from the new Mac mini to the latest MacBook Air and MacBook Pro models. This incredible performance was broad based with double-digit growth in every geographic segment. With our latest advances in Apple silicon and our fastest neural engine ever, customers are able to take advantage of the full capabilities of AI and Mac.
The Mac installed base reached an all-time high, and we saw double-digit growth for both upgraders and customers new to the Mac. Additionally, customer satisfaction in the U.S. was recently measured at 94%.
iPad revenue was $8.1 billion, up 15% year-over-year, driven by the new iPad mini and latest iPad Air. The iPad installed base reached another all-time high, and over half of the customers who purchased an iPad during the quarter were new to the product. Customer satisfaction was at 96% in the U.S. based on the latest reports from 451 Research.
Wearables, Home and Accessories revenue was $11.7 billion, down 2% year-over-year. Customers are excited about the new AirPods 4 and the latest hearing health features in AirPods Pro 2. On Watch, although we face a difficult compare against the Watch Ultra 2 launched last year, the Apple Watch installed base reached a new all-time high with over half of customers purchasing an Apple Watch during the quarter being new to the product. Customer satisfaction for Watch in the U.S. was reported at 94%.
</chunk>

<chunk>
[Document ID: Index]: [25:4]
Ticker: AAPL
Publication Date: 2025-05-01
Doc Type: earnings-call-transcript
Period: Q2 2025
Highlighted Text: **Kevan Parekh** (SVP & CFO, Apple):

Thanks, Tim, and good afternoon, everyone. Our March revenue of $95,400,000,000 was up 5% year over year despite a headwind of almost 2.5 percentage points from foreign exchange. We also grew in the majority of the markets we track. Products revenue was $68,700,000,000 up 3% year over year, driven by growth in iPhone, iPad, and Mac. And thanks to our high levels of customer satisfaction and strong loyalty, our installed base of active devices reached an all time high across all product categories and geographic segments.

Services revenue was $26,600,000,000 up 12% year over year despite over two percentage points of foreign exchange headwinds. And as Tim mentioned, this was an all time revenue record. We also grew in every geographic segment and saw double digit growth in both developed and emerging markets. Company gross margin was 47.1%, in the middle of our guidance range, and up 20 basis points sequentially, primarily driven by favorable mix. Products gross margin was 35.9, down three forty basis points sequentially, driven by mix, foreign exchange, and a seasonal loss of leverage.

Services gross margin was 75.7%, up 70 basis points sequentially, primarily driven by a different mix, partly offset by foreign exchange. Operating expenses landed at 15,300,000,000 up 6% year over year. Net income was $24,800,000,000 and diluted earnings per share was $1.65 up 8% year over year and a March record. Operating cash flow was also strong at $24,000,000,000 Now I'm going to provide some more details for each of our revenue categories. IPhone revenue was $46,800,000,000 up 2% year over year, driven by the iPhone 16 family.

The iPhone active installed base grew to an all time high in total and in every geographic segment, and iPhone upgraders grew double digits year over year. According to a recent survey from Kantar, during the March, iPhone was a top selling model in The U. S, urban China, The U. K, Germany, Australia, and Japan. And we continue to see high levels of customer satisfaction in The U.

S. At 97%, as measured by four fifty one Research. Mac revenue was $7,900,000,000 up 7% year over year, driven by the latest MacBook Air, MacBook Pro, and Mac Mini models. This performance was broad based, with every geographic segment growing year over year. The Mac installed base reached an all time high, and we saw strong growth for both upgraders and customers new to the Mac.

Customer satisfaction was reported at 95% in The US. IPad revenue was $6,400,000,000 up 15% year over year, driven by the new M3 powered iPad Air. The iPad install base reached another all time high, and over half the customers who purchased an iPad during the quarter were new to the product. Based on the latest reports from four fifty one Research, customer satisfaction was 97% in The U. S.

Wearables, Home and Accessories revenue was $7,500,000,000 down 5% year over year. Keep in mind, we did face a more difficult compare against the launch of the Apple Vision Pro in the year ago quarter as well as the Watch Ultra two launch last year. At the same time, the Apple Watch install base reached a new all time high, with over half of customers purchasing an Apple Watch during the quarter being new to the product. And customer satisfaction for Watch in The U. S.

Was recently measured at 95%. Our services revenue reached an all time high of $26,600,000,000 up 12% year over year. This growth rate was comparable to the December year over year growth rate when we removed the negative impact from foreign exchange. We saw strong momentum in the March, and the growth of our installed base of active devices gives us great opportunities for the future. Customer engagement across our services offerings also continued to grow.

</chunk>

<chunk>
[Document ID: Index]: [28:4]
Ticker: AAPL
Publication Date: 2025-01-30
Doc Type: earnings-call-transcript
Period: Q1 2025
Highlighted Text: **Kevan Parekh** (SVP & CFO, Apple):

Thanks, Tim, and good afternoon, everyone. I'm going to cover the results for the Q1 of our fiscal year. We are very pleased to report an all time high for revenue with December quarter revenue of $124,300,000,000 up 4% year over year. We achieved all time revenue records in the Americas, Europe, Japan and rest of Asia Pacific and grew in the vast majority of markets we track. Products revenue was $98,000,000,000 up 2% year over year, driven by growth from iPad and Mac.

Thanks to our incredible customer satisfaction and strong loyalty, our installed base of active devices reached an all time high across all products and geographic segments and is now over 2,350,000,000 active devices. Services revenue reached an all time record of $26,300,000,000 up 14% year over year. We grew in every geographic segment and achieved all time records in both developed and emerging markets. Company gross margin was 46.9%, at the high end of our guidance range and up 70 basis points sequentially, primarily driven by favorable mix. Products gross margin was 39.3%, up 300 basis points sequentially, primarily driven by favorable mix and leverage.

Services gross margin was 75%, up 100 basis points sequentially, primarily driven by mix. Operating expenses of $15,400,000,000 landed at the midpoint of our guidance range and up 7% year over year. This strong business performance resulted in all time records for both net income at $36,300,000,000 and diluted earnings per share of $2.40 up 10% year over year. Operating cash flow was also strong at $29,900,000,000 which included the impact of the $11,900,000,000 we paid during the quarter in connection with the state aid decision. Now, I'm going to provide some more details for each of our revenue categories.

IPhone revenue was $69,100,000,000 roughly flat to the prior year. We grew in the majority of markets we track and reached all time revenue records in several developed markets, including Canada, Western Europe and Japan, and in emerging markets like Latin America, the Middle East and South Asia. The iPhone active installed base grew to an all time high in total and in every geographic segment. We also set an all time record for upgraders. According to a recent survey from Kantar, during the December quarter, iPhone was a top selling model in the U.

S, Urban China, India, the U. K, France, Australia and Japan. We continue to see high levels of customer satisfaction in the U. S. At 96%, as measured by 451 Research.

Mac generated $9,000,000,000 in revenue, up 16% year over year. We saw strength across our lineup from the new Mac Mini to the latest MacBook Air and MacBook Pro models. This incredible performance was broad based with double digit growth in every geographic segment. With our latest advances in Apple Silicon and our fastest Neural Engine ever, customers are able to take advantage of the full capabilities of AI and Mac. The Mac installed base reached an all time high, and we saw double digit growth for both upgraders and customers new to the Mac.

Additionally, customer satisfaction in the U. S. Was recently measured at 94%. IPad revenue was $8,100,000,000 up 15% year over year, driven by the new iPad mini and latest iPad Air. The iPad installed base reached another all time high, and over half of the customers who purchased an iPad during the quarter were new to the product.

Customer satisfaction was at 96% in the U. S. Based on the latest reports from 451 Research. Wearables home and accessories revenue was $11,700,000,000 down 2% year over year. Customers are excited about the new AirPods 4 and the latest hearing health features in AirPods Pro 2.

</chunk>

<chunk>
[Document ID: Index]: [22:1]
Ticker: AAPL
Publication Date: 2025-07-31
Doc Type: earnings-call-transcript
Period: Q3 2025
Highlighted Text: **Tim Cook** (Chief Executive Officer, Apple):

Thank you, Suasini. Good afternoon, everyone, and thanks for joining the call. Today, we are proud to report a June revenue record of $94,000,000,000 up 10% from a year ago, which was better than we expected. EPS set a June record of $1.57 up 12% year over year. We saw an acceleration of growth around the world in the vast majority of markets we track, including Greater China and many emerging markets.

And we had June revenue records in more than two dozen countries and regions, including The US, Canada, Latin America, Western Europe, The Middle East, India, and South Asia. These results were driven by double digit growth across iPhone, Mac, and services. We set a June record for iPhone, which grew a strong 13% year over year. We saw iPhone growth in every geographic segment and double digit growth in emerging markets, including India, The Middle East, South Asia and Brazil. Mac continued to see excellent results with revenue up 15% year over year.

And we set another all time revenue record in services, which grew 13% with double digit growth in both developed and emerging markets. Last month, we hosted WWDC, an incredible event for our developer community with millions joining us online and more than 1,000 developers here in person at Apple Park. We shared some truly exciting updates, including a stunning new design crafted from a material we call liquid glass. It's both beautiful and expressive. And for the first time ever, this design extends across all of our platforms.

We can't wait for users everywhere to experience it this fall. And we were excited to share some updates across our AI work. We announced even more capabilities coming later this year, including live translation and WorkoutBuddy. In addition to those new features, we announced new support for a number of languages. And we opened up access to the on device foundation models at the core of Apple Intelligence, enabling developers to build a whole new experience for our users.

It's wonderful to see great momentum building for our platforms. IOS 26, macOS 26 and iPadOS 26 are by far the most popular developer betas we've had. Taking a step back, we see AI as one of the most profound technologies of our lifetime. We are embedding it across our devices and platforms and across the company. We are also significantly growing our investments.

Apple has always been about taking the most advanced technologies and making them easy to use and accessible for everyone, and that's at the heart of our AI strategy. With Apple Intelligence, we're integrating AI features across our platforms in a way that is deeply personal, private, and seamless, right where users need them. We've already released more than 20 Apple Intelligence features, including visual intelligence, cleanup and powerful writing tools. We're making good progress on a more personalized Siri. And as we've said before, we expect to release these features next year.

Apple Silicon is at the heart of all of these experiences, enabling powerful Apple intelligence features to run directly on device. For more advanced tasks, our servers, also powered by Apple Silicon, deliver even greater capabilities while preserving user privacy through our private cloud compute architecture. We believe our platforms offer the best way for users to experience the full potential of generative AI. Thanks to the exceptional performance of our systems, our users are able to run generative AI models right on their Mac, iPad and iPhone. We're excited about the work we're doing in this space, and it's incredibly rewarding to see the strong momentum building.

</chunk>

<chunk>
[Document ID: Index]: [32:133]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Financial Statements and Supplementary Data
Doc Type: 10-K
Period: FY 2024
Highlighted Text: Note 13 – Segment Information and Geographic Data

The Company manages its business primarily on a geographic basis. The Company’s reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China mainland, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company’s other reportable segments. Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company’s customers and distribution partners and the unique market dynamics of each geographic region.

The Company evaluates the performance of its reportable segments based on net sales and operating income. Net sales for geographic segments are generally based on the location of customers and sales through the Company’s retail stores located in those geographic locations. Operating income for each segment consists of net sales to third parties, related cost of sales, and operating expenses directly attributable to the segment. The information provided to the Company’s chief operating decision maker for purposes of making decisions and assessing segment performance excludes asset information.

The following table shows information by reportable segment for 2024, 2023 and 2022 (in millions):
```csv
2024,2024,2023,2022
Americas:,,,
Net sales $,"167,045","$ 162,560","$ 169,658"
Operating income $,"67,656","$ 60,508","$ 62,683"
Europe:,,,
Net sales $,"101,328","$ 94,294","$ 95,118"
Operating income $,"41,790","$ 36,098","$ 35,233"
Greater China:,,,
Net sales $,"66,952","$ 72,559","$ 74,200"
Operating income $,"27,082","$ 30,328","$ 31,153"
Japan:,,,
Net sales $,"25,052","$ 24,257","$ 25,977"
Operating income $,"12,454","$ 11,888","$ 12,257"
Rest of Asia Pacific:,,,
Net sales $,"30,658","$ 29,615","$ 29,375"
Operating income $,"13,062","$ 12,066","$ 11,569"
```

A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for 2024, 2023 and 2022 is as follows (in millions):
```csv
,2024,2023,2022
Segment operating income,"$ 162,044","$ 150,888","$ 152,895"
Research and development expense,"(31,370)","(29,915)","(26,251)"
"Other corporate expenses, net (1)","(7,458)","(6,672)","(7,207)"
Total operating income,"$ 123,216","$ 114,301","$ 119,437"
```

(1)Includes general and administrative compensation costs, various nonrecurring charges, and other separately managed costs.

The following tables show net sales for 2024, 2023 and 2022 and long-lived assets as of September 28, 2024 and September 30, 2023 for countries that individually accounted for 10% or more of the respective totals, as well as aggregate amounts for the remaining countries (in millions):
```csv
,2024,2023,2022
Net sales:,,,
U.S.,"$ 142,196","$ 138,573","$ 147,859"
China (1),"66,952","72,559","74,200"
Other countries,"181,887","172,153","172,269"
Total net sales,"$ 391,035","$ 383,285","$ 394,328"
```
```csv
,2024,2023
Long-lived assets:,,
U.S.,"$ 35,664","$ 33,276"
China (1),"4,797","5,778"
Other countries,"5,219","4,661"
Total long-lived assets,"$ 45,680","$ 43,715"
```

(1)China includes Hong Kong and Taiwan.

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Apple Inc.
</chunk>

<chunk>
[Document ID: Index]: [31:4]
Ticker: AAPL
Publication Date: 2024-10-31
Section: remark
Doc Type: earnings-call-transcript
Period: Q4 2024
Highlighted Text: Luca Maestri (executive)
Good afternoon, everyone, and thank you, Tim, for the very kind words. Serving as Apple's CFO has been a real privilege and an amazing journey, and I've greatly appreciated the support from our investors and the analyst community over the years. Cabin is exceptional and I know you will enjoy interacting with him going forward. Let me now turn to the results for the fourth quarter of our fiscal year.
We are very pleased to report a new September quarter revenue record of $94.9 billion, up 6% year-over-year. We grew in the vast majority of the markets we track and achieved September quarter revenue records in the Americas, Europe and rest of Asia Pacific.
Products revenue was $70 billion, up 4% year-over-year, driven by growth in iPhone, iPad and Mac. Our installed base of active devices reached an all-time high across all products and geographic segments, thanks to very high levels of customer satisfaction and loyalty and a large number of customers who are new to our products.
Services revenue reached an all-time record of $25 billion, up 12% year-over-year. We saw broad-based strength around the world, reaching all-time records in both developed and emerging markets with double-digit growth and record results across most services categories.
Company gross margin was 46.2%, near the high end of our guidance range. Products gross margin was 36.3%, up 100 basis points sequentially, primarily driven by favorable mix. Services gross margin was 74%, unchanged from the prior quarter.
Operating expenses of $14.3 billion were at the midpoint of the guidance range we provided at the beginning of the quarter and up 6% year-over-year. During the quarter, we recorded a onetime income tax charge of $10.2 billion, which relates to the impact of the reversal of the European General Court state aid decision. When we exclude this onetime charge, net income was $25 billion and diluted earnings per share were $1.64, up 12% year-over-year and a September quarter record. Operating cash flow was very strong at $26.8 billion, a new September quarter record.
Let me now get into more detail for each of our revenue categories. iPhone revenue was $46.2 billion, up 6% year-over-year and a September quarter record in total and across several markets, including the U.S., the Middle East, Korea and South Asia. The iPhone active installed base grew to a new all-time high in total and in every geographic segment. During the September quarter, many iPhone models were among the top-selling smartphones around the world. In fact, according to a survey from Kantar, iPhone was the top-selling model in the U.S., Urban China, the U.K., Australia and Japan. We continue to see high levels of customer satisfaction for the iPhone 15 family with 451 Research recently measuring it at 98% in the U.S.
Mac revenue was $7.7 billion, up 2% year-over-year, driven by the strength in MacBook Air. Customers have been loving the performance of Apple Silicon on Mac and we are very excited to bring the latest M4 family of chips to the lineup. The Mac installed base reached an all-time high with about half of customers in the quarter being new to Mac. And in the latest report from 451 Research, customer satisfaction was 95% in the U.S.
iPad generated $7 billion in revenue, up 8% year-over-year. In addition to growth in developed markets, we also saw strong performance in many emerging markets with double-digit growth in Mexico, Brazil, the Middle East, India and South Asia. The iPad installed base reached another all-time high and over half of the customers who purchased iPads during the quarter were new to the product. Also, customer satisfaction was recently measured at 97% in the U.S.
</chunk>

<chunk>
[Document ID: Index]: [34:6]
Ticker: AAPL
Publication Date: 2024-08-01
Section: qa
Doc Type: earnings-call-transcript
Period: Q3 2024
Highlighted Text: Erik Woodring (analyst)
Maybe, Tim, if we start with you, I thought some of the color you provided before the call about iPhone 15 performing better than the iPhone 14 was interesting. So just with that context, can you maybe help us understand where you see iPhone replacement cycles today, where you think the size of the base of iPhones that are aged and likely to upgrade are? And what that translates to in potential pent-up demand as we enter a new iPhone cycle? And then I have a follow-up.

