Slug: apple
Queue id: 99 · Theme: hardware
Last updated: 2026-10-15
Primary sources: Apple FY2025 Form 10-K (year ended September 27, 2025); FY2025 Q4 consolidated financial statements / earnings release.
Labels used below: FACT (company filing or apple.com), SECONDARY (press summarizing filings), INFERENCE (arithmetic or reading from stated figures).
Apple Inc. designs, manufactures (via contract manufacturers), and markets smartphones (iPhone), personal computers (Mac), tablets (iPad), wearables and accessories (Apple Watch, AirPods, Vision Pro, HomePods, etc.), and a growing Services portfolio (App Store commissions, AppleCare, cloud, content subscriptions, advertising, payment services). Customers are consumers, SMB, education, enterprise, and government. Distribution mixes Apple retail/online/direct sales with carriers and resellers.
| Item | FY2025 | FY2024 | YoY | Tier |
|---|---|---|---|---|
| Total net sales | $416.161B | $391.035B | +6.4% | FACT → INFERENCE % |
| Products net sales | $307.003B | $294.866B | +4.1% | FACT → INFERENCE % |
| Services net sales | $109.158B | $96.169B | +13.5% | FACT → INFERENCE % |
| Gross margin | $195.201B (46.9%) | $180.683B | — | FACT / INFERENCE % |
| Operating income | $133.050B | $123.216B | — | FACT |
| Net income | $112.010B | $93.736B | +19.5% | FACT → INFERENCE % |
| R&D expense | $34.550B | $31.370B | — | FACT |
| SG&A | $27.601B | $26.097B | — | FACT |
Product / category net sales FY2025 (FACT):
Products remain the majority of revenue (~74%); Services is the high-growth, high-margin layer (~26%).
Country-level (countries ≥10% of sales) FY2025 (FACT, 10-K Note Segment Information):
Share outside home (U.S.): ($416.161B − $151.790B) / $416.161B = 63.5% (INFERENCE from two FACT figures).
Reportable segments FY2025 net sales (FACT): Americas $178.353B · Europe $111.032B · Greater China $64.377B · Japan $28.703B · Rest of Asia Pacific $33.696B.
10-K: “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.”
During FY2025, net sales through direct channels (Apple retail, online, direct sales force) were 40% and through indirect channels (carriers, wholesalers, retailers, resellers) 60% (FACT, 10-K).
App Store: third-party app-related sales recognized net (commission only) in Services (FACT, 10-K revenue note). Public Apple materials cite a standard 30% commission with many developers eligible for 15% (Small Business / video partner programs) (FACT, Apple App Store ecosystem materials).
Approximately 166,000 full-time equivalent employees as of September 27, 2025 (FACT, 10-K). Press release boilerplate still says “more than 150,000” — use 10-K figure.
Primary atlas tag: hardware — Products $307B ≈ 74% of FY2025 net sales; iPhone alone ≈ 50%. Services is material but secondary as the main engine.
