Apple Inc. (AAPL)
POSITIVEFundamental
69
Price
$308.69
Market Cap
$4.53T
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
$275.33
Current Price
$308.69
Margin of Safety
-12.1%
Fair Value Range
$203.31 - $347.36
Estimation Methods
Valuation Metrics
P/E Ratio
35.63
ROE
151.9%
P/B Ratio
42.12
P/FCF
33.14
Gross Margin
48.7%
ROIC
52.3%
Profitability Radar
Value Creation (Economic Moat)
ROIC
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 (20)
- EPS shows upward trend
- Price CAGR 26.73%
- 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 69% Buy
- PEG Ratio 1.92
- Earnings Quality (OCF/NI) 1.14
- Share Dilution -2.6%
- Net Margin Trend 27.6% vs 24.3%
- Piotroski F-Score 8/9
Failed (6)
- EPS CAGR 3.62%
- P/FCF 33.14
- P/B Ratio 42.12
- Price below Graham Number
- DCF valuation (Overvalued)
- Earnings Surprise avg 1.7%
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
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Timothy D. Cook | CEO & Director | 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 | Senior VP of Government Affairs & Secretary | 61 |
| 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 | - |
| Mr. Greg Joswiak | Senior Vice President of Worldwide Marketing | - |
Audit Risk
2
Board Risk
1
Compensation Risk
7
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.
Latest News
Recent headlines for AAPL, sourced from Markets Gazette.
- 1d agoNEGATIVEApple lays off staffers ahead of CEO change
Apple has initiated a round of layoffs impacting several departments, signaling internal restructuring ahead of a significant leadership transition. While the exact number of affected employees and specific divisions remain undisclosed, the move suggests a strategic recalibration of its workforce. Investors often view layoffs as a sign of cost-cutting measures or a response to shifting business priorities, which can create short-term uncertainty. The timing, preceding a CEO change, adds another layer of complexity for market participants monitoring the tech giant's future direction.
- 4d agoPOSITIVE6 AI hardware stocks to own for the remainder of the year, according to an analyst
An Evercore ISI analyst has identified Apple Inc. as one of six AI hardware stocks poised for strong performance through the end of the year. The analyst's positive outlook extends to storage makers and networking providers, signaling a broader bullish sentiment within the AI infrastructure sector. This recommendation suggests that Apple's hardware, likely including its chips and devices, is expected to benefit significantly from the ongoing artificial intelligence boom, potentially driving increased sales and market share. Investors may see this as a signal to consider Apple for its AI-driven growth potential.
- 5d agoNEUTRALApple has gotten too predictable. Can its next CEO bring back the element of surprise?
Speculation is mounting on Wall Street regarding Apple's future strategic direction under CEO John Ternus. The market anticipates a potential shift in the company's AI strategy, with hopes for increased investment, a more aggressive approach to mergers and acquisitions, and a renewed focus on groundbreaking innovation. This sentiment suggests investors are looking for Apple to break from its perceived predictability and reintroduce an element of surprise to its product development and business strategy, which could impact future growth trajectories and market valuation.
- 6d agoPOSITIVEApple’s stock could be the savviest buy within Big Tech, according to this analysis
An analysis suggests Apple Inc. (AAPL) presents a savvy investment opportunity within the Big Tech sector. While competitors are heavily investing in Artificial Intelligence, Apple's more measured approach is positioning its stock as a robust hedge against market volatility. This strategy, distinct from its peers, could appeal to investors seeking stability and a potential safe haven amidst broader market uncertainties. The company's ability to maintain value through a conservative growth strategy, rather than aggressive AI spending, highlights its unique market position and potential for sustained investor appeal.
- 8d agoPOSITIVEApple può salire del 30%? Questa scommessa IA su Nvidia potrebbe essere la chiave
Apple Inc. (NASDAQ: AAPL) shares may see a significant upside of approximately 31%, as Rothschild & Co Redburn upgraded the stock from Neutral to Buy, raising its price target to $400 from $260. Analysts suggest Apple could bolster its AI capabilities by leveraging open models, potentially incorporating Nvidia's technologies. While no formal Apple-Nvidia AI partnership has been announced, Redburn's analysis presents this as a strategic option. The $400 price target is predicated on a distinct AI strategy for Apple, exploring the integration of advanced AI models.
- 8d agoPOSITIVEApple’s stock could rise 30% if it strikes an Nvidia deal for AI, this analyst says
A Rothschild analyst has posited that Apple Inc. could see its stock price surge by as much as 30% if it successfully integrates Nvidia's open-source models into its artificial intelligence strategy. The analyst characterized Apple's current AI endeavors as 'subpar,' suggesting that a partnership with Nvidia, a leader in AI hardware and software, could significantly bolster Apple's competitive position in the rapidly evolving AI landscape. This potential collaboration could unlock substantial value for shareholders by enhancing Apple's AI capabilities and market appeal.
- 11d agoPOSITIVEApple addestra modello AI per mercato cinese insieme ad Alibaba
Apple has reportedly developed a custom AI model tailored for the Chinese market, collaborating with Alibaba. This strategic move aims to comply with local regulations and enhance AI services for Chinese users. The development signifies Apple's commitment to the crucial Chinese market, potentially boosting its competitiveness against local tech giants. For investors, this partnership could unlock new revenue streams and solidify Apple's presence in a key growth region, mitigating regulatory risks and fostering user adoption of its AI-powered features.
- 14d agoNEGATIVEApple stock sinks as hopes that new CEO John Ternus will launch a high-end, ‘all-glass’ iPhone are shattered
Apple shares experienced a significant decline following the market's disappointment regarding the new iPhone launch. Hopes for a revolutionary 'all-glass' model, championed by CEO John Ternus, were dashed, leading to investor concerns about the company's innovation pipeline. The lack of a breakthrough product in a key segment could impact future sales and market share. Investors are now reassessing Apple's growth trajectory, with potential implications for its premium valuation.
- 15d agoNEGATIVEWith latest Wall Street downgrade, Apple now has the most ‘Sell ratings since shortly after Steve Jobs’ death
Jefferies has downgraded Apple Inc. from 'hold' to 'underperform', slashing its price target to $263.66 from $285.56. This move places Apple at its highest 'sell' rating count since the period following Steve Jobs' passing. The downgrade signals increasing investor caution regarding Apple's future growth prospects and potential market saturation. For shareholders, this could indicate a period of underperformance relative to the broader market and increased volatility.
via Markets Gazette