Apple Inc. (AAPL)
Fair ValueFundamental
68
Price
$329.93
Market Cap
$4.90T
Part 1 · What the company is worth
Overview
Apple designs consumer hardware — iPhone, Mac, iPad, Watch and accessories — that it has manufactured by contract partners, mostly in Asia, and sells worldwide through its own and third-party stores. Around that hardware it has built a services layer: the App Store, subscriptions such as iCloud and Apple Music, Apple Pay, advertising and licensing fees. It designs the chips and the software tightly integrated with each device rather than owning the factories that build them.
How it makes money
Apple books revenue when it sells hardware, through its own stores, online and through outside retailers that carry the bulk of unit volume, and separately earns recurring or one-time fees from its services layer: App Store commissions, subscriptions, licensing income such as the fee Google pays to be the default search engine, and AppleCare. Hardware still drives most of the total, but services carry far higher margins and grow more steadily because they don't depend on a new-device purchase.
Revenue by segment
Apple's flagship smartphone line and by far its largest source of revenue.
App Store, subscriptions, Apple Pay, advertising, licensing and AppleCare — Apple's highest-margin business.
Apple Watch, AirPods, HomePod and related accessories.
Apple's personal computer line, from MacBook laptops to desktop iMac and Mac Studio models.
Apple's tablet line, spanning entry-level to Pro models.
Competitive moat
Switching costs · WideCustomers who buy into iPhone, Mac, Watch and Apple's services face real friction leaving: repurchasing paid apps, losing iMessage's blue-bubble integration, family sharing set up across devices, and years of habit. That lock-in supports both pricing power on hardware and high attach rates for subscriptions, and it is the main reason Apple can charge more than most competitors for comparable specifications.
What drives demand
Moderately cyclicalBuying a new iPhone or Mac is discretionary and tends to slow when consumers feel less confident about spending, but the installed base keeps replacing devices on a multi-year cycle regardless of the broader economy, and services revenue keeps growing steadily even in years when hardware sales stall. Replacement cycles have lengthened as devices last longer, softening the swings somewhat.
Key risks
- iPhone concentration — iPhone alone supplies about half of total revenue, so a weak launch cycle or slower upgrades in that one product line moves the whole company's results.
- Supply chain concentration in Asia — Apple relies on a relatively concentrated set of manufacturing partners and suppliers, mostly in Asia, for final assembly and key components, exposing it to tariffs, trade disputes and disruption at a single site.
- Regulatory pressure on the App Store — Antitrust action and digital-markets rules in the US, EU and elsewhere are forcing changes to App Store fees and payment rules, threatening the margins that make services so profitable.
- Tariffs and China exposure — New US tariffs on imports from China and other manufacturing countries raise Apple's costs, which it may not be able to fully pass through to customers without hurting demand.
Customer concentration
Apple sells to hundreds of millions of individual consumers through its own and third-party retail channels; it does not disclose meaningful revenue concentration among individual customers because none is material.
The case for
Buyers argue that services now grow faster than hardware and carry much higher margins, that switching costs inside the Apple ecosystem keep users buying the next iPhone even as upgrade cycles lengthen, and that a fresh AI-driven upgrade wave could reaccelerate hardware sales.
The case against
Sellers worry that iPhone still supplies about half of revenue, so any stumble in that single product line moves the whole business, that regulators are chipping away at the App Store fees driving services profitability, and that tariffs on Chinese manufacturing raise costs Apple cannot fully offset.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on August 23, 2026 with claude-opus-5 — shared with all users
Xiaomi is the world's third-largest smartphone vendor and sells a full ecosystem of phones, tablets, wearables and connected home devices that targets Apple buyers in China, India and Europe at lower price points.
Microsoft competes with Apple for the same computer users through Windows and its Surface hardware, and for the same subscription spending in productivity software, cloud storage and gaming services.
Samsung is the other global volume leader in premium smartphones, tablets and smartwatches, selling to the same consumers through the same carrier and retail channels as the iPhone, iPad and Apple Watch.
Google competes with Apple on the mobile platform itself — Android against iOS, Play Store against the App Store, Pixel phones against the iPhone — and in the digital services and AI assistants sold on top of them.
Huawei is Apple's toughest rival in China, where its high-end smartphones, tablets and wearables built on its own HarmonyOS compete directly for premium buyers in Apple's largest international market.
Lenovo is the largest personal computer vendor worldwide and competes head-on with the Mac line for consumer, education and corporate laptop and desktop budgets.
