Apple GmbHMünchenBefreiender Konzernabschluss zum Geschäftsjahr vom 29.09.2023 bis zum 28.09.2024Apple Operations International LimitedCork/IrlandApple Operations International LimitedDirectors' Report and Consolidated Financial Statements Year Ended 28 September 2024TABLE OF CONTENTSDirectors' Report Directors' Responsibilities Statement Independent Auditor's Report Financial Statements and Notes DIRECTORS' REPORTThe directors present their report and audited consolidated financial statements of Apple Operations International Limited, (the "Company") and its subsidiaries (collectively the "Group") for the financial year ended 28 September 2024 ("2024"). The consolidated financial statements are presented in U.S. dollars ("$") and rounded to the nearest million (unless otherwise stated). The directors have elected to prepare the consolidated financial statements of the Group in accordance with International Financial Reporting Standards and their interpretations approved by the International Accounting Standards Board as adopted by the European Union ("IFRS") and those parts of the Companies Act 2014 applicable to companies reporting under IFRS. The Company financial statements are prepared in accordance with the Financial Reporting Standard 102 ("FRS 102") as issued by the Financial Reporting Council and the Companies Act 2014. The Company's ultimate and immediate parent is Apple Inc. ("Ultimate Parent", "Apple", or "Apple Inc."), a company incorporated in California, United States of America. The Company is incorporated in Ireland with a registration number of 76941. The registered office is Hollyhill Industrial Estate, Hollyhill, Cork, Ireland. Principal Activities, Business Review and Future Events The Group and Company develop, manufacture and market smartphones, personal computers, tablets, wearables and accessories, sell a variety of related services. The Company engages in the provision of financing to other Apple undertakings and serves as a holding company for the management of certain Apple subsidiary companies and other investments. The Group recorded net sales in 2024 of $222.3 billion (2023: $218.9 billion), an increase of 1.6%. Gross margin in 2024 was 45.9% (2023: 45.0%). The Group incurred research and development ("R&D") costs in 2024 of $16.9 billion (2023: $17.4 billion). Net income in 2024 was $51.2 billion (2023: $62.3 billion). Average full time equivalent employees for 2024 were 55,827 (2023: 56,922). Net assets for 2024 were $48.0 billion (2023: $66.0 billion), a decrease of $18.0 billion. The profit of the Company in 2024 was $62.3 billion (2023: $38.6 billion). The directors do not anticipate any significant change in activities for the Group and Company in the foreseeable future. Income Taxes The corporate income taxes reported in the Consolidated Statements of Operations, Statements of Comprehensive Income Balance Sheets, Statements of Shareholders' Equity and Statements of Cash Flows do not include U.S.-level corporate taxes borne by Apple Inc. Risks and Uncertainties The Group's business, reputation, results of operations and financial condition can be affected by a number of factors, whether currently known or unknown, including those described below. When any one or more of these risks materialize from time to time, the Group's business, reputation, results of operations and financial condition can be materially and adversely affected. Because of the following factors, as well as other factors affecting the Group's results of operations and financial condition, past financial performance should not be considered to be a reliable indicator of future performance. This discussion of risk factors contains forward-looking statements. Macroeconomic and Industry Risks The Group's operations and performance depend significantly on global and regional economic conditions and adverse economic conditions can materially adversely affect the Group's business, results of operations and financial condition. The Group has international operations with sales outside Ireland representing a majority of the Group's total net sales. In addition, the Group's global supply chain is large and complex and a majority of the Group's supplier facilities, including manufacturing and assembly sites, are located outside Ireland. As a result, the Group's operations and performance depend significantly on global and regional economic conditions. Adverse macroeconomic conditions, including slow growth or recession, high unemployment, inflation, tighter credit, higher interest rates and currency fluctuations can adversely impact consumer confidence and spending and materially adversely affect demand for the Group's products and services. In addition, consumer confidence and spending can be materially adversely affected in response to changes in fiscal and monetary policy, financial market volatility, declines in income or asset values, and other economic factors. In addition to an adverse impact on demand for the Group's products and services, uncertainty about, or a decline in, global or regional economic conditions can have a significant impact on the Group's suppliers, contract manufacturers, logistics providers, distributors, cellular network carriers and other channel partners, and developers. Potential outcomes include financial instability; inability to obtain credit to finance business operations; and insolvency. Adverse economic conditions can also lead to increased credit and collectibility risk on the Group's trade receivables; the failure of derivative counterparties and other financial institutions; reduced liquidity; and declines in the fair values of the Group's financial instruments. These and other impacts can materially adversely affect the Group's business, results of operations and financial condition. The Group's business can be impacted by political events, trade and other international disputes, geopolitical tensions, conflict, terrorism, natural disasters, public health issues, industrial accidents and other business interruptions. Political events, trade and other international disputes, geopolitical tensions, conflict, terrorism, natural disasters, public health issues, industrial accidents and other business interruptions can have a material adverse effect on the Group and its customers, employees, suppliers, contract manufacturers, logistics providers, distributors, cellular network carriers and other channel partners. The Group has a large, global business, and the Group believes that it generally benefits from growth in international trade. Substantially all of the Group's manufacturing is performed in whole or in part by outsourcing partners located primarily in China mainland, India, Japan, South Korea, Taiwan and Vietnam. Restrictions on international trade such as tariffs and other controls on imports or exports of goods, technology or data, can materially adversely affect the Group's business and supply chain. The impact can be particularly significant if these restrictive measures apply to countries and regions where the Group derives a significant portion of its revenues and/or has significant supply chain operations. Restrictive measures can increase the cost of the Group's products and the components and raw materials that go into them, and can require the Group to take various actions, including changing suppliers, restructuring business relationships and operations, and ceasing to offer and distribute affected products, services and third-party applications to its customers. Changing the Group's business and supply chain in accordance with new or changed restrictions on international trade can be expensive, time-consuming and disruptive to the Group's operations. Such restrictions can be announced with little or no advance notice, which can create uncertainty, and the Group may not be able to effectively mitigate all adverse impacts from such measures. If disputes and conflicts further escalate in the future, actions by governments in response could be significantly more severe and restrictive and could materially adversely affect the Group's business. Many of the Group's operations and facilities, as well as critical business operations of the Group's suppliers and contract manufacturers, are in locations that are prone to earthquakes and other natural disasters. Global climate change is resulting in certain types of natural disasters and extreme weather occurring more frequently or with more intense effects. In addition, the Group's and its suppliers' operations and facilities are subject to the risk of interruption by fire, power shortages, nuclear power plant accidents and other industrial accidents, terrorist attacks and other hostile acts, ransomware and other cybersecurity attacks, labor disputes, public health issues and other events beyond the Group's control. For example, global supply chains can be highly concentrated and geopolitical tensions or conflict could result in significant disruptions. Such events can make it difficult or impossible for the Group to manufacture and deliver products to its customers, create delays and inefficiencies in the Group's supply and manufacturing chain, result in slowdowns and outages to the Group's service offerings, increase the Group's costs, and negatively impact consumer spending and demand in affected areas. The Group's operations are also subject to the risks of industrial accidents at its suppliers and contract manufacturers. While the Group's suppliers are required to maintain safe working environments and operations, an industrial accident could occur and could result in serious injuries or loss of life, disruption to the Group's business and harm to the Group's reputation. Major public health issues, including pandemics such as the COVID-19 pandemic, have adversely affected, and could in the future materially adversely affect, the Group due to their impact on the global economy and demand for consumer products; the imposition of protective public safety measures, such as stringent employee travel restrictions and limitations on freight services and the movement of products between regions; and disruptions in the Group's operations, supply chain and sales and distribution channels, resulting in interruptions of the supply of current products and offering of existing services, and delays in production ramps of new products and development of new services. Following any interruption to its business, the Group can require substantial recovery time, experience significant expenditures to resume operations, and lose significant sales. Because the Group relies on single or limited sources for the supply and manufacture of many critical components, a business interruption affecting such sources would exacerbate any negative consequences to the Group. While the Group maintains insurance coverage for certain types of losses, such insurance coverage may be insufficient to cover all losses that may arise. Global markets for the Group's products and services are highly competitive and subject to rapid technological change, and the Group may be unable to compete effectively in these markets. The Group's products and services are offered in highly competitive global markets 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 Group's ability to compete successfully depends heavily on ensuring the continuing and timely introduction of innovative new products, services and technologies to the marketplace. The Group, together with Apple Inc., designs and develops nearly the entire solution for its products, including the hardware, operating system, numerous software applications and related services. As a result, the Group, together with Apple Inc., must make significant investments in R&D. There can be no assurance these investments will achieve expected returns, and Apple Inc. and the Group may not be able to develop and market new products and services successfully. The Group, together with Apple Inc., currently holds a significant number of patents, trademarks and copyrights and has registered, and applied to register, additional patents, trademarks and copyrights. In contrast, many of the Group's competitors seek to compete primarily through aggressive pricing and very low cost structures, and by imitating the Group's products and infringing on its intellectual property. Effective intellectual property protection is not consistently available in every country in which the Group operates. If the Group and Apple Inc. is unable to continue to develop and sell innovative new products with attractive margins or if competitors infringe on the Group's or Apple Inc.'s intellectual property, the Group's ability to maintain a competitive advantage could be materially adversely affected. The Group has a minority market share in the global smartphone, personal computer and tablet markets. The Group faces substantial competition in these markets from companies that have significant technical, marketing, distribution and other resources, as well as established hardware, software and digital content supplier relationships. In addition, some of the Group's competitors have broader product lines, lower-priced products and a larger installed base of active devices. 