How does Apple (AAPL) make money?

Apple (AAPL) primarily makes money through iPhone, which accounts for 52.6% of total revenue. For TTM through Q1 2026, Apple generated $451.44B in total revenue with a net profit margin of 27.2%.

What is Apple (AAPL) gross profit margin?

Apple (AAPL) reported a gross profit margin of 47.9% for TTM through Q1 2026, equivalent to $216.07B in gross profit. This means Apple retains 47.9% of each revenue unit after direct costs of production.

What is Apple (AAPL) operating profit margin?

Apple (AAPL) reported an operating profit margin of 32.6% for TTM through Q1 2026, equivalent to $147.37B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Apple (AAPL) net profit margin?

Apple (AAPL) reported a net profit margin of 27.2% for TTM through Q1 2026, equivalent to $122.58B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Apple (AAPL) invest in R&D?

Apple (AAPL) invested $40.04B in research and development in TTM through Q1 2026 (8.9% of total revenue). R&D spending reflects investment in future products, services, and technologies.

How much does Apple (AAPL) spend on capital expenditures?

Apple (AAPL) spent $6.70B on capital expenditures in TTM through Q1 2026 (1.5% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Apple (AAPL) free cash flow?

Apple (AAPL) generated $133.52B in free cash flow for TTM through Q1 2026 (29.6% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Apple (AAPL) effective tax rate?

Apple (AAPL) had an effective tax rate of 17% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

How Apple (AAPL) Makes Money: A Visual Guide

Apple (AAPL) generated $451.44B in revenue, earning $122.58B in net profit (27.2% margin). Its largest revenue source is iPhone (52.6% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Apple (AAPL) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 28, 2026 (reported April 30, 2026).

Frequently asked questions

How does Apple (AAPL) make money?: Apple (AAPL) primarily makes money through iPhone, which accounts for 52.6% of total revenue. For TTM through Q1 2026, Apple generated $451.44B in total revenue with a net profit margin of 27.2%.
What is Apple (AAPL) gross profit margin?: Apple (AAPL) reported a gross profit margin of 47.9% for TTM through Q1 2026, equivalent to $216.07B in gross profit. This means Apple retains 47.9% of each revenue unit after direct costs of production.
What is Apple (AAPL) operating profit margin?: Apple (AAPL) reported an operating profit margin of 32.6% for TTM through Q1 2026, equivalent to $147.37B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Apple (AAPL) net profit margin?: Apple (AAPL) reported a net profit margin of 27.2% for TTM through Q1 2026, equivalent to $122.58B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Apple (AAPL) invest in R&D?: Apple (AAPL) invested $40.04B in research and development in TTM through Q1 2026 (8.9% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Apple (AAPL) spend on capital expenditures?: Apple (AAPL) spent $6.70B on capital expenditures in TTM through Q1 2026 (1.5% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Apple (AAPL) free cash flow?: Apple (AAPL) generated $133.52B in free cash flow for TTM through Q1 2026 (29.6% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Apple (AAPL) effective tax rate?: Apple (AAPL) had an effective tax rate of 17% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q1 2026.