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AAPL · Apple Inc.

32 filings

10-K

AAPL 10-K Annual Reports

Apple Inc. - 32 annual reports

Filing record · 2016–202610-K1010-Q338-K99

2025
Apple Inc. Annual Report, Year Ended Sep 27, 2025
Apple Inc. (AAPL) reported total net sales of $416.16 billion for the fiscal year ended September 27, 2025, representing a 6% increase over the prior year. This growth was primarily driven by a robust performance in the Services segment, which saw a 14% increase in net sales, and steady growth in iPhone sales, particularly the Pro models. The company's strategic focus on its Services division continues to yield strong results, diversifying its revenue streams beyond hardware. Despite overall growth, the company faced headwinds in the Greater China region, with net sales decreasing by 4%, primarily due to lower iPhone sales in that market. The Wearables, Home, and Accessories segment also experienced a 4% decline. Significant investments in Research and Development (R&D) and Selling, General, and Administrative (SG&A) expenses, both increasing by 10% and 6% respectively, underscore Apple's commitment to innovation and market expansion. The company's financial position remains strong, with substantial cash and cash equivalents, and it continues its capital return program through significant share repurchases and a growing dividend.
Oct 31, 2025
2024
Apple Inc. Annual Report, Year Ended Sep 28, 2024
Apple Inc.'s 2024 10-K filing reveals a year of modest revenue growth, with total net sales increasing by 2% to $391 billion, primarily driven by a 13% surge in Services revenue. While iPhone sales remained flat year-over-year, the strong performance in Services, including advertising, App Store, and cloud services, helped offset softer sales in Wearables, Home, and Accessories, and a decline in iPad revenue. The company continues to invest heavily in research and development, signaling a commitment to innovation and future product pipelines, as evidenced by the introduction of Apple Intelligence and new hardware iterations. Despite macroeconomic headwinds and intense competition, Apple maintains a robust financial position, with substantial cash reserves and a commitment to returning capital to shareholders through dividends and share repurchases.
Nov 1, 2024
2023
Apple Inc. Annual Report, Year Ended Sep 30, 2023
Apple Inc.'s 2023 10-K filing reveals a year of resilience amidst macroeconomic challenges, with total net sales decreasing by 3% to $383.3 billion. This slight decline was primarily attributed to unfavorable foreign currency movements, which more than offset the sales figures. Despite this, the Services segment demonstrated strong growth, increasing net sales by 9% to $85.2 billion, indicating a successful diversification strategy. The report highlights continued investment in Research and Development (R&D) and robust capital return programs, including substantial share repurchases and dividend increases. The company navigated competitive markets and supply chain complexities by emphasizing innovation and its strong ecosystem. Key product launches during the fiscal year, including the iPhone 15 series and new Mac models, underscore Apple's commitment to product refreshes. While acknowledging risks related to global economic conditions, geopolitical tensions, and intense competition, Apple maintains a strong liquidity position with substantial cash and marketable securities, positioning it to manage ongoing operational needs and capital allocation strategies.
Nov 3, 2023
2022
Apple Inc. Annual Report, Year Ended Sep 24, 2022
Apple Inc.'s 2022 10-K filing reveals a company demonstrating robust growth and financial strength, despite operating in a challenging global economic environment. Net sales increased by 8% year-over-year to $394.3 billion, primarily driven by strong performance in iPhone, Services, and Mac segments. The Services segment, in particular, continued its upward trajectory, showing a 14% increase in net sales, underscoring Apple's successful diversification beyond hardware. The company maintained healthy gross margins, with a total gross margin of 43.3%, and a significant increase in operating income, reflecting effective cost management and operational efficiency. While Apple continues to innovate and introduce new products across its portfolio, the company acknowledges significant risks, including macroeconomic headwinds, supply chain disruptions, intense competition, and evolving regulatory landscapes globally. However, Apple's substantial cash reserves, ongoing share repurchase program, and dividend payments indicate a strong commitment to returning value to shareholders. The company's financial position remains solid, supported by diversified revenue streams and a focus on innovation, positioning it to navigate potential future challenges.
Oct 28, 2022
2021
Apple Inc. Annual Report, Year Ended Sep 25, 2021
Apple Inc.'s 2021 10-K filing reveals a robust year of growth, with total net sales increasing by a significant 33% to $365.8 billion, driven by strong performance across all product and service categories. The iPhone remained the dominant revenue driver, showing substantial year-over-year growth due to new model launches. The Services segment also demonstrated impressive expansion, increasing net sales by 27% and highlighting the growing importance of Apple's ecosystem. The company continued its commitment to shareholder returns, increasing its quarterly dividend and repurchasing approximately $85.5 billion of its common stock. Despite facing ongoing challenges related to the COVID-19 pandemic, including supply chain disruptions and component shortages, Apple demonstrated resilience. The company's financial position remains strong, supported by substantial cash reserves and access to debt markets, enabling continued investment in research and development and strategic initiatives.
