What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-10-31 compared with 2024-11-01 · 36 added, 41 removed, 78 unchanged (50% of the section changed)

3 unchanged sentences

iPhone ® is the Company’s line of smartphones based on its iOS operating system.

The iPhone line includes iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14 and iPhone SE ® .

The iPhone line includes iPhone 17 Pro, iPhone Air™, iPhone 17, iPhone 16 and iPhone 16e.

Mac ® is the Company’s line of personal computers based on its macOS ® operating system.

4 unchanged sentences

Wearables includes smartwatches, wireless headphones and spatial computers.

The Company’s line of smartwatches, based on its watchOS ® operating system, includes Apple Watch Ultra ® 2, Apple Watch ® Series 10 and Apple Watch SE ® .

The Company’s line of smartwatches, based on its watchOS ® operating system, includes Apple Watch ® Series 11, Apple Watch SE ® 3 and Apple Watch Ultra ® 3.

The Company’s line of wireless headphones includes AirPods ® , AirPods Pro ® , AirPods Max ® and Beats ® products.

Apple Vision Pro™ is the Company’s first spatial computer based on its visionOS™ operating system.

Home includes Apple TV ® , the Company’s media streaming and gaming device based on its tvOS ® operating system, and HomePod ® and HomePod mini ® , high-fidelity wireless smart speakers.

Apple Vision Pro™ is the Company’s spatial computer based on its visionOS ® operating system.

Home includes Apple TV 4K ® , the Company’s media streaming and gaming device based on its tvOS ® operating system, and HomePod ® and HomePod mini ® , high-fidelity wireless smart speakers.

Accessories includes Apple-branded and third-party accessories.

7 unchanged sentences

The Company operates various platforms, including the App Store ® , that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts.

The Company also offers digital content through subscription-based services, including Apple Arcade ® , a game subscription service;

Apple Fitness+ SM , a personalized fitness service;

The Company also offers digital content through subscription-based services, including Apple Arcade ® , a game service;

Apple Fitness+ ® , a personalized fitness service;

Apple Music ® , which offers users a curated listening experience with on-demand radio stations;

Apple News+ ® , a subscription news and magazine service;

Apple News+ ® , a news and magazine service;

and Apple TV ® , which offers exclusive original content and live sports.

6 unchanged sentences

Greater China includes China mainland, Hong Kong and Taiwan.

Rest of Asia Pacific includes Australia and those Asian countries not included in the Company’s other reportable segments.

Rest of Asia Pacific includes Australia, New Zealand and those Asian countries not included in the Company’s other reportable segments.

Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company’s customers and distribution partners and the unique market dynamics of each geographic region.

2 unchanged sentences

The Company sells its products and resells third-party products in most of its major markets directly to customers through its retail and online stores and its direct sales force.

The Company also employs a variety of indirect distribution channels, such as third-party cellular network carriers, wholesalers, retailers and resellers.

The Company sells its services in the same markets through its various service platforms.

The Company also employs a variety of indirect distribution channels, such as third-party cellular network carriers and other resellers, for the sale of its products and certain of its services.

During 2025, the Company’s net sales through its direct and indirect distribution channels accounted for 40% and 60%, respectively, of total net sales.

The markets for the Company’s products and services are highly competitive, and are characterized by aggressive price competition and resulting downward pressure on gross margins, frequent introduction of new products and services, short product life cycles, evolving industry standards, continual improvement in product price and performance characteristics, rapid adoption of technological advancements by competitors, and price sensitivity on the part of consumers and businesses.

The markets for the Company’s products and services are highly competitive and are characterized by aggressive price competition, downward pressure on gross margins, continual improvement in product performance, and price sensitivity on the part of consumers and businesses.

The markets in which the Company competes are further defined by frequent introduction of new products and services, short product life cycles, evolving industry standards, and rapid adoption of technological advancements by competitors.

Many of the Company’s competitors seek to compete primarily through aggressive pricing and very low cost structures, and by imitating the Company’s products and infringing on its intellectual property.

2 unchanged sentences

The Company designs and develops nearly the entire solution for its products, including the hardware, operating system, numerous software applications and related services.