# Apple — research brief **Slug:** apple **Queue id:** 99 · **Theme:** hardware **Last updated:** 2026-10-15 **Primary sources:** Apple FY2025 Form 10-K (year ended September 27, 2025); FY2025 Q4 consolidated financial statements / earnings release. Labels used below: **FACT** (company filing or apple.com), **SECONDARY** (press summarizing filings), **INFERENCE** (arithmetic or reading from stated figures). --- ## What Apple is Apple Inc. designs, manufactures (via contract manufacturers), and markets smartphones (iPhone), personal computers (Mac), tablets (iPad), wearables and accessories (Apple Watch, AirPods, Vision Pro, HomePods, etc.), and a growing Services portfolio (App Store commissions, AppleCare, cloud, content subscriptions, advertising, payment services). Customers are consumers, SMB, education, enterprise, and government. Distribution mixes Apple retail/online/direct sales with carriers and resellers. ## Full-year financials (FY2025) | Item | FY2025 | FY2024 | YoY | Tier | |---|---:|---:|---:|---| | Total net sales | $416.161B | $391.035B | +6.4% | FACT → INFERENCE % | | Products net sales | $307.003B | $294.866B | +4.1% | FACT → INFERENCE % | | Services net sales | $109.158B | $96.169B | +13.5% | FACT → INFERENCE % | | Gross margin | $195.201B (46.9%) | $180.683B | — | FACT / INFERENCE % | | Operating income | $133.050B | $123.216B | — | FACT | | Net income | $112.010B | $93.736B | +19.5% | FACT → INFERENCE % | | R&D expense | $34.550B | $31.370B | — | FACT | | SG&A | $27.601B | $26.097B | — | FACT | **Product / category net sales FY2025 (FACT):** - iPhone $209.586B (≈50.4% of total — INFERENCE) - Mac $33.708B - iPad $28.023B - Wearables, Home and Accessories $35.686B - Services $109.158B (≈26.2% of total — INFERENCE) Products remain the majority of revenue (~74%); Services is the high-growth, high-margin layer (~26%). ## Geography (international) Country-level (countries ≥10% of sales) FY2025 (FACT, 10-K Note Segment Information): - U.S. $151.790B - China (incl. Hong Kong & Taiwan) $64.377B - Other countries $199.994B - Total $416.161B **Share outside home (U.S.):** ($416.161B − $151.790B) / $416.161B = **63.5%** (INFERENCE from two FACT figures). Reportable segments FY2025 net sales (FACT): Americas $178.353B · Europe $111.032B · Greater China $64.377B · Japan $28.703B · Rest of Asia Pacific $33.696B. 10-K: “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.” ## Channels During FY2025, net sales through **direct** channels (Apple retail, online, direct sales force) were **40%** and through **indirect** channels (carriers, wholesalers, retailers, resellers) **60%** (FACT, 10-K). App Store: third-party app-related sales recognized **net** (commission only) in Services (FACT, 10-K revenue note). Public Apple materials cite a standard **30%** commission with many developers eligible for **15%** (Small Business / video partner programs) (FACT, Apple App Store ecosystem materials). ## People Approximately **166,000** full-time equivalent employees as of September 27, 2025 (FACT, 10-K). Press release boilerplate still says “more than 150,000” — use 10-K figure. ## Model read (for BMC) 1. **Hardware-led flywheel:** iPhone (~half of sales) anchors an installed base; Mac/iPad/Watch/AirPods deepen the device graph. 2. **Services attach:** App Store, AppleCare, iCloud+, Apple Music/TV+/Arcade/Fitness+, Apple Pay/Ads monetize the installed base at higher incremental margins. 3. **Ecosystem lock-in:** hardware + OS + services + retail experience raise switching costs (INFERENCE / strategy theme; not a filing claim). 4. **Mixed go-to-market:** owned stores/online (brand/control) + carriers/resellers (reach); 40/60 direct/indirect. **Primary atlas tag:** `hardware` — Products $307B ≈ 74% of FY2025 net sales; iPhone alone ≈ 50%. Services is material but secondary as the main engine. ## Sources (canonical URLs) - FY2025 Form 10-K HTML: https://www.sec.gov/Archives/edgar/data/320193/000032019325000079/aapl-20250927.htm - Segment / geographic XBRL note: https://www.sec.gov/Archives/edgar/data/320193/000032019325000079/R21.htm - Revenue disaggregation note: https://www.sec.gov/Archives/edgar/data/320193/000032019325000079/R10.htm - FY25 Q4 consolidated statements PDF: https://www.apple.com/newsroom/pdfs/fy2025-q4/FY25_Q4_Consolidated_Financial_Statements.pdf - Q4 FY2025 earnings 8-K exhibit: https://www.sec.gov/Archives/edgar/data/320193/000032019325000077/a8-kex991q4202509272025.htm ## Gaps / do-not-invent - No official FY2025 count of Apple retail stores in the 10-K (do not invent a store count). - No ARR, valuation, or MAU invented here. - Services sub-line (Music vs Care vs Ads vs App Store) not fully broken out in filings — treat as one Services bucket unless a FACT source splits it.