Oct 29, 2021
2020
Apple Inc. Annual Report, Year Ended Sep 26, 2020
Apple Inc.'s 2020 10-K filing, for the fiscal year ended September 26, 2020, reveals a company navigating global economic uncertainties and the impacts of the COVID-19 pandemic, while demonstrating resilience and continued growth. Total net sales saw a 6% increase year-over-year, driven significantly by the robust performance of the Services and Wearables, Home and Accessories segments. Despite a decrease in iPhone sales compared to the prior year, Apple's diversified product and service portfolio enabled it to maintain a strong financial position. The company continued its commitment to returning capital to shareholders through substantial share repurchases and dividend payments. The filing also highlights Apple's ongoing investment in research and development, underscoring its focus on innovation and future product development. Key risks identified include the ongoing impact of the COVID-19 pandemic, intense competition, supply chain vulnerabilities, and evolving regulatory landscapes, all of which Apple is actively managing.
Oct 30, 2020
2019
Apple Inc. Annual Report, Year Ended Sep 28, 2019
Apple Inc. reported total net sales of $260.17 billion for the fiscal year ended September 28, 2019, a decrease of 2% compared to the prior year. This decline was primarily driven by lower iPhone sales, although this was partially offset by growth in the Wearables, Home and Accessories, and Services segments. The company continues to see strong performance in its Services division, which posted a 16% increase in net sales. Despite the slight dip in overall revenue, Apple demonstrated robust profitability, with net income of $55.26 billion. The company also continued its significant capital return program, repurchasing $67.1 billion of its common stock and increasing its quarterly dividend. Apple faces a highly competitive market and risks associated with global economic conditions, supply chain disruptions, and evolving regulatory landscapes, but remains focused on innovation and product integration to maintain its competitive advantage. The company's substantial cash reserves provide financial flexibility.
Oct 31, 2019
2018
Apple Inc. Annual Report, Year Ended Sep 29, 2018
Apple Inc.'s 2018 10-K filing reveals a company experiencing robust growth, with net sales increasing by 16% year-over-year to $265.6 billion. This growth was primarily driven by strong performance in iPhone sales, which saw an 18% increase, and a significant 24% surge in the Services segment. The company's strategic focus on innovative hardware, software, and integrated services continues to resonate with consumers and enterprise clients globally. Financially, Apple demonstrated strong profitability with net income rising to $59.5 billion. The company also continued its commitment to returning capital to shareholders, announcing a new $100 billion share repurchase program and increasing its quarterly dividend. Despite a competitive market and ongoing supply chain risks, Apple's diversified product portfolio and expanding services ecosystem position it for continued success, although gross margin percentage saw a slight decrease due to rising product costs.
Nov 5, 2018
2017
Apple Inc. Annual Report, Year Ended Sep 30, 2017
Apple Inc.'s 2017 10-K report highlights a year of robust growth, with net sales increasing by 6% to $229.2 billion, driven by strong performance in Services, iPhone, and Mac. The company continued its commitment to returning capital to shareholders, increasing its capital return program to $300 billion and raising its quarterly dividend. Despite positive revenue growth, the report also notes the unfavorable impact of foreign currency fluctuations on net sales and gross margins, a recurring theme for Apple's international operations. The company's business strategy remains focused on innovative hardware, software, and services, emphasizing a seamless user experience. Apple continued to invest heavily in Research and Development, with R&D expenses growing to $11.6 billion. Risk factors emphasize the highly competitive landscape, rapid technological advancements, supply chain dependencies, and global economic conditions as key challenges. The company's strong financial position is supported by significant cash reserves and ongoing efforts to manage its capital structure through debt issuance and share repurchases.
Nov 3, 2017
2016
Apple Inc. Annual Report, Year Ended Sep 24, 2016
Apple Inc.'s 2016 10-K filing reveals a year of mixed performance, with net sales declining 8% year-over-year to $215.6 billion, primarily due to a decrease in iPhone sales and currency headwinds. Despite this revenue dip, the company demonstrated strong service revenue growth of 22%, signaling a positive trend in its services segment. Apple continued its aggressive capital return program, increasing its share repurchase authorization and quarterly dividend, underscoring a commitment to shareholder value. The company's product portfolio saw notable introductions like the iPhone 7 and Apple Watch Series 2. While iPhone sales declined, the company emphasized its integrated approach of hardware, software, and services as a key competitive advantage. R&D spending increased by 25% to $10 billion, highlighting a continued focus on innovation. The Greater China region experienced a significant 17% decline in net sales, impacting overall performance, while other segments showed more stable or slightly positive trends. The company also faced risks related to supply chain, competition, and global economic conditions.
