Data: Apple (AAPL) Financial Results – Quarterly

Diagram Notes

• In the quarter ending in September 2024, there was an unusual charge relating to unpaid taxes in Ireland.
  • For more details about the events leading up to it, here's a news article from September 2024: Apple must pay Ireland €14.1bn in unpaid taxes, court rules
  • The original breakdown in the financial statement simply combined routine taxes with the effect of the court ruling in one line ('Provision for income taxes') and provided further details in a footnote. Here are the key portions:

    ...On September 10, 2024, the European Court of Justice...confirmed the European Commission’s 2016 State Aid decision.

    As a result, during the fourth quarter of 2024 the Company recorded a one-time income tax charge of $10.2 billion, net, which represents $15.8 billion payable to Ireland via release of restricted funds held in escrow, partially offset by a U.S. foreign tax credit of $4.8 billion and a decrease in unrecognized tax benefits of $823 million.

  • I felt that just showing the 'Provision for income taxes' figure as a lump sum in this diagram would be a bit misleading, so I've split the regular taxes and the effect of the ruling into distinct flows.
• You can observe the difference in Apple's margins for Products vs. Services in the flows from the nodes in the second column.
  • The Cost of Sales for each category is represented by the grayish portion; the Gross Margin is the colorful part.
  • You can see that over half of the Products revenue goes to Cost of Sales, whereas a much smaller share of Services revenue is Cost.