Balance Sheet & Liquidity
Revenue
$466.82B
Trailing 12 months (through 6/27/2026)
Net Income
$128.93B
Trailing 12 months (through 6/27/2026)
Free Cash Flow
$98.77B
Total Equity
$73.73B
Total Liabilities
$285.51B
Current Ratio
1.00
Interest Coverage
-
Debt/EBITDA
0.58
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$277.35
Current Price
$329.93
Margin of Safety
-19.0%
Fair Value Range
$203.60 - $351.11
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
38.23
ROE
151.9%
P/B Ratio
45.20
P/FCF
35.56
Gross Margin
48.7%
ROIC
52.3%
Profitability Radar
Value Creation (Economic Moat)
ROIC outlierROIC
52.3%
WACC
10.3%
ROIC − WACC
+42.0 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (19)
- EPS shows upward trend
- Price CAGR 27.82%
- ROIC 52.3%
- Gross Margin 48.7%
- Debt/Equity ratio
- Operating Margin 33.2%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 137.2%
- Revenue Growth 5Y 8.7%
- Analyst Consensus 64% Buy
- Earnings Quality (OCF/NI) 1.14
- Share Dilution -2.6%
- Net Margin Trend 27.6% vs 24.3%
- Piotroski F-Score 8/9
Failed (7)
- EPS CAGR 3.62%
- P/FCF 35.56
- P/B Ratio 45.20
- Price below Graham Number
- DCF valuation (Overvalued)
- Earnings Surprise avg 1.7%
- PEG Ratio 2.13
Unavailable (2)
- Dividend Payout NaN%
- Interest Coverage
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Timothy D. Cook | Executive Chairman of the Board | 64 |
| Mr. Kevan Parekh | Senior VP & CFO | 53 |
| Mr. Sabih Khan | Senior VP & Chief Operating Officer | 58 |
| Ms. Deirdre O'Brien | Senior Vice President of Retail & People | 58 |
| Ms. Katherine L. Adams | Secretary | 61 |
| Mr. John Ternus | CEO & Director | 49 |
| Mr. Ben Borders | Principal Accounting Officer | 44 |
| Suhasini Chandramouli | Director of Investor Relations | - |
| Ms. Jennifer G. Newstead J.D. | Senior VP & General Counsel | 55 |
| Ms. Kristin Huguet Quayle | Vice President of Worldwide Communications | - |
Audit Risk
2
Board Risk
1
Compensation Risk
6
Shareholder Rights Risk
1
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2025-10-31
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-31
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-07-30
via SEC EDGAR
Income History
via SEC EDGAR
Declared Strategy AI-generated summary
Apple designs, manufactures, and markets consumer electronic devices, including iPhone smartphones, Mac personal computers, iPad tablets, wearables like Apple Watch and AirPods, and spatial computing devices, alongside a wide portfolio of related services such as the App Store, cloud storage, Apple Pay, and digital content subscriptions. The company's core business strategy is to deliver fully integrated user experiences by designing nearly the entire solution in-house, including hardware, operating systems, application software, and connected services. To compete and grow in fast-changing global markets, Apple focuses on continuous innovation through sustained research and development, introducing regular product and technology upgrades, expanding its high-margin services offerings, fostering a rich ecosystem of third-party developers, and distributing products worldwide through both direct stores and carrier partners.
Source: 10-K filed on 2025-10-31
View filingLatest News
Recent headlines for AAPL, sourced from Markets Gazette.
- 21h agoPOSITIVELe azioni Apple salgono oggi: ecco perché
Apple shares rose 2% on Wednesday following Counterpoint Research's projection of 6 million units sold for the upcoming iPhone Duo this year. UBS noted stable wait times for the iPhone 18 Pro and Pro Max. The iPhone Duo, Apple's first foldable smartphone, is slated for pre-orders on October 16th and launch on October 23rd. While UBS data suggests limited changes in availability for existing Pro models, indicating stable demand, the strong sales forecast for the new foldable device is a key driver for investor optimism.
- 22h agoNEGATIVEApple Patches Zero-Day Flaw Used In Exploits Targeting iPhone Crypto Wallets
Apple has released a critical security patch addressing a zero-day vulnerability exploited in attacks targeting iPhone cryptocurrency wallets. The flaw, confirmed on September 29, 2026, allowed unauthorized access to sensitive digital assets. This incident raises significant concerns about the security of mobile-based crypto storage and could erode user trust in Apple's platform for managing digital wealth. Investors may react negatively due to potential reputational damage and the ongoing threat to user assets.