Oct 26, 2016
2015
Apple Inc. Annual Report, Year Ended Sep 26, 2015
Apple Inc.'s 2015 10-K filing highlights a robust fiscal year characterized by significant revenue growth, largely driven by a remarkable 52% increase in iPhone sales, which constituted 66% of total net sales. This surge in iPhone performance, particularly with the introduction of the iPhone 6 and 6 Plus, overshadowed a decline in iPad sales, attributed to longer repurchase cycles and potential cannibalization. Geographically, Greater China emerged as a standout performer, with an impressive 84% year-over-year net sales increase, underscoring its growing importance. The company also saw growth in Services and Other Products, with the new Apple Watch contributing to the latter. Financially, Apple demonstrated strong operational efficiency, with gross margin increasing to 40.1% from 38.6% in the prior year, benefiting from a favorable product mix and improved leverage on fixed costs. The company continued its aggressive capital return program, authorizing $140 billion for share repurchases and significantly increasing its quarterly dividend. Despite a strong operating performance, the company acknowledged risks related to intense competition, supply chain dependencies, currency fluctuations, and the ongoing need for innovation to maintain its market leadership.
Oct 28, 2015
2014
Apple Inc. Annual Report, Year Ended Sep 27, 2014
Apple Inc.'s 2014 10-K filing reveals a strong performance, with net sales increasing by 7% year-over-year to $182.8 billion. This growth was primarily driven by robust iPhone sales, bolstered by the introduction of the iPhone 6 and 6 Plus, and continued strong demand for Mac products, particularly MacBook Air and MacBook Pro. The company also saw significant growth in its iTunes, Software, and Services segment, benefiting from App Store sales and AppleCare. Despite a slight decline in iPad sales, the overall performance underscores Apple's continued innovation and market leadership. The company also demonstrated a strong commitment to returning capital to shareholders, increasing its share repurchase authorization and dividend payouts, funded in part by significant debt issuance.
Oct 27, 2014
2013
Apple Inc. Annual Report, Year Ended Sep 28, 2013
Apple Inc.'s 2013 10-K filing reveals a company experiencing robust growth, driven primarily by strong iPhone and iPad sales, alongside continued expansion in its services sector. Despite a challenging PC market impacting Mac sales, Apple demonstrated resilience with a 9% increase in net sales to $170.9 billion, fueled by double-digit growth in iPhone units and significant revenue from iTunes, software, and services. The company continued its aggressive capital return program, repurchasing a substantial amount of its own stock and increasing its dividend payments, signaling confidence in its financial health and future cash flow. Apple also highlighted its strategic focus on innovation, with significant investments in research and development, and expansion of its retail footprint. Key risks identified include intense competition, reliance on component suppliers, potential for supply chain disruptions, and evolving global economic conditions.
Oct 30, 2013
2012
Apple Inc. Annual Report, Year Ended Sep 29, 2012
Apple Inc.'s 2012 10-K filing showcases a period of robust growth, primarily driven by the continued success of its iPhone and iPad product lines. The company reported substantial increases in net sales, reflecting strong consumer demand and successful product launches, including the iPhone 5 and the new iPad. This growth underscores Apple's dominant position in the mobile device market and its ability to innovate and expand its product ecosystem. Despite facing intense competition and various supply chain risks, Apple demonstrated strong financial performance, with significant revenue growth and healthy profit margins. The company's strategic focus on integrating hardware, software, and services, coupled with its expanding global distribution network, positions it for sustained success. Investors can take confidence in Apple's consistent ability to deliver innovative products that resonate with a broad customer base, leading to impressive financial results and a strong market presence.
Oct 31, 2012
2011
Apple Inc. Annual Report, Year Ended Sep 24, 2011
Apple Inc.'s 2011 Form 10-K highlights a period of exceptional growth and market leadership, driven by the continued success of its iconic iPhone and the burgeoning iPad. The company demonstrated remarkable revenue expansion, a testament to its innovative product pipeline and effective global distribution strategy. Apple's commitment to integrating hardware, software, and services provides a distinct competitive advantage, allowing it to capture significant market share across its product categories. Financially, Apple showcased robust profitability and a rapidly growing cash reserve, underscoring its strong operational performance and financial health. The company's strategic focus on research and development, coupled with its expanding retail footprint, positions it for sustained growth, although it also faces intense competition and various supply chain and market risks. Investors are presented with a picture of a company at the forefront of technological innovation, with strong execution and a compelling product ecosystem.
Oct 26, 2011
2010
Apple Inc. Annual Report, Year Ended Sep 25, 2010
Apple Inc.'s 2010 10-K filing reveals a period of exceptional growth, driven primarily by the burgeoning iPhone and iPad businesses. Net sales surged by an impressive 52% to $65.2 billion, fueled by a nearly doubling of iPhone sales and the highly successful launch of the iPad, which contributed $5.0 billion in its inaugural year. The company demonstrated strong operational execution across all segments, including a significant rebound in retail store performance. Despite increasing competition and some component supply risks, Apple maintained robust profitability with a gross margin of 39.4% and healthy operating income. The company's strategic investments in research and development, coupled with its integrated product ecosystem and strong brand loyalty, position it well for continued innovation and market leadership.
Oct 27, 2010
2009-A
Apple Inc. Annual Report (Amendment), Year Ended Sep 26, 2009
Apple Inc. filed its Annual Report Amendment (10-K/A) on January 25, 2010, for the fiscal year ended September 26, 2009. This amendment primarily focused on the retrospective adoption of new accounting principles related to revenue recognition for arrangements with multiple deliverables, particularly impacting how revenue and costs for the iPhone and Apple TV are recognized. Under the new principles, revenue and costs associated with iPhone and Apple TV are now recognized at the time of sale, rather than being deferred over the product's economic life as was previously done. This change significantly boosted reported net sales by $6.4 billion in 2009, $5.0 billion in 2008, and $572 million in 2007. The report highlights strong growth in iPhone sales, which nearly doubled in 2009 compared to 2008, and continued growth in the iTunes Store and App Store. Despite overall revenue growth, iPod sales saw a decline, and Mac sales experienced a slight decrease in net sales due to lower average selling prices, although unit sales increased. The company maintained a strong financial position with substantial cash reserves and no long-term debt.
Jan 25, 2010
2009
Apple Inc. Annual Report, Year Ended Sep 26, 2009
Apple Inc.'s 2009 10-K report highlights a period of strong growth, primarily driven by the nascent but rapidly expanding iPhone business. Despite a challenging economic environment, the company demonstrated resilience, with total net sales increasing by 12% to $36.5 billion. The iPhone segment saw an extraordinary 266% surge in revenue, fueled by expanded distribution and the introduction of the iPhone 3GS. This growth, alongside continued strong performance in music-related products and services (like the iTunes Store and App Store), significantly offset a decline in Mac and iPod sales. The company's strategy of controlling hardware, software, and services integration, coupled with significant investments in R&D and retail expansion, continues to be a key differentiator. Financially, Apple maintained a robust cash position, ending the year with over $33 billion in cash, cash equivalents, and marketable securities, with no long-term debt. The company's gross margin percentage improved to 36.0%, reflecting lower component costs and a favorable sales mix. However, management anticipates future gross margin pressures due to product transitions and component cost fluctuations.
Oct 27, 2009
2008
Apple Inc. Annual Report, Year Ended Sep 27, 2008
Apple Inc.'s 2008 Form 10-K highlights a period of robust growth and innovation, driven by strong performance across its core product lines, including Macs, iPods, and the newly launched iPhone. The company demonstrated significant year-over-year increases in net sales, indicating growing market penetration and consumer demand for its integrated hardware, software, and services ecosystem. Financially, Apple maintained a healthy cash position and continued to invest heavily in research and development to fuel future product pipelines. Despite facing intense competition and potential supply chain risks, the company's strategic focus on innovation, user experience, and expanding its retail and online distribution channels positions it for continued success. Investors should note the company's commitment to reinvesting earnings for growth rather than paying dividends, reflecting a strategy centered on expanding its market leadership and technological advancements.
Nov 5, 2008
2007
Apple Inc. Annual Report, Year Ended Sep 29, 2007
Apple Inc.'s 2007 10-K filing showcases a company experiencing robust growth and strategic expansion, primarily driven by the success of its iPod and the highly anticipated launch of the iPhone. Net sales increased by a significant 24% year-over-year, fueled by strong performance in Mac sales, particularly portable computers, and a notable 8% increase in iPod net sales. The introduction of the iPhone, while contributing a modest $123 million in net sales for its initial partial year, signals a major new growth vector for the company. Apple's retail strategy continues to be a key driver, with a 27% increase in retail net sales and improved average revenue per store. The company demonstrated improved profitability, with gross margin percentage rising to 34.0% from 29.0% in the prior year, attributed to favorable component costs and higher revenue leverage. Research and development spending increased by 10% to support ongoing innovation, and selling, general, and administrative expenses rose by 22%, largely due to increased sales and retail expansion. Apple ended the fiscal year with a strong cash position of $15.4 billion, providing ample resources for future investments and operations. The company's diversification beyond personal computers into digital music and mobile communication devices is clearly underway, positioning it for continued growth.
Nov 15, 2007
2006
Apple Inc. Annual Report, Year Ended Sep 30, 2006
Apple Inc.'s 2006 10-K report highlights a year of significant growth, driven by strong performance in both its Macintosh computer and iPod product lines. The company's transition to Intel processors for its Mac lineup was a major strategic move, completed during the fiscal year, which aimed to enhance performance and compatibility. Apple also continued to expand its retail presence with new store openings, contributing to overall revenue growth. A significant development during the year was the internal review and subsequent restatement of prior financial statements related to stock option grants, which identified accounting irregularities but found no misconduct by current management. The company incurred substantial expenses for these investigations and faced potential delisting from NASDAQ, which it ultimately avoided by timely filing. Financially, Apple demonstrated robust top-line growth, with net sales increasing by 39% year-over-year. The iPod continued its impressive trajectory, with sales up 69%, while Macintosh sales saw an 18% increase, boosted by the new Intel-based models and a shift towards portable computers. The company maintained its gross margin at a healthy 29.0%, reflecting effective component cost management and a strong product mix, despite anticipation of future pricing pressures. Apple's liquidity remained strong, with a substantial increase in cash, cash equivalents, and short-term investments, enabling continued investment in research and development and capital expenditures.
Dec 29, 2006
2005
Apple Inc. Annual Report, Year Ended Sep 24, 2005
Apple Computer, Inc. in fiscal year 2005 demonstrated robust growth and strategic positioning, primarily driven by the phenomenal success of its iPod digital music player, which saw a 248% increase in net sales and a 409% rise in unit sales year-over-year. This surge in the portable music device segment, alongside continued strength in its core Macintosh computer business, resulted in a 68% overall increase in net sales to $13.9 billion. The company also saw significant expansion in its retail operations, with a 98% net sales growth, highlighting the effectiveness of its direct-to-consumer strategy. Strategically, Apple announced a major transition to Intel microprocessors for its Macintosh line, signaling a significant shift in its hardware platform aimed at improving performance and competitiveness. The company also continued its investment in research and development, indicating a commitment to innovation across its product portfolio, including software and services like the iTunes Music Store. Despite facing intense competition and the inherent risks of the technology sector, Apple's diversified product offerings and expanding distribution channels position it for continued growth and market influence.
Dec 1, 2005
2004
Apple Inc. Annual Report, Year Ended Sep 25, 2004
Apple Computer, Inc. (Nasdaq: AAPL) reported fiscal 2004 (ended September 25, 2004) as a year of strong top-line growth and a meaningful improvement in profitability. Net sales rose 33% to $8.279 billion from $6.207 billion, and net income increased to $276 million, or $0.71 per diluted share, versus $69 million ($0.19) in fiscal 2003. Growth was driven overwhelmingly by the iPod, whose net sales jumped 279% to $1.306 billion on 4.4 million units sold, and by the Retail segment, which grew 91% to $1.185 billion as the company expanded to 86 stores. Macintosh unit sales rose 9% to 3.29 million, with portables (PowerBook and iBook) representing 51% of Mac units. Operating income swung to $326 million from a loss of $1 million a year earlier. The company's financial position strengthened considerably. Cash, cash equivalents and short-term investments reached $5.464 billion, up $898 million, and the company retired its $300 million 6.5% unsecured notes, leaving it with no long-term debt. Operating cash flow was $934 million, versus $289 million in the prior year. Shareholders' equity grew to $5.076 billion. Gross margin, however, edged down to 27.3% from 27.5%, and management explicitly expects continued pricing pressure in personal computers and especially in the iPod line during fiscal 2005. Investors should weigh several risks alongside the growth story. Management flagged dependence on IBM as the sole supplier of the PowerPC G5 processor, which constrained Power Mac shipments in the second half of 2004, and on Freescale for the G4. The company also faces significant litigation, including patent suits, the Apple Corps trademark dispute in the UK, and consumer class actions over iPod battery life. Accounting rules for stock-based compensation were under review and could materially increase future expense, and the U.S. education channel and Japan segment remained weak. The company also noted roughly $3.2 billion of cash held overseas that would be subject to U.S. tax on repatriation.
