Apple (AAPL) risk factors, FY2026 10-K

Apple's FY2026 10-K, filed Nov 03, 2026, lists 28 risk factors in 5 groups. Against the prior year's 27: 3 new, 2 dropped, 16 substantially reworded.

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Risk factors listed
285 groups
New this year
3vs 27 last year
Dropped
2since the prior 10-K
Substantially reworded
16of those kept
Section length
12k wordsItem 1A

What the changes say

  • New risks cover recurring cyberattacks and third-party exposure, AI-related harms, and a growing number of legal claims and investigations.
  • Apple reports current supply constraints and rising costs for advanced semiconductors, memory and storage, with memory and storage pressures expected to intensify.
  • The App Store injunction risk is specified as covering fees on digital purchases made through external links in third-party iOS and iPadOS apps.

What changed since the prior 10-K

New

  • NewBusiness Risks

    The Company experiences cybersecurity incidents and inadvertent losses and unauthorized access to or releases of confidential information, including personal information

    Cyberattacks, ransomware at global suppliers, and ineffective safeguards could expose customers’ and employees’ personal, health, financial, or other confidential information.

  • NewBusiness Risks

    Issues related to artificial intelligence may result in reputational, competitive and financial harm to the Company, regulatory action, legal liability, and other adverse effects to the Company’s business

    AI in Apple products, services, and operations could cause privacy, security, IP, safety, bias, or other harms, alongside regulatory, legal, reputational, and financial consequences.

  • NewLegal and Regulatory Compliance Risks

    The Company is subject to the risks of adverse impacts from legal proceedings and government investigations

    A rising number and alleged magnitude of claims and investigations, including patent claims involving standards-enabled products, could expose Apple to indemnity costs and damages.

Dropped

  • DroppedBusiness 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

  • DroppedLegal 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

Reworded

  • 74% rewrittenBusiness Risks

    Future operating results depend upon the Company’s ability to obtain components, compute capacity and storage resources in sufficient quantities and on commercially reasonable terms

    Adds current supply constraints and rising costs for advanced semiconductors, memory, and storage, and expects memory and storage pressures to intensify.

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

  • 72% rewrittenBusiness Risks

    The Company’s products, services and technologies, including artificial intelligence technologies and features, may be affected from time to time by design and manufacturing defects

    Adds AI technologies and features, financial services as a specialized-use area, and service outages, slowdowns, errors, or performance below user expectations.

    Was: The 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

  • 53% rewrittenBusiness Risks

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

    Adds that developer support depends on perceived benefits versus named competing platforms, including Android, Windows, PlayStation, Nintendo, and Xbox.

  • 49% rewrittenFinancial Risks

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

    Adds industry-wide constraints and rising costs for advanced semiconductors, memory, and storage as explicit sources of sales, margin, and operating-results pressure.

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

  • 49% rewrittenBusiness Risks

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

    Extends the transition challenge to adoption of products, services, and technologies, and adds successful introduction to the factors affecting launch success.

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

  • 48% rewrittenBusiness Risks

    Investment in new business strategies, commercial relationships and acquisitions could disrupt the Company’s ongoing business and present risks not originally contemplated

    Recasts management distraction as diversion of management’s efforts; the other listed investment and acquisition risks remain materially similar.

    Was: 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

  • 45% 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

    Reframes infringement allegations as applying to Apple’s products and services; the discussion of AI-related training materials and outputs remains.

  • 43% 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

    Specifies that the U.S. injunction bars fees on digital goods and services bought through external links in third-party iOS and iPadOS apps, and notes the Ninth Circuit remand.

  • 42% rewrittenLegal and Regulatory Compliance Risks

    The Company is subject to the risks and costs of complex and changing laws and regulations worldwide

    Was: 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

  • 41% 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

  • 40% 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

  • 33% rewrittenBusiness Risks

    The Company’s business and reputation are impacted by information technology system failures and network disruptions

  • 32% rewrittenGeneral Risks

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

  • 27% 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

  • 24% rewrittenMacroeconomic and Industry Risks

    The Company’s operations and performance depend significantly on global and regional economic conditions

    Was: The 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

  • 21% 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

All 28 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 conditions24% rewritten
  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 interruptions41% rewritten
  3. 03Global 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 markets27% rewritten

Business Risks

  1. 04To remain competitive and stimulate customer demand, the Company must successfully manage frequent introductions and transitions of products, services and technologies49% rewritten
  2. 05The Company depends on component and product manufacturing and logistical services provided by outsourcing partners, many of which are located outside of the U.S21% rewritten
  3. 06Future operating results depend upon the Company’s ability to obtain components, compute capacity and storage resources in sufficient quantities and on commercially reasonable terms74% rewritten
  4. 07The Company’s products, services and technologies, including artificial intelligence technologies and features, may be affected from time to time by design and manufacturing defects72% rewritten
  5. 08The 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
  6. 09The Company relies on access to third-party intellectual property, which may not be available to the Company on commercially reasonable terms, or at all45% rewritten
  7. 10The Company’s future performance depends in part on support from third-party software developers53% rewritten
  8. 11The Company may be unable to obtain or create digital content that appeals to the Company’s customers or to make such content available on commercially reasonable terms
  9. 12The 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
  10. 13The Company depends on the performance of carriers and other resellers
  11. 14The Company’s business and reputation are impacted by information technology system failures and network disruptions33% rewritten
  12. 15The Company experiences cybersecurity incidents and inadvertent losses and unauthorized access to or releases of confidential information, including personal informationNew
  13. 16Investment in new business strategies, commercial relationships and acquisitions could disrupt the Company’s ongoing business and present risks not originally contemplated48% rewritten
  14. 17Issues related to artificial intelligence may result in reputational, competitive and financial harm to the Company, regulatory action, legal liability, and other adverse effects to the Company’s businessNew

Legal and Regulatory Compliance Risks

  1. 18The Company is subject to the risks of adverse impacts from legal proceedings and government investigationsNew
  2. 19The Company is subject to the risks and costs of complex and changing laws and regulations worldwide42% rewritten
  3. 20Varied 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
  4. 21The 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 penalties43% rewritten
  5. 22The 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 data40% rewritten

Financial Risks

  1. 23The Company’s net sales, gross margins and results of operations are subject to volatility and downward pressure due to a variety of factors49% rewritten
  2. 24The Company’s financial performance is subject to risks associated with changes in the value of the U.S. dollar relative to local currencies
  3. 25The Company is exposed to credit risk and fluctuations in the values of its investment portfolio
  4. 26The 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
  5. 27The Company is subject to changes in tax rates, the adoption of new U.S. or international tax legislation and exposure to additional tax liabilities

General Risks

  1. 28The price of the Company’s stock is subject to volatility32% rewritten

Other Apple 10-Ks

  • FY2025 10-K risk factors
    27 risks1 new2 dropped19 reworded

    Apple newly highlights pressure on gross margins from pricing, costs, product mix, regulation and macroeconomic factors.

    Filed Oct 31, 2025
  • FY2024 10-K risk factors
    28 risks

    Manufacturing is concentrated among a few outsourcing partners, often at single locations, while many facilities are outside the U.S.

    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.