1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K(Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended September30,2023or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 193

2、4For the transition period from to.Commission File Number:001-36743Apple Inc.(Exact name of Registrant as specified in its charter)California94-2404110(State or other jurisdictionof incorporation or organization)(I.R.S.Employer Identification No.)One Apple Park WayCupertino,California95014(Address o

3、f principal executive offices)(Zip Code)(408)996-1010(Registrants telephone number,including area code)Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading symbol(s)Name of each exchange on which registeredCommon Stock,$0.00001 par value per shareAAPLThe Nasdaq Stock

4、Market LLC1.375%Notes due 2024The Nasdaq Stock Market LLC0.000%Notes due 2025The Nasdaq Stock Market LLC0.875%Notes due 2025The Nasdaq Stock Market LLC1.625%Notes due 2026The Nasdaq Stock Market LLC2.000%Notes due 2027The Nasdaq Stock Market LLC1.375%Notes due 2029The Nasdaq Stock Market LLC3.050%No

5、tes due 2029The Nasdaq Stock Market LLC0.500%Notes due 2031The Nasdaq Stock Market LLC3.600%Notes due 2042The Nasdaq Stock Market LLCSecurities registered pursuant to Section 12(g)of the Act:NoneIndicate by check mark if the Registrant is a well-known seasoned issuer,as defined in Rule 405 of the Se

6、curities Act.YesNoIndicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.YesNoIndicate by check mark whether the Registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 du

7、ring the preceding 12 months(or for such shorter period that the Registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.YesNoIndicate by check mark whether the Registrant has submitted electronically every Interactive Data File required

8、to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the Registrant was required to submit such files).YesNoIndicate by check mark whether the Registrant is a large accelerated filer,an accelerated filer,a non-a

9、ccelerated filer,a smaller reporting company,or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filerAccelerated filerNon-accelerated filerSmalle

10、r reporting companyEmerging growth companyIf an emerging growth company,indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate b

11、y check mark whether the Registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control over financial reporting under Section 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered public accounting firm that prepared or issued

12、 its audit report.If securities are registered pursuant to Section 12(b)of the Act,indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.Indicate by check mark whether any of those

13、 error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b).Indicate by check mark whether the Registrant is a shell company(as defined in Rule

14、 12b-2 of the Act).YesNoThe aggregate market value of the voting and non-voting stock held by non-affiliates of the Registrant,as of March31,2023,the last business day of the Registrants most recently completed second fiscal quarter,was approximately$2,591,165,000,000.Solely for purposes of this dis

15、closure,shares of common stock held by executive officers and directors of the Registrant as of such date have been excluded because such persons may be deemed to be affiliates.This determination of executive officers and directors as affiliates is not necessarily a conclusive determination for any

16、other purposes.15,552,752,000 shares of common stock were issued and outstanding as of October20,2023.DOCUMENTS INCORPORATED BY REFERENCEPortions of the Registrants definitive proxy statement relating to its 2024 annual meeting of shareholders are incorporated by reference into Part III of this Annu

17、al Report on Form 10-K where indicated.The Registrants definitive proxy statement will be filed with the U.S.Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.Apple Inc.Form 10-KFor the Fiscal Year Ended September30,2023TABLE OF CONTENTS

18、PagePart IItem 1.Business1Item 1A.Risk Factors5Item 1B.Unresolved Staff Comments16Item 1C.Cybersecurity16Item 2.Properties17Item 3.Legal Proceedings17Item 4.Mine Safety Disclosures17Part IIItem 5.Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securiti

19、es18Item 6.Reserved19Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations20Item 7A.Quantitative and Qualitative Disclosures About Market Risk26Item 8.Financial Statements and Supplementary Data27Item 9.Changes in and Disagreements with Accountants on Accounting

20、 and Financial Disclosure52Item 9A.Controls and Procedures52Item 9B.Other Information53Item 9C.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections53Part IIIItem 10.Directors,Executive Officers and Corporate Governance53Item 11.Executive Compensation53Item 12.Security Ownership of Cer

21、tain Beneficial Owners and Management and Related Stockholder Matters53Item 13.Certain Relationships and Related Transactions,and Director Independence53Item 14.Principal Accountant Fees and Services53Part IVItem 15.Exhibit and Financial Statement Schedules54Item 16.Form 10-K Summary57This Annual Re