Dec 3, 2004
2003
Apple Inc. Annual Report, Year Ended Sep 27, 2003
Apple Computer, Inc.'s fiscal 2003 10-K (fiscal year ended September 27, 2003) shows a company in a transitional, low-growth period: net sales rose 8% to $6.207 billion, but net income was only $69 million, or $0.19 per diluted share, versus $65 million a year earlier. Macintosh unit sales fell 3% to about 3.0 million, so growth came mainly from non-Mac sources. iPod net sales reached $345 million on 939,000 units, peripherals and other hardware grew 57%, and Retail segment sales more than doubled to $621 million across 65 stores. Operating income was essentially break-even at a loss of $1 million, and the favorable pre-tax result of $92 million came largely from interest and other income, which is shrinking as yields fall. Profitability pressures are significant. Gross margin slipped to 27.5% from 27.9% due to aggressive Macintosh pricing, component cost increases, and air freight for the new Power Mac G5 and 15-inch PowerBook. Management expects margin pressure to continue into fiscal 2004. U.S. education sales declined 4% in dollar terms and 6% in units, Power Macintosh unit sales fell 13%, and Japan was the weakest geographic segment. Operating expenses rose 8% as R&D (about 8% of sales) and SG&A (20% of sales) grew, with SG&A increasing partly from Retail expansion. Management also flagged the risk of required expensing of employee stock options, which the FASB is expected to address. Balance-sheet strength is a key positive. Cash, cash equivalents, and short-term investments total $4.566 billion against $304 million of debt, which matures in February 2004 and will be repaid from cash. Shareholders' equity is $4.223 billion. However, operating cash flow of $289 million was modest, and receivables and payables grew. Working capital fell $200 million largely because the debt was reclassified as current. Investors should weigh the cash cushion and the iPod and Retail momentum against thin margins, weak core Mac demand, and persistent competitive pricing pressure.
Dec 19, 2003
2002
Apple Inc. Annual Report, Year Ended Sep 28, 2002
For the fiscal year ended September 28, 2002, Apple Computer, Inc. reported net sales of $5.74 billion, a 7% increase over the prior year, driven primarily by growth in software, services, and the nascent iPod line. While overall Macintosh unit sales remained flat, the company saw a positive shift towards portable systems like the iBook. The retail segment experienced significant expansion, contributing to top-line growth despite operating at a loss. The company faced continued challenges in the professional market, with a decline in Power Macintosh sales attributed to weak economic conditions and customer anticipation of OS X software advancements. The education market also saw a decrease in sales and market share. Apple's gross margin improved to 28% from 23% in the prior year, benefiting from cost reductions and a favorable product mix, though the company anticipates continued pricing pressures. Apple maintained a strong liquidity position with approximately $4.34 billion in cash, cash equivalents, and short-term investments.
Dec 19, 2002
2000
Apple Inc. Annual Report, Year Ended Sep 30, 2000
Apple Inc.'s 2000 10-K filing reveals a company on a strong growth trajectory, with net sales increasing 30% year-over-year to $7.983 billion, driven by a 32% surge in Macintosh unit sales. This growth was significantly fueled by the iMac and the newly introduced iBook, highlighting a successful shift towards consumer and education markets. Profitability also saw a substantial improvement, with operating income before special charges rising 61%. However, the company experienced a disappointing fourth quarter, with net sales falling short of expectations due to weaker-than-anticipated sales of the G4 Cube, a slowdown in the education market, and an unfavorable product mix shift. This led to higher-than-planned inventory levels in distribution channels. The outlook for fiscal year 2001 is cautious, with an anticipated significant sequential decline in net sales for the first quarter, partly due to efforts to reduce inventory levels, ongoing demand deterioration, and planned price cuts and rebates. The company expects a net loss for the first quarter of 2001 but anticipates returning to profitability in the subsequent quarters of the year. Looking ahead, Apple is investing in R&D (5% of net sales) and preparing for the launch of Mac OS X, a critical future product. The company also benefits from a substantial cash position of $4.027 billion, providing liquidity and flexibility.
Dec 14, 2000
1999
Apple Inc. Annual Report, Year Ended Sep 25, 1999
Apple's fiscal 1999 annual report (year ended September 25, 1999) shows a turnaround in profitability driven by volume. Net sales rose 3% to $6.134 billion, while Macintosh unit sales jumped 25% to 3.448 million, led by the iMac, which sold about 1.8 million units (up 68%). Gross margin improved to 28% from 25%, and net income more than doubled to $601 million, or $3.61 per diluted share, versus $309 million, or $2.10, in fiscal 1998. Average revenue per Macintosh fell 17%, reflecting lower prices and a mix shift toward cheaper consumer models, so growth came from units rather than pricing. Investors should weigh the quality of the earnings. Net income includes roughly $230 million in pre-tax gains from selling shares of ARM Holdings, and the effective tax rate was only 11% because of valuation allowance reversals. Management guided that gross margins will decline in fiscal 2000 as lower-priced consumer products grow in share, and that the tax rate will be about 25%. Q4 1999 sales were hurt by a G4 processor shortage from Motorola and a Taiwan earthquake, which cut about $200 million from quarterly revenue. The balance sheet improved markedly. Cash, cash equivalents, and short-term investments reached $3.226 billion, up 40%, and about $661 million of convertible notes converted to equity, leaving only $300 million of long-term debt. The company authorized a $500 million buyback and added a $100 million revolver, but it disclosed non-investment-grade debt ratings that could raise borrowing costs. The company also holds a large, volatile stake in Akamai valued at about $1.2 billion as of December 17, 1999.