Timothy Cook (executive)
The installed base hit an all-time high during the quarter, and so we were very happy about that. iPhone, in general, grew in constant currency. And the 15, as you point out, if you look at the same number of weeks of the 15 from launch and compare that to the 14, the 15 is doing better than the 14. And so that's kind of a state of where we currently are. In terms of upgrade rates, it's very difficult mid-cycle to call upgrade rates. I would just say that with Apple Intelligence, we are very excited about the level of value that we're going to provide to users. And we believe that, that presents another reason for a compelling upgrade.
</chunk>

<chunk>
[Document ID: Index]: [37:4]
Ticker: AAPL
Publication Date: 2024-05-02
Section: remark
Doc Type: earnings-call-transcript
Period: Q2 2024
Highlighted Text: Luca Maestri (executive)
Thank you, Tim, and good afternoon, everyone. Revenue for the March quarter was $90.8 billion, down 4% from last year. Foreign exchange had a negative year-over-year impact of 140 basis points on our results. Products revenue was $66.9 billion, down 10% year-over-year due to the challenging compare on iPhone that Tim described earlier, which was partially offset by strength from Mac. And thanks to our unparalleled customer satisfaction and loyalty and a high number of customers who are new to our products, our installed base of active devices reached an all-time high across all products and all geographic segments.
Services revenue set an all-time record of $23.9 billion, up 14% year-over-year, with record performance in both developed and emerging markets. Company gross margin was 46.6%, up 70 basis points sequentially, driven by cost savings and favorable mix to Services partially offset by leverage. Products gross margin was 36.6%, down 280 basis points sequentially, primarily driven by seasonal loss of leverage and mix, partially offset by favorable costs. Services gross margin was 74.6%, up 180 basis points from last quarter due to a more favorable mix. Operating expenses of $14.4 billion were at the midpoint of the guidance range we provided and up 5% year-over-year. Net income was $23.6 billion, diluted EPS was $1.53 and a March quarter record, and operating cash flow was strong at $22.7 billion.
Let me now provide more detail for each of our revenue categories. iPhone revenue was $46 billion, down 10% year-over-year due to the almost $5 billion impact from a year ago that Tim described earlier. Adjusting for this onetime impact, iPhone revenue would be roughly flat to last year. Our iPhone active installed base grew to a new all-time high in total and in every geographic segment.
And during the March quarter, we saw many iPhone models as the top-selling smartphones around the world. In fact, according to a survey from Kantar, an iPhone was the top-selling model in the U.S., urban China, Australia, the U.K., France, Germany, and Japan. And the iPhone 15 family continues to be very popular with customers. 451 Research recently measured customer satisfaction at 99% in the U.S.
Mac revenue was $7.5 billion, up 4% year-over-year, driven by the strength of our new MacBook Air powered by the M3 chip. Customers are loving the incredible AI performance of the latest MacBook Air and MacBook Pro models. And our Mac installed base reached an all-time high with half of our MacBook Air buyers during the quarter being new to Mac. Also, customer satisfaction for Mac was recently reported at 96% in the U.S.
iPad generated $5.6 billion in revenue, down 17% year-over-year. iPad continued to face a challenging compare against the launch of the M2 iPad Pro and iPad tenth generation from last year. At the same time, the iPad installed base has continued to grow and is at an all-time high, as were half of the customers who purchased iPads during the quarter were new to the product. In addition, the latest report from 451 Research indicated customer satisfaction of 96% for iPad in the U.S.
Wearables, Home and Accessories revenue was $7.9 billion, down 10% year-over-year due to a difficult launch compare. Last year, we had the continued benefit from the launches of the AirPods Pro second generation, the Watch SE and the first Watch Ultra. Apple Watch continues to attract new customers with almost 2/3 of customers purchasing an Apple Watch during the quarter being new to the product, sending the Apple Watch installed base to a new all-time high. And customer satisfaction was recently measured at 95% in the U.S.
</chunk>

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<chunk>
[Document ID: Index]: [32:83]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Risk Factors
Doc Type: 10-K
Period: FY 2024
Highlighted Text: The Company has a minority market share in the global smartphone, personal computer and tablet markets. The Company faces substantial competition in these markets from companies that have significant technical, marketing, distribution and other resources, as well as established hardware, software and digital content supplier relationships. In addition, some of the Company’s competitors have broader product lines, lower-priced products and a larger installed base of active devices. Competition has been particularly intense as competitors have aggressively cut prices and lowered product margins. Certain competitors have the resources, experience or cost structures to provide products at little or no profit or even at a loss. Some of the markets in which the Company competes have from time to time experienced little to no growth or contracted overall.

Additionally, the Company faces significant competition as competitors imitate the Company’s product features and applications within their products or collaborate to offer solutions that are more competitive than those they currently offer. The Company also expects competition to intensify as competitors imitate the Company’s approach to providing components seamlessly within their offerings or work collaboratively to offer integrated solutions.

The Company’s services also face substantial competition, including from companies that have significant resources and experience and have established service offerings with large customer bases. The Company competes with business models that provide content to users for free. The Company also competes with illegitimate means to obtain third-party digital content and applications.

The Company’s business, results of operations and financial condition depend substantially on the Company’s ability to continually improve its products and services to maintain their functional and design advantages. There can be no assurance the Company will be able to continue to provide products and services that compete effectively.
</chunk>

<chunk>
[Document ID: Index]: [32:75]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Business
Doc Type: 10-K
Period: FY 2024
Highlighted Text: Markets and Distribution

The Company’s customers are primarily in the consumer, small and mid-sized business, education, enterprise and government markets. The Company sells its products and resells third-party products in most of its major markets directly to customers through its retail and online stores and its direct sales force. The Company also employs a variety of indirect distribution channels, such as third-party cellular network carriers, wholesalers, retailers and resellers. During 2024, the Company’s net sales through its direct and indirect distribution channels accounted for 38% and 62%, respectively, of total net sales.

Competition

The markets for the Company’s products and services are highly competitive, and are characterized by aggressive price competition and resulting downward pressure on gross margins, frequent introduction of new products and services, short product life cycles, evolving industry standards, continual improvement in product price and performance characteristics, rapid adoption of technological advancements by competitors, and price sensitivity on the part of consumers and businesses. Many of the Company’s competitors seek to compete primarily through aggressive pricing and very low cost structures, and by imitating the Company’s products and infringing on its intellectual property.

The Company’s ability to compete successfully depends heavily on ensuring the continuing and timely introduction of innovative new products, services and technologies to the marketplace. The Company designs and develops nearly the entire solution for its products, including the hardware, operating system, numerous software applications and related services. Principal competitive factors important to the Company include price, product and service features (including security features), relative price and performance, product and service quality and reliability, design innovation, a strong third-party software and accessories ecosystem, marketing and distribution capability, service and support, and corporate reputation.

The Company is focused on expanding its market opportunities related to smartphones, personal computers, tablets, wearables and accessories, and services. The Company faces substantial competition in these markets from companies that have significant technical, marketing, distribution and other resources, as well as established hardware, software, and service offerings with large customer bases. In addition, some of the Company’s competitors have broader product lines, lower-priced products and a larger installed base of active devices. Competition has been particularly intense as competitors have aggressively cut prices and lowered product margins. Certain competitors have the resources, experience or cost structures to provide products at little or no profit or even at a loss. The Company’s services compete with business models that provide content to users for free and use illegitimate means to obtain third-party digital content and applications. The Company faces significant competition as competitors imitate the Company’s product features and applications within their products, or collaborate to offer integrated solutions that are more competitive than those they currently offer.
</chunk>

<chunk>
[Document ID: Index]: [32:96]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Risk Factors
Doc Type: 10-K
Period: FY 2024
Highlighted Text: The Company is also currently subject to antitrust investigations and litigation in various jurisdictions around the world, which can result in legal proceedings and claims against the Company that could, individually or in the aggregate, have a materially adverse impact on the Company’s business, results of operations and financial condition. For example, the Company is subject to civil antitrust lawsuits in the U.S. alleging monopolization or attempted monopolization in the markets for “performance smartphones” and “smartphones” generally in violation of U.S. antitrust laws. In addition, the Company is the subject of investigations in Europe and other jurisdictions relating to App Store terms and conditions. If such investigations or litigation are resolved against the Company, the Company can be exposed to significant fines and may be required to make further changes to its business practices, all of which could materially adversely affect the Company’s business, reputation, results of operations and financial condition.

Further, the Company has commercial relationships with other companies in the technology industry that are or may become subject to investigations and litigation that, if resolved against those other companies, could materially adversely affect the Company’s commercial relationships with those business partners and materially adversely affect the Company’s business, results of operations and financial condition. For example, the Company earns revenue from licensing arrangements with Google LLC and other companies to offer their search services on the Company’s platforms and applications, and certain of these arrangements are currently subject to government investigations and legal proceedings.

There can be no assurance the Company’s business will not be materially adversely affected, individually or in the aggregate, by the outcomes of such investigations, litigation or changes to laws and regulations in the future. Changes to the Company’s business practices to comply with new laws and regulations or in connection with other legal proceedings can negatively impact the reputation of the Company’s products for privacy and security and otherwise adversely affect the experience for users of the Company’s products and services, and result in harm to the Company’s reputation, loss of competitive advantage, poor market acceptance, reduced demand for products and services, and lost sales.

The Company’s business is subject to a variety of U.S. and international laws, rules, policies and other obligations regarding data protection.

The Company is subject to an increasing number of federal, state and international laws relating to the collection, use, retention, security and transfer of various types of personal information. In many cases, these laws apply not only to third-party transactions, but also restrict transfers of personal information among the Company and its international subsidiaries. Several jurisdictions have passed laws in this area, and additional jurisdictions are considering imposing additional restrictions or have laws that are pending. These laws continue to develop and may be inconsistent from jurisdiction to jurisdiction. Complying with emerging and changing requirements causes the Company to incur substantial costs and has required and may in the future require the Company to change its business practices. Noncompliance could result in significant penalties or legal liability.
</chunk>

<chunk>
[Document ID: Index]: [32:76]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Business
Doc Type: 10-K
Period: FY 2024
Highlighted Text: Supply of Components

Although most components essential to the Company’s business are generally available from multiple sources, certain components are currently obtained from single or limited sources. The Company also competes for various components with other participants in the markets for smartphones, personal computers, tablets, wearables and accessories. Therefore, many components used by the Company, including those that are available from multiple sources, are at times subject to industry-wide shortage and significant commodity pricing fluctuations.

The Company uses some custom components that are not commonly used by its competitors, and new products introduced by the Company often utilize custom components available from only one source. When a component or product uses new technologies, initial capacity constraints may exist until the suppliers’ yields have matured or their manufacturing capacities have increased. The continued availability of these components at acceptable prices, or at all, may be affected if suppliers decide to concentrate on the production of common components instead of components customized to meet the Company’s requirements.

The Company has entered into agreements for the supply of many components; however, there can be no guarantee that the Company will be able to extend or renew these agreements on similar terms, or at all.

Research and Development

Because the industries in which the Company competes are characterized by rapid technological advances, the Company’s ability to compete successfully depends heavily upon its ability to ensure a continual and timely flow of competitive products, services and technologies to the marketplace. The Company continues to develop new technologies to enhance existing products and services, and to expand the range of its offerings through research and development (“R&D”), licensing of intellectual property and acquisition of third-party businesses and technology.

Intellectual Property

The Company currently holds a broad collection of intellectual property rights relating to certain aspects of its hardware, accessories, software and services. This includes patents, designs, copyrights, trademarks, trade secrets and other forms of intellectual property rights in the U.S. and various foreign countries. Although the Company believes the ownership of such intellectual property rights is an important factor in differentiating its business and that its success does depend in part on such ownership, the Company relies primarily on the innovative skills, technical competence and marketing abilities of its personnel.

The Company regularly files patent, design, copyright and trademark applications to protect innovations arising from its research, development, design and marketing, and is currently pursuing thousands of applications around the world. Over time, the Company has accumulated a large portfolio of issued and registered intellectual property rights around the world. No single intellectual property right is solely responsible for protecting the Company’s products and services. The Company believes the duration of its intellectual property rights is adequate relative to the expected lives of its products and services.

In addition to Company-owned intellectual property, many of the Company’s products and services are designed to include intellectual property owned by third parties. It may be necessary in the future to seek or renew licenses relating to various aspects of the Company’s products, processes and services. While the Company has generally been able to obtain such licenses on commercially reasonable terms in the past, there is no guarantee that such licenses could be obtained in the future on reasonable terms or at all.
</chunk>

<chunk>
[Document ID: Index]: [32:89]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Risk Factors
Doc Type: 10-K
Period: FY 2024
Highlighted Text: Much of the Company’s future success depends on the talents and efforts of its team members and the continued availability and service of key personnel, including its Chief Executive Officer, executive team and other highly skilled employees. Experienced personnel in the technology industry are in high demand and competition for their talents is intense, especially in Silicon Valley, where most of the Company’s key personnel are located. In addition to intense competition for talent, workforce dynamics are constantly evolving. If the Company does not manage changing workforce dynamics effectively, it could materially adversely affect the Company’s culture, reputation and operational flexibility.

The Company believes that its distinctive and inclusive culture is a significant driver of its success. If the Company is unable to nurture its culture, it could materially adversely affect the Company’s ability to recruit and retain the highly skilled employees who are critical to its success, and could otherwise materially adversely affect the Company’s business, reputation, results of operations and financial condition.

The Company depends on the performance of carriers, wholesalers, retailers and other resellers.

The Company distributes its products and certain of its services through cellular network carriers, wholesalers, retailers and resellers, many of which distribute products and services from competitors. The Company also sells its products and services and resells third-party products in most of its major markets directly to consumers, small and mid-sized businesses, and education, enterprise and government customers through its retail and online stores and its direct sales force.

Some carriers providing cellular network service for the Company’s products offer financing, installment payment plans or subsidies for users’ purchases of the device. There can be no assurance such offers will be continued at all or in the same amounts.

The Company has invested and will continue to invest in programs to enhance reseller sales, including staffing selected resellers’ stores with Company employees and contractors, and improving product placement displays. These programs can require a substantial investment while not assuring return or incremental sales. The financial condition of these resellers could weaken, these resellers could stop distributing the Company’s products, or uncertainty regarding demand for some or all of the Company’s products could cause resellers to reduce their ordering and marketing of the Company’s products.

The Company’s business and reputation are impacted by information technology system failures and network disruptions.

The Company and its global supply chain are dependent on complex information technology systems and are exposed to information technology system failures or network disruptions caused by natural disasters, accidents, power disruptions, telecommunications failures, acts of terrorism or war, computer viruses, physical or electronic break-ins, ransomware or other cybersecurity incidents, or other events or disruptions. System upgrades, redundancy and other continuity measures may be ineffective or inadequate, and the Company’s or its vendors’ business continuity and disaster recovery planning may not be sufficient for all eventualities. Such failures or disruptions can adversely impact the Company’s business by, among other things, preventing access to the Company’s online services, interfering with customer transactions or impeding the manufacturing and shipping of the Company’s products. These events could materially adversely affect the Company’s business, reputation, results of operations and financial condition.

Losses or unauthorized access to or releases of confidential information, including personal information, could subject the Company to significant reputational, financial, legal and operational consequences.
</chunk>

<chunk>
[Document ID: Index]: [29:48]
Ticker: AAPL
Publication Date: 2025-01-31
Section: Risk Factors
Doc Type: 10-Q
Period: Q1 2025
Highlighted Text: Regulatory changes and other actions that materially adversely affect the Company’s business may be announced with little or no advance notice and the Company may not be able to effectively mitigate all adverse impacts from such measures. For example, the Company is subject to changing regulations relating to the export and import of its products. Although the Company has programs, policies and procedures in place that are designed to satisfy regulatory requirements, there can be no assurance that such policies and procedures will be effective in preventing a violation or a claim of a violation. As a result, the Company’s products could be banned, delayed or prohibited from importation, which could materially adversely affect the Company’s business, reputation, results of operations and financial condition.

The technology industry, including, in some instances, the Company, is subject to intense media, political and regulatory scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions and penalties.

From time to time, the Company has made changes to its App Store, including actions taken in response to litigation, competition, market conditions and legal and regulatory requirements. The Company expects to make further business changes in the future. For example, in the U.S. the Company has implemented changes to how developers communicate with consumers within apps on the U.S. storefront of the iOS and iPadOS App Store regarding alternative purchasing mechanisms.

The Company has also implemented changes to iOS, iPadOS, the App Store and Safari in the EU as it seeks to comply with the DMA, including new business terms and alternative fee structures for iOS and iPadOS apps, alternative methods of distribution for iOS and iPadOS apps, alternative payment processing for apps across the Company’s operating systems, and additional tools and application programming interfaces (“APIs”) for developers. The Company has also continued to make changes to its compliance plan in response to feedback and engagement with the Commission. Although the Company’s compliance plan is intended to address the DMA’s obligations, it has been challenged by the Commission and may be challenged further by private litigants. The DMA provides for significant fines and penalties for noncompliance, and other jurisdictions may seek to require the Company to make changes to its business. While the changes introduced by the Company in the EU are intended to reduce new privacy and security risks that the DMA poses to EU users, many risks will remain.

The Company is also currently subject to antitrust investigations and litigation in various jurisdictions around the world, which can result in legal proceedings and claims against the Company that could, individually or in the aggregate, have a materially adverse impact on the Company’s business, results of operations and financial condition. For example, the Company is subject to civil antitrust lawsuits in the U.S. alleging monopolization or attempted monopolization in the markets for “performance smartphones” and “smartphones” generally in violation of U.S. antitrust laws. In addition, the Company is the subject of investigations in Europe and other jurisdictions relating to App Store terms and conditions. If such investigations or litigation are resolved against the Company, the Company can be exposed to significant fines and may be required to make further changes to its business practices, all of which could materially adversely affect the Company’s business, reputation, results of operations and financial condition.
</chunk>

<chunk>
[Document ID: Index]: [32:87]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Risk Factors
Doc Type: 10-K
Period: FY 2024
Highlighted Text: The Company relies on access to third-party intellectual property, which may not be available to the Company on commercially reasonable terms, or at all.

The Company’s products and services are designed to include intellectual property owned by third parties, which requires licenses from those third parties. In addition, because of technological changes in the industries in which the Company currently competes or in the future may compete, current extensive patent coverage and the rapid rate of issuance of new patents, the Company’s products and services can unknowingly infringe existing patents or intellectual property rights of others. From time to time, the Company has been notified that it may be infringing certain patents or other intellectual property rights of third parties. Based on experience and industry practice, the Company believes licenses to such third-party intellectual property can generally be obtained on commercially reasonable terms. However, there can be no assurance the necessary licenses can be obtained on commercially reasonable terms or at all. Failure to obtain the right to use third-party intellectual property, or to use such intellectual property on commercially reasonable terms, can require the Company to modify certain products, services or features or preclude the Company from selling certain products or services, or otherwise have a material adverse impact on the Company’s business, results of operations and financial condition.

The Company’s future performance depends in part on support from third-party software developers.

The Company believes decisions by customers to purchase its hardware products depend in part on the availability of third-party software applications and services. There can be no assurance third-party developers will continue to develop and maintain software applications and services for the Company’s products. If third-party software applications and services cease to be developed and maintained for the Company’s products, customers may choose not to buy the Company’s products.

The Company believes the availability of third-party software applications and services for its products depends in part on the developers’ perception and analysis of the relative benefits of developing, maintaining and upgrading such software and services for the Company’s products compared to competitors’ platforms, such as Android for smartphones and tablets, Windows for personal computers and tablets, and PlayStation, Nintendo and Xbox for gaming platforms. This analysis may be based on factors such as the market position of the Company and its products, the anticipated revenue that may be generated, expected future growth of product sales, and the costs of developing such applications and services.

The Company’s minority market share in the global smartphone, personal computer and tablet markets can make developers less inclined to develop or upgrade software for the Company’s products and more inclined to devote their resources to developing and upgrading software for competitors’ products with larger market share. When developers focus their efforts on these competing platforms, the availability and quality of applications for the Company’s devices can suffer.

The Company relies on the continued availability and development of compelling and innovative software applications for its products. The Company’s products and operating systems are subject to rapid technological change, and when third-party developers are unable to or choose not to keep up with this pace of change, their applications can fail to take advantage of these changes to deliver improved customer experiences, can operate incorrectly, and can result in dissatisfied customers and lower customer demand for the Company’s products.
</chunk>

<chunk>
[Document ID: Index]: [32:82]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Risk Factors
Doc Type: 10-K
Period: FY 2024
Highlighted Text: The Company’s operations are also subject to the risks of industrial accidents at its suppliers and contract manufacturers. While the Company’s suppliers are required to maintain safe working environments and operations, an industrial accident could occur and could result in serious injuries or loss of life, disruption to the Company’s business, and harm to the Company’s reputation. Major public health issues, including pandemics such as the COVID-19 pandemic, have adversely affected, and could in the future materially adversely affect, the Company due to their impact on the global economy and demand for consumer products; the imposition of protective public safety measures, such as stringent employee travel restrictions and limitations on freight services and the movement of products between regions; and disruptions in the Company’s operations, supply chain and sales and distribution channels, resulting in interruptions to the supply of current products and offering of existing services, and delays in production ramps of new products and development of new services.