- 2d agoNEGATIVEPerché il titolo Apple scende del 2% oggi?
Apple shares experienced a nearly 2% decline on Tuesday as investors reacted to reports of potential managerial and product development structure changes being considered by CEO John Ternus. According to Bloomberg, Ternus is exploring initiatives to make Apple more engineering-driven, agile, and streamlined, possibly by reducing middle management layers. While the specifics on affected positions and timelines remain undisclosed, the news of a potential restructuring, less than a month after Ternus officially assumed the CEO role on September 1, 2026, has introduced uncertainty, leading to a sell-off.
- 5d agoPOSITIVEApple And Nvidia Tokenized Stocks Can Now Back USDC Loans On Aave
Aave V4 on the Base network has launched an Equities Hub, enabling eligible non-U.S. users to deposit tokenized U.S. stocks as collateral to borrow USDC. Seven Coinbase-issued tokenized stocks, including Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla, are supported. These tokenized equities represent economic exposure to underlying shares held in custody, allowing them to function as collateral in DeFi. This development signifies a step towards integrating traditional financial portfolios with decentralized finance, enabling on-chain borrowing against securities, a practice common in traditional markets. Chainlink provides pricing data for these collateral assets.
- 6d agoNEGATIVEApple’s expensive new iPhones could be a double-edged sword for the company
Bernstein analysts are flagging potential risks to Apple's gross margins, suggesting that Wall Street's current models may underestimate the impact of rising component costs for the company's latest, high-priced iPhones. This divergence in expectations could lead to a downward revision of future profit forecasts if these cost pressures materialize as anticipated. Investors should monitor Apple's upcoming earnings reports for any signs of margin compression, which could affect the stock's valuation.
- 6d agoPOSITIVEKuCoin Adds Apple, Robinhood, Strategy And SpaceX Tokenized Stocks
Cryptocurrency exchange KuCoin has introduced spot trading for tokenized stocks of major companies including Apple Inc., Robinhood Markets Inc., and SpaceX. These tokenized assets, issued on the Solana blockchain, are collateralized 1:1 by the actual underlying shares held by a regulated custodian. While access is restricted in certain jurisdictions like the US and UK, this move by KuCoin represents an expansion of its offerings, potentially increasing liquidity and accessibility for tokenized equity markets. For investors, this could signal growing institutional interest in digital asset infrastructure for traditional securities.
- 7d agoNEUTRALTrump e Xi si incontrano oggi: come influirà su azioni, auto e il prossimo iPhone
The meeting between Donald Trump and Xi Jinping at the White House on Thursday focuses on trade, AI, and critical minerals. While investors are advised against holding Chinese stocks directly, the economic ties between the US and China remain significant. The trade truce has been extended to January 10, 2027, shifting focus to deeper economic links, including the US AI boom's reliance on Chinese rare earth supplies and Apple's continued dependence on China for both market access and manufacturing. This complex interplay suggests potential volatility across sectors, including technology and automotive, without a clear directional bias from this specific meeting.
- 8d agoPOSITIVEAzioni Apple sfiorano di nuovo $5T: l'iPhone Duo può portarla al livello di Nvidia?
Apple Inc. shares neared the $5 trillion market capitalization mark, hitting an intraday high of $345.34 on Tuesday. The stock's recent surge of 25% year-to-date significantly outperforms the Roundhill Magnificent Seven ETF's 10% gain and the S&P 500's 13.4% rise. This performance, driven by factors potentially including the 'iPhone Duo' strategy, positions Apple to challenge Nvidia's status as the sole company to close above $5 trillion in market cap. Investors are closely watching if Apple can sustain this momentum and achieve this significant valuation milestone.
- 9d agoPOSITIVEWhy Apple could soon join Nvidia in the exclusive $5 trillion club
Apple Inc. shares are surging, driven by anticipation of a new foldable iPhone and a strategic approach to AI investments. This dual catalyst has propelled the stock towards the $5 trillion market capitalization milestone, a level previously only reached by Nvidia. The company's ability to innovate in hardware while managing AI expenditures efficiently is resonating with investors, suggesting strong future growth prospects and potentially outperformance against market expectations. This development positions Apple as a key player in the ongoing AI revolution.
via Markets Gazette