Dec 22, 1999
1997-A
Apple Inc. Annual Report (Amendment), Year Ended Sep 26, 1997
This filing is an amendment that replaces Part III of Apple's fiscal 1997 10-K. It covers governance, executive compensation, and related-party matters, and it contains no financial statements, revenue, or earnings data. Its main significance for investors is the leadership overhaul that followed the August 1997 board reconstitution and the NeXT acquisition. Steven P. Jobs, a co-founder, serves as Interim CEO and also sits on the Board. The Board was reshuffled on August 5, 1997, when all members except Messrs. Woolard and Chang resigned and were replaced by Jobs, Lawrence J. Ellison, William V. Campbell, and Jerome B. York. Former CEO Gilbert F. Amelio received a lump-sum severance of about $6.73 million, less $1.5 million applied to his outstanding loan from the Company. The filing also shows a significant reset of the equity incentive program. The Company ran a stock option exchange program in which 7,866,155 options were canceled and reissued on a one-for-one basis at a lower exercise price of $13.25 (July 11, 1997 grants). Total FY1997 option grants to employees reached 19,629,231. Management is also protected by change-in-control arrangements. Retention agreements with Messrs. Anderson and Rubinstein provide for cash payments of three times base salary plus three times target bonus on involuntary termination within two years after a change in control. Options accelerate on a change in control, and the agreements include excise-tax gross-ups. Shareholders were asked to approve declassifying the Board so that all directors stand for annual election. On ownership, as of November 7, 1997, Apple had 127,989,659 shares of common stock outstanding. The Company reported no 5% beneficial owners. Directors and executive officers as a group held about 20,252 shares, under 1% of the total. Jobs held one share directly, with 30,000 options granted for director service subject to shareholder approval of the Director Plan. Investors should treat this document as governance context. Financial performance must come from the original 10-K, which is not included here.
Jan 23, 1998
1997
Apple Inc. Annual Report, Year Ended Sep 26, 1997
Apple's fiscal 1997 10-K (year ended September 26, 1997) shows a company in deep distress. Net sales fell 28% to $7,081 million from $9,833 million, and the company posted a net loss of $1,045 million, or $(8.29) per share, versus a $816 million loss in 1996. The loss was driven by a $375 million in-process R&D write-off tied to the February 1997 NeXT acquisition ($427 million total purchase price), $217 million in restructuring charges, and a $75 million charge for terminating the Power Computing Mac OS license. Gross margin recovered to 19% from 10%, but only because 1996 carried a $616 million inventory charge; operating expenses still exceeded gross profit. Management expects sales to stay below prior-year levels through at least the second fiscal quarter of 1998. Balance sheet strength eroded sharply. Shareholders' equity fell to $1,200 million from $2,058 million, cash and short-term investments declined to $1,459 million, and long-term debt remained near $951 million. Operating cash flow was only $188 million, and Moody's and S&P have downgraded the company's debt to non-investment grade (B3/Caa2 and B-/CCC), with negative outlooks. The company's US PC market share fell to 4.6% from 7.4%, and it no longer pays dividends. Strategic moves include the NeXT acquisition for the Rhapsody operating system, the wind-down of the Mac OS clone licensing program, an August 1997 Microsoft agreement that included a $150 million preferred stock investment, and the departure of CEO Gilbert Amelio, with Steve Jobs named interim CEO. For investors, the filing describes a turnaround in progress with high execution risk. Cost cuts (roughly 3,600 positions targeted), outsourcing, a build-to-order model, and the online store are intended to restore profitability, but the filing itself notes there is no assurance these will succeed. Dependence on single-source suppliers (IBM and Motorola for PowerPC chips), Windows competition, and the ongoing Mac platform viability question remain central risks.