Following any interruption to its business, the Company can require substantial recovery time, experience significant expenditures to resume operations, and lose significant sales. Because the Company relies on single or limited sources for the supply and manufacture of many critical components, a business interruption affecting such sources would exacerbate any negative consequences to the Company. While the Company maintains insurance coverage for certain types of losses, such insurance coverage may be insufficient to cover all losses that may arise.

Global markets for the Company’s products and services are highly competitive and subject to rapid technological change, and the Company may be unable to compete effectively in these markets.

The Company’s products and services are offered in highly competitive global markets characterized by aggressive price competition and resulting downward pressure on gross margins, frequent introduction of new products and services, short product life cycles, evolving industry standards, continual improvement in product price and performance characteristics, rapid adoption of technological advancements by competitors, and price sensitivity on the part of consumers and businesses.

The Company’s ability to compete successfully depends heavily on ensuring the continuing and timely introduction of innovative new products, services and technologies to the marketplace. The Company designs and develops nearly the entire solution for its products, including the hardware, operating system, numerous software applications and related services. As a result, the Company must make significant investments in R&D. There can be no assurance these investments will achieve expected returns, and the Company may not be able to develop and market new products and services successfully.

The Company currently holds a significant number of patents, trademarks and copyrights and has registered, and applied to register, additional patents, trademarks and copyrights. In contrast, many of the Company’s competitors seek to compete primarily through aggressive pricing and very low cost structures, and by imitating the Company’s products and infringing on its intellectual property. Effective intellectual property protection is not consistently available in every country in which the Company operates. If the Company is unable to continue to develop and sell innovative new products with attractive margins or if competitors infringe on the Company’s intellectual property, the Company’s ability to maintain a competitive advantage could be materially adversely affected.
</chunk>

Todo write

Input

Get financial data for Apple's debt analysis, cash flow, and profitability metrics over recent periods
Search for Apple's business model, revenue streams, and key value drivers in recent filings
Search for industry analysis, competitive positioning, and market share information
Search for recent developments including product launches, strategic initiatives, and major announcements
Search for growth catalysts, strategic opportunities, and forward-looking initiatives
Search for risk factors, challenges, and potential headwinds
Search for detailed debt structure, maturity profile, and covenant information

Output

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  "summary": {
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      "status": "completed"
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      "content": "Search for recent developments including product launches, strategic initiatives, and major announcements",
      "status": "in_progress"
    },
    {
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Search documents

Input

Apple Intelligence AI artificial intelligence new products iPhone 16 Vision Pro M4 chip product launches +(strategic initiatives) +(new features) +WWDC --QDF=5

Output

[Total chunks returned: 8]

<chunk>
[Document ID: Index]: [22:1]
Ticker: AAPL
Publication Date: 2025-07-31
Doc Type: earnings-call-transcript
Period: Q3 2025
Highlighted Text: **Tim Cook** (Chief Executive Officer, Apple):

Thank you, Suasini. Good afternoon, everyone, and thanks for joining the call. Today, we are proud to report a June revenue record of $94,000,000,000 up 10% from a year ago, which was better than we expected. EPS set a June record of $1.57 up 12% year over year. We saw an acceleration of growth around the world in the vast majority of markets we track, including Greater China and many emerging markets.

And we had June revenue records in more than two dozen countries and regions, including The US, Canada, Latin America, Western Europe, The Middle East, India, and South Asia. These results were driven by double digit growth across iPhone, Mac, and services. We set a June record for iPhone, which grew a strong 13% year over year. We saw iPhone growth in every geographic segment and double digit growth in emerging markets, including India, The Middle East, South Asia and Brazil. Mac continued to see excellent results with revenue up 15% year over year.

And we set another all time revenue record in services, which grew 13% with double digit growth in both developed and emerging markets. Last month, we hosted WWDC, an incredible event for our developer community with millions joining us online and more than 1,000 developers here in person at Apple Park. We shared some truly exciting updates, including a stunning new design crafted from a material we call liquid glass. It's both beautiful and expressive. And for the first time ever, this design extends across all of our platforms.

We can't wait for users everywhere to experience it this fall. And we were excited to share some updates across our AI work. We announced even more capabilities coming later this year, including live translation and WorkoutBuddy. In addition to those new features, we announced new support for a number of languages. And we opened up access to the on device foundation models at the core of Apple Intelligence, enabling developers to build a whole new experience for our users.

It's wonderful to see great momentum building for our platforms. IOS 26, macOS 26 and iPadOS 26 are by far the most popular developer betas we've had. Taking a step back, we see AI as one of the most profound technologies of our lifetime. We are embedding it across our devices and platforms and across the company. We are also significantly growing our investments.

Apple has always been about taking the most advanced technologies and making them easy to use and accessible for everyone, and that's at the heart of our AI strategy. With Apple Intelligence, we're integrating AI features across our platforms in a way that is deeply personal, private, and seamless, right where users need them. We've already released more than 20 Apple Intelligence features, including visual intelligence, cleanup and powerful writing tools. We're making good progress on a more personalized Siri. And as we've said before, we expect to release these features next year.

Apple Silicon is at the heart of all of these experiences, enabling powerful Apple intelligence features to run directly on device. For more advanced tasks, our servers, also powered by Apple Silicon, deliver even greater capabilities while preserving user privacy through our private cloud compute architecture. We believe our platforms offer the best way for users to experience the full potential of generative AI. Thanks to the exceptional performance of our systems, our users are able to run generative AI models right on their Mac, iPad and iPhone. We're excited about the work we're doing in this space, and it's incredibly rewarding to see the strong momentum building.

</chunk>

<chunk>
[Document ID: Index]: [23:15]
Ticker: AAPL
Publication Date: 2025-08-01
Section: Management's Discussion and Analysis of Financial Condition and Results of Operations
Doc Type: 10-Q
Period: Q3 2025
Highlighted Text: Rest of Asia Pacific net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to higher net sales of Services and iPhone.

Products and Services Performance

The following table shows net sales by category for the three- and nine-month periods ended June 28, 2025 and June 29, 2024 (dollars in millions):
```csv
,Three Months Ended,Three Months Ended,Three Months Ended,Nine Months Ended,Nine Months Ended,Nine Months Ended
,"June 28, 2025","June 29, 2024",Change,"June 28, 2025","June 29, 2024",Change
iPhone,"$ 44,582","$ 39,296",13 %,"$ 160,561","$ 154,961",4 %
Mac,"8,046","7,009",15 %,"24,982","22,240",12 %
iPad,"6,581","7,162",(8) %,"21,071","19,744",7 %
"Wearables, Home and Accessories","7,404","8,097",(9) %,"26,673","27,963",(5) %
Services,"27,423","24,213",13 %,"80,408","71,197",13 %
Total net sales,"$ 94,036","$ 85,777",10 %,"$ 313,695","$ 296,105",6 %
```

iPhone

iPhone net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due to higher net sales of Pro models.

Mac

Mac net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due to higher net sales of both laptops and desktops.

iPad

iPad net sales decreased during the third quarter of 2025 compared to the third quarter of 2024 due to lower net sales of iPad Pro®, partially offset by higher net sales of all other iPad models. iPad net sales increased during the first nine months of 2025 compared to the same period in 2024 due primarily to higher net sales of iPad Air®.

Wearables, Home and Accessories

Wearables, Home and Accessories net sales decreased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to lower net sales of Wearables and Accessories.

Services

Services net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to higher net sales from advertising, the App Store® and cloud services.

Gross Margin

Products and Services gross margin and gross margin percentage for the three- and nine-month periods ended June 28, 2025 and June 29, 2024, were as follows (dollars in millions):
```csv
,Three Months Ended,Three Months Ended,Nine Months Ended,Nine Months Ended
,"June 28, 2025","June 29, 2024","June 28, 2025","June 29, 2024"
Gross margin:,,,,
Products,"$ 22,993","$ 21,761","$ 86,190","$ 84,241"
Services,"20,725","17,917","60,670","52,563"
Total gross margin,"$ 43,718","$ 39,678","$ 146,860","$ 136,804"
```
```csv
Gross margin percentage:,,,,
Products,34.5 %,35.3 %,36.9 %,37.5 %
Services,75.6 %,74.0 %,75.5 %,73.8 %
Total gross margin percentage,46.5 %,46.3 %,46.8 %,46.2 %
```

Products Gross Margin

Products gross margin increased during the third quarter of 2025 compared to the third quarter of 2024 due primarily to a different mix of products and favorable costs, partially offset by tariffs. Products gross margin increased during the first nine months of 2025 compared to the same period in 2024 due primarily to favorable costs and a different mix of products, partially offset by tariffs and the weakness in foreign currencies relative to the U.S. dollar.

Products gross margin percentage decreased during the third quarter of 2025 compared to the third quarter of 2024 due primarily to tariffs and a different mix of products, partially offset by favorable costs. Products gross margin percentage decreased during the first nine months of 2025 compared to the same period in 2024 due primarily to a different mix of products and tariffs, partially offset by favorable costs.

Services Gross Margin
</chunk>

<chunk>
[Document ID: Index]: [23:14]
Ticker: AAPL
Publication Date: 2025-08-01
Section: Management's Discussion and Analysis of Financial Condition and Results of Operations
Doc Type: 10-Q
Period: Q3 2025
Highlighted Text: Beginning in the second quarter of 2025, new tariffs were announced on imports to the U.S. (“U.S. Tariffs”), including additional tariffs on imports from China, India, Japan, South Korea, Taiwan, Vietnam and the European Union (“EU”), among others. In response, several countries have imposed, or threatened to impose, reciprocal tariffs on imports from the U.S. and other retaliatory measures. Various modifications to the U.S. Tariffs have been announced and further changes could be made in the future, which may include additional sector-based tariffs or other measures. For example, the U.S. Department of Commerce has initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended, into, among other things, imports of semiconductors, semiconductor manufacturing equipment, and their derivative products, including downstream products that contain semiconductors. Tariffs and other measures that are applied to the Company’s products or their components can have a material adverse impact on the Company’s business, results of operations and financial condition, including impacting the Company’s supply chain, the availability of rare earths and other raw materials and components, pricing and gross margin. The ultimate impact remains uncertain and will depend on several factors, including whether additional or incremental U.S. Tariffs or other measures are announced or imposed, to what extent other countries implement tariffs or other retaliatory measures in response, and the overall magnitude and duration of these measures. Trade and other international disputes can have an adverse impact on the overall macroeconomic environment and result in shifts and reductions in consumer spending and negative consumer sentiment for the Company’s products and services, all of which can further adversely affect the Company’s business and results of operations.

Segment Operating Performance

The following table shows net sales by reportable segment for the three- and nine-month periods ended June 28, 2025 and June 29, 2024 (dollars in millions):
```csv
,Three Months Ended,Three Months Ended,Three Months Ended,Nine Months Ended,Nine Months Ended,Nine Months Ended
,"June 28, 2025","June 29, 2024",Change,"June 28, 2025","June 29, 2024",Change
Americas,"$ 41,198","$ 37,678",9 %,"$ 134,161","$ 125,381",7 %
Europe,"24,014","21,884",10 %,"82,329","76,404",8 %
Greater China,"15,369","14,728",4 %,"49,884","51,919",(4) %
Japan,"5,782","5,097",13 %,"22,067","19,126",15 %
Rest of Asia Pacific,"7,673","6,390",20 %,"25,254","23,275",9 %
Total net sales,"$ 94,036","$ 85,777",10 %,"$ 313,695","$ 296,105",6 %
```

Americas

Americas net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to higher net sales of iPhone and Services. The weakness in foreign currencies relative to the U.S. dollar had an unfavorable year-over-year impact on Americas net sales during the third quarter and first nine months of 2025.

Europe

Europe net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to higher net sales of Services and iPhone.

Greater China

Greater China net sales increased during the third quarter of 2025 compared to the third quarter of 2024 due primarily to higher net sales of iPhone and Mac. Greater China net sales decreased during the first nine months of 2025 compared to the same period in 2024 due to lower net sales of iPhone, partially offset by higher net sales of Mac.

Japan

Japan net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to higher net sales of iPhone and Services. The strength in the yen relative to the U.S. dollar had a favorable year-over-year impact on Japan net sales during the third quarter of 2025.

Rest of Asia Pacific
</chunk>

<chunk>
[Document ID: Index]: [23:13]
Ticker: AAPL
Publication Date: 2025-08-01
Section: Management's Discussion and Analysis of Financial Condition and Results of Operations
Doc Type: 10-Q
Period: Q3 2025
Highlighted Text: Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Item and other sections of this Quarterly Report on Form 10-Q (“Form 10-Q”) contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. For example, statements in this Form 10-Q regarding the potential future impact of macroeconomic conditions and tariffs and other measures on the Company’s business and results of operations are forward-looking statements. Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed in Part I, Item 1A of the 2024 Form 10-K and Part II, Item 1A of this Form 10-Q, in each case under the heading “Risk Factors.” The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law.

Unless otherwise stated, all information presented herein is based on the Company’s fiscal calendar, and references to particular years, quarters, months or periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years.

The following discussion should be read in conjunction with the 2024 Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) and the condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Form 10-Q.

Available Information

The Company periodically provides certain information for investors on its corporate website, www.apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, information on corporate governance, and details related to the Company’s annual meeting of shareholders. The information contained on the websites referenced in this Form 10-Q is not incorporated by reference into this filing. Further, the Company’s references to website URLs are intended to be inactive textual references only.

Business Seasonality and Product Introductions

The Company has historically experienced higher net sales in its first quarter compared to other quarters in its fiscal year due in part to seasonal holiday demand. Additionally, new product and service introductions can significantly impact net sales, cost of sales and operating expenses. The timing of product introductions can also impact the Company’s net sales to its indirect distribution channels as these channels are filled with new inventory following a product launch, and channel inventory of an older product often declines as the launch of a newer product approaches. Net sales can also be affected when consumers and distributors anticipate a product introduction.

During the third quarter of 2025, the Company announced iOS 26, macOS® Tahoe 26, iPadOS® 26, watchOS® 26, visionOS® 26 and tvOS® 26.

Macroeconomic Conditions

Macroeconomic conditions, including inflation, interest rates and currency fluctuations, have directly and indirectly impacted, and could in the future materially impact, the Company’s results of operations and financial condition.

Tariffs and Other Measures
</chunk>

<chunk>
[Document ID: Index]: [22:2]
Ticker: AAPL
Publication Date: 2025-07-31
Doc Type: earnings-call-transcript
Period: Q3 2025
Highlighted Text: **Tim Cook** (Chief Executive Officer, Apple):

Now let me turn to more details about our results for the quarter, starting with iPhone. IPhone revenue was $44,600,000,000 up 13% from a year ago, and we set a June record for upgraders. This strong broad based performance was driven by the incredible popularity of the iPhone 16 family, which was up strong double digits year over year as compared to the 15 family. We also recently marked a significant milestone. We shipped the three billionth iPhone since its launch in 02/2007.

From the Pro models with the powerhouse A18 Pro and innovative Pro camera features to the iPhone 16E with breakthrough battery life and a two in-one camera system, users are finding so many reasons to love the best iPhone lineup we've ever created. And iOS 26 will take that experience even further. In addition to the beautiful new design and powerful Apple intelligence features, it introduces a range of meaningful updates, like real time call screening and hold assist in the phone app, smarter messaging tools and new live translation features. It all adds up to a smarter, more personal iPhone experience that we can't wait for users everywhere to enjoy this fall. In Mac, we had another strong quarter with revenue of $8,000,000,000 up 15% year over year, largely driven by the strength of the M4 MacBook Air.

We set a June record for upgraders on Mac, and we saw great performance in emerging markets with strong double digit growth on revenue as well as strong double digit growth on both upgraders and customers new to Mac. MacBook Air, the world's most popular laptop, unlocks a whole new level of performance with the power of M4. MacBook Pro customers, meanwhile, continue to be drawn to its incredible power and the longest battery life we've ever had on a Mac. Customers are also loving the newest Mac Studio, which is the most powerful Mac we've ever made with next level capabilities to tackle even the most demanding AI workflows. At the same time, Mac Mini continues to win over customers by packing so much performance into an ultra compact design.

And with fantastic new updates in macOS Tahoe 26, from the phone app to live activities to our biggest ever update to Spotlight, Mac users across our entire lineup are going to find delightful new ways to stay connected and productive. For iPad, June revenue was $6,600,000,000 Our incredibly versatile iPad lineup brings together power and portability like never before, And users are already excited for our biggest iPad software update ever with the upcoming release of iPadOS 26. It starts with a new windowing system that's remarkably intuitive, giving users more control than ever of their iPad experience. An enhanced Files app makes it easier than ever to stay organized. And that's all on top of a beautiful new software design that brings these updates to life.

Turning to Wearables, Home and Accessories. Revenue was $7,400,000,000 and we saw a June record for upgraders to Apple Watch. During the quarter, we marked the ten year anniversary of Apple Watch, celebrating a decade of helping users navigate their health and fitness journeys. And with watchOS '20 six, Apple Watch will be more intelligent than ever with smart updates to the workout app and smart stack along with a fresh new design that feels both dynamic and personal. We're also thrilled about what's coming to Apple Vision Pro with Vision OS 26, introducing spatial widgets that let users customize their digital space, more lifelike personas, and new enterprise APIs that empower companies to build their own spatial experiences.

</chunk>

<chunk>
[Document ID: Index]: [22:2]
Ticker: AAPL
Publication Date: 2025-07-31
Doc Type: earnings-call-transcript
Period: Q3 2025
Highlighted Text: **Tim Cook** (Chief Executive Officer, Apple):

Now let me turn to more details about our results for the quarter, starting with iPhone. IPhone revenue was $44,600,000,000 up 13% from a year ago, and we set a June record for upgraders. This strong broad based performance was driven by the incredible popularity of the iPhone 16 family, which was up strong double digits year over year as compared to the 15 family. We also recently marked a significant milestone. We shipped the three billionth iPhone since its launch in 02/2007.

From the Pro models with the powerhouse A18 Pro and innovative Pro camera features to the iPhone 16E with breakthrough battery life and a two in-one camera system, users are finding so many reasons to love the best iPhone lineup we've ever created. And iOS 26 will take that experience even further. In addition to the beautiful new design and powerful Apple intelligence features, it introduces a range of meaningful updates, like real time call screening and hold assist in the phone app, smarter messaging tools and new live translation features. It all adds up to a smarter, more personal iPhone experience that we can't wait for users everywhere to enjoy this fall. In Mac, we had another strong quarter with revenue of $8,000,000,000 up 15% year over year, largely driven by the strength of the M4 MacBook Air.

We set a June record for upgraders on Mac, and we saw great performance in emerging markets with strong double digit growth on revenue as well as strong double digit growth on both upgraders and customers new to Mac. MacBook Air, the world's most popular laptop, unlocks a whole new level of performance with the power of M4. MacBook Pro customers, meanwhile, continue to be drawn to its incredible power and the longest battery life we've ever had on a Mac. Customers are also loving the newest Mac Studio, which is the most powerful Mac we've ever made with next level capabilities to tackle even the most demanding AI workflows. At the same time, Mac Mini continues to win over customers by packing so much performance into an ultra compact design.

And with fantastic new updates in macOS Tahoe 26, from the phone app to live activities to our biggest ever update to Spotlight, Mac users across our entire lineup are going to find delightful new ways to stay connected and productive. For iPad, June revenue was $6,600,000,000 Our incredibly versatile iPad lineup brings together power and portability like never before, And users are already excited for our biggest iPad software update ever with the upcoming release of iPadOS 26. It starts with a new windowing system that's remarkably intuitive, giving users more control than ever of their iPad experience. An enhanced Files app makes it easier than ever to stay organized. And that's all on top of a beautiful new software design that brings these updates to life.

Turning to Wearables, Home and Accessories. Revenue was $7,400,000,000 and we saw a June record for upgraders to Apple Watch. During the quarter, we marked the ten year anniversary of Apple Watch, celebrating a decade of helping users navigate their health and fitness journeys. And with watchOS '20 six, Apple Watch will be more intelligent than ever with smart updates to the workout app and smart stack along with a fresh new design that feels both dynamic and personal. We're also thrilled about what's coming to Apple Vision Pro with Vision OS 26, introducing spatial widgets that let users customize their digital space, more lifelike personas, and new enterprise APIs that empower companies to build their own spatial experiences.

</chunk>

<chunk>
[Document ID: Index]: [22:3]
Ticker: AAPL
Publication Date: 2025-07-31
Doc Type: earnings-call-transcript
Period: Q3 2025
Highlighted Text: **Tim Cook** (Chief Executive Officer, Apple):

And this fall, new features for our latest AirPods lineup will unlock even more possibilities from studio quality audio recording to using AirPods as a camera remote, giving users powerful new ways to capture content and stay connected. As we're innovating across our lineup, we're especially proud of the work we're doing to help our users live healthier lives. Since we first launched our hearing health features for AirPods Pro two, I've received notes from people who are delighted to be able to connect more deeply with loved ones. Whether it's with AirPods Pro two or Apple Watch or iPhone, it's amazing to see the power of our health and safety features, from hearing tests to fall detection alerts to irregular rhythm notifications having such a profound impact. Turning to services.

Revenue for the June was $27,400,000,000 up 13% from a year ago and an all time record. Apple TV plus scored 81 nominations, a record for the platform across nearly every eligible category for this year's Emmy Awards. Severance leads all Emmy nominees with 27 nominations, and the studio follows close behind with 23 nominations, more than any other freshman comedy series ever. It's amazing to see how these and other Apple TV shows have captured the popular imagination. To date, Apple TV plus has earned more than 2,700 award nominations and five eighty five wins on the strength of the highest rated original content of any streaming network.

And we continue to see very positive trends in the June with TV plus viewership up strong double digits year over year. In June, we were also thrilled to release F1 in theaters around the world, one of the summer's most unforgettable blockbusters. During the quarter, we celebrated a big anniversary with ten years of Apple Music. To mark the occasion, we launched an all new studio space in Los Angeles for artists to create content and connect with fans. And later this year, we're bringing Apple Music users even more to love, from an enhanced listening experience with automix, which mixes songs like a DJ, to lyrics translation and more.

The App Store, meanwhile, continues to be the very best place to discover the latest apps from developers around the world in a safe and trusted way, and App Store revenue grew double digits year over year, setting a June record. In retail, we continue to find opportunities in emerging markets to connect with even more customers. We recently launched the Apple Store online in Saudi Arabia, and we couldn't be more excited to open new stores in The UAE and India later this year. We were also delighted to welcome customers in Japan to a new location in the heart of Osaka. Across everything we do at Apple, we show up by leading with our values.

We feel strongly that the benefits of technology should be shared by everyone. That's why we make technology for everyone. In May, to mark Global Accessibility Awareness Day, we announced updates to help users learn, connect and interact with their worlds, including Magnifier for Mac, a new braille experience and Accessibility Reader, a new system wide reading mode to make it easier to understand content. And we're proud to introduce accessibility nutrition labels, giving users an understanding of accessibility features before they download an app while helping developers educate people on features their app support. This month, we also announced a $05,000,000,000 commitment with NP Materials to strengthen the supply of vital recycled rare earth materials in The U.

S. And support American industry. And in August, we're opening our all new Apple Manufacturing Academy in Detroit to train and support American manufacturers. These investments are part of Apple's largest ever spin commitment, which we announced earlier this year. Over the next four years, Apple is investing $500,000,000,000 in The U.

</chunk>

<chunk>
[Document ID: Index]: [21:2]
Ticker: AAPL
Publication Date: 2025-07-31
Doc Type: 8-K
Period: Q3 2025
Highlighted Text: Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, AirPods, Apple Watch, and Apple Vision Pro. Apple’s six software platforms — iOS, iPadOS, macOS, watchOS, visionOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, iCloud, and Apple TV+. Apple’s more than 150,000 employees are dedicated to making the best products on earth and to leaving the world better than we found it.
</chunk>

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Search for growth catalysts, strategic opportunities, and forward-looking initiatives
Search for risk factors, challenges, and potential headwinds
Search for detailed debt structure, maturity profile, and covenant information

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<chunk>
[Document ID: Index]: [22:1]
Ticker: AAPL
Publication Date: 2025-07-31
Doc Type: earnings-call-transcript
Period: Q3 2025
Highlighted Text: **Tim Cook** (Chief Executive Officer, Apple):

Thank you, Suasini. Good afternoon, everyone, and thanks for joining the call. Today, we are proud to report a June revenue record of $94,000,000,000 up 10% from a year ago, which was better than we expected. EPS set a June record of $1.57 up 12% year over year. We saw an acceleration of growth around the world in the vast majority of markets we track, including Greater China and many emerging markets.

And we had June revenue records in more than two dozen countries and regions, including The US, Canada, Latin America, Western Europe, The Middle East, India, and South Asia. These results were driven by double digit growth across iPhone, Mac, and services. We set a June record for iPhone, which grew a strong 13% year over year. We saw iPhone growth in every geographic segment and double digit growth in emerging markets, including India, The Middle East, South Asia and Brazil. Mac continued to see excellent results with revenue up 15% year over year.

And we set another all time revenue record in services, which grew 13% with double digit growth in both developed and emerging markets. Last month, we hosted WWDC, an incredible event for our developer community with millions joining us online and more than 1,000 developers here in person at Apple Park. We shared some truly exciting updates, including a stunning new design crafted from a material we call liquid glass. It's both beautiful and expressive. And for the first time ever, this design extends across all of our platforms.

We can't wait for users everywhere to experience it this fall. And we were excited to share some updates across our AI work. We announced even more capabilities coming later this year, including live translation and WorkoutBuddy. In addition to those new features, we announced new support for a number of languages. And we opened up access to the on device foundation models at the core of Apple Intelligence, enabling developers to build a whole new experience for our users.

It's wonderful to see great momentum building for our platforms. IOS 26, macOS 26 and iPadOS 26 are by far the most popular developer betas we've had. Taking a step back, we see AI as one of the most profound technologies of our lifetime. We are embedding it across our devices and platforms and across the company. We are also significantly growing our investments.

Apple has always been about taking the most advanced technologies and making them easy to use and accessible for everyone, and that's at the heart of our AI strategy. With Apple Intelligence, we're integrating AI features across our platforms in a way that is deeply personal, private, and seamless, right where users need them. We've already released more than 20 Apple Intelligence features, including visual intelligence, cleanup and powerful writing tools. We're making good progress on a more personalized Siri. And as we've said before, we expect to release these features next year.

Apple Silicon is at the heart of all of these experiences, enabling powerful Apple intelligence features to run directly on device. For more advanced tasks, our servers, also powered by Apple Silicon, deliver even greater capabilities while preserving user privacy through our private cloud compute architecture. We believe our platforms offer the best way for users to experience the full potential of generative AI. Thanks to the exceptional performance of our systems, our users are able to run generative AI models right on their Mac, iPad and iPhone. We're excited about the work we're doing in this space, and it's incredibly rewarding to see the strong momentum building.

</chunk>

<chunk>
[Document ID: Index]: [23:14]
Ticker: AAPL
Publication Date: 2025-08-01
Section: Management's Discussion and Analysis of Financial Condition and Results of Operations
Doc Type: 10-Q
Period: Q3 2025
Highlighted Text: Beginning in the second quarter of 2025, new tariffs were announced on imports to the U.S. (“U.S. Tariffs”), including additional tariffs on imports from China, India, Japan, South Korea, Taiwan, Vietnam and the European Union (“EU”), among others. In response, several countries have imposed, or threatened to impose, reciprocal tariffs on imports from the U.S. and other retaliatory measures. Various modifications to the U.S. Tariffs have been announced and further changes could be made in the future, which may include additional sector-based tariffs or other measures. For example, the U.S. Department of Commerce has initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended, into, among other things, imports of semiconductors, semiconductor manufacturing equipment, and their derivative products, including downstream products that contain semiconductors. Tariffs and other measures that are applied to the Company’s products or their components can have a material adverse impact on the Company’s business, results of operations and financial condition, including impacting the Company’s supply chain, the availability of rare earths and other raw materials and components, pricing and gross margin. The ultimate impact remains uncertain and will depend on several factors, including whether additional or incremental U.S. Tariffs or other measures are announced or imposed, to what extent other countries implement tariffs or other retaliatory measures in response, and the overall magnitude and duration of these measures. Trade and other international disputes can have an adverse impact on the overall macroeconomic environment and result in shifts and reductions in consumer spending and negative consumer sentiment for the Company’s products and services, all of which can further adversely affect the Company’s business and results of operations.

Segment Operating Performance

The following table shows net sales by reportable segment for the three- and nine-month periods ended June 28, 2025 and June 29, 2024 (dollars in millions):
```csv
,Three Months Ended,Three Months Ended,Three Months Ended,Nine Months Ended,Nine Months Ended,Nine Months Ended
,"June 28, 2025","June 29, 2024",Change,"June 28, 2025","June 29, 2024",Change
Americas,"$ 41,198","$ 37,678",9 %,"$ 134,161","$ 125,381",7 %
Europe,"24,014","21,884",10 %,"82,329","76,404",8 %
Greater China,"15,369","14,728",4 %,"49,884","51,919",(4) %
Japan,"5,782","5,097",13 %,"22,067","19,126",15 %
Rest of Asia Pacific,"7,673","6,390",20 %,"25,254","23,275",9 %
Total net sales,"$ 94,036","$ 85,777",10 %,"$ 313,695","$ 296,105",6 %
```

Americas

Americas net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to higher net sales of iPhone and Services. The weakness in foreign currencies relative to the U.S. dollar had an unfavorable year-over-year impact on Americas net sales during the third quarter and first nine months of 2025.

Europe

Europe net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to higher net sales of Services and iPhone.

Greater China

Greater China net sales increased during the third quarter of 2025 compared to the third quarter of 2024 due primarily to higher net sales of iPhone and Mac. Greater China net sales decreased during the first nine months of 2025 compared to the same period in 2024 due to lower net sales of iPhone, partially offset by higher net sales of Mac.

Japan

Japan net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to higher net sales of iPhone and Services. The strength in the yen relative to the U.S. dollar had a favorable year-over-year impact on Japan net sales during the third quarter of 2025.

Rest of Asia Pacific
</chunk>

<chunk>
[Document ID: Index]: [23:15]
Ticker: AAPL
Publication Date: 2025-08-01
Section: Management's Discussion and Analysis of Financial Condition and Results of Operations
Doc Type: 10-Q
Period: Q3 2025
Highlighted Text: Rest of Asia Pacific net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to higher net sales of Services and iPhone.

Products and Services Performance

The following table shows net sales by category for the three- and nine-month periods ended June 28, 2025 and June 29, 2024 (dollars in millions):
```csv
,Three Months Ended,Three Months Ended,Three Months Ended,Nine Months Ended,Nine Months Ended,Nine Months Ended
,"June 28, 2025","June 29, 2024",Change,"June 28, 2025","June 29, 2024",Change
iPhone,"$ 44,582","$ 39,296",13 %,"$ 160,561","$ 154,961",4 %
Mac,"8,046","7,009",15 %,"24,982","22,240",12 %
iPad,"6,581","7,162",(8) %,"21,071","19,744",7 %
"Wearables, Home and Accessories","7,404","8,097",(9) %,"26,673","27,963",(5) %
Services,"27,423","24,213",13 %,"80,408","71,197",13 %
Total net sales,"$ 94,036","$ 85,777",10 %,"$ 313,695","$ 296,105",6 %
```

iPhone

iPhone net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due to higher net sales of Pro models.

Mac

Mac net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due to higher net sales of both laptops and desktops.

iPad

iPad net sales decreased during the third quarter of 2025 compared to the third quarter of 2024 due to lower net sales of iPad Pro®, partially offset by higher net sales of all other iPad models. iPad net sales increased during the first nine months of 2025 compared to the same period in 2024 due primarily to higher net sales of iPad Air®.

Wearables, Home and Accessories

Wearables, Home and Accessories net sales decreased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to lower net sales of Wearables and Accessories.

Services

Services net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to higher net sales from advertising, the App Store® and cloud services.

Gross Margin

Products and Services gross margin and gross margin percentage for the three- and nine-month periods ended June 28, 2025 and June 29, 2024, were as follows (dollars in millions):
```csv
,Three Months Ended,Three Months Ended,Nine Months Ended,Nine Months Ended
,"June 28, 2025","June 29, 2024","June 28, 2025","June 29, 2024"
Gross margin:,,,,
Products,"$ 22,993","$ 21,761","$ 86,190","$ 84,241"
Services,"20,725","17,917","60,670","52,563"
Total gross margin,"$ 43,718","$ 39,678","$ 146,860","$ 136,804"
```
```csv
Gross margin percentage:,,,,
Products,34.5 %,35.3 %,36.9 %,37.5 %
Services,75.6 %,74.0 %,75.5 %,73.8 %
Total gross margin percentage,46.5 %,46.3 %,46.8 %,46.2 %
```

Products Gross Margin

Products gross margin increased during the third quarter of 2025 compared to the third quarter of 2024 due primarily to a different mix of products and favorable costs, partially offset by tariffs. Products gross margin increased during the first nine months of 2025 compared to the same period in 2024 due primarily to favorable costs and a different mix of products, partially offset by tariffs and the weakness in foreign currencies relative to the U.S. dollar.

Products gross margin percentage decreased during the third quarter of 2025 compared to the third quarter of 2024 due primarily to tariffs and a different mix of products, partially offset by favorable costs. Products gross margin percentage decreased during the first nine months of 2025 compared to the same period in 2024 due primarily to a different mix of products and tariffs, partially offset by favorable costs.

Services Gross Margin
</chunk>

<chunk>
[Document ID: Index]: [22:9]
Ticker: AAPL
Publication Date: 2025-07-31
Doc Type: earnings-call-transcript
Period: Q3 2025
Highlighted Text: **Tim Cook** (Chief Executive Officer, Apple):

Yes.

We did grow in Greater China by 4% during the quarter versus the previous quarter. It was driven by an acceleration by iPhone, although we also had substantial growth on the Mac year over year. From a as you know, the government has placed certain subsidies that affect some of our products, not all of them, but there are some of them. And I think that had some effect. It was the first full quarter of the subsidy playing out.

That it cut in during a portion of the previous quarter. The also the other things I would say are the that the installed base hit a record high in Greater China, and we set an all time record for the iPhone installed base. The iPhone upgraders in Mainland China set a record for the June. And according to World Panel, which was formerly known as Kantar, iPhone had the top three models in urban China, which is extraordinary. Also, you look at the other products, Mac, iPad, and Watch, the majority of customers that are buying in China Mainland were new to the product.

So lots of good things there. And the other thing I would point out, which is an interesting point, the MacBook Air was the top selling laptop model in all of China, and the Mac Mini was the top selling desktop model in in all of China. So overall, a positive very positive quarter.

**Erik Woodring** (MD - Equity Research, Morgan Stanley):

Great. Thanks for the color, Tim. Good luck.

**Suhasini Chandramouli** (Director of Investor Relations, Apple):

Right. Thank you, Eric. Eric. Operator, can we have the next question, please?

**Operator**:

Our next question is from Ben Reitsis with Melius Research. Please go ahead.

**Ben Reitzes** (MD & Head - Technology Research, Melius Research LLC):

Yeah. Thanks. I I really appreciate it. I wanted to, ask about Siri, Tim, and just overall AI investment. There's a perception that Siri is going to help drive other new products potentially that maybe where voice is quite needed.

And just wondering in your how's your confidence towards launching that next year? Is there anything that's been done internally to increase that confidence? Is it tied to the investment? I just think folks would love to know a little bit more about your confidence and how that's going. And then I have a follow-up. Thanks.

**Tim Cook** (Chief Executive Officer, Apple):

Yes. Thanks for the question. We're making good progress on a more personalized Siri, and we do expect to release the features next year as we had said earlier. Our focus from an AI point of view is on putting AI features across the platform that are deeply personal, private, and seamlessly integrated. And, of course, we've done that with more than 20 Apple intelligence features so far from visual intelligence to cleanup to writing tools and all the rest.

We are significantly growing our investment. We did during the June. We will again in the September. I'm not putting specific numbers behind that at this point, but you can probably tell in the guidance that things are moving up. We are also reallocating a fair number of people to focus on AI features within the company that are you know, we have great, great team, and we're we're putting all of our energy behind it.

Terms of products here. In terms of other products, I you know, I don't want to really comment on specific other products, but we have an exciting road map ahead. And I could not be more excited about it.

**Ben Reitzes** (MD & Head - Technology Research, Melius Research LLC):

That's great, Tim. Thanks for the color. Just with regard to my second question, it's about the overall revenue guide. And I appreciate that you guide the best you can see it, but I just wanted to challenge it from a different way is, why would it decelerate if services is staying the same at 13%? What is there a conservatism there?

I would think even currency is just as favorable, if not more favorable. So why would it decelerate to the higher single digits from where you were in the quarter? Or is it just being conservative? And if there's something decelerating or a comp, do you mind just pointing that out? Thanks.

</chunk>

<chunk>
[Document ID: Index]: [60:18]
Ticker: AAPL
Publication Date: 2025-05-01
Section: qa
Doc Type: earnings-call-transcript
Period: Q2 2025
Highlighted Text: Samik Chatterjee (analyst)
I guess, Tim, you made a comment on the last earnings call about Apple Intelligence making a visible impact on iPhone sales in the countries where it was available. I'm just curious if you continue to see that play out similarly in sort of the more broader number of countries you've rolled that out. Or the delays that you talked about related to Siri, personalized Siri features, has that had an impact in terms of consumer willingness to upgrade? And I have a follow-up.

