Apple (AAPL) risk factors, FY2025 10-K

Apple's FY2025 10-K, filed Oct 31, 2025, lists 31 risk factors in 5 groups. Against the prior year's 34: 1 new, 4 dropped, 24 substantially reworded.

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Risk factors listed
315 groups
New this year
1vs 34 last year
Dropped
4since the prior 10-K
Substantially reworded
24of those kept
Section length
10k wordsItem 1A

What the changes say

  • Apple newly highlighted gross margin volatility and downward pricing pressures across its segments and distribution channels.
  • The company expanded its security risk disclosures to cover phishing risks, system errors, and employee malfeasance.
  • AI and machine learning technologies were added as new potential vectors for intellectual property infringement claims.

What changed since the prior 10-K

New

  • NewFinancial Risks

    The Company’s net sales and gross margins are subject to volatility and downward pressure due to a variety of factors

    The Company’s net sales and gross margins face volatility and downward pressure from global pricing pressures, supply shortages, and regulatory changes.

Dropped

  • DroppedBusiness Risks

    The Company 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 Company’s customers

  • DroppedBusiness Risks

    Some carriers providing cellular network service for the Company’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

  • DroppedBusiness Risks

    The Company’s retail stores are subject to numerous risks and uncertainties

  • DroppedFinancial Risks

    The Company expects its quarterly net sales and results of operations to fluctuate

Reworded

  • 100% rewrittenBusiness Risks

    Apple Inc. | 2025 Form 10-K | 11

    Replaced export regulation compliance risks with cybersecurity threats, including hacking, ransomware, and phishing attacks targeting employees and customers.

    Was: Apple Inc. | 2024 Form 10-K | 13

  • 100% rewrittenLegal and Regulatory Compliance Risks

    Apple Inc. | 2025 Form 10-K | 12

    Replaced privacy compliance reputational risks with specific litigation and government investigation outcomes, including potential monetary damages and mandated business practice changes.

    Was: Apple Inc. | 2024 Form 10-K | 14

  • 100% rewrittenFinancial Risks

    Apple Inc. | 2025 Form 10-K | 15

    Replaced tax examination disclosures with foreign currency exchange rate fluctuations, hedging ineffectiveness, and component cost impacts.

    Was: Apple Inc. | 2024 Form 10-K | 16

  • 98% rewrittenMacroeconomic and Industry Risks

    Apple Inc. | 2025 Form 10-K | 6

    Added risks regarding business interruption recovery time, reliance on single-source component suppliers, and insufficient insurance coverage following an attack.

    Was: Apple Inc. | 2024 Form 10-K | 11

  • 93% rewrittenBusiness Risks

    The Company depends on the performance of carriers and other resellers

    Expanded reseller dependence to explicitly include the discontinuation of carrier financing plans and investments in digital marketing assets.

    Was: The Company depends on the performance of carriers, wholesalers, retailers and other resellers

  • 91% rewrittenLegal and Regulatory Compliance Risks

    Varied stakeholder expectations about social and other issues expose the Company to potential liabilities, increased costs, reputational harm, and other adverse effects on the Company’s business

    Updated stakeholder expectations regarding environmental and social goals to emphasize differing stakeholder views and potential shortfalls in achieving stated targets.

    Was: Expectations relating to environmental, social and governance considerations and related reporting obligations expose the Company to potential liabilities, increased costs, reputational harm, and other adverse effects on the Company’s business

  • 76% rewrittenBusiness Risks

    The Company relies on access to third-party intellectual property, which may not be available to the Company on commercially reasonable terms, or at all

    Added risks that emerging technologies like machine learning and artificial intelligence may exacerbate third-party intellectual property and copyright infringement claims.

  • 64% rewrittenLegal and Regulatory Compliance Risks

    The Company’s business is subject to a variety of U.S. and international laws, rules, policies and other obligations regarding the collection, use, protection and transfer of personal data

    Refined data privacy regulations to encompass broader protections on personal data collection, transfer restrictions, and noncompliance penalties.

    Was: The Company’s business is subject to a variety of U.S. and international laws, rules, policies and other obligations regarding data protection

  • 64% rewrittenBusiness Risks

    To remain competitive and stimulate customer demand, the Company must successfully manage frequent introductions and transitions of products and services

  • 61% rewrittenLegal and Regulatory Compliance Risks

    The Company’s business, results of operations and financial condition could be adversely impacted by unfavorable results of legal proceedings or government investigations

  • 59% rewrittenMacroeconomic and Industry Risks

    Global markets for the Company’s products and services are highly competitive and subject to rapid technological change, and the Company may be unable to compete effectively in these markets

  • 59% rewrittenBusiness Risks

    Future operating results depend upon the Company’s ability to obtain components in sufficient quantities on commercially reasonable terms

  • 58% rewrittenBusiness Risks

    Losses or unauthorized access to or releases of confidential information, including personal information, could subject the Company to significant reputational, financial, legal and operational consequences

  • 58% rewrittenBusiness Risks

    The Company’s future performance depends in part on support from third-party software developers

  • 55% rewrittenBusiness Risks

    The Company depends on component and product manufacturing and logistical services provided by outsourcing partners, many of which are located outside of the U.S

  • 54% rewrittenBusiness Risks

    The Company’s success depends largely on the talents and efforts of its team members, the continued service and availability of highly skilled employees, including key personnel, and the Company’s ability to nurture its distinctive and inclusive culture

  • 54% rewrittenLegal and Regulatory Compliance Risks

    The technology industry, including, in some instances, the Company, is subject to intense media, political and regulatory scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions and penalties