Dec 5, 1997
1996
Apple Inc. Annual Report, Year Ended Sep 27, 1996
Apple's fiscal 1996 10-K (year ended September 27, 1996) reports a sharp deterioration in the business. Net sales fell 11% to $9.833 billion from $11.062 billion, and the company posted a net loss of $816 million, or $6.59 per share, versus net income of $424 million in 1995. Gross margin collapsed to 9.8% from 25.8%, driven mainly by a $616 million inventory write-down in the second quarter, roughly $145 million in quality-related charges, and heavier pricing actions against competitors. Management attributes the decline to weaker demand, quality problems with PowerBook and entry-level products, and the loss of share in the PC market, which it says fell to 5.4% worldwide and 7.3% in the U.S. in the fourth quarter. Management has also said net sales will stay below prior-year levels through at least Q1 1997 and that the company will not return to sustained profitability until at least Q2 1997. The company is undertaking a restructuring under a new strategic direction. The plan includes terminating roughly 1,500 employees, selling the Fountain, Colorado plant to SCI Systems and shifting production to outsourcing arrangements, and selling the Napa data center to MCI Systemhouse. The restructuring charge was $179 million net after a $28 million favorable adjustment, and the company has dividend payments suspended since Q2 1996. Balance sheet strength has weakened: shareholders' equity fell to $2.06 billion from $2.90 billion, long-term debt rose to $949 million after a $661 million convertible note issuance, and the company's credit ratings were downgraded to B1 and B+ during 1996. Cash and short-term investments of $1.75 billion provide near-term liquidity, but management acknowledges that its cost of funds has increased and that access to bank financing is not assured. For investors, the central questions are whether the restructuring and new product strategy can restore profitability and market share, and whether the company can execute its outsourcing transition without losing product quality or control. The filing indicates that management expects cash generation from asset sales to decline in 1997, and it discloses material litigation and tax exposure, including an IRS dispute covering 1989 to 1991. Results in 1996 were heavily affected by one-time charges, so the underlying earnings power is difficult to assess from this report alone.
Dec 19, 1996
1995
Apple Inc. Annual Report, Year Ended Sep 29, 1995
Apple's fiscal 1995 10-K (year ended September 29, 1995) shows a company in transition. Net sales rose 20% to $11.06 billion and net income rose 37% to $424 million, or $3.45 per share, driven by strong unit growth in Power Macintosh (over 70% of unit shipments by Q4 1995, versus 26% a year earlier) and a 12% increase in average revenue per Macintosh unit. Gross margin improved to 25.8% for the year, but management warned that margins fell to 20.7% in the fourth quarter on aggressive pricing and PowerPC production delays, and expects continued pressure from industrywide price competition, especially in Japan. The balance sheet shows rising pressure on liquidity. Cash, cash equivalents and short-term investments fell to about $952 million, and net cash position (after short-term borrowings) declined to $491 million from $966 million. Operating cash flow was negative $240 million, driven by a $687 million inventory build ahead of new product launches and a $350 million increase in receivables. Short-term borrowings rose to $461 million. Inventory of $1.78 billion now equals roughly 40% of annual cost of sales, which investors should watch closely. The filing also flags material strategic and operational risks. Apple is the primary maker of Macintosh-OS hardware with a minority share of the PC market, and it is licensing Mac OS to other vendors. Its Cross-Platform Products depend on a Microsoft license that expires December 31, 1995, and Microsoft has conditioned renewal on a patent-related agreement Apple has not accepted. Microsoft's Windows 95 launched in August 1995. Single-source components from Motorola and IBM, earthquake exposure at Cupertino, and a possibly weak holiday season add further risk. Results were supported by a $23 million restructuring reversal and a favorable 37% effective tax rate, so underlying margin trends deserve scrutiny.
Dec 19, 1995
1994
Apple Inc. Annual Report, Year Ended Sep 30, 1994
Apple's fiscal 1994 10-K (year ended September 30, 1994) shows a company in the middle of a difficult but improving turnaround. Net sales rose 15% to $9.19 billion, driven by a 16% increase in Macintosh unit sales, with strong demand for the newly launched Power Macintosh line (PowerPC-based, introduced March 14, 1994). However, profitability was under heavy pressure: gross margin fell sharply to 25.5% from 34.2% in 1993 and 43.7% in 1992, reflecting industrywide price competition. Net income recovered to $310 million ($2.61 per share) from $87 million in 1993, but that figure was helped by a $127 million restructuring reversal in the third quarter; excluding that adjustment, earnings would have been considerably lower. The balance sheet strengthened over the year. Cash, cash equivalents and short-term investments reached $1.26 billion, inventories fell about 28% to $1.09 billion after a 1993 buildup, and operations generated $737 million in cash versus a $651 million outflow in 1993. The company issued $300 million of 6.5% ten-year notes, which were used to pay down short-term borrowings. Shareholders' equity grew to $2.38 billion, and the company continued paying a $0.48 annual dividend. Management guided that gross margins would stay under pressure and could fall below prior-year levels, and it expects to increase both R&D and SG&A spending in 1995. For investors, the central questions are whether the PowerPC transition can sustain unit growth while margins erode, whether the planned licensing of the Macintosh operating system to other PC makers will expand market share, and how much of the earnings recovery is durable versus driven by one-time items. The filing also flags concentrated single-source supplier risk (notably Motorola for microprocessors), ongoing intellectual property litigation including Lemelson and the Microsoft/Hewlett-Packard appeal, and significant exposure to foreign currency, with roughly 46% of revenue from international operations.
Dec 13, 1994