22、port on Form 10-K(“Form 10-K”)contains forward-looking statements,within the meaning of the Private Securities Litigation Reform Act of 1995,that involve risks and uncertainties.Many of the forward-looking statements are located in Part I,Item 1 of this Form 10-K under the heading“Business”and Part

23、II,Item 7 of this Form 10-K under the heading“Managements Discussion and Analysis of Financial Condition and Results of Operations.”Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any his

24、torical or current fact.For example,statements in this Form 10-K regarding the potential future impact of macroeconomic conditions on the Companys business and results of operations are forward-looking statements.Forward-looking statements can also be identified by words such as“future,”“anticipates

25、,”“believes,”“estimates,”“expects,”“intends,”“plans,”“predicts,”“will,”“would,”“could,”“can,”“may,”and similar terms.Forward-looking statements are not guarantees of future performance and the Companys actual results may differ significantly from the results discussed in the forward-looking statemen

26、ts.Factors that might cause such differences include,but are not limited to,those discussed in Part I,Item 1A of this Form 10-K under the heading“Risk Factors.”The Company assumes no obligation to revise or update any forward-looking statements for any reason,except as required by law.Unless otherwi

27、se stated,all information presented herein is based on the Companys fiscal calendar,and references to particular years,quarters,months or periods refer to the Companys fiscal years ended in September and the associated quarters,months and periods of those fiscal years.Each of the terms the“Company”a

28、nd“Apple”as used herein refers collectively to Apple Inc.and its wholly owned subsidiaries,unless otherwise stated.PART IItem 1.BusinessCompany BackgroundThe Company designs,manufactures and markets smartphones,personal computers,tablets,wearables and accessories,and sells a variety of related servi

29、ces.The Companys fiscal year is the 52-or 53-week period that ends on the last Saturday of September.ProductsiPhoneiPhone is the Companys line of smartphones based on its iOS operating system.The iPhone line includes iPhone 15 Pro,iPhone 15,iPhone 14,iPhone 13 and iPhone SE.MacMac is the Companys li

30、ne of personal computers based on its macOS operating system.The Mac line includes laptops MacBook Air and MacBook Pro,as well as desktops iMac,Mac mini,Mac Studio and Mac Pro.iPadiPad is the Companys line of multipurpose tablets based on its iPadOS operating system.The iPad line includes iPad Pro,i

31、Pad Air,iPad and iPad mini.Wearables,Home and AccessoriesWearables includes smartwatches and wireless headphones.The Companys line of smartwatches,based on its watchOS operating system,includes Apple Watch Ultra 2,Apple Watch Series 9 and Apple Watch SE.The Companys line of wireless headphones inclu

32、des AirPods,AirPods Pro,AirPods Max and Beats products.Home includes Apple TV,the Companys media streaming and gaming device based on its tvOS operating system,and HomePod and HomePod mini,high-fidelity wireless smart speakers.Accessories includes Apple-branded and third-party accessories.Apple Inc.

33、|2023 Form 10-K|1ServicesAdvertisingThe Companys advertising services include third-party licensing arrangements and the Companys own advertising platforms.AppleCareThe Company offers a portfolio of fee-based service and support products under the AppleCare brand.The offerings provide priority acces

34、s to Apple technical support,access to the global Apple authorized service network for repair and replacement services,and in many cases additional coverage for instances of accidental damage or theft and loss,depending on the country and type of product.Cloud ServicesThe Companys cloud services sto

35、re and keep customers content up-to-date and available across multiple Apple devices and Windows personal computers.Digital ContentThe Company operates various platforms,including the App Store,that allow customers to discover and download applications and digital content,such as books,music,video,g

36、ames and podcasts.The Company also offers digital content through subscription-based services,including Apple Arcade,a game subscription service;Apple Fitness+SM,a personalized fitness service;Apple Music,which offers users a curated listening experience with on-demand radio stations;Apple News+,a s

37、ubscription news and magazine service;and Apple TV+,which offers exclusive original content and live sports.Payment ServicesThe Company offers payment services,including Apple Card,a co-branded credit card,and Apple Pay,a cashless payment service.SegmentsThe Company manages its business primarily on

38、 a geographic basis.The Companys reportable segments consist of the Americas,Europe,Greater China,Japan and Rest of Asia Pacific.Americas includes both North and South America.Europe includes European countries,as well as India,the Middle East and Africa.Greater China includes China mainland,Hong Ko

39、ng and Taiwan.Rest of Asia Pacific includes Australia and those Asian countries not included in the Companys other reportable segments.Although the reportable segments provide similar hardware and software products and similar services,each one is managed separately to better align with the location