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. Some of the markets in which the Group competes have from time to time experienced little to no growth or contracted overall. Additionally, the Group faces significant competition as competitors imitate the Group's product features and applications within their products or collaborate to offer solutions that are more competitive than those they currently offer. The Group also expects competition to intensify as competitors imitate the Group's approach to providing components seamlessly within their offerings or work collaboratively to offer integrated solutions. The Group's services also face substantial competition, including from companies that have significant resources and experience and have established service offerings with large customer bases. The Group competes with business models that provide content to users for free. The Group also competes with illegitimate means to obtain third-party digital content and applications. The Group's business, results of operations and financial condition depend substantially on the Group's and Apple Inc.'s ability to continually improve its products and services to maintain their functional and design advantages. There can be no assurance the Group or Apple Inc. will be able to continue to provide products and services that compete effectively. Business Risks To remain competitive and stimulate customer demand, the Group must successfully manage frequent introductions and transitions of products and services. Due to the highly volatile and competitive nature of the markets and industries in which the Group competes, the Group and Apple Inc. must continually introduce new products, services and technologies, enhance existing products and services, effectively stimulate customer demand for new and upgraded products and services, and successfully manage the transition to these new and upgraded products and services. The success of new product and service introductions depends on a number of factors, including timely and successful development, market acceptance, the Group's ability to manage the risks associated with new technologies and production ramp-up issues, the availability of application software or other third-party support for the Group's products and services, the effective management of purchase commitments and inventory levels in line with anticipated product demand, the availability of products in appropriate quantities and at expected costs to meet anticipated demand, and the risk that new products and services may have quality or other defects or deficiencies. New products, services and technologies may replace or supersede existing offerings and may produce lower revenues and lower profit margins, which can materially adversely impact the Group's business, results of operations and financial condition. There can be no assurance the Group will successfully manage future introductions and transitions of products and services. The Group depends on component and product manufacturing and logistical services provided by outsourcing partners. Substantially all of the Group's manufacturing is performed in whole or in part by outsourcing partners located primarily in China mainland, India, Japan, South Korea, Taiwan and Vietnam, and a significant concentration of this manufacturing is currently performed by a small number of outsourcing partners, often in single locations. The Group has also outsourced much of its transportation and logistics management. While these arrangements can lower operating costs, they also reduce the Group's direct control over production and distribution. Such diminished control has from time to time and may in the future have an adverse effect on the quality or quantity of products manufactured or services provided, or adversely affect the Group's flexibility to respond to changing conditions. Although arrangements with these partners may contain provisions for product defect expense reimbursement, the Group generally remains responsible to the consumer for warranty and out-ofwarranty service in the event of product defects and experiences unanticipated product defect liabilities from time to time. While the Group relies on its partners to adhere to its supplier code of conduct, violations of the supplier code of conduct occur from time to time and can materially adversely affect the Group's business, reputation, results of operations and financial condition. The Group relies on single-source outsourcing partners in the U.S., Asia and Europe to supply and manufacture many components, and on outsourcing partners primarily located in Asia, for final assembly of substantially all of the Group's hardware products. Any failure of these partners to perform can have a negative impact on the Group's cost or supply of components or finished goods. In addition, manufacturing or logistics in these locations or transit to final destinations can be disrupted for a variety of reasons, including natural and man-made disasters, information technology system failures, commercial disputes, economic, business, labor, environmental, public health or political issues, trade and other international disputes, geopolitical tensions, or conflict. The Group has invested in manufacturing process equipment, much of which is held at certain of its outsourcing partners, and has made prepayments to certain of its suppliers associated with long-term supply agreements. While these arrangements help ensure the supply of components and finished goods, if these outsourcing partners or suppliers experience severe financial problems or other disruptions in their business, such continued supply can be disrupted or terminated, and the recoverability of manufacturing process equipment or prepayments can be negatively impacted. Changes or additions to the Group's supply chain require considerable time and resources and involve significant risks and uncertainties, including exposure to additional regulatory and operational risks. Future operating results depend upon the Group's ability to obtain components in sufficient quantities on commercially reasonable terms. Because the Group currently obtains certain components from single or limited sources, the Group is subject to significant supply and pricing risks. Many components, including those that are available from multiple sources, are at times subject to industry-wide shortages and significant commodity pricing fluctuations that can materially adversely affect the Group's business, results of operations and financial condition. For example, the global semiconductor industry has in the past experienced high demand and shortages of supply, which adversely affected the Group's ability to obtain sufficient quantities of components and products on commercially reasonable terms, or at all. Such disruptions could occur in the future. While the Group has entered into agreements for the supply of many components, there can be no assurance the Group will be able to extend or renew these agreements on similar terms, or at all. In addition, component suppliers may suffer from poor financial conditions, which can lead to business failure for the supplier or consolidation within a particular industry, further limiting the Group's ability to obtain sufficient quantities of components on commercially reasonable terms or at all. Therefore, the Group remains subject to significant risks of supply shortages and price increases that can materially adversely affect its business, results of operations and financial condition. The Group's new products 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, can be affected for any number of reasons, including if suppliers decide to concentrate on the production of common components instead of components customized to meet the Group's requirements. When the Group's supply of components for a new or existing product has been delayed or constrained, or when an outsourcing partner has delayed shipments of completed products to the Group, the Group's business, results of operations and financial condition have been adversely affected and future delays or constraints could materially adversely affect the Group's business, results of operations and financial condition. The Group's business and financial performance could also be materially adversely affected depending on the time required to obtain sufficient quantities from the source, or to identify and obtain sufficient quantities from an alternative source. The Group's products and services may be affected from time to time by design and manufacturing defects that could materially adversely affect the Group's business and result in harm to the Group's reputation. The Group offers complex hardware and software products and services that can be affected by design and manufacturing defects. Sophisticated operating system software and applications, such as those offered by the Group, often have issues that can unexpectedly interfere with the intended operation of hardware or software products and services. Defects can also exist in components and products the Group purchases from third parties. Component defects could make the Group's products unsafe and create a risk of environmental or property damage and personal injury. These risks may increase as the Group's products are introduced into specialized applications, including health. In addition, the Group's service offerings can have quality issues and from time to time experience outages, service slowdowns or errors. As a result, from time to time the Group's services have not performed as anticipated and may not meet customer expectations. The introduction of new and complex technologies, such as artificial intelligence features, can increase these and other safety risks, including exposing users to harmful, inaccurate or other negative content and experiences. There can be no assurance the Group will be able to detect and fix all issues and defects in the hardware, software and services it offers. Failure to do so can result in widespread technical and performance issues affecting the Group's products and services. Errors, bugs and vulnerabilities can be exploited by third parties, compromising the safety and security of a user's device. In addition, the Group can be exposed to product liability claims, recalls, product replacements or modifications, write-offs of inventory, property, plant and equipment or intangible assets, and significant warranty and other expenses, including litigation costs and regulatory fines. Quality problems can adversely affect the experience for users of the Group's products and services, and result in harm to the Group's reputation, loss of competitive advantage, poor market acceptance, reduced demand for products and services, delay in new product and service introductions and lost sales. The Group is exposed to the risk of write-downs on the value of its inventory and other assets, in addition to purchase commitment cancellation risk. The Group records a write-down for product and component inventories that have become obsolete or exceed anticipated demand, or for which cost exceeds net realizable value. The Group also accrues necessary cancellation fee reserves for orders of excess products and components. The Group reviews long-lived assets, including capital assets held at its suppliers' facilities and inventory prepayments, for impairment whenever events or circumstances indicate the assets may not be recoverable. If the Group determines that an impairment has occurred, it records a write-down equal to the amount by which the carrying value of the asset exceeds its fair value. Although the Group believes its inventory, capital assets, inventory prepayments and other assets and purchase commitments are currently recoverable, there can be no assurance the Group will not incur write-downs, fees, impairments and other charges given the rapid and unpredictable pace of product obsolescence in the industries in which the Group competes. The Group relies on access to third-party intellectual property, which may not be available to the Group on commercially reasonable terms, or at all. The Group's products and services are designed to include intellectual property owned by third parties, which requires licenses from those third parties. In addition, because of technological changes in the industries in which the Group currently competes or in the future may compete, current extensive patent coverage and the rapid rate of issuance of new patents, the Group's products and services can unknowingly infringe existing patents or intellectual property rights of others. From time to time, the Group has been notified that it may be infringing certain patents or other intellectual property rights of third parties. Based on experience and industry practice, the Group believes licenses to such third-party intellectual property can generally be obtained on commercially reasonable terms. However, there can be no assurance the necessary licenses can be obtained on commercially reasonable terms or at all. Failure to obtain the right to use third-party intellectual property, or to use such intellectual property on commercially reasonable terms, can require the Group to modify certain products, services or features or preclude the Group from selling certain products or services, or otherwise have a material adverse impact on the Group's business, results of operations and financial condition. The Group's future performance depends in part on support from third-party software developers. The Group believes decisions by customers to purchase its hardware products depend in part on the availability of third-party software applications and services. There can be no assurance third-party developers will continue to develop and maintain software applications and services for the Group's products. If third-party software applications and services cease to be developed and maintained for the Group's products, customers may choose not to buy the Group's products. The Group believes the availability of third-party software applications and services for its products depends in part on the developers' perception and analysis of the relative benefits of developing, maintaining and upgrading such software and services for the Group's products compared to competitors' platforms, such as Android for smartphones and tablets, Windows for personal computers and tablets, and PlayStation, Nintendo and Xbox for gaming platforms. This analysis may be based on factors such as the market position of the Group and its products, the anticipated revenue that may be generated, expected future growth of product sales, and the costs of developing such applications and services. The Group's minority market share in the global smartphone, personal computer and tablet markets can make developers less inclined to develop or upgrade software for the Group's products and more inclined to devote their resources to developing and upgrading software for competitors' products with larger market share. When developers focus their efforts on these competing platforms, the availability and quality of applications for the Group's devices can suffer. The Group relies on the continued availability and development