Timothy Cook (executive)
Yes, thank you for the question. During the March quarter, we saw that in markets where we had rolled out Apple Intelligence, that the year-over-year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available. A lot of the languages that I think you're referring to rolled out in April and so they actually rolled out in Q3.
</chunk>

<chunk>
[Document ID: Index]: [60:2]
Ticker: AAPL
Publication Date: 2025-05-01
Section: remark
Doc Type: earnings-call-transcript
Period: Q2 2025
Highlighted Text: Across Wearables, Home and Accessories, revenue was $7.5 billion, down 5% from a year ago. From walking trails to bike paths, Apple Watch Series 10 is an essential part wherever you are on the health and fitness journey. And AirPods 4 with active noise cancellation delivers an extraordinary experience in an open year design. Customers continue to tell me how important our Hearing Health features for AirPods Pro 2 are to them, and we've been expanding their availability to reach even more users around the world. Millions have already taken hearing tests and the stories we received about the new hearing aid feature are deeply moving, showing how these innovations are making a real difference in people's daily lives. It's a powerful reminder of the impact technology can have when it's designed with care.
Meanwhile, Apple Vision Pro takes the concert experience to a whole new level with Metallica, our latest Apple immersive video, which you have to see to believe. And visionOS 2.4 unlocks the first set of Apple Intelligence features for Vision Pro users while inviting them to explore a curated and regularly updated collection of spatial experiences with the Spatial Gallery app.
In retail, in addition to the 2 stores we opened during the quarter, we're also looking forward to a new retail store in the UAE, the arrival of the online store in Saudi Arabia and new retail stores in India starting later this year.
Let's now turn to Services, where we achieved an all-time revenue record of $26.6 billion, up 12% from a year ago with strong performance across all of our categories. From starting their morning with their podcast of choice to buying a coffee with Apple Pay to spending an afternoon reading the latest bestseller on Apple Books to using their favorite app from the App Store or an evening workout with Fitness+, Apple's Services are enriching our users' lives all throughout their day. With incredible shows like The Studio, Your Friends and Neighbors and the culture-shaping Severance, Apple TV+ has become a must-see destination with record viewership during the quarter.
And we're excited for our upcoming movie F1 starring Brad Pitt, which will hit theaters this summer and gives an incredible inside look at one of the most intense sports on Earth. And there is so much more to come this year. It's no wonder Apple TV+ has earned more than 2,500 award nominations and 560 wins. We're also reaching sports fans in more ways than ever, from watching our favorite teams go to bat on Friday Night Baseball to cheering on their local team with MLS Season Pass to following the results of every Grand Prix with Formula One now on the Apple Sports app.
Turning to software. We just released iOS 18.4, which brought Apple Intelligence to more languages, including French, German, Italian, Portuguese, Spanish, Japanese, Korean, and simplified Chinese as well as localized English to Singapore and India. AI and machine learning are core to so many profound features we've rolled out over the years to help our users live a better day. It's why we designed Apple Silicon with a neural engine that powers so many AI features across our products and third-party apps. It's also what makes Apple products the best devices for generative AI.
At WWDC 24, we announced Apple Intelligence and shared our vision for integrating generative AI across our ecosystem into the apps and features our users rely on every day. To achieve this goal, we built our own highly capable foundation models that are specialized for everyday tasks. We designed helpful features that are right where our users need them and are easy to use. And we went to great lengths to build a system that protects user privacy, whether requests are processed on-device or in the cloud with Private Cloud Compute, an extraordinary step forward for privacy and AI.
</chunk>

<chunk>
[Document ID: Index]: [25:10]
Ticker: AAPL
Publication Date: 2025-05-01
Doc Type: earnings-call-transcript
Period: Q2 2025
Highlighted Text: **Kevan Parekh** (SVP & CFO, Apple):

I would say our best thinking is reflected in the range that we provided.

**David Vogt** (Managing Director, UBS Group):

Okay. Thanks, Kevin. Thanks, guys.

**Kevan Parekh** (SVP & CFO, Apple):

Thank you.

**Suhasini Chandramouli** (Director of Investor Relations, Apple):

Thank you, David. Operator, could we have the next question, please?

**Operator**:

Our next question is from Samik Chatterjee with JPMorgan. Please go ahead.

**Samik Chatterjee** (Executive Director, JP Morgan):

Hi, good afternoon. Thanks for taking my questions. I guess Tim, you made a comment on the last earnings call about Apple Intelligence making a visible impact on iPhone sales in the countries where it was available. I'm just curious if you continue to see that play out similarly in sort of the more broader number of countries you've rolled that out? Or the delays that you talked about, rate of the Siri, personalized Siri features, has that had an impact in terms of consumer willingness to upgrade? And I have a follow-up. Thank you.

**Tim Cook** (CEO, Apple):

Yeah. Thank you for the question. During the March, we saw that in markets where we had rolled out, Apple Intelligence that the year over year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available. A lot of the languages that I think you're referring to rolled out in April, and so they actually rolled out in Q3.

**Samik Chatterjee** (Executive Director, JP Morgan):

Okay. Got it. Then maybe for my follow-up, I mean, you have a lot of insights now in terms of what consumers or how consumers are reacting to the overall macro. And I know you sort of prefaced all your guidance with macro remaining consistent. But how what are you seeing in terms of The U.

S. Consumer? And what's reaction there in terms of the tariff impact or we saw U. S. GDP also shrink here in 1Q.

When you look at velocity at the stores or trade down within those sort of iPhone portfolio mix, what are you seeing in terms of how the consumer is reacting to the macro at this point? Thank you.

**Tim Cook** (CEO, Apple):

You know, I'm I'm not an economist, and so I start by saying that. In terms of the as you can see from a total company point of view, our results accelerated sequentially to the 5% level. And The U. S. Is obviously the vast majority of the Americas segment, you can see how The Americas performed during the quarter.

And so that's all I'd want to say about that. I don't want to try to predict what happens in the months from now. But the past, I'm quite pleased with the results from Q2.

**Samik Chatterjee** (Executive Director, JP Morgan):

Thank you. Thanks for taking the questions.

**Suhasini Chandramouli** (Director of Investor Relations, Apple):

Thank you, Samik. Operator, could we have the next question, please?

**Operator**:

Our next question is from Krish Sankar, TD Cowen. Please go ahead.

**Krish Sankar** (Managing Director, Cowen and Company):

Yes. Hi. Thanks for taking my question. I told them to Tim, thanks for that information on the $500,000,000,000 investment. I'm kinda curious how to think about the composition of that. How much is CapEx versus r and d? How much is, you know, going into, like, the Texas, server? How much is going into maybe TSMC, Arizona? Any kind of color you can give on that 500,000,000,000 investment would be helpful, and then I have a follow-up.

**Tim Cook** (CEO, Apple):

Well, there's, lots of all of it is what I I would say. We're not giving out the exact split, but as we expand facilities in, in the different states from Michigan to Texas to California and Arizona and Nevada and Iowa and Oregon and North Carolina and Washington, there will be CapEx involved in that and OpEx involved in it. And standing up a server advanced server manufacturing in Texas, we'll do that through a partner as we do our manufacturing through a partner. But we'll be putting a fair amount in cost of goods sold to do that and some OpEx as well, and I'm sure some CapEx as well. And so it's a bit of all of it.

</chunk>

<chunk>
[Document ID: Index]: [25:3]
Ticker: AAPL
Publication Date: 2025-05-01
Doc Type: earnings-call-transcript
Period: Q2 2025
Highlighted Text: **Tim Cook** (CEO, Apple):

To achieve this goal, we built our own highly capable foundation models that are specialized for everyday tasks. We designed helpful features that are right where our users need them and are easy to use. And we went to great lengths to build a system that protects user privacy, whether requests are processed on device or in the cloud with private cloud compute, an extraordinary step forward for privacy and AI. Since we launched iOS 18, we've released a number of Apple intelligence features from helpful writing tools to Genmoji, Image Playground, Image Wand, Cleanup, Visual Intelligence, and a seamless connection to ChatGPT. We made it possible for users to create movies of their memories with a simple prompt and added AI powered photo search, smart replies, priority notifications, summaries for mail messages, and more.

We've also expanded these capabilities to more languages and regions. With regard to the more personal Siri features we announced, we need more time to complete our work on these features so they meet our high quality bar. We are making progress, and we look forward to getting these features into customers' hands. Turning to sustainability. We just celebrated Earth Day, and we were proud to announce that we've cut our emissions by 60% from our twenty fifteen levels.

Today, we're using more clean energy across our operations and more recycled materials in our products than ever. We have worked with suppliers to bring 17.8 gigawatts of renewable electricity online. We're also saving billions of gallons of fresh water and redirecting millions of metric tons of waste from landfills. All of this will help us make important progress towards our goal of carbon neutrality across our supply chain and the life cycle of our products by 02/1930. Now let me walk you through the impacts of tariffs in the March and give you some color on what we expect for the June.

For the March, we had a limited impact from tariffs as we were able to optimize our supply chain and inventory. For the June, currently we are not able to precisely estimate the impact of tariffs as we are uncertain of potential future actions prior to the end of the quarter. However, for some color, assuming the current global tariff rates, policies and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900,000,000 to our costs. This estimate should not be used to make projections for future quarters as there are certain unique factors that benefit the June. For our part, we will manage the company the way we always have, with thoughtful and deliberate decisions, with a focus on investing for the long term, and with dedication to innovation and the possibilities it creates.

As we look ahead, we remain confident, confident that we will continue to build the world's best products and services, confident in our ability to innovate and enrich our users' lives, and confident that we can continue to run our business in a way that has always set Apple apart. Next month, we can't wait to welcome our developer community for the Worldwide Developers Conference, and we look forward to revealing some exciting announcements. With that, I'll turn it over to Kevin.

</chunk>

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<chunk>
[Document ID: Index]: [29:48]
Ticker: AAPL
Publication Date: 2025-01-31
Section: Risk Factors
Doc Type: 10-Q
Period: Q1 2025
Highlighted Text: Regulatory changes and other actions that materially adversely affect the Company’s business may be announced with little or no advance notice and the Company may not be able to effectively mitigate all adverse impacts from such measures. For example, the Company is subject to changing regulations relating to the export and import of its products. Although the Company has programs, policies and procedures in place that are designed to satisfy regulatory requirements, there can be no assurance that such policies and procedures will be effective in preventing a violation or a claim of a violation. As a result, the Company’s products could be banned, delayed or prohibited from importation, which could materially adversely affect the Company’s business, reputation, results of operations and financial condition.

The technology industry, including, in some instances, the Company, is subject to intense media, political and regulatory scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions and penalties.

From time to time, the Company has made changes to its App Store, including actions taken in response to litigation, competition, market conditions and legal and regulatory requirements. The Company expects to make further business changes in the future. For example, in the U.S. the Company has implemented changes to how developers communicate with consumers within apps on the U.S. storefront of the iOS and iPadOS App Store regarding alternative purchasing mechanisms.

The Company has also implemented changes to iOS, iPadOS, the App Store and Safari in the EU as it seeks to comply with the DMA, including new business terms and alternative fee structures for iOS and iPadOS apps, alternative methods of distribution for iOS and iPadOS apps, alternative payment processing for apps across the Company’s operating systems, and additional tools and application programming interfaces (“APIs”) for developers. The Company has also continued to make changes to its compliance plan in response to feedback and engagement with the Commission. Although the Company’s compliance plan is intended to address the DMA’s obligations, it has been challenged by the Commission and may be challenged further by private litigants. The DMA provides for significant fines and penalties for noncompliance, and other jurisdictions may seek to require the Company to make changes to its business. While the changes introduced by the Company in the EU are intended to reduce new privacy and security risks that the DMA poses to EU users, many risks will remain.

The Company is also currently subject to antitrust investigations and litigation in various jurisdictions around the world, which can result in legal proceedings and claims against the Company that could, individually or in the aggregate, have a materially adverse impact on the Company’s business, results of operations and financial condition. For example, the Company is subject to civil antitrust lawsuits in the U.S. alleging monopolization or attempted monopolization in the markets for “performance smartphones” and “smartphones” generally in violation of U.S. antitrust laws. In addition, the Company is the subject of investigations in Europe and other jurisdictions relating to App Store terms and conditions. If such investigations or litigation are resolved against the Company, the Company can be exposed to significant fines and may be required to make further changes to its business practices, all of which could materially adversely affect the Company’s business, reputation, results of operations and financial condition.
</chunk>

<chunk>
[Document ID: Index]: [32:81]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Risk Factors
Doc Type: 10-K
Period: FY 2024
Highlighted Text: The Company has a large, global business with sales outside the U.S. representing a majority of the Company’s total net sales, and the Company believes that it generally benefits from growth in international trade. Substantially all of the Company’s manufacturing is performed in whole or in part by outsourcing partners located primarily in China mainland, India, Japan, South Korea, Taiwan and Vietnam. Restrictions on international trade, such as tariffs and other controls on imports or exports of goods, technology or data, can materially adversely affect the Company’s business and supply chain. The impact can be particularly significant if these restrictive measures apply to countries and regions where the Company derives a significant portion of its revenues and/or has significant supply chain operations. Restrictive measures can increase the cost of the Company’s products and the components and raw materials that go into them, and can require the Company to take various actions, including changing suppliers, restructuring business relationships and operations, and ceasing to offer and distribute affected products, services and third-party applications to its customers. Changing the Company’s business and supply chain in accordance with new or changed restrictions on international trade can be expensive, time-consuming and disruptive to the Company’s operations. Such restrictions can be announced with little or no advance notice, which can create uncertainty, and the Company may not be able to effectively mitigate all adverse impacts from such measures. For example, tensions between governments, including the U.S. and China, have in the past led to tariffs and other restrictions affecting the Company’s business. If disputes and conflicts further escalate in the future, actions by governments in response could be significantly more severe and restrictive and could materially adversely affect the Company’s business.

Many of the Company’s operations and facilities, as well as critical business operations of the Company’s suppliers and contract manufacturers, are in locations that are prone to earthquakes and other natural disasters. Global climate change is resulting in certain types of natural disasters and extreme weather occurring more frequently or with more intense effects. In addition, the Company’s and its suppliers’ operations and facilities are subject to the risk of interruption by fire, power shortages, nuclear power plant accidents and other industrial accidents, terrorist attacks and other hostile acts, ransomware and other cybersecurity attacks, labor disputes, public health issues and other events beyond the Company’s control. For example, global supply chains can be highly concentrated and geopolitical tensions or conflict could result in significant disruptions.

Such events can make it difficult or impossible for the Company to manufacture and deliver products to its customers, create delays and inefficiencies in the Company’s supply and manufacturing chain, result in slowdowns and outages to the Company’s service offerings, increase the Company’s costs, and negatively impact consumer spending and demand in affected areas.
</chunk>

<chunk>
[Document ID: Index]: [26:14]
Ticker: AAPL
Publication Date: 2025-05-02
Section: Management's Discussion and Analysis of Financial Condition and Results of Operations
Doc Type: 10-Q
Period: Q2 2025
Highlighted Text: Beginning in the second quarter of 2025, new tariffs were announced on imports to the U.S. (“U.S. Tariffs”), including additional tariffs on imports from China, India, Japan, South Korea, Taiwan, Vietnam and the European Union (“EU”), among others. In response, several countries have imposed, or threatened to impose, reciprocal tariffs on imports from the U.S. and other retaliatory measures. Various modifications and delays to the U.S. Tariffs have been announced and further changes are expected to be made in the future, which may include additional sector-based tariffs or other measures. For example, the U.S. Department of Commerce has initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended, into, among other things, imports of semiconductors, semiconductor manufacturing equipment, and their derivative products, including downstream products that contain semiconductors. Tariffs and other measures that are applied to the Company’s products or their components can have a material adverse impact on the Company’s business, results of operations and financial condition, including impacting the Company’s supply chain, the availability of rare earths and other raw materials and components, pricing and gross margin. The ultimate impact remains uncertain and will depend on several factors, including whether additional or incremental U.S. Tariffs or other measures are announced or imposed, to what extent other countries implement tariffs or other retaliatory measures in response, and the overall magnitude and duration of these measures. Trade and other international disputes can have an adverse impact on the overall macroeconomic environment and result in shifts and reductions in consumer spending and negative consumer sentiment for the Company’s products and services, all of which can further adversely affect the Company’s business and results of operations.

Segment Operating Performance

The following table shows net sales by reportable segment for the three- and six-month periods ended March 29, 2025 and March 30, 2024 (dollars in millions):
```csv
,Three Months Ended,Three Months Ended,Three Months Ended,Six Months Ended,Six Months Ended,Six Months Ended
,"March 29, 2025","March 30, 2024",Change,"March 29, 2025","March 30, 2024",Change
Americas,"$ 40,315","$ 37,273",8 %,"$ 92,963","$ 87,703",6 %
Europe,"24,454","24,123",1 %,"58,315","54,520",7 %
Greater China,"16,002","16,372",(2) %,"34,515","37,191",(7) %
Japan,"7,298","6,262",17 %,"16,285","14,029",16 %
Rest of Asia Pacific,"7,290","6,723",8 %,"17,581","16,885",4 %
Total net sales,"$ 95,359","$ 90,753",5 %,"$ 219,659","$ 210,328",4 %
```

Americas

Americas net sales increased during the second quarter and first six months of 2025 compared to the same periods in 2024 due primarily to higher net sales of iPhone and Services. The weakness in foreign currencies relative to the U.S. dollar had an unfavorable year-over-year impact on Americas net sales during the second quarter and first six months of 2025.

Europe

Europe net sales were relatively flat during the second quarter of 2025 compared to the second quarter of 2024. Year-over-year Europe net sales increased during the first six months of 2025 due primarily to higher net sales of Services, Mac and iPad. The weakness in foreign currencies relative to the U.S. dollar had a net unfavorable year-over-year impact on Europe net sales during the second quarter of 2025.

Greater China

Greater China net sales decreased during the first six months of 2025 compared to the same period in 2024 due to lower net sales of iPhone. The weakness in the renminbi relative to the U.S. dollar had an unfavorable year-over-year impact on Greater China net sales during the second quarter of 2025.

Japan
</chunk>

<chunk>
[Document ID: Index]: [26:29]
Ticker: AAPL
Publication Date: 2025-05-02
Section: Risk Factors
Doc Type: 10-Q
Period: Q2 2025
Highlighted Text: The Company’s profit margins vary across its products, services, geographic segments and distribution channels. For example, the gross margins on the Company’s products and services vary significantly and can change over time. The Company’s gross margins are subject to volatility and downward pressure due to a variety of factors, including: continued industry-wide global product pricing pressures and product pricing actions that the Company may take in response to such pressures; increased competition; the Company’s ability to effectively stimulate demand for certain of its products and services; compressed product life cycles; supply shortages; potential increases in the cost of components, outside manufacturing services, and developing, acquiring and delivering content for the Company’s services; the Company’s ability to manage product quality and warranty costs effectively; shifts in the mix of products and services, or in the geographic, currency or channel mix, including to the extent that regulatory changes require the Company to modify its product and service offerings; fluctuations in foreign exchange rates; inflation and other macroeconomic pressures; the imposition of new or increased tariffs and other trade restrictions, their overall magnitude and duration, and retaliatory actions in response; and the introduction of new products or services, including new products or services with lower profit margins. These and other factors could have a materially adverse impact on the Company’s results of operations, financial condition and stock price.

The Company has historically experienced higher net sales in its first quarter compared to other quarters in its fiscal year due in part to seasonal holiday demand. Additionally, new product and service introductions can significantly impact net sales, cost of sales and operating expenses. Further, the Company generates a significant portion of its net sales from a single product and a decline in demand for that product could significantly impact quarterly net sales. The Company could also be subject to unexpected developments, such as lower-than-anticipated demand for the Company’s products or services, issues with new product or service introductions, information technology system failures or network disruptions, or a change in or failure of one or more of the Company’s logistics, supply or manufacturing partners.

Varied stakeholder expectations about social and other issues expose the Company to potential liabilities, increased costs, reputational harm, and other adverse effects on the Company’s business.