Principal competitive factors important to the Company include price, product and service features (including security features), relative price and performance, product and service quality and reliability, design innovation, a strong third-party software and accessories ecosystem, marketing and distribution capability, service and support, and corporate reputation.

Principal competitive factors important to the Company include price, product and service features (including security features), relative price and performance, product and service quality and reliability, design and technology innovation, a strong third-party software and accessories ecosystem, marketing and distribution capability, service and support, corporate reputation, and the ability to effectively protect and enforce the Company’s intellectual property rights.

The Company is focused on expanding its market opportunities related to smartphones, personal computers, tablets, wearables and accessories, and services.

The Company faces substantial competition in these markets from companies that have significant technical, marketing, distribution and other resources, as well as established hardware, software, and service offerings with large customer bases.

In addition, some of the Company’s competitors have broader product lines, lower-priced products and a larger installed base of active devices.

The Company’s products and services face substantial competition from companies that have significant technical, marketing, distribution and other resources, as well as established hardware, software, and service offerings with large customer bases.

In addition, the Company faces significant competition as competitors imitate the Company’s product features and applications within their products to offer more competitive solutions.

The Company also expects competition to intensify as competitors imitate the Company’s approach to providing components seamlessly within their offerings or work collaboratively to offer integrated solutions.

Some of the Company’s competitors have broad product lines, low-priced products, large installed bases of active devices, and large customer bases.

Competition has been particularly intense as competitors have aggressively cut prices and lowered product margins.

Certain competitors have the resources, experience or cost structures to provide products at little or no profit or even at a loss.

The Company’s services compete with business models that provide content to users for free and use illegitimate means to obtain third-party digital content and applications.

The Company faces significant competition as competitors imitate the Company’s product features and applications within their products, or collaborate to offer integrated solutions that are more competitive than those they currently offer.

Certain competitors have the resources, experience or cost structures to provide products and services at little or no profit or even at a loss.

The Company has a minority market share in the global smartphone, personal computer, tablet and wearables markets, and some of the markets in which the Company competes have from time to time experienced little to no growth or contracted overall.

Supply of Components

2 unchanged sentences

Therefore, many components used by the Company, including those that are available from multiple sources, are at times subject to industry-wide shortage and significant commodity pricing fluctuations.

Restrictions on international trade can increase the cost or limit the availability of the Company’s products and the components and rare earths and other raw materials that go into them.

The Company uses some custom components that are not commonly used by its competitors, and new products introduced by the Company often utilize custom components available from only one source.

When a component or product uses new technologies, initial capacity constraints may exist until the suppliers’ yields have matured or their manufacturing capacities have increased.

The continued availability of these components at acceptable prices, or at all, may be affected if suppliers decide to concentrate on the production of common components instead of components customized to meet the Company’s requirements.

The Company has entered into agreements for the supply of many components;

however, there can be no guarantee that the Company will be able to extend or renew these agreements on similar terms, or at all.

however, the Company may not be able to extend or renew agreements for the supply of components on similar terms, or at all, and may not be successful in obtaining sufficient quantities from its suppliers or in a timely manner, or in identifying and obtaining sufficient quantities from an alternative source.

In addition, component suppliers may fail, be subject to consolidation within a particular industry, or decide to concentrate on the production of common components instead of components customized to meet the Company’s requirements, further limiting the Company’s ability to obtain sufficient quantities of components on commercially reasonable terms, or at all.

Research and Development

2 unchanged sentences

Intellectual Property

The Company currently holds a broad collection of intellectual property rights relating to certain aspects of its hardware, accessories, software and services.

The Company currently holds a broad collection of intellectual property rights relating to certain aspects of its hardware, software and services.

This includes patents, designs, copyrights, trademarks, trade secrets and other forms of intellectual property rights in the U.S.

1 unchanged sentence

Although the Company believes the ownership of such intellectual property rights is an important factor in differentiating its business and that its success does depend in part on such ownership, the Company relies primarily on the innovative skills, technical competence and marketing abilities of its personnel.

The Company regularly files patent, design, copyright and trademark applications to protect innovations arising from its research, development, design and marketing, and is currently pursuing thousands of applications around the world.

The Company regularly files patent, design, copyright and trademark applications to protect innovations arising from its hardware, software and service research, development, design and marketing, and is currently pursuing thousands of applications around the world.