of compelling and innovative software applications for its products. The Group's products and operating systems are subject to rapid technological change, and when third-party developers are unable to or choose not to keep up with this pace of change, their applications can fail to take advantage of these changes to deliver improved customer experiences, can operate incorrectly and can result in dissatisfied customers and lower customer demand for the Group's products. The Group distributes third-party applications for its products through the App Store. For the vast majority of applications, developers keep all of the revenue they generate on the App Store. Where applicable, the Group retains a commission from sales of applications and sales of digital services or goods initiated within an application. From time to time, the Group has made changes to its products and services, including taking actions in response to litigation, competition, market conditions and legal and regulatory requirements, and expects to make further business changes in the future. For example, the Group has implemented changes to iOS, iPadOS, the App Store and Safari in the European Union ("EU") as it seeks to comply with the Digital Markets Act (the "DMA"), including new business terms and alternative fee structures for iOS and iPadOS apps, alternative methods of distribution for iOS and iPadOS apps, alternative payment processing for apps across the Group's operating systems, and additional tools and application programming interfaces ("APIs") for developers. Changes to the Group's products and services could materially adversely affect the Group's business, results of operations and financial condition, including if such business changes result in reduced App Store or other sales, reductions in the rate of the commission that the Group retains on such sales, or if the rate of the commission is otherwise narrowed in scope or eliminated. Failure to obtain or create digital content that appeals to the Group's customers, or to make such content available on commercially reasonable terms, could have a material adverse impact on the Group's business, results of operations and financial condition. The Group contracts with numerous third parties to offer their digital content to customers. This includes the right to sell, or offer subscriptions to, third-party content, as well as the right to incorporate specific content into the Group's own services. The licensing or other distribution arrangements for this content can be for relatively short time periods and do not guarantee the continuation or renewal of these arrangements on commercially reasonable terms, or at all. Some third-party content providers and distributors currently or in the future may offer competing products and services, and can take actions to make it difficult or impossible for the Group to license or otherwise distribute their content. Other content owners, providers or distributors may seek to limit the Group's access to, or increase the cost of, such content. The Group may be unable to continue to offer a wide variety of content at commercially reasonable prices with acceptable usage rules. The Group also produces its own digital content, which can be costly to produce due to intense and increasing competition for talent, content and subscribers, and may fail to appeal to the Group's customers. Some third-party digital content providers require the Group to provide digital rights management and other security solutions. If requirements change, the Group may have to develop or license new technology to provide these solutions. There can be no assurance the Group will be able to develop or license such solutions at a reasonable cost and in a timely manner. The Group's success depends largely on the talents and efforts of its team members, the continued service and availability of highly skilled employees and the Group's ability to nurture its distinctive and inclusive culture. Much of the Group's future success depends on the talents and efforts of its team members. Experienced personnel in the technology industry are in high demand and competition for their talents is intense. In addition to intense competition for talent, workforce dynamics are constantly evolving. If the Group does not manage changing workforce dynamics effectively, it could materially adversely affect the Group's culture, reputation and operational flexibility. The Group believes that its distinctive and inclusive culture is a significant driver of its success. If the Group is unable to nurture its culture, it could materially adversely affect the Group's ability to recruit and retain the highly skilled employees who are critical to its success, and could otherwise materially adversely affect the Group's business, reputation, results of operations and financial condition. The Group depends on the performance of carriers, wholesalers, retailers and other resellers. The Group distributes its products and certain of its services through cellular network carriers, wholesalers, retailers and resellers, many of which distribute products and services from competitors. The Group also sells its products and services and resells third-party products in most of its major markets directly to consumers, small and mid-sized businesses, and education, enterprise and government customers through its retail and online stores and its direct sales force. Some carriers providing cellular network service for the Group's products offer financing, installment payment plans or subsidies for users' purchases of the device. There can be no assurance such offers will be continued at all or in the same amounts. The Group has invested and will continue to invest in programs to enhance reseller sales, including staffing selected resellers' stores with Group employees and contractors, and improving product placement displays. These programs can require a substantial investment while not assuring return or incremental sales. The financial condition of these resellers could weaken, these resellers could stop distributing the Group's products, or uncertainty regarding demand for some or all of the Group's products could cause resellers to reduce their ordering and marketing of the Group's products. The Group's business and reputation are impacted by information technology system failures and network disruptions. The Group and its global supply chain are dependent on complex information technology systems and are exposed to information technology system failures or network disruptions caused by natural disasters, accidents, power disruptions, telecommunications failures, acts of terrorism or war, computer viruses, physical or electronic break-ins, ransomware or other cybersecurity incidents, or other events or disruptions. System upgrades, redundancy and other continuity measures may be ineffective or inadequate, and the Group's or its vendors' business continuity and disaster recovery planning may not be sufficient for all eventualities. Such failures or disruptions can adversely impact the Group's business by, among other things, preventing access to the Group's online services, interfering with customer transactions or impeding the manufacturing and shipping of the Group's products. These events could materially adversely affect the Group's business, reputation, results of operations and financial condition. Losses or unauthorized access to or releases of confidential information, including personal information, could subject the Group to significant reputational, financial, legal and operational consequences. The Group's business requires it to use and store confidential information, including personal information with respect to the Group's customers and employees. The Group devotes significant resources to systems and data security, including through the use of encryption and other security measures intended to protect its systems and data. But these measures cannot provide absolute security, and losses or unauthorized access to or releases of confidential information occur and could materially adversely affect the Group's business, reputation, results of operations and financial condition. The Group's business also requires it to share confidential information with suppliers and other third parties. The Group relies on global suppliers that are also exposed to ransomware and other malicious attacks that can disrupt business operations. Although the Group takes steps to secure confidential information that is provided to or accessible by third parties working on the Group's behalf, such measures are not always effective and losses or unauthorized access to, or releases of, confidential information occur. Such incidents and other malicious attacks could materially adversely affect the Group's business, reputation, results of operations and financial condition. The Group experiences malicious attacks and other attempts to gain unauthorized access to its systems on a regular basis. These attacks seek to compromise the confidentiality, integrity or availability of confidential information or disrupt normal business operations, and can, among other things, impair the Group's ability to attract and retain customers for its products and services, materially damage commercial relationships, and expose the Group to litigation or government investigations, which can result in penalties, fines or judgments against the Group. Globally, attacks are expected to continue accelerating in both frequency and sophistication with increasing use by actors of tools and techniques that are designed to circumvent controls, avoid detection, and remove or obfuscate forensic evidence, all of which hinders the Group's ability to identify, investigate and recover from incidents. In addition, attacks against the Group and its customers can escalate during periods of geopolitical tensions or conflict. Although malicious attacks perpetrated to gain access to confidential information, including personal information, affect many companies across various industries, the Group is at a relatively greater risk of being targeted because of its high profile and the value of the confidential information it creates, owns, manages, stores and processes. The Group has implemented systems and processes intended to secure its information technology systems and prevent unauthorized access to or loss of sensitive data, and mitigate the impact of unauthorized access, including through the use of encryption and authentication technologies. As with all companies, these security measures may not be sufficient for all eventualities and are vulnerable to hacking, ransomware attacks, employee error, malfeasance, system error, faulty password management or other irregularities. For example, third parties can fraudulently induce the Group's or its suppliers' and other third parties' employees or customers into disclosing usernames, passwords or other sensitive information, which can, in turn, be used for unauthorized access to the Group's or its suppliers' and other third parties' systems and services. To help protect customers and the Group, the Group deploys and makes available technologies like multifactor authentication, monitors its services and systems for unusual activity and may freeze accounts under suspicious circumstances, which, among other things, can result in the delay or loss of customer orders or impede customer access to the Group's products and services. While the Group maintains insurance coverage that is intended to address certain aspects of data security risks, such insurance coverage may be insufficient to cover all losses or all types of claims that may arise. Investment in new business strategies and acquisitions could disrupt the Group's ongoing business, present risks not originally contemplated and materially adversely affect the Group's business, reputation, results of operations and financial condition. The Group has invested, and in the future may invest, in new business strategies or acquisitions. Such endeavors may involve significant risks and uncertainties, including distraction of management from current operations, greater-thanexpected liabilities and expenses, economic, political, legal and regulatory challenges associated with operating in new businesses, regions or countries, inadequate return on capital, potential impairment of tangible and intangible assets, and significant write-offs. Investment and acquisition transactions are exposed to additional risks, including failing to obtain required regulatory approvals on a timely basis or at all, or the imposition of onerous conditions that could delay or prevent the Group from completing a transaction or otherwise limit the Group's ability to fully realize the anticipated benefits of a transaction. These new ventures are inherently risky and may not be successful. The failure of any significant investment could materially adversely affect the Group's business, reputation, results of operations and financial condition. The Group's retail stores are subject to numerous risks and uncertainties. The Group's retail operations are subject to many factors that pose risks and uncertainties and could adversely impact the Group's business, results of operations and financial condition, including macroeconomic factors that could have an adverse effect on general retail activity. Other factors include the Group's ability to: manage costs associated with retail store construction and operation; manage relationships with existing retail partners; manage costs associated with fluctuations in the value of retail inventory; and obtain and renew leases in quality retail locations at a reasonable cost. Legal and Regulatory Compliance Risks The Group's business, results of operations and financial condition could be adversely impacted by unfavorable results of legal proceedings or government investigations. The Group is subject to various claims, legal proceedings and government investigations that have arisen in the ordinary course of business and have not yet been fully resolved, and new matters may arise in the future. In addition, agreements entered into by the Group sometimes include indemnification provisions which can subject the Group to costs and damages in the event of a claim against an indemnified third party. The number of claims, legal proceedings and government investigations involving the Group, and the alleged magnitude of such claims, proceedings and government investigations, has generally increased over time and may continue to increase. The Group, together with Apple Inc., has faced and continues to face a significant number of patent claims relating to its cellular-enabled products, and new claims may arise in the future, including as a result of new legal or regulatory frameworks. For example, technology and other patent-holding companies frequently assert their patents and seek royalties and often enter into litigation based on allegations of patent infringement or other violations of intellectual property rights. The Group, together with Apple Inc., is vigorously defending infringement actions in courts in several U.S. jurisdictions, as well as internationally in various countries. The plaintiffs in these actions frequently seek broad injunctive relief and substantial damages. Regardless of the merit of particular claims, defending against litigation or responding to government investigations can be expensive, time-consuming and disruptive to the Group's operations. In recognition of these considerations, the Group may enter into agreements or other arrangements to settle litigation and resolve such challenges. There can be no assurance such agreements can be obtained on acceptable terms or that litigation will not occur. These agreements can also significantly increase the Group's cost of sales and operating expenses and require the Group to change its business practices and limit the Group's ability to offer certain products and services The outcome of litigation or government investigations is inherently uncertain. If one or more legal matters were resolved against the Group or an indemnified third party in a reporting period for amounts above management's expectations, the Group's results of operations and financial condition for that reporting period could be materially adversely affected. Further, such an outcome can result in significant monetary damages, disgorgement of revenue or profits, remedial corporate measures or injunctive relief against the Group, and has from time to time required, and can in the future require, the Group to change its business practices and limit the Group's ability to develop, manufacture, use, import or offer for sale certain products and services, all of which could materially adversely affect the Group's business, reputation, results of operations and financial condition. While the Group maintains insurance coverage for certain types of claims, such insurance coverage may be insufficient to cover all losses or all types of claims that may arise. The Group is subject to complex and changing laws and regulations worldwide, which exposes the Group to potential liabilities, increased costs and other adverse effects on the Group's business. The Group's global operations are subject to complex and changing laws and regulations on subjects, including antitrust; privacy, data security and data localization; consumer protection; advertising, sales, billing and e-commerce; financial services and technology; product liability; intellectual property ownership and infringement; digital platforms; machine learning and artificial intelligence; internet, telecommunications and mobile communications; media, television, film and digital content; availability of third-party software applications and services; labor and employment; anticorruption; import, export and trade; foreign exchange controls and cash repatriation restrictions; anti-money laundering; foreign ownership and investment; national security; tax; and environmental, health and safety, including electronic waste, recycling, product design and climate change. Compliance with these laws and regulations is onerous and expensive. New and changing laws, regulations, executive orders, directives and enforcement priorities can adversely affect the Group's business by increasing the Group's costs, limiting the Group's ability to offer a product, service or feature to customers, or imposing changes to the design of the Group's products and services, impacting customer demand for the Group's products and services, and requiring changes to the Group's business or supply chain. New and changing laws, regulations, executive orders, directives and enforcement priorities can also create uncertainty about how such laws and regulations will be interpreted and applied. Risks and costs related to new and changing laws, regulations, executive orders, directives, and enforcement priorities may increase as the Group's products and services are introduced into specialized applications, including health and financial services, or as the Group expands the use of technologies, such as machine learning and artificial intelligence features, and must navigate new legal, regulatory and ethical considerations relating to such technologies. The Group has implemented policies and procedures designed to ensure compliance with applicable laws and regulations, but there can be no assurance the Group's employees, contractors or agents will not violate such laws and regulations or the Group's policies and procedures. If the Group is found to have violated laws and regulations, it could materially adversely affect the Group's business, reputation, results of operations and financial condition. Regulatory changes and other actions that materially adversely affect the Group's business may be announced with little or no advance notice and the Group may not be able to effectively mitigate all adverse impacts from such measures. For example, the Group is subject to changing regulations relating to the export and import of its products. Although the Group has programs, policies and procedures in place that are designed to satisfy regulatory requirements, there can be no assurance that such policies and procedures will be effective in preventing a violation or a claim of a violation. As a result, the Group's products could be banned, delayed or prohibited from importation, which could materially adversely affect the Group's business, reputation, results of operations and financial condition. Expectations relating to environmental, social and governance considerations and related reporting obligations expose the Group to potential liabilities, increased costs, reputational harm, and other adverse effects on the Group's business. Many governments, regulators, employees, customers and other stakeholders are increasingly focused on environmental, social and governance considerations relating to businesses, including climate change and greenhouse gas emissions, human and civil rights, and diversity, equity and inclusion. In addition, Apple Inc. makes statements about its goals and initiatives through its various non-financial reports, information provided on its website, press statements and other communications. Responding to these environmental, social and governance considerations and implementation of these goals and initiatives involves risks and uncertainties, requires investments, and depends in part on third-party performance or data that is outside the Group's control. Apple Inc. cannot guarantee that it will achieve its announced environmental, social and governance goals and initiatives. In addition, some stakeholders may disagree with Apple Inc.'s goals and initiatives. Any failure, or perceived failure, by Apple Inc. to achieve its goals, further its initiatives, adhere to its public statements, comply with international environmental, social and governance laws and regulations, or meet evolving and varied stakeholder expectations and standards could result in legal and regulatory proceedings against the Group and materially adversely affect the Group's business, reputation, results of operations and financial condition. The technology industry, including, in some instances, the Group, is subject to intense media, political and regulatory scrutiny, which exposes the Group to increasing regulation, government investigations, legal actions and penalties. From time to time, the Group has made changes to its App Store, including actions taken in response to litigation, competition, market conditions and legal and regulatory requirements. The Group expects to make further business changes in the future. For example, the Group has implemented changes to iOS, iPadOS, the App Store and Safari in the EU as it seeks to comply with the DMA, including new business terms and alternative fee structures for iOS and iPadOS apps, alternative methods of distribution for iOS and iPadOS apps, alternative payment processing for apps across the Group's operating systems, and additional tools and APIs for developers. The Group has also continued to make changes to its compliance plan in response to feedback and engagement with the European Commission (the "Commission"). Although the Group's compliance plan is intended to address the DMA's obligations, it has been challenged by the Commission and may be challenged further by private litigants. The Commission has opened formal noncompliance investigations against the Group under the DMA and announced its preliminary findings alleging that the Group's App Store rules are in breach of the DMA. If the Commission makes a final determination that there has been a violation, it can issue a cease and desist order and may impose fines up to 10% of Apple Inc.'s annual worldwide net sales. Although any decision by the Commission can be appealed to the General Court of the EU, the effectiveness of the Commission's order would apply immediately while the appeal is pending, unless a stay of the order is granted. The Group believes that it complies with the DMA and has continued to make changes to its compliance plan in response to feedback and engagement with the Commission. While the changes introduced by the Group in the EU are intended to reduce new privacy and security risks that the DMA poses to EU users, many risks will remain. The Group is also currently subject to antitrust investigations and litigation in various jurisdictions around the world, which can result in legal proceedings and claims against the Group that could, individually or in the aggregate, have a materially adverse impact on the Group's business, results of operations and financial condition. For example, the Group is the subject of investigations in Europe and other jurisdictions relating to App Store terms and conditions. If such investigations or litigation are resolved against the Group, the Group can be exposed to significant fines and may be required to make further changes to its business practices, all of which could materially adversely affect the Group's business, reputation, results of operations and financial condition. Further, the Group has commercial relationships with other companies in the technology industry that are or may become subject to investigations and litigation that, if resolved against those other companies, could materially adversely affect the Group's commercial relationships with those business partners and materially adversely affect the Group's business, results of operations and financial condition. For example, the Group earns revenue from licensing arrangements with Google LLC and other companies to offer their search services on the Group's platforms and applications, and certain of these arrangements are currently subject to government investigations and legal proceedings. On August 5, 2024, Google was found to have violated U.S. antitrust laws. In connection with this finding, the DOJ has proposed remedies, which include changes to Google's products, services and business models. The proposed changes vary in scope and severity and range from imposing significant restrictions on Google's licensing agreements to prohibiting Google from offering the Group commercial terms for search distribution for up to 10 years. If implemented, such remedies could materially adversely affect the Group's ability to earn revenue from such licensing arrangements. There can be no assurance the Group's business, results of operations and financial condition will not be materially adversely affected, individually or in the aggregate, by the outcomes of such investigations, litigation or changes to laws and regulations in the future. Changes to the Group's business practices to comply with new laws and regulations or in connection with other legal proceedings can negatively impact the reputation of the Group's products for privacy and security and otherwise adversely affect the experience for users of the Group's products and services, and result in harm to the Group's reputation, loss of competitive advantage, poor market acceptance, reduced demand for products and services, lost sales, and lower profit margins. The Group's business is subject to a variety of laws, rules, policies and other obligations regarding data protection. The Group is subject to an increasing number of laws relating to the collection, use, retention, security and transfer of various types of personal information. In many cases, these laws apply not only to third-party transactions, but also restrict transfers of personal information among the Group. Several jurisdictions have passed laws in this area, and additional jurisdictions are considering imposing additional restrictions or have laws that are pending. These laws continue to develop and may be inconsistent from jurisdiction to jurisdiction. Complying with emerging and changing requirements causes the Group to incur substantial costs and has required and may in the future require the Group to change its business practices. Noncompliance could result in significant penalties or legal liability. The Group makes statements about its use and disclosure of personal information through its privacy policy, information provided on Apple Inc.'s website, press statements and other privacy notices provided to customers. Any failure by the Group to comply with these public statements or with international privacy or data protection laws and regulations could result in inquiries or proceedings against the Group by governmental entities or others. In addition to reputational impacts, penalties could include ongoing audit requirements and significant legal liability. In addition to the risks generally relating to the collection, use, retention, security and transfer of personal information, the Group is also subject to specific obligations relating to information considered sensitive under applicable laws, such as health data, financial data and biometric data. Health data and financial data are subject to additional privacy, security and breach notification requirements, and the Group is subject to audit by governmental authorities regarding the Group's compliance with these obligations. If the Group fails to adequately comply with these rules and requirements, or if health data or financial data is handled in a manner not permitted by law or under the Group's agreements with healthcare or financial institutions, the Group can be subject to litigation or government investigations, and can be liable for associated investigatory expenses, and can also incur significant fees or fines. Payment card data, is also subject to additional requirements. Under payment card rules and obligations, if cardholder information is potentially compromised, the Group can be liable for associated investigatory expenses and can also incur significant fees or fines if the Group fails to follow payment card industry data security standards. The Group could also experience a significant increase in payment card transaction costs or lose the ability to process payment cards if it fails to follow payment card industry data security standards, which could materially adversely affect the Group's business, reputation, results of operations and financial condition. Financial Risks The Group expects its net sales and results of operations to fluctuate. The Group's profit margins vary across its products, services, geographic segments and distribution channels. For example, the gross margins on the Group's products and services vary significantly and can change over time. The Group's gross margins are subject to volatility and downward pressure due to a variety of factors, including: continued industry-wide global product pricing pressures and product pricing actions that the Group may take in response to such pressures; increased competition; the Group's ability to effectively stimulate demand for certain of its products and services; compressed product life cycles; supply shortages; potential increases in the cost of components, outside manufacturing services, and developing, acquiring and delivering content for the Group's services; the Group's ability to manage product quality and warranty costs effectively; shifts in the mix of products and services, or in the geographic, currency or channel mix, including to the extent that regulatory changes require the Group to modify its product and service offerings; fluctuations in foreign exchange rates; inflation and other macroeconomic pressures; and the introduction of new products or services, including new products or services with lower profit margins. These and other factors could have a materially adverse impact on the Group's results of operations and financial condition. New product and service introductions can significantly impact net sales, cost of sales and operating expenses. Further, the Group generates a significant portion of its net sales from a single product and a decline in demand for that product could significantly impact net sales. The Group could also be subject to unexpected developments, such as lower-than-anticipated demand for the Group's products or services, issues with new product or service introductions, information technology system failures or network disruptions, or failure of one of the Group's logistics, supply or manufacturing partners. The Group's financial performance is subject to risks associated with changes in the value of the U.S. dollar relative to local currencies. The Group's primary exposure to movements in foreign exchange rates relates to non-U.S. dollar-denominated sales, cost of sales and operating expenses worldwide. Gross margins on the Group's products in foreign countries and on products that include components obtained from foreign suppliers have in the past been adversely affected and could in the future be materially adversely affected by foreign exchange rate fluctuations. The weakening of foreign currencies relative to the U.S. dollar adversely affects the U.S. dollar value of the Group's foreign currency-denominated sales and earnings, and generally leads the Group to raise international pricing, potentially reducing demand for the Group's products. In some circumstances, for competitive or other reasons, the Group may decide not to raise international pricing to offset the U.S. dollar's strengthening, which would adversely affect the U.S. dollar value of the gross margins the Group earns on foreign currency-denominated sales. Conversely, a strengthening of foreign currencies relative to the U.S. dollar, while generally beneficial to the Group's foreign currency-denominated sales and earnings, could cause the Group to reduce international pricing and incur losses on its foreign currency derivative instruments, thereby limiting the benefit. Additionally, strengthening of foreign currencies may increase the Group's cost of product components denominated in those currencies, thus adversely affecting gross margins. The Group uses derivative instruments, such as foreign currency forward and option contracts, to hedge certain exposures to fluctuations in foreign exchange rates. The use of such hedging activities may not be effective to offset any, or more than a portion, of the adverse financial effects of unfavorable movements in foreign exchange rates over the limited time the hedges are in place. The Group is exposed to credit risk and fluctuations in the values of its investment portfolio. The Group's investments can be negatively affected by changes in liquidity, credit deterioration, financial results, market and economic conditions, political risk, sovereign risk, interest rate fluctuations or other factors. As a result, the value and liquidity of the Group's cash, cash equivalents and marketable securities may fluctuate substantially. Although the Group has not realized significant losses on its cash, cash equivalents and marketable securities, future fluctuations in their value could result in significant losses and could have a material adverse impact on the Group's results of operations and financial condition. The Group is exposed to credit risk on its trade accounts receivable, vendor non-trade receivables and prepayments related to long-term supply agreements, and this risk is heightened during periods when economic conditions worsen. The Group distributes its products and certain of its services through third-party cellular network carriers, wholesalers, retailers and resellers. The Group also sells its products and services directly to small and mid-sized businesses and education, enterprise and government customers. A substantial majority of the Group's outstanding trade receivables are not covered by collateral, third-party bank support or financing arrangements, or credit insurance, and a significant portion of the Group's trade receivables can be concentrated within cellular network carriers or other resellers. The Group's exposure to credit and collectibility risk on its trade receivables is higher in certain international markets and its ability to mitigate such risks may be limited. The Group also has unsecured vendor non-trade receivables resulting from purchases of components by outsourcing partners and other vendors that manufacture subassemblies or assemble final products for the Group. In addition, the Group has made prepayments associated with long-term supply agreements to secure supply of inventory components. As of 28 September 2024, the Group's vendor non-trade receivables and prepayments related to long-term supply agreements were concentrated among a few individual vendors located primarily in Asia. While the Group has procedures to monitor and limit exposure to credit risk on its trade and vendor non-trade receivables, as well as long-term prepayments, there can be no assurance such procedures will effectively limit its credit risk and avoid losses. The Group is subject to changes in tax rates, the adoption of new local or international tax legislation and exposure to additional tax liabilities. The Group is subject to taxes in numerous jurisdictions, including Ireland and Singapore, where a number of the Group's subsidiaries are organized. Due to economic and political conditions, tax laws and tax rates for income taxes and other nonincome taxes in various jurisdictions may be subject to significant change. The Group's effective tax rates are affected by changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, the introduction of new taxes, such as the global minimum tax under Pillar Two of the Organisation for Economic Co-operation and Development's Global Anti-Base Erosion Model Rules, or changes in tax laws or their interpretation, including in Ireland and Singapore. The application of tax laws may be uncertain, require significant judgment and be subject to differing interpretations. The Group is also subject to the examination of its tax returns and other tax matters by tax authorities and governmental bodies. The Group regularly assesses the likelihood of an adverse outcome resulting from these examinations to determine the adequacy of its provision for taxes. There can be no assurance as to the outcome of these examinations. If the Group's effective tax rates were to increase, or if the ultimate determination of the Group's taxes owed is for an amount in excess of amounts previously accrued, the Group's business, results of operations and financial condition could be materially adversely affected. The Group manages all its risk and uncertainties together with its ultimate parent Apple Inc. Refer to Note 7, "Financial Risk Management and Financial Instruments" of the consolidated financial statements for details of the Group's financial risk management policies. Dividends Dividends of $67.6 billion (2023: $92.2 billion) were paid by the Group with $68.1 billion (2023: $92.9 billion) paid by the Company to its ultimate parent Apple Inc. during the year. Books and Accounting Records The directors believe that they have complied with the requirements of Section 281 to 285 of the Companies Act 2014 with regard to accounting records by appointing accounting personnel with appropriate expertise and by providing adequate resources to the finance function. These books and accounting records are maintained at the Company's registered office, Hollyhill Industrial Estate, Hollyhill, Cork, Ireland. Directors, Secretary and Their Interests The directors of the Company who served during the year were Peter Denwood, Michael O'Sullivan, Eamonn Clancy, Cathy Kearney, Michael Sugrue and Shane Collins as an alternate director for Peter Denwood. On 30 May 2024, Michael O'Sullivan resigned as a director and Michael Sugrue was appointed as a director. On 20 January 2025, Peter Denwood resigned as a director, Shane Collins ceased to be an alternate director for Peter Denwood and Jamie Wong was appointed as a director. The secretaries of the Company that served during the year were Shane Collins and Fiona Murphy. The directors and secretaries who held office as at 28 September 2024 had no interests in shares in or debentures of the Company or any group undertaking of the Company at the end of the financial year, or at the beginning of the financial year (or date of appointment, if later) requiring disclosure in the Directors' Report under Section 329 of the Companies Act 2014. Directors' Compliance Statement As required by Section 225 of the Companies Act 2014, the directors acknowledge that they are responsible for securing the Company's compliance with its relevant obligations (as defined in that section). The directors further confirm that:
Research and Development The Group carries out research and development activities. Relevant Audit Information The directors believe that they have taken all steps that they ought to have taken as directors to make themselves aware of any relevant audit information, as defined under Section 330 of the Companies Act 2014, and to establish that the Group's statutory auditors are aware of that information. In so far as they are aware, there is no relevant audit information of which the Group's statutory auditors are unaware. Audit Committee The directors of the Company decided not to establish an audit committee. The directors consider that the responsibilities and functions of the audit committee under the requirements of Section 167 of the Companies Act 2014 are, directly or indirectly, performed by the Apple Inc. Audit and Finance Committee. Independent Auditor Ernst & Young, Chartered Accountants, will continue in office in accordance with Section 383(2) of the Companies Act 2014. On behalf of the board
Date: 12 March 2025 Éamonn Clancy, Director Michael Sugrue, Director DIRECTORS' RESPONSIBILITIES STATEMENTThe directors are responsible for preparing the directors' report and financial statements of the Company and the Group in accordance with applicable law and regulations. Irish company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and of the Group and of the profit or loss of the Group for that period. The directors have prepared the consolidated financial statements of the Group in accordance with IFRS and those parts of the Companies Act 2014 applicable to companies reporting under IFRS. The directors have elected to prepare the Company financial statements in accordance with FRS 102 and the Companies Act 2014. Under Irish company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the assets, liabilities, and financial position of the Company and of the Group as of the end of the financial year, and the profit or loss of the Group taken as a whole for the financial year, and otherwise comply with the Companies Act 2014. In preparing these Group and Company financial statements, the directors are required to:
The directors are responsible for ensuring that the Company keeps adequate accounting records which correctly explain and record the transactions of the Company, enabling at any time the assets, liabilities, financial position and profit or loss of the Company to be determined with reasonable accuracy, and ensuring that the Group and the Company financial statements and directors' report comply with the Companies Act 2014 and enable them to be audited. They are also responsible for taking such steps as are reasonably open to them to safeguard the assets of the Group and the Company and to prevent and detect fraud and other irregularities. On behalf of the board
Date: 12 March 2025 Eamonn Clancy, Director Michael Sugrue, Director INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF APPLE OPERATIONS INTERNATIONAL LIMITED Report on the audit of the financial statements Opinion We have audited the financial statements of Apple Operations International Limited ('the Company') and its subsidiaries ('the Group') for the year ended 28 September 2024, which comprise the Consolidated Statements of Operations, Consolidated Statements of Comprehensive Income, Consolidated Balance Sheets, Consolidated Statements of Shareholders' Equity, Consolidated Statements of Cash Flows Company Statements of Financial Position, Company Statements of Changes in Equity and notes to the financial statements, including the summary of material accounting policies for the Consolidated financial statements and the summary of significant accounting policies for the Company's financial statements set out in note 1. The financial reporting framework that has been applied in their preparation is Irish Law and as regards the consolidated financial statements, International Financial Reporting Standards ('IFRS') as adopted by the European Union and, as regards the Company financial statements, Accounting Standards including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland issued in the United Kingdom by the Financial Reporting Council. In our opinion:
Basis for opinion We conducted our audit in accordance with International Standards on Auditing (Ireland) (ISAs (Ireland)) and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group and Company in accordance with ethical requirements that are relevant to our audit of financial statements in Ireland, including the Ethical Standard issued by the Irish Auditing and Accounting Supervisory Authority (IAASA), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the Company's ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Group's or the Company's ability to continue as a going concern. Other information The directors are responsible for the other information. The other information comprises the information included in the Directors' Report and Directors' Responsibilities Statement. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2014 In our opinion, based solely on the work undertaken in the course of the audit, we report that:
We have obtained all the information and explanations which, to the best of our knowledge and belief, are necessary for the purposes of our audit. In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited and the Company Statement of Financial Position is in agreement with the accounting records. Matters on which we are required to report by exception Based on the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report. The Companies Act 2014 requires us to report to you if, in our opinion, sections 305 to 312 of the Act, which relate to disclosures of directors' remuneration and transactions, are not complied with by the Company. We have nothing to report in this regard. Respective responsibilities Responsibilities of directors for the financial statements As explained more fully in the Directors' Responsibilities Statement set out on page 16, the directors are responsible for the preparation of the financial statements in accordance with the applicable financial reporting framework that give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Group and the Company's ability to continue as going concerns, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or the Company or to cease operations, or has no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the IAASA's website at: http://www.iaasa.ie/getmedia/b2389013-1cf6-458b-9b8f-a98202dc9c3a/Description of auditors responsibilities for audit.pdf. This description forms part of our Auditor's Report. The purpose of our audit work and to whom we owe our responsibilities Our report is made solely to the Company's members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Cork, 12 March 2025 Niall Barrett for and on behalf of Ernst & Young Chartered Accountants and Statutory Audit Firm CONSOLIDATED STATEMENTS OF OPERATIONS
See accompanying notes to consolidated financial statements. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
See accompanying notes to consolidated financial statements. CONSOLIDATED BALANCE SHEETS
See accompanying notes to consolidated financial statements. on behalf of the board
12 March 2025 Eamonn Clancy, Director Michael Sugrue, Director CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
* Dividend per share for 2024 was $6,762,126
(2023: $9,224,316)
See accompanying notes to consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS
See accompanying notes to consolidated financial statements. NOTES TO CONSOLIDATED FINANCIAL STATEMENTSNote 1 - Summary of Material Accounting Policies Statement of Compliance The consolidated financial statements of the Group have been prepared in accordance with IFRS and those parts of the Companies Act 2014 applicable to companies reporting under IFRS. Basis of Presentation and Preparation The consolidated financial statements are presented in U.S. dollars ("$") which is the Company's functional and presentational currency. The consolidated financial statements, which are rounded to the nearest million (unless otherwise stated) have been prepared under the historical cost convention, except where assets and liabilities are stated at fair value in accordance with relevant accounting policies. The consolidated financial statements are comprised of Apple Operations International Limited and its subsidiaries. Subsidiaries are included in the Group financial statements from the date on which control over the operating and financing policies is obtained, and cease to be consolidated from the date on which control is transferred out of the Group. The Group controls an entity when it is exposed to, or has the rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. All intercompany transactions, balances and unrealized gains / losses on transactions between Group subsidiaries are eliminated on consolidation. The Group's financial year is the 52 or 53 week period that ends on the last Saturday of September. The Group's fiscal years 2024 and 2023 spanned 52 weeks and 53 weeks, respectively. Judgements and Key Sources of Estimation Uncertainty The preparation of financial statements and related disclosures in conformity with IFRS require the Group's management to make judgments, assumptions and estimates that affect the amounts reported. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The significant estimates and assumptions used in the preparation of the Group's financial statements that could result in a material adjustment are outlined in the relevant notes. Actual results could differ materially from those estimated. Income Taxes Uncertain tax positions are measured based on the single best estimate. Financial Instruments Cash Equivalents All highly liquid investments with maturities of three months or less at the date of purchase are treated as cash equivalents. Marketable Securities The cost of securities sold is determined using the specific identification method. Property, Plant and Equipment Property, Plant and Equipment are subsequently measured applying the cost model. Depreciation is recognized on a straight-line basis. Leases The Group combines and accounts for lease and non-lease components as a single lease component for leases of corporate, data center and retail facilities. Depreciation is recognized on a straight-line basis. Note 2 - Other Statutory Information Auditors' Remuneration The following table shows the fees* paid to the independent auditor in 2024 and 2023:
* This excludes auditors' remuneration borne by
Apple Inc. on behalf of the Group.
Staff Numbers and Costs The following table shows the payroll costs incurred in 2024 and 2023:
The average number of persons employed by the Group in 2024 was 55,827 (2023: 56,922). Group Undertakings The following table shows the Group's undertakings as of 28 September 2024:
All Group entities listed above are, directly or indirectly, wholly owned subsidiaries of the Company or partnerships within the Group, except where the Group held 30%**, 34.2%***, 44%****, 49% ***** and 45.89% ****** respectively of the entity, and 100% ******* of the preference class of shares in issue at year end. The shares, or partnership interests, held by the Company, directly or indirectly, are ordinary voting shares or an equivalent type of voting equity interest provided for under the laws of their jurisdiction of formation/incorporation, except where the Company held indirectly through a Group company 100% ******* of the preference class of shares in issue. The entities incorporated in Ireland, as set out in the above table, shall avail of the exemption from the requirement to file their statutory financial statements and certain other documents for the year ended 28 September 2024 as permitted by section 357 of the Companies Act 2014. All of the entities formed in Germany, as set out in the above, have availed of the exemptions regarding (i) the preparation, audit and disclosure of individual financial statements pursuant to Section 264 (3) of the German Commercial Code (for entities in the legal form of a GmbH) and Section 264b of the German Commercial Code (for entities in the legal form of a KG where no general partner qualifies as natural person) and (ii) to the extent required, the preparation, audit and disclosure of consolidated accounts pursuant to Section 291 of the German Commercial Code. All of the entities formed in the Netherlands, as set out in the above, have availed of the exemption under the Dutch corporate law requirements of Title 9 of Book 2 of the Dutch Civil Code regarding the preparation, audit and disclosure of individual financial statements pursuant to article 403 of Book 2 of the Dutch Civil Code. Note 3 - Net Sales The Group recognizes revenue at the amount to which it expects to be entitled when control of the products or services is transferred to its customers. For most of the Group's products net sales, control transfers when products are shipped. For the Group's services net sales, control transfers over time as services are delivered. Payment for products and services net sales is collected within a short period of time following transfer of control or commencement of delivery of services, as applicable. The Group records reductions to products net sales related to future product returns, price protection and other customer incentive programs based on the Group's expectations and historical experience. For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct, the Group allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices ("SSPs"). When available, the Group uses observable prices to determine SSPs. When observable prices are not available, SSPs are established that reflect the Group's best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. The Group's process for estimating SSPs without observable prices considers multiple factors that may vary depending upon the unique facts and circumstances related to each performance obligation including, where applicable, prices charged by the Group for similar offerings, market trends in the pricing for similar offerings, product-specific business objectives and the estimated cost to provide the performance obligation. The Group has identified the performance obligations regularly included in arrangements involving the sale of iPhone, Mac and iPad. The first material performance obligation, which represents the substantial portion of the allocated sales price, is the hardware and bundled software delivered at the time of sale. The second material performance obligation is the right to receive certain product-related bundled services, which include iCloud, Siri and Maps. Because the Group lacks observable prices for product-related bundled services, the allocation of revenue is based on the Group's estimated SSPs. Revenue allocated to the delivered hardware and bundled software is recognized when control has transferred to the customer, which generally occurs when the product is shipped. Revenue allocated to product-related bundled services is deferred and recognized on a straight-line basis over the estimated period they are expected to be provided. For the sale of third-party products where the Group obtains control of the product before transferring it to the customer, the Group recognizes revenue based on the gross amount billed to customers. The Group considers multiple factors when determining whether it obtains control of third-party products including evaluating if it can establish the price of the product, retains inventory risk for tangible products or has the responsibility for ensuring acceptability of the product. For third-party applications sold through the App Store, the Group does not obtain control of the product before transferring it to the customer. Therefore, the Group accounts for all third-party application-related sales on a net basis by recognizing in Services net sales only the commission it retains. The Group records revenue net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded within other current liabilities until remitted to the relevant government authority. Net sales disaggregated by products and services for 2024 and 2023 were as follows:
(1) Services net sales include amortization of
the deferred value of services bundled in the sales price
of certain products.
Deferred Revenue As of 2024 and 2023, the Group had total deferred revenue of $5.7 billion and $5.2 billion, respectively. As of 2024, the Group expects $3.5 billion of total deferred revenue to be realized in less than a year, and $2.2 billion in greater than one year. Note 4 - Consolidated Financial Statement Details The following tables show the consolidated financial statement details of the Group as of 28 September 2024 and 30 September 2023: Accounts receivable, net
Other current assets
Accounts payable
Other income/(expense), net
Note 5 - Share-Based Compensation As of 28 September 2024, the Group's Ultimate Parent had employee benefit plans relevant to the Group; the 2022 Employee Stock Plan (the "2022 Plan") and the 2014 Employee Stock Plan, as amended and restated (the "2014 Plan"). Under these plans, the Group's Ultimate Parent issues shares of Apple Inc. upon vesting of restricted stock units ("RSUs"). The issuance of shares is undertaken solely by Apple Inc. The relevant employee benefit plans are summarized as follows: 2022 Employee Stock Plan The 2022 Plan provides for broad-based equity grants to employees, including executive officers, and permits the granting of RSUs, stock grants, performance-based awards, stock options and stock appreciation rights. RSUs granted under the 2022 Plan generally vest over four years, based on continued employment, and are settled upon vesting in shares of Apple common stock on a one-for-one basis. All RSUs granted under the 2022 Plan have dividend equivalent rights, which entitle holders of RSUs to the same dividend value per share as holders of common stock. 2014 Employee Stock Plan The 2014 Plan provided for broad-based equity grants to employees, including executive officers. The 2014 Plan permitted the granting of the same types of equity awards with substantially the same terms as the 2022 Plan. The 2014 Plan also permitted the granting of cash bonus awards. In 2022, the Group's Ultimate Parent terminated the authority to grant new awards under the 2014 Plan. Restricted Stock Units A summary of the Group's RSUs granted and related information for 2024 and 2023 is as follows:
Share-Based Compensation Expense The Group measures share-based compensation based on the closing price of Apple Inc.'s common stock on the date of grant, and recognizes expense on a straight-line basis for its estimate of equity awards that will ultimately vest. The sharebased compensation expense included in the Consolidated Statements of Operations for 2024 is $1.7 billion (2023: $1.7 billion). Note 6 - Provision for Income Taxes European Commission State Aid Decision On 30 August 2016, the Commission announced its decision that Ireland granted state aid to the Group by providing tax opinions in 1991 and 2007 concerning the tax allocation of profits of the Irish branches of two subsidiaries of the Group (the "State Aid Decision"). The State Aid Decision ordered Ireland to calculate and recover additional taxes from the Group for the period June 2003 through December 2014. Irish legislative changes, effective as of January 2015, eliminated the application of the tax opinions from that date forward. The recovery amount was calculated to be €13.1 billion, plus interest of €1.2 billion. From time to time, the Group requested approval from the Irish Minister for Finance to reduce the recovery amount for certain taxes paid to other countries. As of 28 September 2024, the adjusted recovery amount of €12.7 billion plus interest of €1.2 billion was held in escrow and restricted from general use. The total balance of the escrow, including net unrealized investment gains, was €14.2 billion or $15.8 billion as of 28 September 2024, of which $2.6 billion was classified as cash and cash equivalents and $13.2 billion was classified as current marketable securities in the Consolidated Balance Sheet. Refer to the Cash, Cash Equivalents and Marketable Securities section of Note 7, "Financial Risk Management and Financial Instruments" for more information. The Group and Ireland appealed the State Aid Decision to the General Court of the Court of Justice of the European Union (the "General Court"). On 15 July 2020, the General Court annulled the State Aid Decision. On 25 September 2020, the Commission appealed the General Court's decision to the European Court of Justice (the "ECJ") and a hearing was held on 23 May 2023. On 10 September 2024, the ECJ announced that it had set aside the 2020 judgment of the General Court and confirmed the Commission's 2016 State Aid Decision. As a result, the Group recorded a one-time income tax charge of $14.8 billion, net, which represents $15.8 billion payable to Ireland via release of the escrow and a decrease in uncertain tax position of $1.0 billion. Provision for Income Taxes The major components of income tax for the years ended 28 September 2024 and 30 September 2023 are:
The following table shows the reconciliation of income tax to accounting profit multiplied by the Irish corporation tax rate for 2024 and 2023:
The corporate income taxes reported in the Consolidated Statements of Operations, Statements of Comprehensive Income Balance Sheets, Statements of Shareholders' Equity and Statements of Cash Flows do not include U.S.-level corporate taxes borne by Apple Inc. Uncertain tax position The Group classifies tax benefits that are not expected to result in payment or receipt of cash within one year as non-current liabilities in the Consolidated Balance Sheets. The changes in the balance of gross tax benefits, for 2024 are as follows:
The Group is subject to income taxes in numerous jurisdictions. The evaluation of the Group's uncertain tax positions involves significant judgment in the interpretation and application of IFRS and tax laws, including the allocation of international taxation rights between countries. Although management believes the Group's reserves are reasonable, no assurance can be given that the final outcome of these uncertainties will not be different from that which is reflected in the Group's reserves. Reserves are adjusted considering changing facts and circumstances, such as the closing of a tax examination. Resolution of these uncertainties in a manner inconsistent with management's expectations could have a material impact on the Group's financial condition and operating results. Note 7 - Financial Risk Management and Financial Instruments The Group accounts for its marketable debt securities at fair value through other comprehensive income. The Group's activities expose it to a variety of financial risks that include interest rate risk, foreign currency risk, liquidity risk and credit risk. These financial risks are actively managed by Apple Inc.'s Treasury and Credit Departments on behalf of the Group under strict policies and guidelines. The Treasury and Credit Departments monitor market conditions with a view to minimizing the exposure of the Group to changing market factors. The Group uses derivative financial instruments such as foreign currency contracts to manage the financial risks associated with the underlying business activities of the Group. Cash, Cash Equivalents and Marketable Securities The Group classifies its marketable debt securities as either current or non-current based solely on each instrument's underlying contractual maturity date. Cash and cash equivalents comprise of cash balances, call deposits and deposits with original maturity of three months or less. The following tables show the Group's cash, cash equivalents and marketable securities for 2024 and 2023:
As of 28 September 2024, total cash, cash equivalents and marketable securities included $15.8 billion (2023: $14.6 billion) that was restricted from general use, related to the State Aid Decision (see Note 6, "Provision for Income Taxes") and other agreements. The Group may sell certain of its marketable debt securities prior to their stated maturities for reasons including, but not limited to, managing liquidity, credit risk, duration and asset allocation. The maturities of the Group's non-current marketable debt securities generally range from one to three years. Interest Rate and Foreign Currency Risk Management The Group regularly reviews its underlying interest rate and foreign currency exposures. To protect against interest rate risk, the Group may use derivative instruments, offset interest rate-sensitive assets and liabilities, or control the duration of the investment portfolio. To protect against foreign exchange rate risk, the Group may use derivative instruments, offset exposures, or adjust local currency pricing of its products and services. The Group generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. However, the Group may choose to not hedge certain foreign currency exposures for a variety of reasons, including accounting considerations or prohibitive cost. Given the effective horizons of the Group's risk management activities and the anticipatory nature of the exposures, there can be no assurance these positions will offset more than a portion of the financial impact resulting from movements in either interest or foreign exchange rates. Further, the recognition of the gains and losses related to these instruments may not coincide with the timing of gains and losses related to the underlying economic exposures and, therefore, may adversely affect the Group's financial condition and operating results. Interest Rate Risk The Group is primarily exposed to fluctuations in Euro, U.S. dollar and Chinese Yuan interest rates and their impact on the Group's investment portfolio. Increases in interest rates will negatively affect the fair value of the Group's investment portfolio. Based on investment positions as of 28 September 2024 and 30 September 2023, a hypothetical 100 basis point increase in interest rates across all maturities would result in a $33 million and $40 million incremental decline in the fair market value of the portfolio, respectively. Foreign Currency Risk The Group's exposure to foreign exchange rate risk relates primarily to the Group being a net receiver of currencies other than the U.S. dollar. Changes in exchange rates, and in particular a strengthening of the U.S. dollar, will negatively affect the Group's net sales and gross margins as expressed in U.S. dollars. Fluctuations in exchange rates may also affect the fair values of certain of the Group's assets and liabilities. The Group applied a value-at-risk ("VAR") model to its foreign currency derivative positions to assess the potential impact of fluctuations in exchange rates. The VAR model used a Monte Carlo simulation. The VAR is the maximum expected loss in fair value, for a given confidence interval, to the Group's foreign currency derivative positions due to adverse movements in rates. Based on the results of the model, the Group estimates, with 95% confidence, a maximum one-day loss in fair value of $498 million and $620 million as of 28 September 2024 and 30 September 2023, respectively. Changes in the Group's underlying foreign currency exposures, which were excluded from the assessment, generally offset changes in the fair values of the Group's foreign currency derivatives. Liquidity Risk The Group believes its balances of unrestricted cash, cash equivalents and marketable securities, which totalled $15.4 billion as of 28 September 2024, along with cash generated by ongoing operations, will be sufficient to satisfy its cash requirements over the next 12 months and beyond. Maturity of financial liabilities The Group has non-derivative financial liabilities of $89.5 billion (2023: $69.8 billion), of which $84.4 billion (2023: $64.6 billion) is due within 12 months. The following tables summarize the maturity profile of the Group's derivative financial instruments for 2024 and 2023 based on contractual payments:
Credit Risk Credit risk refers to the risk of financial loss to the Group if a counterparty defaults on its contractual obligations on financial assets held in the Consolidated Balance Sheets of the Group. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the Consolidated Balance Sheets of the Group. Accounts Receivable The Group is exposed to credit risk on its trade accounts receivable, vendor non-trade receivables and amounts owed by related parties and this risk is heightened during periods when economic conditions worsen. The Group has considerable trade receivables outstanding with its third-party cellular network carriers, wholesalers, retailers, resellers, small and mid-sized businesses and education, enterprise and government customers. The Group generally does not require collateral from its customers; however, the Group will require collateral or third-party credit support in certain instances to limit credit risk. The Group has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture sub-assemblies or assemble final products for the Group. The Group purchases these components directly from suppliers. The Group does not reflect the sale of these components in products net sales. Accounts receivables are generally receivable within 30 days of the Consolidated Balance Sheet dates and are unsecured and non-interest bearing. The ageing analysis of accounts receivables, stated net of provisions for expected credit losses are as follows:
Cash, Cash Equivalents and Marketable Securities The Group is exposed to credit risk and fluctuations in the values of its investment portfolio. The Group's investments can be negatively affected by liquidity, credit deterioration, financial results, market and economic conditions, political risk, sovereign risk, interest rate fluctuations or other factors. As a result, the value and liquidity of the Group's cash, cash equivalents and marketable securities may fluctuate substantially. Therefore, although the Group has not realized any significant losses on its cash, cash equivalents and marketable securities, future fluctuations in their value could result in significant losses and could have a material adverse impact on the Group's financial condition and operating results. The following table shows the credit ratings of the Group's cash, cash equivalents and marketable securities:
Capital Risk Management Capital includes ordinary shares and equity attributable to the equity shareholders of the Group. The primary objective of the Group's capital management is to ensure that entities in the Group will be able to trade on a going concern basis. The Group believes its balances of unrestricted cash, cash equivalents and marketable securities, which totalled $15.4 billion as of 28 September 2024, along with cash generated by ongoing operations, will be sufficient to satisfy its cash requirements over the next 12 months and beyond. Derivative Financial Instruments The following table shows the notional amounts of the Group's outstanding derivative instruments and credit risk amounts associated with outstanding or unsettled derivative instruments as of 28 September 2024 and 30 September 2023:
The notional amounts for outstanding derivative instruments provide one measure of the transaction volume outstanding and do not represent the amount of the Group's exposure to credit or market loss. The credit risk amounts represent the Group's gross exposure to potential accounting loss on derivative instruments that are outstanding or unsettled if all counterparties failed to perform according to the terms of the contract, based on then-current currency or interest rates at each respective date. The Group's exposure to credit loss and market risk will vary over time as currency and interest rates change. Although the table above reflects the notional and credit risk amounts of the Group's derivative instruments, it does not reflect the gains or losses associated with the exposures and transactions that the instruments are intended to hedge. The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments. Note 8 - Property, Plant and Equipment, net The estimated useful life for buildings is the shorter of 40 years or the remaining life of the underlying building; the shorter of the lease term or useful life for leasehold improvements; and between one and five years for machinery and equipment.
Additions to ROU assets during 2024 were $409 million (2023: $826 million). Note 9 - Called up share capital presented as equity
Rights attaching to the ordinary shares The Company has one class of ordinary shares with a nominal value of US$1.00 each which carry no right to a fixed income. Holders of the ordinary shares have rights as may be provided by Irish company law and/or the constitution of the Company, including the right to vote at general meetings of the Company and to receive dividends declared and paid by the Company. Note 10 - Related Party Transactions The principal related party relationships requiring disclosure in the consolidated financial statements of the Group under IAS 24, Related Party Disclosures pertain to the existence of related parties and transactions with related parties entered into by the Group. Subsidiaries and transactions with related parties Sales to and purchases from, together with outstanding payables and receivables to and from subsidiaries, are eliminated in the preparation of the consolidated financial statements of the Group in accordance with IFRS 10, Consolidated Financial Statements. The Group enters into transactions with Apple related parties that are not eliminated in the preparation of the consolidated financial statements of the Group. Terms and conditions of transactions with related parties Sales to and purchases from related parties are on terms equivalent to those that prevail in arm's length transactions. The outstanding balances included in accounts receivables, net, accounts payable and other assets at the Consolidated Balance Sheet dates are interest or non-interest bearing, unsecured and repayable on demand or within 60-120 day terms. Prepayments to related parties are non-refundable and are expected to be recouped over 2 years. The following tables summarize the transactions and outstanding balances with related parties:
Note 11 - Leases The Group has lease arrangements for certain equipment and facilities, including retail, corporate and manufacturing. These leases typically have original terms not exceeding 10 years and generally contain multi-year renewal options, some of which are reasonably certain of exercise. Payments under the Group's lease arrangements may be fixed or variable, and variable lease payments are primarily based on purchases of output of the underlying leased assets. As of 28 September 2024, lease costs associated with variable payments on the Group's leases were $9.3 billion (2023: $10.0 billion). Depreciation expense was $647 million (2023: $662 million), of which $590 million (2023: $599 million) relates to buildings and leasehold improvements and $57 million (2023: $63 million) to machinery and equipment. Total cash payments for leases during 2024 were $10.2 billion (2023: $11.0 billion). The Group's ROU assets are classified as property, plant and equipment on the Consolidated Balance Sheets and presented in Note 8, "Property, Plant and Equipment, net" and lease liabilities are classified as follows:
Lease liability maturities, on an undiscounted basis, are as follows:
As of 28 September 2024, the Group had $632 million (2023: $392 million) of future payments under additional leases, primarily for corporate facilities and retail space, that had not yet commenced. These leases will commence between 2025 and 2026, with lease terms ranging from 1 year to 21 years. Note 12 - Approval of Financial Statements The Group financial statements were approved and authorized for issue by the board of directors on March 2025.
Cork, Ireland, 22 May 2025 Apple Distribution International Limited durch/by Michael Sugrue Handelnd als / Direktor / Director
Cork, Ireland, 22 May 2025 Apple Operations International Limited Michael Sugrue, Direktor / Director
Cupertino, CA, USA, 2024 Apple GmbH Tejas Gala, Geschäftsführer / Managing Director
Cork, Ireland, 2025 Apple Operations International Limited Michael Sugrue, Direktor / Director
Cupertino, CA, USA, 28 May 20245 Apple GmbH Tejas Gala, Geschäftsführer / Managing Director |
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active
Apple GmbH GmbH
Structured data
Parsed, typed and queryable directly through the API.
Overview
- Legal form
- GmbH
- Address
-
Katharina-von-Bora-Str. 3
80333 München - Commercial register
- HRB 66158, München
- Registration date
- March 26, 1980
- Industry
-
Erbringung von Beratungsleistungen auf dem Gebiet der Informationstechnologie
Erbringung von sonstigen Dienstleistungen der Informationstechnologie
Erbringung von sonstigen Informationsdienstleistungen - Purpose
- Erbringen von Dienstleistungen gegenüber Apple Inc., Apple Sales International und anderen verbundenen Gesellschaften innerhalb des Apple-Konzerns. Diese Dienstleistungen umfassen Verkaufsunterstützung, Marketing, technische Unterstützung und vertraglich festgelegte Forschungs- und Entwicklungstätigkeiten zur Entwicklung von Computer-Programmen und Forschung im Bereich Medien und Kommunikation.
Financials
Revenue
2020
283,71 Mio. €
Employees
2020
255
Total assets
2020
338,11 Mio. €
Net income
2020
171,84 Mio. €
Balance sheet
2020
Assets
338,11 Mio
- Current Assets 67,6 % 228,72 Mio
- Fixed Assets 32,3 % 109,24 Mio
- Prepaid Expenses 0,0 % 154,4 k
Liabilities and Equity
338,11 Mio
- Equity 81,6 % 275,99 Mio
- Provisions 17,3 % 58,62 Mio
- Liabilities 1,0 % 3,51 Mio
Balance sheet data available for 13 earlier fiscal years.
Profit & loss
2020
Income
776,60 Mio
- Revenue 36,5 % 283,71 Mio
- Result after taxes 22,1 % 171,84 Mio
- Annual net profit/loss 22,1 % 171,84 Mio
- Income and profit taxes 10,7 % −82,88 Mio
- Personnel expenses 4,8 % −37,49 Mio
- Income from investments 2,3 % 17,87 Mio
- Other operating expenses 1,1 % −8,52 Mio
- On intangible assets and property, plant, and equipment 0,2 % −1,66 Mio
- Other operating income 0,1 % 551,1 k
- Other interest and similar income 0,0 % 251,3 k
P&L data available for 13 earlier fiscal years.
Authorized representatives
-
Jamie Wong
since 2024 Managing Director
-
Tejas Kirit Gala
since 2023 Managing Director
-
Isabel Scheltdorf
since 2002 Procura
-
Julia Gildemeister
since 2014 Procura
-
Nicola Rossmeier
since 2005 Procura
Ownership & holdings
Shareholders
- Apple Distribution International Limited IRL 100.0 % 5.0M €
Ultimate beneficial owners (UBOs)
No beneficial owners conclusively identified — 1 possible matches from the transparency register.
History
- 2024
-
18.12.
Exit of positionPeter Ronald Denwood · Managing Director
-
18.12.
Member entryJamie Wong · Managing Director
- 2023
-
07.02.
Exit of positionM****** B*** · Managing Director
-
07.02.
Member entryTejas Kirit Gala · Managing Director
- 2022
-
10.06.
Change of bylawsApple GmbH
- 2021
-
12.04.
Exit of positionF**** K***** · Procura
- 2019
-
25.06.
Member entryM****** B*** · Managing Director
-
25.04.
Change of addressApple GmbH
Raw data & documents
Original filings, full-text markdown and PDFs — full content via the API.
Annual statements (full text)
Published reports as markdown — including management report, balance sheet, P&L and appendix.
- 2025 Konzernabschluss
- 2024 Konzernabschluss ↓
- 2023 Konzernabschluss
- 2022 Konzernabschluss
Previous year — readable in full
Konzernabschluss 2024
Register documents
PDF documents straight from the court register — fetched on demand via the :code endpoint.
- Current extract (AD)
- Chronological extract (CD)
- Structured content (SI, XML)
- Shareholders list
- Articles of association
Website content
Structured markdown rendering of the company's public website — perfect for enrichment and AI pipelines.
- apple.com/de AI
Profile · Financials · People · Documents
Structured data and full text — per company
From annual statements as HTML to UBO lists: enable each field individually via the features parameter. One API, all data.
- Key figures Revenue, employee count, total assets, net income — per fiscal year.
- Authorized representatives Current and former managing directors, board members, signatories — with roles and date ranges.
- Publications Official commercial register publications including date and full text.
- Gesellschafter Current shareholder structure with stakes and contributions.
- Wirtschaftlich Berechtigte (UBOs) Ultimate beneficial owners as recorded in the German transparency register.
- Beteiligungen Stakes this company holds in other entities.
- Bilanz Full balance sheet line items from published annual statements.
- Gewinn- und Verlustrechnung P&L line items per fiscal year.
- Jahresabschlüsse (HTML) Published annual financial statements rendered as HTML.
- Insolvenzbekanntmachungen Notices from the official insolvency registers.
- News Recent mentions of the company from external news sources.
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