More locations: Santa Clara, CA, USA
Apple designs, manufactures, and sells hardware and software across iPhone, iPad, Mac, Apple Watch, and Apple TV, plus services like the App Store, Apple Music, iCloud, and Apple Pay. The products work together through an integrated ecosystem where devices run Apple’s own operating systems and sync data via iCloud, delivering a seamless user experience. It differentiates itself by controlling both hardware and software end-to-end, maintaining a unified design, and expanding services and spatial computing. Its goal is to provide a cohesive, high-quality experience across devices while growing services revenue and expanding its ecosystem.
Company Size
10,001+
Company Stage
IPO
Headquarters
Cupertino, California
Founded
1976
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Microsoft and Apple are competing for leadership in the AI era while offering investors different value propositions. Microsoft trades at 25x forward P/E versus Apple's 38x, below the sector average of 35x. Microsoft's sales grew 17.7% year-over-year to $90 billion, whilst Apple's rose 16.4% to $109.4 billion. Microsoft retained nearly 40% of revenue as income compared to Apple's 27%. However, Apple's return on equity reached 135% versus Microsoft's 32%. For dividends, Microsoft offers a 0.76% yield with a 20.53% payout ratio, whilst Apple yields 0.32% with a 12.11% payout ratio, giving both room for increases. Analysts rate Microsoft a "strong buy" with 35% upside potential, whilst Apple receives a "moderate buy" rating with 17% upside.
A US jury has ordered Apple to pay $5.7 billion in a patent case concerning haptic technology, marking the largest patent award in American history. The amount represents approximately 4.5% of Apple's annual profit of $129 billion. Apple plans to appeal the verdict. Patent awards of this magnitude are frequently reduced on appeal, and the appeals process can take years. The jury did not find willful infringement, which would have allowed damages to be multiplied. The case involves haptic feedback technology embedded across Apple's product line, including phones, watches, and trackpads. This makes design workarounds more challenging than if the patent covered a single component. At the end of Q2 2026, 169 hedge funds held Apple shares worth $124.8 billion, down from 170 funds the previous quarter.
Michael Burry, the hedge fund manager who predicted the 2008 financial crisis, has warned that AI companies are hiding $3 trillion in data centre debts that could destabilise the global economy. Burry's analysis of regulatory filings reveals Apple, Google, Microsoft, Meta and Oracle have accumulated massive off-balance-sheet obligations. The five companies have signed $1.2 trillion in data centre leases, with at least $857 billion non-cancellable, plus over $1.5 trillion in supply chain purchase commitments. These liabilities don't appear on their balance sheets under current accounting rules. Burry warns this could reach $5 trillion by 2028. With combined annual earnings under $400 billion, Burry questions what happens if AI growth disappoints. Oracle, Microsoft and Meta shares have already fallen from recent peaks.
Bank of America strategist Michael Hartnett, who coined "Magnificent 7" in May 2023, warns the tech giants' defining strength has become a weakness. The group—Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla—initially attracted investors seeking alternatives to government bonds during fiscal excess. However, massive AI spending has transformed their financial profile. Global AI investment is expected to exceed $1 trillion in 2026, with hyperscalers now spending similar amounts annually. The companies have become cash-flow negative by $200 billion and increasingly reliant on corporate credit markets. With 10-year Treasury yields near two-decade highs and 30-year yields exceeding 5.5%, rising borrowing costs directly threaten the AI spending that drives their growth. Hartnett notes they've become "subservient to the bond market"—the very asset class they once served as a hedge against.
Apple's iPhone Duo faces a lukewarm reception in China, where it is priced at 15,999 yuan (approximately $2,230), positioning it above Xiaomi's 18 Fold at 10,999 yuan but below Huawei's Mate XT2 at 19,999 yuan. Chinese social media users noted the device represents a heavier financial burden relative to local incomes compared to its $1,999 US price for American consumers. Huawei controlled 68% of Chinese foldable shipments in the second quarter, whilst leading China's overall smartphone market with a 22.6% share versus Apple's 18.1%. However, Apple ranked second after its shipments jumped 24.4% year over year. Omdia expects global foldable smartphone shipments to reach 22.3 million units in 2026, with Counterpoint projecting Apple to sell close to 6 million Duo units by year-end.