Various stakeholders, including governments, regulators, investors, employees, customers and others, have differing expectations about a wide range of social and other issues related to the Company’s business. The Company makes statements about its values, including the environmental and societal impact of its business, through various non-financial reports, information provided on the Company’s website, and in press statements and other communications. The Company also pursues environmental and other goals and initiatives that involve risks and uncertainties, require investments, and depend in part on third-party performance or data that is outside the Company’s control, and there can be no assurance that the Company will fully achieve all of its goals and initiatives. Efforts by the Company to advance its business and values, or achieve its goals and further its initiatives, or to align with stakeholders’ expectations, or comply with evolving, varied and at times conflicting federal, state and international laws, regulations and standards, or any failure or perceived failure to do so, can result in adverse reactions by consumers and other stakeholders, including the commencement of legal and regulatory proceedings against the Company, and can materially adversely affect the Company’s business, reputation, results of operations, financial condition and stock price.
</chunk>

<chunk>
[Document ID: Index]: [23:14]
Ticker: AAPL
Publication Date: 2025-08-01
Section: Management's Discussion and Analysis of Financial Condition and Results of Operations
Doc Type: 10-Q
Period: Q3 2025
Highlighted Text: Beginning in the second quarter of 2025, new tariffs were announced on imports to the U.S. (“U.S. Tariffs”), including additional tariffs on imports from China, India, Japan, South Korea, Taiwan, Vietnam and the European Union (“EU”), among others. In response, several countries have imposed, or threatened to impose, reciprocal tariffs on imports from the U.S. and other retaliatory measures. Various modifications to the U.S. Tariffs have been announced and further changes could be made in the future, which may include additional sector-based tariffs or other measures. For example, the U.S. Department of Commerce has initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended, into, among other things, imports of semiconductors, semiconductor manufacturing equipment, and their derivative products, including downstream products that contain semiconductors. Tariffs and other measures that are applied to the Company’s products or their components can have a material adverse impact on the Company’s business, results of operations and financial condition, including impacting the Company’s supply chain, the availability of rare earths and other raw materials and components, pricing and gross margin. The ultimate impact remains uncertain and will depend on several factors, including whether additional or incremental U.S. Tariffs or other measures are announced or imposed, to what extent other countries implement tariffs or other retaliatory measures in response, and the overall magnitude and duration of these measures. Trade and other international disputes can have an adverse impact on the overall macroeconomic environment and result in shifts and reductions in consumer spending and negative consumer sentiment for the Company’s products and services, all of which can further adversely affect the Company’s business and results of operations.

Segment Operating Performance

The following table shows net sales by reportable segment for the three- and nine-month periods ended June 28, 2025 and June 29, 2024 (dollars in millions):
```csv
,Three Months Ended,Three Months Ended,Three Months Ended,Nine Months Ended,Nine Months Ended,Nine Months Ended
,"June 28, 2025","June 29, 2024",Change,"June 28, 2025","June 29, 2024",Change
Americas,"$ 41,198","$ 37,678",9 %,"$ 134,161","$ 125,381",7 %
Europe,"24,014","21,884",10 %,"82,329","76,404",8 %
Greater China,"15,369","14,728",4 %,"49,884","51,919",(4) %
Japan,"5,782","5,097",13 %,"22,067","19,126",15 %
Rest of Asia Pacific,"7,673","6,390",20 %,"25,254","23,275",9 %
Total net sales,"$ 94,036","$ 85,777",10 %,"$ 313,695","$ 296,105",6 %
```

Americas

Americas net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to higher net sales of iPhone and Services. The weakness in foreign currencies relative to the U.S. dollar had an unfavorable year-over-year impact on Americas net sales during the third quarter and first nine months of 2025.

Europe

Europe net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to higher net sales of Services and iPhone.

Greater China

Greater China net sales increased during the third quarter of 2025 compared to the third quarter of 2024 due primarily to higher net sales of iPhone and Mac. Greater China net sales decreased during the first nine months of 2025 compared to the same period in 2024 due to lower net sales of iPhone, partially offset by higher net sales of Mac.

Japan

Japan net sales increased during the third quarter and first nine months of 2025 compared to the same periods in 2024 due primarily to higher net sales of iPhone and Services. The strength in the yen relative to the U.S. dollar had a favorable year-over-year impact on Japan net sales during the third quarter of 2025.

Rest of Asia Pacific
</chunk>

<chunk>
[Document ID: Index]: [32:80]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Risk Factors
Doc Type: 10-K
Period: FY 2024
Highlighted Text: Macroeconomic and Industry Risks

The Company’s operations and performance depend significantly on global and regional economic conditions and adverse economic conditions can materially adversely affect the Company’s business, results of operations and financial condition.

The Company has international operations with sales outside the U.S. representing a majority of the Company’s total net sales. In addition, the Company’s global supply chain is large and complex and a majority of the Company’s supplier facilities, including manufacturing and assembly sites, are located outside the U.S. As a result, the Company’s operations and performance depend significantly on global and regional economic conditions.

Adverse macroeconomic conditions, including slow growth or recession, high unemployment, inflation, tighter credit, higher interest rates, and currency fluctuations, can adversely impact consumer confidence and spending and materially adversely affect demand for the Company’s products and services. In addition, consumer confidence and spending can be materially adversely affected in response to changes in fiscal and monetary policy, financial market volatility, declines in income or asset values, and other economic factors.

In addition to an adverse impact on demand for the Company’s products and services, uncertainty about, or a decline in, global or regional economic conditions can have a significant impact on the Company’s suppliers, contract manufacturers, logistics providers, distributors, cellular network carriers and other channel partners, and developers. Potential outcomes include financial instability; inability to obtain credit to finance business operations; and insolvency.

Adverse economic conditions can also lead to increased credit and collectibility risk on the Company’s trade receivables; the failure of derivative counterparties and other financial institutions; limitations on the Company’s ability to issue new debt; reduced liquidity; and declines in the fair values of the Company’s financial instruments. These and other impacts can materially adversely affect the Company’s business, results of operations, financial condition and stock price.

The Company’s business can be impacted by political events, trade and other international disputes, geopolitical tensions, conflict, terrorism, natural disasters, public health issues, industrial accidents and other business interruptions.

Political events, trade and other international disputes, geopolitical tensions, conflict, terrorism, natural disasters, public health issues, industrial accidents and other business interruptions can have a material adverse effect on the Company and its customers, employees, suppliers, contract manufacturers, logistics providers, distributors, cellular network carriers and other channel partners.
</chunk>

<chunk>
[Document ID: Index]: [32:98]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Risk Factors
Doc Type: 10-K
Period: FY 2024
Highlighted Text: Financial Risks

The Company expects its quarterly net sales and results of operations to fluctuate.

The Company’s profit margins vary across its products, services, geographic segments and distribution channels. For example, the gross margins on the Company’s products and services vary significantly and can change over time. The Company’s gross margins are subject to volatility and downward pressure due to a variety of factors, including: continued industry-wide global product pricing pressures and product pricing actions that the Company may take in response to such pressures; increased competition; the Company’s ability to effectively stimulate demand for certain of its products and services; compressed product life cycles; supply shortages; potential increases in the cost of components, outside manufacturing services, and developing, acquiring and delivering content for the Company’s services; the Company’s ability to manage product quality and warranty costs effectively; shifts in the mix of products and services, or in the geographic, currency or channel mix, including to the extent that regulatory changes require the Company to modify its product and service offerings; fluctuations in foreign exchange rates; inflation and other macroeconomic pressures; and the introduction of new products or services, including new products or services with lower profit margins. These and other factors could have a materially adverse impact on the Company’s results of operations and financial condition.

The Company has historically experienced higher net sales in its first quarter compared to other quarters in its fiscal year due in part to seasonal holiday demand. Additionally, new product and service introductions can significantly impact net sales, cost of sales and operating expenses. Further, the Company generates a significant portion of its net sales from a single product and a decline in demand for that product could significantly impact quarterly net sales. The Company could also be subject to unexpected developments, such as lower-than-anticipated demand for the Company’s products or services, issues with new product or service introductions, information technology system failures or network disruptions, or failure of one of the Company’s logistics, supply or manufacturing partners.

The Company’s financial performance is subject to risks associated with changes in the value of the U.S. dollar relative to local currencies.

The Company’s primary exposure to movements in foreign exchange rates relates to non–U.S. dollar–denominated sales, cost of sales and operating expenses worldwide. Gross margins on the Company’s products in foreign countries and on products that include components obtained from foreign suppliers have in the past been adversely affected and could in the future be materially adversely affected by foreign exchange rate fluctuations.

The weakening of foreign currencies relative to the U.S. dollar adversely affects the U.S. dollar value of the Company’s foreign currency–denominated sales and earnings, and generally leads the Company to raise international pricing, potentially reducing demand for the Company’s products. In some circumstances, for competitive or other reasons, the Company may decide not to raise international pricing to offset the U.S. dollar’s strengthening, which would adversely affect the U.S. dollar value of the gross margins the Company earns on foreign currency–denominated sales.

Conversely, a strengthening of foreign currencies relative to the U.S. dollar, while generally beneficial to the Company’s foreign currency–denominated sales and earnings, could cause the Company to reduce international pricing or incur losses on its foreign currency derivative instruments, thereby limiting the benefit. Additionally, strengthening of foreign currencies may increase the Company’s cost of product components denominated in those currencies, thus adversely affecting gross margins.
</chunk>

<chunk>
[Document ID: Index]: [32:94]
Ticker: AAPL
Publication Date: 2024-11-01
Section: Risk Factors
Doc Type: 10-K
Period: FY 2024
Highlighted Text: The Company’s global operations are subject to complex and changing laws and regulations on subjects, including antitrust; privacy, data security and data localization; consumer protection; advertising, sales, billing and e-commerce; financial services and technology; product liability; intellectual property ownership and infringement; digital platforms; machine learning and artificial intelligence; internet, telecommunications and mobile communications; media, television, film and digital content; availability of third-party software applications and services; labor and employment; anticorruption; import, export and trade; foreign exchange controls and cash repatriation restrictions; anti–money laundering; foreign ownership and investment; tax; and environmental, health and safety, including electronic waste, recycling, product design and climate change.

Compliance with these laws and regulations is onerous and expensive. New and changing laws and regulations can adversely affect the Company’s business by increasing the Company’s costs, limiting the Company’s ability to offer a product, service or feature to customers, imposing changes to the design of the Company’s products and services, impacting customer demand for the Company’s products and services, and requiring changes to the Company’s business or supply chain. New and changing laws and regulations can also create uncertainty about how such laws and regulations will be interpreted and applied. These risks and costs may increase as the Company’s products and services are introduced into specialized applications, including health and financial services, or as the Company expands the use of technologies, such as machine learning and artificial intelligence features, and must navigate new legal, regulatory and ethical considerations relating to such technologies. The Company has implemented policies and procedures designed to ensure compliance with applicable laws and regulations, but there can be no assurance the Company’s employees, contractors or agents will not violate such laws and regulations or the Company’s policies and procedures. If the Company is found to have violated laws and regulations, it could materially adversely affect the Company’s business, reputation, results of operations and financial condition.

Regulatory changes and other actions that materially adversely affect the Company’s business may be announced with little or no advance notice and the Company may not be able to effectively mitigate all adverse impacts from such measures. For example, the Company is subject to changing regulations relating to the export and import of its products. Although the Company has programs, policies and procedures in place that are designed to satisfy regulatory requirements, there can be no assurance that such policies and procedures will be effective in preventing a violation or a claim of a violation. As a result, the Company’s products could be banned, delayed or prohibited from importation, which could materially adversely affect the Company’s business, reputation, results of operations and financial condition.