  • 51% rewrittenBusiness Risks

    The Company is exposed to the risk of write-downs on the value of its inventory and other assets, in addition to purchase commitment cancellation risk

  • 51% rewrittenLegal and Regulatory Compliance Risks

    The Company is subject to complex and changing laws and regulations worldwide, which exposes the Company to potential liabilities, increased costs and other adverse effects on the Company’s business

  • 50% rewrittenMacroeconomic and Industry Risks

    The Company’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

  • 45% rewrittenBusiness Risks

    Investment in new business strategies, commercial relationships and acquisitions could disrupt the Company’s ongoing business, present risks not originally contemplated, and materially adversely affect the Company’s business, reputation, results of operations and financial condition

    Was: Investment in new business strategies and acquisitions could disrupt the Company’s ongoing business, present risks not originally contemplated and materially adversely affect the Company’s business, reputation, results of operations and financial condition

  • 45% rewrittenFinancial Risks

    The Company is subject to changes in tax rates, the adoption of new U.S. or international tax legislation and exposure to additional tax liabilities

  • 44% rewrittenFinancial Risks

    The Company’s financial performance is subject to risks associated with changes in the value of the U.S. dollar relative to local currencies

  • 39% rewrittenFinancial Risks

    The Company 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

All 31 risk factors

Headings as the filing states them, in filing order.

Macroeconomic and Industry Risks

  1. 01The Company’s operations and performance depend significantly on global and regional economic conditions and adverse economic conditions can materially adversely affect the Company’s business, results of operations, financial condition and stock price
  2. 02The Company’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 interruptions50% rewritten
  3. 03Apple Inc. | 2025 Form 10-K | 698% rewritten
  4. 04Global markets for the Company’s products and services are highly competitive and subject to rapid technological change, and the Company may be unable to compete effectively in these markets59% rewritten

Business Risks

  1. 05To remain competitive and stimulate customer demand, the Company must successfully manage frequent introductions and transitions of products and services64% rewritten
  2. 06The Company depends on component and product manufacturing and logistical services provided by outsourcing partners, many of which are located outside of the U.S55% rewritten
  3. 07Future operating results depend upon the Company’s ability to obtain components in sufficient quantities on commercially reasonable terms59% rewritten
  4. 08The Company’s products and services may be affected from time to time by design and manufacturing defects that could materially adversely affect the Company’s business and result in harm to the Company’s reputation
  5. 09The Company is exposed to the risk of write-downs on the value of its inventory and other assets, in addition to purchase commitment cancellation risk51% rewritten
  6. 10The Company relies on access to third-party intellectual property, which may not be available to the Company on commercially reasonable terms, or at all76% rewritten
  7. 11The Company’s future performance depends in part on support from third-party software developers58% rewritten
  8. 12Failure to obtain or create digital content that appeals to the Company’s customers, or to make such content available on commercially reasonable terms, could have a material adverse impact on the Company’s business, results of operations and financial condition
  9. 13The Company’s success depends largely on the talents and efforts of its team members, the continued service and availability of highly skilled employees, including key personnel, and the Company’s ability to nurture its distinctive and inclusive culture54% rewritten
  10. 14The Company depends on the performance of carriers and other resellers93% rewritten
  11. 15The Company’s business and reputation are impacted by information technology system failures and network disruptions
  12. 16Losses or unauthorized access to or releases of confidential information, including personal information, could subject the Company to significant reputational, financial, legal and operational consequences58% rewritten
  13. 17Apple Inc. | 2025 Form 10-K | 11100% rewritten
  14. 18Investment in new business strategies, commercial relationships and acquisitions could disrupt the Company’s ongoing business, present risks not originally contemplated, and materially adversely affect the Company’s business, reputation, results of operations and financial condition45% rewritten

Legal and Regulatory Compliance Risks

  1. 19The Company’s business, results of operations and financial condition could be adversely impacted by unfavorable results of legal proceedings or government investigations61% rewritten
  2. 20Apple Inc. | 2025 Form 10-K | 12100% rewritten
  3. 21The Company is subject to complex and changing laws and regulations worldwide, which exposes the Company to potential liabilities, increased costs and other adverse effects on the Company’s business51% rewritten
  4. 22Varied stakeholder expectations about social and other issues expose the Company to potential liabilities, increased costs, reputational harm, and other adverse effects on the Company’s business91% rewritten
  5. 23The technology industry, including, in some instances, the Company, is subject to intense media, political and regulatory scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions and penalties54% rewritten
  6. 24The Company’s business is subject to a variety of U.S. and international laws, rules, policies and other obligations regarding the collection, use, protection and transfer of personal data64% rewritten

Financial Risks

  1. 25The Company’s net sales and gross margins are subject to volatility and downward pressure due to a variety of factorsNew
  2. 26The Company’s financial performance is subject to risks associated with changes in the value of the U.S. dollar relative to local currencies44% rewritten
  3. 27Apple Inc. | 2025 Form 10-K | 15100% rewritten
  4. 28The Company is exposed to credit risk and fluctuations in the values of its investment portfolio
  5. 29The Company 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 worsen39% rewritten
  6. 30The Company is subject to changes in tax rates, the adoption of new U.S. or international tax legislation and exposure to additional tax liabilities45% rewritten

General Risks

  1. 31The price of the Company’s stock is subject to volatility

Other Apple 10-Ks

  • FY2024 10-K risk factors
    34 risks

    Apple dominates its risk section with reliance on global supply chains, third-party software developers, and complex international regulations.

    Filed Nov 01, 2024

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.