UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
For the fiscal year ended September 28, 2024
Commission file number 001-36743
APPLE INC.

PART I

Item 1. Business
Apple Inc. (Apple or the Company) designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories and sells a variety of related services.
The Company’s products include:
- iPhone: The Company’s line of smartphones based on its iOS operating system.
- Mac: The Company’s line of personal computers based on its macOS operating system.
- iPad: The Company’s line of multi-purpose tablets based on its iPadOS operating system.
- Wearables, Home and Accessories: Includes AirPods, Apple TV, Apple Watch, Beats products, HomePod and accessories.
- Services: Includes advertising, AppleCare, cloud services, digital content and payment services.

Item 1A. Risk Factors
The Company’s business, results of operations and financial condition have been and may continue to be affected by various risks, including:
- Global Economic Conditions: Macroeconomic conditions, including inflation, interest rates and currency fluctuations, could adversely affect demand.
- Supply Chain: The Company relies on outsourcing partners and single-source suppliers. Supply chain disruptions could harm the business.
- Competition: The markets for the Company’s products and services are highly competitive and subject to rapid technological change.
- Regulatory Environment: The Company is subject to complex and changing laws and regulations worldwide, including antitrust and consumer protection laws.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Fiscal 2024 Highlights:
- Total net sales were $394.3 billion, an increase of 2% year-over-year.
- Net income was $100.9 billion.
- Diluted earnings per share were $6.50.
- The Company returned over $90 billion to shareholders through dividends and share repurchases.

Segment Performance:
- iPhone net sales increased by 3% to $205.5 billion.
- Services net sales reached an all-time high of $85.2 billion, up 9%.
- Mac net sales decreased by 5% to $28.0 billion.

Liquidity and Capital Resources:
As of September 28, 2024, the Company had $162.1 billion in cash, cash equivalents and marketable securities.
Total debt was $111.0 billion.
The Company believes its existing cash balances and cash flow from operations will be sufficient to meet its working capital and capital expenditure needs for the next 12 months.

Item 8. Financial Statements and Supplementary Data
Consolidated Statements of Operations (in millions, except per share amounts):
Revenue:
- Products: $298,085
- Services: $96,243
- Total net sales: $394,328

Cost of Sales:
- Total cost of sales: $214,136

Gross Margin: $180,192

Operating Expenses:
- Research and development: $29,915
- Selling, general and administrative: $24,932
- Total operating expenses: $54,847

Operating Income: $125,345
Other income/(expense), net: $(382)
Income before provision for income taxes: $124,963
Provision for income taxes: $24,054
Net Income: $100,909

Consolidated Balance Sheets (in millions):
Assets:
- Cash and cash equivalents: $29,965
- Marketable securities: $132,134
- Accounts receivable, net: $29,508
- Inventories: $6,331
- Total current assets: $143,566
- Property, plant and equipment, net: $43,715
- Total assets: $352,583

Liabilities and Shareholders’ Equity:
- Accounts payable: $62,611
- Other current liabilities: $58,829
- Total current liabilities: $145,308
- Term debt: $95,281
- Total liabilities: $290,437
- Total shareholders’ equity: $62,146