How does Apple (AAPL) make money?

Apple (AAPL) generates revenue primarily from iPhone, which accounted for 52.2% of total revenue in TTM through Q1 2026. The company reported $451.44B in revenue and converted 27.2% of it into net profit, equivalent to roughly $122.58B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Apple (AAPL)?

Apple (AAPL) reported a gross profit margin of 47.9% in TTM through Q1 2026, equivalent to $216.07B in gross profit on $451.44B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Apple (AAPL)?

Apple (AAPL) reported an operating profit margin of 32.6% in TTM through Q1 2026, equivalent to $147.37B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Apple (AAPL)?

Apple (AAPL) reported a net profit margin of 27.2% in TTM through Q1 2026, equivalent to $122.58B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Apple (AAPL) profitable?

Yes. Apple (AAPL) reported $122.58B in net income for TTM through Q1 2026, with a net profit margin of 27.2%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Apple (AAPL) invest in research and development?

Apple (AAPL) invested $40.04B in research and development during TTM through Q1 2026, roughly 8.9% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

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

Apple (AAPL) spent $11.05B on capital expenditures (CapEx) during TTM through Q1 2026, roughly 2.4% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Apple (AAPL) generate?

Apple (AAPL) generated $129.17B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 28.6%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Apple (AAPL)?

Apple (AAPL) had an effective tax rate of 17% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Apple (AAPL)?

Apple (AAPL) reports revenue across 5 reportable product segments, led by iPhone at 52.2% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Apple (AAPL) generate most of its revenue?

Americas Segment is the largest geographic market for Apple (AAPL), accounting for 41.9% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Apple Makes Money: 2026 Visual Revenue Map

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

Calculated from the four most recent reported quarters, ending March 28, 2026 (reported May 1, 2026).

Apple (AAPL) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Apple (AAPL) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
iPhone	$235.87B	52.2%
Service	$117.16B	26%
Wearables & Accessories	$35.81B	7.9%
Mac	$33.56B	7.4%
iPad	$29.04B	6.4%
Total	$451.44B	100%

iPhone$235.87B
Service$117.16B
Wearables & Accessories$35.81B
Mac$33.56B
iPad$29.04B
Total$451.44B

Apple (AAPL) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Apple (AAPL), TTM through Q1 2026
Region	Revenue (USD)	% of total
Americas Segment	$189.01B	41.9%
Europe Segment	$118.92B	26.3%
Greater China Segment	$75.89B	16.8%
Rest of Asia Pacific Segment	$37.40B	8.3%
Japan Segment	$30.23B	6.7%
Total	$451.44B	100%

Americas Segment
Europe Segment
Greater China Segment
Rest of Asia Pacific Segment
Japan Segment
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Apple (AAPL) reports revenue across 5 operating segments; the largest segment was iPhone at 52.2%, followed by Service (26%) and Wearables & Accessories (7.9%). Separately, by end-market geography, Americas Segment accounted for 41.9% of revenue, followed by Europe Segment (26.3%) and Greater China Segment (16.8%).

Frequently asked questions

Data & methodology

Apple (AAPL) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation