Capital · Position · Nasdaq, AAPL
Apple.
One Of Five.
Apple designs and sells smartphones, personal computers, tablets, wearables and accessories, and sells related software and services. Its hardware is assembled by contract manufacturers and sold through Apple stores, carriers and resellers.
One of five single company positions in the book, alongside XEQT. Apple designs and sells smartphones, personal computers, tablets, wearables and accessories, and sells related software and services. Its hardware is assembled by contract manufacturers and sold through Apple stores, carriers and resellers. Held, not traded. Not advice.
What Apple Is
The company itself, before anything about the book.
What It Does
Apple designs and sells smartphones, personal computers, tablets, wearables and accessories, and sells related software and services. Its hardware is assembled by contract manufacturers and sold through Apple stores, carriers and resellers.
How It Makes Money
Apple discloses net sales by product and service category, covering iPhone, Mac, iPad, Wearables Home and Accessories, and Services. Services includes the App Store, advertising, AppleCare, cloud storage, payment services and digital content subscriptions.
Who Buys It
Consumers, small and mid sized businesses, and education, enterprise and government buyers.
Listing
Nasdaq, AAPL
Where It Sits In The Book
One line of a published portfolio, not a pick.
The Sleeve
Stocks and ETFs are forty percent of the book. An all equity index fund does the market exposure and five single company positions sit on top of it.
The Job Of This Half
The published rule is that each of the five has to be a sentence that can be defended, and if the sentence cannot be said the position does not belong.
Turnover
These are held. The turnover in this sleeve is close to nothing, which is the point of splitting it this way rather than running one concentrated book and hoping.
The Last Full Year
Apple’s fiscal year ends in late September. FY2026 is not finished, so FY2025 is the last complete one. Figures from the Form 10-K filed 31 October 2025.
Net Sales, FY2025
Up 6.4% from $391.035b.
Operating Margin
$133.050b of operating income. Computed. Gross margin was 46.9%, also computed.
Diluted EPS
Against $6.08 in FY2024. Net income $112.010b against $93.736b, on a tax rate that fell from 24.1% to 15.6%.
Services Revenue
Up 13.5%, three times the rate of iPhone. Services gross margin was 75.4% against 36.8% on products, both computed.
Where The Revenue Comes From
The segments, the mix, and which line is actually carrying it. FY2025, the fifty two weeks ended 27 September 2025.
Half The Company Is One Product
iPhone was $209.586b, 50.4% of net sales, computed, and grew 4.2%. Mac $33.708b up 12.4%. iPad $28.023b up 5.0%. Wearables, Home and Accessories $35.686b, down 3.6%.
The Growth Is In Services
Services was $109.158b of the $416.161b total and produced $82.314b of the $195.201b total gross margin, computed. On 26% of the revenue it is 42% of the gross profit.
Greater China Is The Only Segment Going Backwards
Americas $178.353b, Europe $111.032b, Japan $28.703b, Rest of Asia Pacific $33.696b, all up. Greater China $64.377b against $66.952b, and its segment operating income fell too, from $27.082b to $26.917b.
Sixty Percent Is Indirect
The 10-K states net sales through direct and indirect distribution channels were 40% and 60% in FY2025.
What It Does With The Cash
Capital allocation is the decision management actually controls.
Ninety Billion A Year Of Buybacks
Apple repurchased and retired $89.3b of stock, 402 million shares, in FY2025, against $95.0b and 499 million shares in FY2024. Dividends paid were $15.421b at $1.02 declared per share.
A Hundred Billion More Authorised
The board authorised an additional $100b repurchase programme on 30 April 2026, having authorised the same amount on 1 May 2025. The quarterly dividend rose to $0.27 a share.
The Net Cash Pile Is Shrinking
Cash and marketable securities $132.420b, down from $156.650b. Term debt carrying value $90.678b plus $7.979b of commercial paper. Net cash, computed, fell from $50.021b to $33.763b in one year.
Capital Expenditure Is Rising Off A Low Base
Capex was $12.715b against $9.447b. Operating cash flow was $111.482b, down from $118.254b. Apple does not publish a free cash flow figure; operating cash flow less capex is $98.767b, computed.
The Last Reported Quarter
Q3 FY2026, the three months ended 27 June 2026, with the guidance quoted rather than paraphrased.
Sixteen Percent Growth
Net sales $109.417b, up 16%. iPhone $54.252b against $44.582b. Mac $10.352b. Services $30.739b, up 12.1%, computed. iPad fell to $6.191b.
Gross Margin Above Fifty Percent
Gross margin $54.770b, 50.1%, computed, against 46.5% a year earlier. Operating income $35.695b.
Diluted EPS $2.02, Up Twenty Nine Percent
Nine month net sales were $364.357b against $313.695b, and nine month diluted EPS $6.88 against $5.62.
There Is No Numeric Guidance
Apple publishes none in its earnings release. The CEO called it “our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment”.
The Case Against
The strongest arguments not to hold it, with figures attached and at the same weight as everything above.
A Search Payment It Never Discloses And Cannot Control
The 10-K says Apple “earns revenue from licensing arrangements with Google LLC and other companies to offer their search services”, that Google was found to have violated US antitrust laws on 5 August 2024, and that the DC District Court ordered remedies on 2 September 2025. It warns that remedies “prohibiting Google from offering the Company commercial terms for search distribution” could “materially adversely affect” that revenue. Apple has never published the size of those payments.
A Fine Already Paid And A Cap That Is Enormous
The European Commission fined Apple €500 million on 23 April 2025 under the Digital Markets Act and issued a cease and desist order. The 10-K notes the Commission “may impose fines up to 10% of the Company’s annual worldwide net sales”, which on FY2025 sales would be about $41.6b, computed.
The App Store Commission Is Under A Court Order
The 10-K states Apple “is currently subject to a court order preventing it from imposing any commission or fee on certain purchases that consumers make” in the US, and separately faces US antitrust suits alleging monopolisation in smartphones.
Tariffs Are Named And Not Quantified
The 10-K names new US tariffs on imports “from China, India, Japan, South Korea, Taiwan, Vietnam and the European Union” and discloses no dollar cost for them.
One Product, A Few Factories
iPhone is more than half of sales, a “significant majority” of manufacturing is done by outsourcing partners in China, India, Japan, South Korea, Taiwan and Vietnam, and the company “relies on single-source partners” for many components.
Company facts from each company’s most recent annual report on Form 10-K, read September 2026. No price, market cap or forecast appears on this page. Live prices for every position are on the investing page. Every figure on this page comes from a filing with the US Securities and Exchange Commission, read on 4 September 2026. NVIDIA: Form 10-K for the year ended 25 January 2026 filed 25 February 2026, Form 10-Q for the quarter ended 26 July 2026, the Q2 FY2027 earnings release and CFO commentary, and the Form 8-K filed 17 August 2026. Tesla: Form 10-K for the year ended 31 December 2025 filed 29 January 2026, the Q4 2025 and Q2 2026 shareholder updates, and the Form 10-Q for the quarter ended 30 June 2026. Apple: Form 10-K for the year ended 27 September 2025 filed 31 October 2025, and the Q2 and Q3 fiscal 2026 earnings releases. Amazon: Form 10-K for the year ended 31 December 2025 filed 5 February 2026, the Q4 2025 and Q2 2026 earnings releases, and the Form 10-Q for the quarter ended 30 June 2026. Palantir: Form 10-K for the year ended 31 December 2025 filed 17 February 2026, and the Q4 2025 and Q2 2026 earnings releases. Where a figure is a ratio the company does not itself publish, the line says “computed”. No share price, market capitalisation, valuation multiple, price target or analyst view appears anywhere on this page, because every one of those needs a price and a price printed into a static page is wrong within the hour. Live prices for every position are on the investing page. Not financial advice.
The Other Four
The rest of the concentrated half, one page each.
NVIDIA · NVDA
NVIDIA designs graphics processing units, networking hardware and the CUDA software stack used for accelerated computing.
Tesla · TSLA
Tesla designs, manufactures and sells electric vehicles and battery energy storage systems.
Amazon · AMZN
Amazon operates online and physical stores, a marketplace for third party sellers and a logistics network.
Palantir · PLTR
Palantir builds software platforms that integrate an organisation’s data and connect it to operational decisions.
XEQT · The Index Half
The all equity index fund the five positions sit on top of.
Common Questions
Apple designs and sells smartphones, personal computers, tablets, wearables and accessories, and sells related software and services. Its hardware is assembled by contract manufacturers and sold through Apple stores, carriers and resellers.
Apple discloses net sales by product and service category, covering iPhone, Mac, iPad, Wearables Home and Accessories, and Services. Services includes the App Store, advertising, AppleCare, cloud storage, payment services and digital content subscriptions.
It is one of the five single company positions that sit on top of the index fund. The published rule for that half is that each position has to be a sentence that can be defended, and the sleeve is held rather than traded.
iPhone supplies the largest share of sales, concentrating results in one product line. Manufacturing and assembly are concentrated with a few suppliers, much of it in China. Antitrust and App Store rulings can force changes to Services terms and fees. These are structural risks the company itself discloses, not a forecast.
$416.2b in FY2025, the fifty two weeks ended 27 September 2025, per the company’s own filing with the SEC. Up 6.4% from $391.035b.
A Search Payment It Never Discloses And Cannot Control. A Fine Already Paid And A Cap That Is Enormous. The App Store Commission Is Under A Court Order. Tariffs Are Named And Not Quantified. One Product, A Few Factories. Each of those is set out with figures on this page, taken from the company’s filings rather than from an opinion about them.
No. This is a published position with the reasoning attached, which is a different thing. Nothing here is financial advice and Cody Wise is not a licensed advisor.
One Line Of The Book.
The Rest Is Published Too.
Every position, the split behind them, and live prices on all of it.
Not financial advice.