What it does
Apple states that it designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, alongside related services. Its hardware lines include iPhone, Mac and iPad; its Wearables, Home and Accessories category includes smartwatches, wireless headphones, spatial computers, streaming devices, speakers, and Apple-branded and third-party accessories. The filing describes services spanning advertising, AppleCare support, cloud services, digital-content platforms and subscriptions, and payment services.
Source: Apple Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
How it makes money
The company reports revenue by product category and manages its business primarily by geography. In FY2025, iPhone revenue was $209.6 billion and Services revenue was $109.2 billion. Mac generated $33.7 billion, iPad generated $28.0 billion, and Wearables, Home and Accessories generated $35.7 billion. The filing says Apple sells products and resells third-party products through retail and online stores, its direct sales force, carriers and other resellers; services are sold through its service platforms. Direct and indirect channels accounted for 40% and 60%, respectively, of 2025 net sales.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| iPhone | $209.6 billion | 50.4% | 4.18% |
| Services | $109.2 billion | 26.2% | 13.5% |
| Wearables, Home and Accessories | $35.7 billion | 8.58% | −3.56% |
| Mac | $33.7 billion | 8.10% | 12.4% |
| iPad | $28.0 billion | 6.73% | 4.98% |
Source: Apple Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Customers and geography
The company identifies customers in consumer, small and mid-sized business, education, enterprise and government markets. Its reportable geographic segments are the Americas, Europe, Greater China, Japan and Rest of Asia Pacific; the segment table below provides the full breakdown. FY2025 revenue was $178.4 billion in the Americas, $111.0 billion in Europe and $64.4 billion in Greater China. The filing defines the Americas as North and South America, and states that Europe also includes India, the Middle East and Africa. It says each geographic segment is managed separately to reflect customer and distribution-partner locations and regional market dynamics.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Other countries | $200.0 billion | 48.1% | 9.96% |
| U.S. | $151.8 billion | 36.5% | 6.75% |
| China | $64.4 billion | 15.5% | −3.85% |
Source: Apple Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Competition
The filing describes Apple’s markets as highly competitive, with aggressive price competition, pressure on gross margins, short product life cycles and rapid technological change. It lists price, product and service features, quality and reliability, design and technology innovation, third-party software and accessories, marketing and distribution, service and support, reputation, and intellectual-property protection as competitive factors. The filing does not name corporate competitors. It names Android, Windows, PlayStation, Nintendo and Xbox as competing platforms in the context of third-party developer support. Apple states that it has a minority share of the global smartphone, personal-computer, tablet and wearables markets.
Source: Apple Inc. Form 10-K for fiscal 2025, Item 1 and Item 1A — sec.gov
Key risks
The filing’s risk factors include:
- Operations and performance depend significantly on global and regional economic conditions.
- Political events, trade disputes, geopolitical tensions, conflict, natural disasters, public-health issues and other business interruptions can affect the business.
- Global markets for products and services are highly competitive and subject to rapid technological change.
- The company must successfully manage frequent introductions and transitions of products and services.
- The company depends on component manufacturing and logistical services provided by outsourcing partners, many outside the U.S.
- Future operating results depend on obtaining components in sufficient quantities on commercially reasonable terms.
Source: Apple Inc. Form 10-K for fiscal 2025, Item 1A — sec.gov
People and operations
As of September 27, 2025, Apple had approximately 166,000 full-time equivalent employees. The company states that it seeks to attract, develop and retain talent; offers cash and equity awards, benefits, development programs and employee-sentiment surveys. Operationally, the filing says a significant majority of manufacturing is performed in whole or in part by outsourcing partners, while the company has also outsourced much of transportation and logistics management. Apple historically has higher net sales in its first fiscal quarter than in other quarters, partly because of seasonal holiday demand. The filing says new product and service introductions can also significantly affect sales, costs and operating expenses.
Source: Apple Inc. Form 10-K for fiscal 2025, Item 1 and Item 1A — sec.gov