Expectations relating to environmental, social and governance considerations and related reporting obligations expose the Company to potential liabilities, increased costs, reputational harm, and other adverse effects on the Company’s business.
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[Total chunks returned: 8] <chunk> [Document ID: Index]: [26:11] Ticker: AAPL Publication Date: 2025-05-02 Section: Financial Statements Doc Type: 10-Q Period: Q2 2025 Highlighted Text: Note 5 – Condensed Consolidated Financial Statement Details The following tables show the Company’s condensed consolidated financial statement details as of March 29, 2025 and September 28, 2024 (in millions): Inventories ```csv ,"March 29, 2025","September 28, 2024" Components,"$ 2,673","$ 3,627" Finished goods,"3,596","3,659" Total inventories,"$ 6,269","$ 7,286" ``` Property, Plant and Equipment, Net ```csv ,"March 29, 2025","September 28, 2024" "Gross property, plant and equipment","$ 121,179","$ 119,128" Accumulated depreciation,"(74,303)","(73,448)" "Total property, plant and equipment, net","$ 46,876","$ 45,680" ``` Note 6 – Debt Commercial Paper The Company issues unsecured short-term promissory notes pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of March 29, 2025 and September 28, 2024, the Company had $6.0 billion and $10.0 billion of commercial paper outstanding, respectively. Term Debt As of March 29, 2025 and September 28, 2024, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $92.2 billion and $96.7 billion, respectively (collectively the “Notes”). As of March 29, 2025 and September 28, 2024, the fair value of the Company’s Notes, based on Level 2 inputs, was $80.9 billion and $88.4 billion, respectively. Note 7 – Shareholders’ Equity Share Repurchase Program During the six months ended March 29, 2025, the Company repurchased 208 million shares of its common stock for $48.3 billion. The Company’s share repurchase program does not obligate the Company to acquire a minimum amount of shares. Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Note 8 – Share-Based Compensation Restricted Stock Units A summary of the Company’s RSU activity and related information for the six months ended March 29, 2025 is as follows: ```csv ,Number of RSUs (in thousands),Weighted-Average Grant-Date Fair Value Per RSU "Balance as of September 28, 2024","163,326",$ 158.73 RSUs granted,"63,378",$ 228.10 RSUs vested,"(39,177)",$ 148.90 RSUs canceled,"(4,181)",$ 177.54 "Balance as of March 29, 2025","183,346",$ 184.38 ``` The total vesting-date fair value of RSUs was $906 million and $9.3 billion for the three- and six-month periods ended March 29, 2025, respectively, and was $821 million and $8.6 billion for the three- and six-month periods ended March 30, 2024, respectively. Share-Based Compensation The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three- and six-month periods ended March 29, 2025 and March 30, 2024 (in millions): ```csv Three Months Ended,Three Months Ended,Three Months Ended,Six Months Ended,Six Months Ended "March 29, 2025","March 29, 2025","March 30, 2024","March 29, 2025","March 30, 2024" Share-based compensation expense $,"3,226","$ 2,964","$ 6,512","$ 5,961" Income tax benefit related to share-based compensation expense $,(743),$ (663),"$ (2,075)","$ (1,898)" ``` As of March 29, 2025, the total unrecognized compensation cost related to outstanding RSUs was $26.3 billion, which the Company expects to recognize over a weighted-average period of 2.7 years. </chunk> <chunk> [Document ID: Index]: [29:34] Ticker: AAPL Publication Date: 2025-01-31 Section: Financial Statements Doc Type: 10-Q Period: Q1 2025 Highlighted Text: Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. The Company does not reflect the sale of these components in products net sales. Rather, the Company recognizes any gain on these sales as a reduction of products cost of sales when the related final products are sold by the Company. As of December 28, 2024, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 43% and 24%. As of September 28, 2024, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 44% and 23%. Note 5 – Condensed Consolidated Financial Statement Details The following tables show the Company’s condensed consolidated financial statement details as of December 28, 2024 and September 28, 2024 (in millions): Inventories ```csv ,"December 28, 2024","September 28, 2024" Components,"$ 2,792","$ 3,627" Finished goods,"4,119","3,659" Total inventories,"$ 6,911","$ 7,286" ``` Property, Plant and Equipment, Net ```csv ,"December 28, 2024","September 28, 2024" "Gross property, plant and equipment","$ 120,615","$ 119,128" Accumulated depreciation,"(74,546)","(73,448)" "Total property, plant and equipment, net","$ 46,069","$ 45,680" ``` Note 6 – Debt Commercial Paper The Company issues unsecured short-term promissory notes pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of December 28, 2024 and September 28, 2024, the Company had $2.0 billion and $10.0 billion of commercial paper outstanding, respectively. Term Debt As of December 28, 2024 and September 28, 2024, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $94.8 billion and $96.7 billion, respectively (collectively the “Notes”). As of December 28, 2024 and September 28, 2024, the fair value of the Company’s Notes, based on Level 2 inputs, was $82.7 billion and $88.4 billion, respectively. Note 7 – Shareholders’ Equity Share Repurchase Program During the three months ended December 28, 2024, the Company repurchased 100 million shares of its common stock for $23.3 billion. The Company’s share repurchase program does not obligate the Company to acquire a minimum amount of shares. Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Note 8 – Share-Based Compensation Restricted Stock Units A summary of the Company’s RSU activity and related information for the three months ended December 28, 2024 is as follows: ```csv ,Number of RSUs (in thousands),Weighted-Average Grant-Date Fair Value Per RSU "Balance as of September 28, 2024","163,326",$ 158.73 RSUs granted,"61,391",$ 228.04 RSUs vested,"(35,683)",$ 147.36 RSUs canceled,"(2,278)",$ 174.77 "Balance as of December 28, 2024","186,756",$ 183.49 ``` The total vesting-date fair value of RSUs was $8.4 billion and $7.7 billion for the three months ended December 28, 2024 and December 30, 2023, respectively. </chunk> <chunk> [Document ID: Index]: [26:5] Ticker: AAPL Publication Date: 2025-05-02 Section: Financial Statements Doc Type: 10-Q Period: Q2 2025 Highlighted Text: CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and par value) ```csv ,"March 29, 2025","September 28, 2024" ASSETS:,, Current assets:,, Cash and cash equivalents,"$ 28,162","$ 29,943" Marketable securities,"20,336","35,228" "Accounts receivable, net","26,136","33,410" Vendor non-trade receivables,"23,662","32,833" Inventories,"6,269","7,286" Other current assets,"14,109","14,287" Total current assets,"118,674","152,987" Non-current assets:,, Marketable securities,"84,424","91,479" "Property, plant and equipment, net","46,876","45,680" Other non-current assets,"81,259","74,834" Total non-current assets,"212,559","211,993" Total assets,"$ 331,233","$ 364,980" LIABILITIES AND SHAREHOLDERS’ EQUITY:,, Current liabilities:,, Accounts payable,"$ 54,126","$ 68,960" Other current liabilities,"61,849","78,304" Deferred revenue,"8,976","8,249" Commercial paper,"5,982","9,967" Term debt,"13,638","10,912" Total current liabilities,"144,571","176,392" Non-current liabilities:,, Term debt,"78,566","85,750" Other non-current liabilities,"41,300","45,888" Total non-current liabilities,"119,866","131,638" Total liabilities,"264,437","308,030" Commitments and contingencies,, Shareholders’ equity:,, "Common stock and additional paid-in capital, $ 0.00001 par value: 50,400,000 shares authorized; 14,939,315 and 15,116,786 shares issued and outstanding, respectively","88,711","83,276" Accumulated deficit,"(15,552)","(19,154)" Accumulated other comprehensive loss,"(6,363)","(7,172)" Total shareholders’ equity,"66,796","56,950" Total liabilities and shareholders’ equity,"$ 331,233","$ 364,980" ``` See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited) (In millions, except per-share amounts) ```csv ,Three Months Ended,Three Months Ended,Six Months Ended,Six Months Ended ,"March 29, 2025","March 30, 2024","March 29, 2025","March 30, 2024" "Total shareholders’ equity, beginning balances","$ 66,758","$ 74,100","$ 56,950","$ 62,146" Common stock and additional paid-in capital:,,,, Beginning balances,"84,768","75,236","83,276","73,812" Common stock issued,825,752,825,752 Common stock withheld related to net share settlement of equity awards,(206),(222),"(2,097)","(1,882)" Share-based compensation,"3,324","3,049","6,707","6,133" Ending balances,"88,711","78,815","88,711","78,815" Retained earnings/(Accumulated deficit):,,,, Beginning balances,"(11,221)","8,242","(19,154)",(214) Net income,"24,780","23,636","61,110","57,552" Dividends and dividend equivalents declared,"(3,794)","(3,746)","(7,613)","(7,520)" Common stock withheld related to net share settlement of equity awards,(85),(71),"(1,187)","(1,089)" Common stock repurchased,"(25,232)","(23,722)","(48,708)","(44,390)" Ending balances,"(15,552)","4,339","(15,552)","4,339" Accumulated other comprehensive loss:,,,, Beginning balances,"(6,789)","(9,378)","(7,172)","(11,452)" Other comprehensive income,426,418,809,"2,492" Ending balances,"(6,363)","(8,960)","(6,363)","(8,960)" "Total shareholders’ equity, ending balances","$ 66,796","$ 74,194","$ 66,796","$ 74,194" Dividends and dividend equivalents declared per share or RSU,$ 0.25,$ 0.24,$ 0.50,$ 0.48 ``` See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. </chunk> <chunk> [Document ID: Index]: [32:130] Ticker: AAPL Publication Date: 2024-11-01 Section: Financial Statements and Supplementary Data Doc Type: 10-K Period: FY 2024 Highlighted Text: Commercial Paper The Company issues unsecured short-term promissory notes pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of September 28, 2024 and September 30, 2023, the Company had $10.0 billion and $6.0 billion of commercial paper outstanding, respectively, with maturities generally less than nine months. The weighted-average interest rate of the Company’s commercial paper was 5.00% and 5.28% as of September 28, 2024 and September 30, 2023, respectively. The following table provides a summary of cash flows associated with the issuance and maturities of commercial paper for 2024, 2023 and 2022 (in millions): ```csv 2024,2024,2023,2022 Maturities 90 days or less:,,, "Proceeds from/(Repayments of) commercial paper, net $","3,960","$ (1,333)","$ 5,264" Maturities greater than 90 days:,,, Proceeds from commercial paper —,—,—,"5,948" Repayments of commercial paper —,—,"(2,645)","(7,257)" "Proceeds from/(Repayments of) commercial paper, net —",—,"(2,645)","(1,309)" "Total proceeds from/(repayments of) commercial paper, net $","3,960","$ (3,978)","$ 3,955" ``` Term Debt The Company has outstanding Notes, which are senior unsecured obligations with interest payable in arrears. The following table provides a summary of the Company’s term debt as of September 28, 2024 and September 30, 2023: ```csv ,Maturities (calendar year),2024,2024,2023,2023 ,Amount (in millions),Effective Interest Rate,Amount (in millions),Effective Interest Rate, 2013 – 2023 debt issuances:,,,,, Fixed-rate 0.000 % – 4.850 % notes,2024 – 2062,"$ 97,341",0.03 % – 6.65 %,"$ 106,572",0.03 % – 6.72 % Total term debt principal,,"97,341",,"106,572", "Unamortized premium/(discount) and issuance costs, net",,(321),,(356), Hedge accounting fair value adjustments,,(358),,"(1,113)", Total term debt,,"96,662",,"105,103", Less: Current portion of term debt,,"(10,912)",,"(9,822)", Total non-current portion of term debt,,"$ 85,750",,"$ 95,281", ``` To manage interest rate risk on certain of its U.S. dollar–denominated fixed-rate notes, the Company uses interest rate swaps to effectively convert the fixed interest rates to floating interest rates on a portion of these notes. Additionally, to manage foreign exchange rate risk on certain of its foreign currency–denominated notes, the Company uses cross-currency swaps to effectively convert these notes to U.S. dollar–denominated notes. The effective interest rates for the Notes include the interest on the Notes, amortization of the discount or premium and, if applicable, adjustments related to hedging. The future principal payments for the Company’s Notes as of September 28, 2024, are as follows (in millions): ```csv 2025,"$ 10,930" 2026,"12,342" 2027,"9,936" 2028,"7,800" 2029,"5,153" Thereafter,"51,180" Total term debt principal,"$ 97,341" ``` As of September 28, 2024 and September 30, 2023, the fair value of the Company’s Notes, based on Level 2 inputs, was $88.4 billion and $90.8 billion, respectively. Note 10 – Shareholders’ Equity Share Repurchase Program During 2024, the Company repurchased 499 million shares of its common stock for $95.0 billion. The Company’s share repurchase programs do not obligate the Company to acquire a minimum amount of shares. Under the programs, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. Shares of Common Stock </chunk> <chunk> [Document ID: Index]: [32:112] Ticker: AAPL Publication Date: 2024-11-01 Section: Management's Discussion and Analysis of Financial Condition and Results of Operations Doc Type: 10-K Period: FY 2024 Highlighted Text: Liquidity and Capital Resources The Company believes its balances of unrestricted cash, cash equivalents and marketable securities, which totaled $140.8 billion as of September 28, 2024, along with cash generated by ongoing operations and continued access to debt markets, will be sufficient to satisfy its cash requirements and capital return program over the next 12 months and beyond. The Company’s material cash requirements include the following contractual obligations: Debt As of September 28, 2024, the Company had outstanding fixed-rate notes with varying maturities for an aggregate principal amount of $97.3 billion (collectively the “Notes”), with $10.9 billion payable within 12 months. Future interest payments associated with the Notes total $38.5 billion, with $2.6 billion payable within 12 months. The Company also issues unsecured short-term promissory notes pursuant to a commercial paper program. As of September 28, 2024, the Company had $10.0 billion of commercial paper outstanding, all of which was payable within 12 months. Leases The Company has lease arrangements for certain equipment and facilities, including corporate, data center, manufacturing and retail space. As of September 28, 2024, the Company had fixed lease payment obligations of $15.6 billion, with $2.0 billion payable within 12 months. Manufacturing Purchase Obligations The Company utilizes several outsourcing partners to manufacture subassemblies for the Company’s products and to perform final assembly and testing of finished products. The Company also obtains individual components for its products from a wide variety of individual suppliers. As of September 28, 2024, the Company had manufacturing purchase obligations of $53.0 billion, with $52.9 billion payable within 12 months. Other Purchase Obligations The Company’s other purchase obligations primarily consist of noncancelable obligations to acquire capital assets, including assets related to product manufacturing, and noncancelable obligations related to supplier arrangements, licensed intellectual property and content, and distribution rights. As of September 28, 2024, the Company had other purchase obligations of $12.0 billion, with $4.1 billion payable within 12 months. Deemed Repatriation Tax Payable As of September 28, 2024, the balance of the deemed repatriation tax payable imposed by the U.S. Tax Cuts and Jobs Act of 2017 (the “TCJA”) was $16.5 billion, with $7.2 billion expected to be paid within 12 months. State Aid Decision Tax Payable As of September 28, 2024, the Company had an obligation to pay €14.2 billion or $15.8 billion to Ireland in connection with the State Aid Decision, all of which was expected to be paid within 12 months. The funds necessary to settle the obligation were held in escrow as of September 28, 2024, and restricted from general use. Capital Return Program In addition to its contractual cash requirements, the Company has an authorized share repurchase program. The program does not obligate the Company to acquire a minimum amount of shares. As of September 28, 2024, the Company’s quarterly cash dividend was $0.25 per share. The Company intends to increase its dividend on an annual basis, subject to declaration by the Board. In May 2024, the Company announced a new share repurchase program of up to $110 billion and raised its quarterly dividend from $0.24 to $0.25 per share beginning in May 2024. During 2024, the Company repurchased $95.0 billion of its common stock and paid dividends and dividend equivalents of $15.2 billion. Recent Accounting Pronouncements </chunk> <chunk> [Document ID: Index]: [23:10] Ticker: AAPL Publication Date: 2025-08-01 Section: Financial Statements Doc Type: 10-Q Period: Q3 2025 Highlighted Text: Derivative Instruments and Hedging The Company may use derivative instruments to partially offset its business exposure to foreign exchange and interest rate risk. However, the Company may choose not to hedge certain exposures for a variety of reasons, including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates. Foreign Exchange Rate Risk To protect gross margins from fluctuations in foreign exchange rates, the Company may use forwards, options or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign exchange rates, the Company may use forwards, cross-currency swaps or other instruments. The Company designates these instruments as either cash flow or fair value hedges. As of June 28, 2025, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for term debt–related foreign currency transactions is 17 years. The Company may also use derivative instruments that are not designated as accounting hedges to protect gross margins from certain fluctuations in foreign exchange rates, as well as to offset a portion of the foreign currency gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies. Interest Rate Risk To protect the Company’s term debt or marketable securities from fluctuations in interest rates, the Company may use interest rate swaps, options or other instruments. The Company designates these instruments as either cash flow or fair value hedges. The notional amounts of the Company’s outstanding derivative instruments as of June 28, 2025 and September 28, 2024, were as follows (in millions): ```csv "June 28, 2025","June 28, 2025","September 28, 2024" Derivative instruments designated as accounting hedges:,, Foreign exchange contracts $,"63,212","$ 64,069" Interest rate contracts $,"12,875","$ 14,575" Derivative instruments not designated as accounting hedges:,, Foreign exchange contracts $,"78,649","$ 91,493" ``` As of June 28, 2025 and September 28, 2024, the carrying amount of the Company’s current and non-current term debt subject to fair value hedges was $12.5 billion and $13.5 billion, respectively. Accounts Receivable Trade Receivables As of June 28, 2025, the Company had two customers that individually represented 10% or more of total trade receivables, which accounted for 18% and 10%. The Company’s third-party cellular network carriers accounted for 31% and 38% of total trade receivables as of June 28, 2025 and September 28, 2024, respectively. The Company requires third-party credit support or collateral from certain customers to limit credit risk. </chunk> <chunk> [Document ID: Index]: [23:11] Ticker: AAPL Publication Date: 2025-08-01 Section: Financial Statements Doc Type: 10-Q Period: Q3 2025 Highlighted Text: Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. The Company does not reflect the sale of these components in products net sales. Rather, the Company recognizes any gain on these sales as a reduction of products cost of sales when the related final products are sold by the Company. As of June 28, 2025, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 48% and 14%. As of September 28, 2024, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 44% and 23%. Note 5 – Condensed Consolidated Financial Statement Details The following tables show the Company’s condensed consolidated financial statement details as of June 28, 2025 and September 28, 2024 (in millions): Inventories ```csv ,"June 28, 2025","September 28, 2024" Components,"$ 2,288","$ 3,627" Finished goods,"3,637","3,659" Total inventories,"$ 5,925","$ 7,286" ``` Property, Plant and Equipment, Net ```csv ,"June 28, 2025","September 28, 2024" "Gross property, plant and equipment","$ 124,311","$ 119,128" Accumulated depreciation,"(75,803)","(73,448)" "Total property, plant and equipment, net","$ 48,508","$ 45,680" ``` Note 6 – Debt Commercial Paper The Company issues unsecured short-term promissory notes pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of June 28, 2025 and September 28, 2024, the Company had $9.9 billion and $10.0 billion of commercial paper outstanding, respectively. The following table provides a summary of cash flows associated with commercial paper for the nine months ended June 28, 2025 and June 29, 2024 (in millions): ```csv ,Nine Months Ended,Nine Months Ended ,"June 28, 2025","June 29, 2024" Maturities 90 days or less:,, "Repayments of commercial paper, net","$ (5,690)","$ (2,985)" Maturities greater than 90 days:,, Proceeds from commercial paper,"5,625",— "Total repayments of commercial paper, net",$ (65),"$ (2,985)" ``` Term Debt As of June 28, 2025 and September 28, 2024, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $91.8 billion and $96.7 billion, respectively (collectively the “Notes”). As of June 28, 2025 and September 28, 2024, the fair value of the Company’s Notes, based on Level 2 inputs, was $80.4 billion and $88.4 billion, respectively. Note 7 – Shareholders’ Equity Share Repurchase Program During the nine months ended June 28, 2025, the Company repurchased 312 million shares of its common stock for $69.3 billion. The Company’s share repurchase programs do not obligate the Company to acquire a minimum amount of shares. Under the programs, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Note 8 – Share-Based Compensation Restricted Stock Units </chunk> <chunk> [Document ID: Index]: [26:10] Ticker: AAPL Publication Date: 2025-05-02 Section: Financial Statements Doc Type: 10-Q Period: Q2 2025 Highlighted Text: Derivative Instruments and Hedging The Company may use derivative instruments to partially offset its business exposure to foreign exchange and interest rate risk. However, the Company may choose not to hedge certain exposures for a variety of reasons, including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates. Foreign Exchange Rate Risk To protect gross margins from fluctuations in foreign exchange rates, the Company may use forwards, options or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign exchange rates, the Company may use forwards, cross-currency swaps or other instruments. The Company designates these instruments as either cash flow or fair value hedges. As of March 29, 2025, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for term debt–related foreign currency transactions is 17 years. The Company may also use derivative instruments that are not designated as accounting hedges to protect gross margins from certain fluctuations in foreign exchange rates, as well as to offset a portion of the foreign currency gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies. Interest Rate Risk To protect the Company’s term debt or marketable securities from fluctuations in interest rates, the Company may use interest rate swaps, options or other instruments. The Company designates these instruments as either cash flow or fair value hedges. The notional amounts of the Company’s outstanding derivative instruments as of March 29, 2025 and September 28, 2024 were as follows (in millions): ```csv "March 29, 2025","March 29, 2025","September 28, 2024" Derivative instruments designated as accounting hedges:,, Foreign exchange contracts $,"68,533","$ 64,069" Interest rate contracts $,"14,575","$ 14,575" Derivative instruments not designated as accounting hedges:,, Foreign exchange contracts $,"68,388","$ 91,493" ``` As of March 29, 2025 and September 28, 2024, the carrying amount of the Company’s current and non-current term debt subject to fair value hedges was $13.4 billion and $13.5 billion, respectively. Accounts Receivable Trade Receivables The Company’s third-party cellular network carriers accounted for 37% and 38% of total trade receivables as of March 29, 2025 and September 28, 2024, respectively. The Company requires third-party credit support or collateral from certain customers to limit credit risk. Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. The Company does not reflect the sale of these components in products net sales. Rather, the Company recognizes any gain on these sales as a reduction of products cost of sales when the related final products are sold by the Company. As of March 29, 2025, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 49% and 19%. As of September 28, 2024, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 44% and 23%. </chunk>
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Get financial data for Apple's debt analysis, cash flow, and profitability metrics over recent periods Search for Apple's business model, revenue streams, and key value drivers in recent filings Search for industry analysis, competitive positioning, and market share information Search for recent developments including product launches, strategic initiatives, and major announcements Search for growth catalysts, strategic opportunities, and forward-looking initiatives Search for risk factors, challenges, and potential headwinds Search for detailed debt structure, maturity profile, and covenant information
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Apple Inc. (AAPL) - Comprehensive Analysis

Current Stock Price: $258.06 (as of October 8, 2025) Market Cap: $3.83 trillion

Business Model & Value Drivers

Business Overview

Apple designs, manufactures, and markets consumer electronics, personal computers, tablets, wearables, accessories, and services across five geographic segments . The company operates on an integrated hardware-software-services model that creates powerful ecosystem effects.

Revenue Streams (FY 2024):

Product/Service Category	FY 2024 Revenue ($B)	FY 2023 Revenue ($B)	% of Total
iPhone	$201.2	$200.6	51.5%
Services	$96.2	$85.2	24.6%
Mac	$30.0	$29.4	7.7%
iPad	$26.7	$28.3	6.8%
Wearables, Home & Accessories	$37.0	$39.8	9.5%
Total	$391.0	$383.3	100%

Recent Quarterly Performance (Q3 2025):

Category	Q3 2025 Revenue ($B)	Q3 2024 Revenue ($B)	YoY Growth
iPhone	$44.6	$39.3	13%
Mac	$8.0	$7.0	15%
iPad	$6.6	$7.2	-8%
Wearables, Home & Accessories	$7.4	$8.1	-9%
Services	$27.4	$24.2	13%
Total	$94.0	$85.8	10%

Product Portfolio

Hardware Products:

iPhone: Line includes iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, and iPhone SE, based on iOS
Mac: Laptops (MacBook Air, MacBook Pro) and desktops (iMac, Mac mini, Mac Studio, Mac Pro) based on macOS and powered by Apple Silicon (M4 family)
iPad: iPad Pro, iPad Air, iPad, and iPad mini based on iPadOS
Wearables: Apple Watch (Ultra 2, Series 10, SE), AirPods (AirPods, AirPods Pro, AirPods Max, Beats), and Apple Vision Pro spatial computer
Home Products: Apple TV (media streaming), HomePod and HomePod mini

Services Ecosystem:

Digital Content: App Store, Apple Arcade, Apple Fitness+, Apple Music, Apple News+, Apple TV+
Cloud Services: iCloud storage
Payment Services: Apple Pay, Apple Card
AppleCare: Service and support products
Advertising: Third-party licensing and proprietary platforms

Geographic Diversification (Q3 2025):

Segment	Q3 2025 Revenue ($B)	YoY Growth	% of Total
Americas	$41.2	9%	43.8%
Europe	$24.0	10%	25.5%
Greater China	$15.4	4%	16.4%
Japan	$5.8	13%	6.1%
Rest of Asia Pacific	$7.7	20%	8.2%

Key Value Drivers

1. Installed Base and Customer Loyalty

Installed base of active devices exceeds 2.35 billion across all products and geographic segments (Q1 2025)
Reached all-time highs across all product categories and geographic segments
Customer satisfaction rates: iPhone 96-97%, Mac 94-95%, iPad 96-97%, Apple Watch 94-95%
Strong upgrade momentum: Q3 2025 set June records for iPhone and Mac upgraders

2. Ecosystem Lock-In and Services Growth

Services revenue grew 13% YoY to $27.4B in Q3 2025, representing an all-time record
Services margin of 75.6% (Q3 2025) vs. products margin of 34.5%
Deferred revenue of $13.6B as of Q2 2025, with 66% expected to be realized within one year

3. Premium Brand and Pricing Power

Company maintains premium positioning across all product categories
Able to command higher ASPs despite intense competition
Brand strength demonstrated by high customer satisfaction and top-selling positions globally

4. Vertical Integration and Apple Silicon

Complete control over hardware, operating systems, and services
Apple Silicon (M4, A18 Pro chips) provides performance advantages and enables on-device AI capabilities
Neural Engine embedded in chips powers AI features and provides competitive differentiation

5. Distribution Strength

Direct sales through retail stores and online: 38% of total sales
Indirect channels (carriers, wholesalers, retailers): 62% of total sales
Expanding retail presence in emerging markets (UAE, India, Saudi Arabia)

Industry & Competitive Position

Industry Landscape

Market Position: Apple holds a minority market share in the global smartphone, PC, and tablet markets . The technology industry is characterized by:

Aggressive price competition and downward margin pressure
Frequent new product introductions and short product life cycles
Rapid adoption of technological advancements by competitors
Evolving industry standards and continual improvement in price/performance

Competitive Dynamics

Smartphone Market:

Major competitors include Samsung, other Android manufacturers
Despite minority market share, iPhone maintains top-selling positions in key markets
According to Kantar, iPhone was the top-selling model in Q3 2025 in U.S., urban China, UK, Australia, Japan
Competitive differentiation through ecosystem integration, privacy, security features

PC Market:

Competition from Windows-based manufacturers
MacBook Air ranked as top-selling laptop model in all of China (Q3 2025)
Mac Mini ranked as top-selling desktop model in all of China
Mac installed base at all-time high with half of customers being new to Mac

Tablet Market:

Competition from Android tablets and other devices
iPad installed base at all-time high
Over half of iPad purchasers new to the product

Services Market:

Faces competition from companies with significant resources and established offerings
Competes with business models providing free content
Apple TV+ has earned 2,700+ award nominations and 585 wins, with highest-rated original content among streaming networks

Competitive Advantages

1. Ecosystem Integration

Seamless experience across iOS, iPadOS, macOS, watchOS, visionOS, and tvOS platforms
Hardware, software, and services designed to work together
Creates high switching costs for customers

2. Privacy and Security Leadership

On-device processing for sensitive data
Private Cloud Compute architecture for advanced AI tasks while preserving privacy
Differentiation in era of increasing privacy concerns

3. Design and Innovation Excellence

Strong R&D capabilities ($31.4B in FY 2024)
Apple Silicon provides performance advantages
Vertical integration enables rapid innovation cycles

4. Brand Equity and Customer Loyalty

Customer satisfaction rates consistently above 94%
Strong new customer acquisition rates (50%+ for iPad, Watch, Mac)
Premium brand perception enables pricing power

Third-Party Developer Ecosystem

Apple's minority market share presents challenges for attracting developers :

Developers may prioritize Android (larger smartphone share) and Windows (larger PC share)
However, iOS developers benefit from higher monetization rates
App Store continues to be the best place to discover apps in a safe, trusted environment

Regulatory and Antitrust Challenges

Significant headwinds from regulation:

Subject to antitrust investigations in various jurisdictions
U.S. civil lawsuits alleging monopolization in "performance smartphones" market
EU Digital Markets Act (DMA) compliance requires significant business model changes
Investigations in Europe and other jurisdictions regarding App Store terms
Potential for significant fines and required changes to business practices

Recent Developments & Strategy

Major Product Launches and Updates

iPhone 16 Family (2025):

Strong performance with double-digit YoY growth vs. iPhone 15 family
iPhone 16 Pro features A18 Pro chip with advanced camera capabilities
iPhone 16E offers breakthrough battery life with 2-in-1 camera system
Apple recently shipped its 3 billionth iPhone since launch in 2007

Mac Portfolio (2025):

M4 MacBook Air driving strong sales growth
M4 MacBook Pro with longest battery life ever on Mac
Mac Studio described as "most powerful Mac ever" with AI workflow capabilities
Mac revenue up 15% YoY in Q3 2025

Apple Vision Pro:

First spatial computer based on visionOS
visionOS 26 introduces spatial widgets, lifelike personas, and new enterprise APIs
Expanding use cases beyond consumer to enterprise applications

Wearables and Accessories:

Apple Watch celebrated 10-year anniversary (2025)
AirPods Pro 2 hearing health features receiving positive customer feedback
New AirPods features include studio-quality audio recording and camera remote capabilities

Strategic Initiatives

1. Apple Intelligence - AI Integration

Apple is pursuing comprehensive AI strategy centered on "Apple Intelligence":

Key Features Released (20+ features as of Q3 2025):

Visual Intelligence for enhanced image understanding
Cleanup tool for photo editing
Powerful writing tools across platforms
Genmoji and Image Playground for creative content
Image Wand functionality
AI-powered photo search
Smart replies and priority notifications
Mail message summaries

Coming Features:

More personalized Siri (expected 2026)
Live translation capabilities
WorkoutBuddy fitness integration
Real-time call screening and hold assist
Smarter messaging tools

Differentiation Strategy:

On-device processing using Apple Silicon Neural Engine for privacy
Private Cloud Compute for advanced tasks while preserving privacy
Integration across platforms (iOS 26, macOS 26, iPadOS 26, watchOS 26, visionOS 26)
Foundation models specialized for everyday tasks
Opening access to on-device models for developers

Market Impact:

Markets where Apple Intelligence is available show stronger iPhone 16 family performance vs. markets without it
iOS 26, macOS 26, and iPadOS 26 are "by far the most popular developer betas" ever

2. Software Platform Evolution (2025)

Major updates announced at WWDC 2025 :

iOS 26: New design crafted from "liquid glass" material, extends across all platforms
macOS Tahoe 26: Enhanced phone app, live activities, biggest Spotlight update ever
iPadOS 26: New windowing system, enhanced Files app
watchOS 26: Smart updates to workout app and smart stack
visionOS 26: Spatial widgets, enhanced personas
tvOS 26: Platform improvements

3. Geographic Expansion

Emerging Markets Growth:

India: Double-digit growth, June revenue record
Middle East: June revenue record, opening Apple Store online in Saudi Arabia
Latin America: Strong growth, June revenue records
Brazil: Double-digit growth
South Asia: Strong performance across region

Greater China Momentum:

Q3 2025 revenue up 4% YoY to $15.4B
iPhone installed base reached all-time record
iPhone upgraders in Mainland China set June record
iPhone held top three models in urban China
Government subsidies provided support

Retail Expansion:

New stores planned for UAE and India later in 2025
Recently opened store in Osaka, Japan
Online store launched in Saudi Arabia

4. U.S. Manufacturing and Investment

$500 Billion Investment Commitment:

Largest-ever spending commitment over next four years
Expanding facilities across multiple states: Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina, Washington
Mix of CapEx, OpEx, and COGS investments
Includes advanced server manufacturing in Texas through partners
$5B commitment with NP Materials for recycled rare earth materials in U.S.
Opening Apple Manufacturing Academy in Detroit (August 2025)

5. Services Portfolio Enhancement

Apple TV+:

Record 81 Emmy nominations for 2025
"Severance" leads with 27 nominations
Viewership up strong double-digits YoY in Q3 2025
Released "F1" theatrical film summer 2025

Apple Music:

Celebrated 10-year anniversary with new LA studio space
Enhanced features including automix (DJ-like mixing) and lyrics translation

App Store:

Revenue grew double-digits YoY, setting June record
Introduced accessibility nutrition labels for developers

Leadership and Organization

CFO Transition:

Kevan Parekh became CFO in FY 2025, succeeding Luca Maestri

Growth Catalysts & Risks

Growth Catalysts

1. Apple Intelligence Adoption (High Impact)

Magnitude: Potentially significant upgrade catalyst affecting 2.35B+ installed base

Early evidence shows stronger iPhone 16 performance in markets with Apple Intelligence
Over 20 features already released with more advanced capabilities coming 2026
Personalized Siri expected to drive upgrades when released
Apple significantly increasing AI investment in FY 2025-2026
Reallocating resources across company to focus on AI features

2. Services Growth Momentum (High Impact)

Magnitude: $96.2B annual run rate growing 13% YoY with 75%+ margins

Services revenue reached all-time high of $27.4B in Q3 2025
Services gross margin of 75.6% vs. 34.5% for products
Growth drivers: Advertising, App Store, cloud services
Installed base expansion creates larger addressable market for services
Customer engagement across services offerings continues to grow

3. Emerging Markets Expansion (Medium-High Impact)

Magnitude: Rest of Asia Pacific up 20% YoY in Q3 2025

India: Double-digit growth, new retail stores opening
Middle East: June revenue records, new retail expansion
Latin America: Strong growth momentum
Rest of Asia Pacific: 20% YoY growth in Q3 2025
Expanding retail presence and online stores in key markets

4. Mac Growth from Apple Silicon (Medium Impact)

Magnitude: Mac revenue up 15% YoY in Q3 2025

M4 chip family providing significant performance advantages
Mac installed base at all-time high
Strong new customer acquisition (50%+ new to Mac)
Growing AI/ML workload capabilities attracting professionals
Market share gains possible as Windows transitions

5. Upgrade Cycle Acceleration (Medium-High Impact)

Magnitude: Potentially affects hundreds of millions of devices

Q3 2025 set June records for iPhone and Mac upgraders
iPhone upgraders grew double-digits YoY in Q2 2025
Aging installed base creates pent-up demand
Apple Intelligence providing compelling upgrade reason

6. Premium Services Expansion (Medium Impact)

Magnitude: Multiple services with strong growth trajectories

Apple TV+ content quality driving viewership (up strong double-digits)
Apple Music celebrating 10 years with enhanced features
Fitness+, News+, Arcade expanding content and features
Advertising business growing

Risks and Challenges

1. Tariffs and Trade Restrictions (High Risk - Operational/Financial)

Severity: Material near-term impact to margins and pricing

Q3 2025 estimated impact of $900M in costs assuming no changes
Tariffs announced on imports from China, India, Japan, South Korea, Taiwan, Vietnam, EU
Reciprocal tariffs imposed by other countries on U.S. exports
Section 232 investigation into semiconductors could expand scope
Impact on supply chain, component availability, pricing, and gross margin
Consumer spending may decline due to macroeconomic impact

2. Greater China Revenue Volatility (High Risk - Operational)

Severity: -7% YoY decline in first nine months of FY 2025

Greater China revenue down 4% in 9-month period despite Q3 recovery
Competitive pressures from local manufacturers
Geopolitical tensions between U.S. and China
Represents 16% of total revenue, significant exposure
Foreign exchange headwinds from renminbi weakness

3. Regulatory and Antitrust Actions (High Risk - Regulatory/Financial)

Severity: Potential for significant fines and business model changes

U.S. civil antitrust lawsuits alleging smartphone monopolization
EU DMA compliance requiring ongoing business changes
Investigations in Europe on App Store terms
Significant fines and penalties possible
Required changes could impact App Store revenue and ecosystem
Google search licensing arrangements under investigation

4. Competitive Intensity and Market Share (Medium-High Risk - Competitive)

Severity: Ongoing pressure on margins and market position

Minority market share in smartphone, PC, tablet markets
Competitors aggressively cutting prices and lowering margins
Some competitors can operate at little/no profit
Competitors imitating Apple features and collaborating for integrated solutions
Risk of developer focus shifting to larger-share platforms

5. Macroeconomic Conditions (Medium Risk - Macroeconomic)

Severity: Could materially impact demand and financial condition

Inflation, interest rates, currency fluctuations affecting results
Foreign currency weakness reducing USD value of international sales
Potential recession could adversely impact consumer confidence and spending
High unemployment and tighter credit affecting customers and channel partners

6. Supply Chain Concentration (Medium Risk - Operational)

Severity: Potential for significant business interruption

Majority of manufacturing in China, India, Japan, South Korea, Taiwan, Vietnam
Single/limited sources for many critical components
Geopolitical tensions could disrupt supply chain
Natural disasters, pandemics, industrial accidents pose risks
Recent experience with tariffs demonstrates vulnerability

7. Product Concentration (Medium Risk - Financial)

Severity: iPhone represents 51% of revenue

Significant portion of revenue from single product (iPhone)
Decline in iPhone demand could significantly impact quarterly results
Seasonal patterns create quarterly volatility
Product life cycles compressing

8. Foreign Exchange Risk (Medium Risk - Financial)

Severity: Ongoing headwinds to reported results

Q3 2025 FX had unfavorable impact on Americas, Europe, Greater China
Weak foreign currencies reduce USD value of international sales
May need to raise international pricing, potentially reducing demand
57% of revenue from outside Americas

9. AI Competition (Medium Risk - Competitive/Technology)

Severity: Late mover risk in generative AI market

Competition from Microsoft, Google, Amazon, Meta in AI
More personalized Siri delayed until 2026
Risk that competitors' AI offerings gain traction before Apple Intelligence matures
Requires sustained heavy investment

10. Privacy Regulations (Low-Medium Risk - Regulatory)

Severity: Increasing compliance costs and operational constraints

Subject to increasing number of data protection laws globally
Laws inconsistent across jurisdictions
Compliance causes substantial costs and may require business practice changes
Noncompliance could result in significant penalties

Debt Analysis & Financial Health

Current Debt Structure (Q3 2025)

Debt Component	Amount ($B)	Description
Commercial Paper	$9.9	Short-term unsecured promissory notes
Current Term Debt	(included in Total Debt)	Maturities within 12 months
Long-Term Term Debt	$91.8 carrying value	Fixed-rate notes, various maturities
Total Debt	$101.7	Gross debt outstanding
Cash & Equivalents	$36.3	Unrestricted cash
Short-Term Investments	$19.1	Marketable securities
Net Debt	-$31.3	Net cash position

Debt Metrics and Trends

Leverage Ratios (Annual):

Metric	FY 2024*	FY 2023*	FY 2022*
Total Debt ($B)	$119.1	$123.9	$132.5
Net Debt ($B)	-$37.6	-$38.2	-$36.6
Total Debt / Equity (%)	209.1%	199.4%	261.4%
Total Debt / Total Capital (%)	67.6%	66.6%	72.3%
Net Debt / EBITDA (x)	-0.28x	-0.30x	-0.28x

*Values retrieved from SPGI

Quarterly Debt Trends:

Quarter	Total Debt ($B)	Net Debt ($B)	Cash & ST Investments ($B)
Q3 2025	$101.7	-$31.3	$55.4
Q2 2025	$98.2	-$34.7	$48.5
Q1 2025	$96.8	-$44.6	$53.8
Q4 2024	$119.1	-$37.6	$65.2
Q3 2024	$101.3	-$51.7	$61.8

Debt Servicing Capability

Cash Flow Metrics (Quarterly):

Metric ($B)	Q3 2025*	Q2 2025*	Q1 2025	Q4 2024	Q3 2024
Cash from Operations	$27.9	$24.0	$29.9	$26.8	$28.9
Capital Expenditure	-$3.5	-$3.1	-$2.9	-$2.9	-$2.2
Levered Free Cash Flow	$20.1	$24.0	$16.2	$34.5	$22.5

*Values retrieved from SPGI

Annual Cash Flow Performance:

Metric ($B)	FY 2024*	FY 2023*	FY 2022*
EBITDA	$134.7	$125.8	$130.5
Levered Free Cash Flow	$110.8	$84.6	$92.0
Operating Cash Flow	(not shown)	(not shown)	(not shown)

*Values retrieved from SPGI

Interest Coverage:

Interest expense data not consistently available in recent periods
Historical (FY 2021): Interest expense of $2.6B on EBITDA of $120.2B = 45x coverage
Current FCF generation far exceeds debt service requirements

Debt Maturity Profile

Future Principal Payments (as of September 28, 2024):

Period	Principal Amount ($B)
2025	$10.9
2026	$12.3
2027	$9.9
2028	$7.8
2029	$5.2
Thereafter	$51.2
Total	$97.3

Future Interest Payments (as of September 28, 2024):

Total future interest: $38.5B
Interest payable within 12 months: $2.6B

Debt Characteristics

Structure:

Fixed-rate notes with varying maturities (2024-2062)
Interest rates ranging from 0.000% to 4.850%
Effective interest rates: 0.03% to 6.65%
Senior unsecured obligations with interest payable in arrears

Commercial Paper Program:

Unsecured short-term promissory notes for general corporate purposes
Used for dividends and share repurchases
Weighted-average interest rate: 5.00% (Sept 2024)

Risk Management:

Uses interest rate swaps to convert fixed to floating rates on select notes
Uses cross-currency swaps for foreign currency-denominated notes
Hedging exposure up to 17 years for certain foreign currency transactions

Liquidity Position (Q3 2025)

Liquidity Sources:

Source	Amount ($B)
Cash and Cash Equivalents	$36.3
Short-Term Marketable Securities	$19.1
Long-Term Marketable Securities	$84.4
Total Cash & Investments	$139.8
Commercial Paper Capacity	Available but unquantified

Liquidity Uses:

Use	Quarterly Run Rate ($B)	Annual
Dividends (Q3 2025)	$3.8	$15.2
Share Repurchases (9M 2025)	$23.1/quarter	$92.4 annualized
CapEx (9M 2025)	$3.2/quarter	$12.8 annualized
Operating Needs	Variable

Capital Return Program

Share Repurchase Activity:

9 months ended June 28, 2025: Repurchased 312M shares for $69.3B
Authorization: Up to $110B (announced May 2024)

Dividend:

Current quarterly dividend: $0.25/share
Company intends to increase dividend annually

Financial Flexibility

Strengths:

Net cash position of -$31.3B (more cash than debt)
Strong FCF generation: $110.8B in FY 2024, growing trend
Investment-grade credit quality with access to debt markets
Substantial liquidity: $139.8B in cash and marketable securities
No debt covenant violations disclosed
Flexible capital allocation: Can adjust buybacks and capex as needed

Considerations:

Significant capital return commitments (~$107B annually for dividends + buybacks)
Tariff impacts adding cost pressures (~$900M estimated Q3 impact)
$500B U.S. investment commitment over 4 years creates obligations
Seasonal working capital variations

Debt Profile Assessment

Category: 1 - Opportunistically Issuing Debt (Extremely High Confidence of Repayment)

Rationale:

Apple exhibits the strongest possible debt profile with multiple factors supporting this classification:

Net Cash Position: Company has -$31.3B net debt (Q3 2025), meaning cash exceeds total debt by this amount. This is highly unusual for a company of this scale.
Exceptional Cash Generation:
- Levered FCF of $110.8B in FY 2024
- Quarterly FCF consistently $16-34B
- EBITDA of $134.7B annually provides massive cushion
Trivial Debt Service Coverage:
- With $134.7B EBITDA and historical interest ~$2.6B, coverage exceeds 50x
- Total debt of $101.7B could theoretically be repaid in ~1 year from FCF alone
- Interest coverage not a concern whatsoever
Strategic Capital Deployment:
- Debt used primarily for tax-efficient capital structure
- Enables aggressive buybacks ($69.3B in 9 months) and dividends ($15B+ annually)
- Not dependent on debt for operations or survival
Unmatched Liquidity:
- $139.8B in cash and marketable securities
- Exceeds total debt by $38B
- No liquidity stress under any reasonable scenario
Financial Fortress Metrics:
- Return on Equity: 157% (FY 2024)
- EBITDA Margin: 34.4% (FY 2024)
- Net Income Margin: 24.0% (FY 2024)
- Demonstrates pricing power and operational excellence
Debt is Preference, Not Necessity:
- Company chooses to maintain debt for optimal capital structure
- Could eliminate all debt immediately if desired
- Debt provides low-cost funding for shareholder returns

Risks to Debt Profile:

Tariff impacts could pressure margins but nowhere near distress levels
Greater China volatility creates some revenue uncertainty
Regulatory fines possible but manageable given cash position
None of these risks threaten Apple's ability to service or repay debt

Conclusion: Apple maintains one of the strongest balance sheets in corporate America. The company opportunistically uses debt to enhance returns to shareholders while maintaining a fortress balance sheet with extreme financial flexibility. Debt repayment capability is unquestioned.

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