Over time, the Company has accumulated a large portfolio of issued and registered intellectual property rights around the world.

1 unchanged sentence

The Company believes the duration of its intellectual property rights is adequate relative to the expected lives of its products and services.

In addition to Company-owned intellectual property, many of the Company’s products and services are designed to include intellectual property owned by third parties.

| 2025 Form 10-K | 3

In addition to Company-owned intellectual property, many of the Company’s products and services include technology or intellectual property that must be licensed from third parties.

It may be necessary in the future to seek or renew licenses relating to various aspects of the Company’s products, processes and services.

While the Company has generally been able to obtain such licenses on commercially reasonable terms in the past, there is no guarantee that such licenses could be obtained in the future on reasonable terms or at all.

| 2024 Form 10-K | 3

Business Seasonality and Product Introductions

5 unchanged sentences

The Company believes that its people play an important role in its success, and strives to attract, develop and retain the best talent.

The Company works to create an inclusive, safe and supportive environment for all of its team members, so that its people can do the best work of their lives.

The Company works to create a culture of collaboration, one where people with a broad range of backgrounds and perspectives can come together to innovate and do the best work of their lives.

The Company is an equal opportunity employer committed to inclusion and to providing a workplace free of harassment or discrimination.

As of September 27, 2025, the Company had approximately 166,000 full-time equivalent employees.

Compensation and Benefits

The Company believes that compensation should be competitive and equitable, and should enable employees to share in the Company’s success.

The Company believes that compensation should be competitive and equitable, and offers discretionary cash and equity awards to enable employees to share in the Company’s success.

The Company recognizes its people are most likely to thrive when they have the resources to meet their needs and the time and support to succeed in their professional and personal lives.

In support of this, the Company offers a wide variety of benefits for employees around the world, including health, wellness and time away.

Growth and Development

The Company invests in resources to help its people develop and achieve their career goals.

The Company offers programs through Apple University on leadership, management and influence, as well as Apple culture and values.

Team members can also take advantage of online classes for business, technical and personal development, as well as learning opportunities to support their well-being.

Workplace Practices and Policies

The Company is an equal opportunity employer committed to inclusion and diversity and to providing a workplace free of harassment or discrimination.

Inclusion and Diversity

The Company is committed to its vision to build and sustain a more inclusive workforce that is representative of the communities it serves.

The Company continues to work to increase diverse representation at every level, foster an inclusive culture, and support equitable pay and access to opportunity for all employees.

Team members can also take advantage of online classes for business, technical and personal development.

The Company believes that open and honest communication among team members, managers and leaders helps create an open, collaborative work environment where everyone can contribute, grow and succeed.

Team members are encouraged to come to their managers with questions, feedback or concerns, and the Company conducts surveys that gauge employee sentiment in areas like career development, manager performance and inclusivity.

Health and Safety

The Company is committed to protecting its team members everywhere it operates.

The Company identifies potential workplace risks in order to develop measures to mitigate possible hazards.

The Company is committed to the safety and security of its team members everywhere it operates.

The Company supports employees with general safety, security and crisis management training, and by putting specific programs in place for those working in potentially high-hazard environments.

Additionally, the Company works to protect the safety and security of its team members, visitors and customers through its global security team.

| 2024 Form 10-K | 4

Available Information

The Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are filed with the U.S.

Securities and Exchange Commission (the “SEC”).

Securities and Exchange Commission (“SEC”).

Such reports and other information filed by the Company with the SEC are available free of charge at investor.apple.com/investor-relations/sec-filings/default.aspx when such reports are available on the SEC’s website.

The Company periodically provides certain information for investors on its corporate website, www.apple.com, and its investor relations website, investor.apple.com.

This includes press releases and other information about financial performance, information on environmental, social and governance matters, and details related to the Company’s annual meeting of shareholders.

This includes press releases and other information about financial performance, information on corporate governance, and details related to the Company’s annual meeting of shareholders.

The information contained on the websites referenced in this Form 10-K is not incorporated by reference into this filing.

Further, the Company’s references to website URLs are intended to be inactive textual references only.

| 2025 Form 10-K | 4

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business