40、 of the Companys customers and distribution partners and the unique market dynamics of each geographic region.Markets and DistributionThe Companys customers are primarily in the consumer,small and mid-sized business,education,enterprise and government markets.The Company sells its products and resel

41、ls third-party products in most of its major markets directly to customers through its retail and online stores and its direct sales force.The Company also employs a variety of indirect distribution channels,such as third-party cellular network carriers,wholesalers,retailers and resellers.During 202

42、3,the Companys net sales through its direct and indirect distribution channels accounted for 37%and 63%,respectively,of total net sales.CompetitionThe markets for the Companys products and services are highly competitive,and are characterized by aggressive price competition and resulting downward pr

43、essure on gross margins,frequent introduction of new products and services,short product life cycles,evolving industry standards,continual improvement in product price and performance characteristics,rapid adoption of technological advancements by competitors,and price sensitivity on the part of con

44、sumers and businesses.Many of the Companys competitors seek to compete primarily through aggressive pricing and very low cost structures,and by imitating the Companys products and infringing on its intellectual property.Apple Inc.|2023 Form 10-K|2The Companys ability to compete successfully depends

45、heavily on ensuring the continuing and timely introduction of innovative new products,services and technologies to the marketplace.The Company designs and develops nearly the entire solution for its products,including the hardware,operating system,numerous software applications and related services.

46、Principal competitive factors important to the Company include price,product and service features(including security features),relative price and performance,product and service quality and reliability,design innovation,a strong third-party software and accessories ecosystem,marketing and distributi

47、on capability,service and support,and corporate reputation.The Company is focused on expanding its market opportunities related to smartphones,personal computers,tablets,wearables and accessories,and services.The Company faces substantial competition in these markets from companies that have signifi

48、cant technical,marketing,distribution and other resources,as well as established hardware,software,and service offerings with large customer bases.In addition,some of the Companys competitors have broader product lines,lower-priced products and a larger installed base of active devices.Competition h

49、as been particularly intense as competitors have aggressively cut prices and lowered product margins.Certain competitors have the resources,experience or cost structures to provide products at little or no profit or even at a loss.The Companys services compete with business models that provide conte

50、nt to users for free and use illegitimate means to obtain third-party digital content and applications.The Company faces significant competition as competitors imitate the Companys product features and applications within their products,or collaborate to offer integrated solutions that are more comp

51、etitive than those they currently offer.Supply of ComponentsAlthough most components essential to the Companys business are generally available from multiple sources,certain components are currently obtained from single or limited sources.The Company also competes for various components with other p

52、articipants in the markets for smartphones,personal computers,tablets,wearables and accessories.Therefore,many components used by the Company,including those that are available from multiple sources,are at times subject to industry-wide shortage and significant commodity pricing fluctuations.The Com

53、pany uses some custom components that are not commonly used by its competitors,and new products introduced by the Company often utilize custom components available from only one source.When a component or product uses new technologies,initial capacity constraints may exist until the suppliers yields

54、 have matured or their manufacturing capacities have increased.The continued availability of these components at acceptable prices,or at all,may be affected if suppliers decide to concentrate on the production of common components instead of components customized to meet the Companys requirements.Th

55、e Company has entered into agreements for the supply of many components;however,there can be no guarantee that the Company will be able to extend or renew these agreements on similar terms,or at all.Research and DevelopmentBecause the industries in which the Company competes are characterized by rap

56、id technological advances,the Companys ability to compete successfully depends heavily upon its ability to ensure a continual and timely flow of competitive products,services and technologies to the marketplace.The Company continues to develop new technologies to enhance existing products and servic

57、es,and to expand the range of its offerings through research and development(“R&D”),licensing of intellectual property and acquisition of third-party businesses and technology.Intellectual PropertyThe Company currently holds a broad collection of intellectual property rights relating to certain aspe

58、cts of its hardware devices,accessories,software and services.This includes patents,designs,copyrights,trademarks and other forms of intellectual property rights in the U.S.and various foreign countries.Although the Company believes the ownership of such intellectual property rights is an important

59、factor in differentiating its business and that its success does depend in part on such ownership,the Company relies primarily on the innovative skills,technical competence and marketing abilities of its personnel.The Company regularly files patent,design,copyright and trademark applications to prot

60、ect innovations arising from its research,development,design and marketing,and is currently pursuing thousands of applications around the world.Over time,the Company has accumulated a large portfolio of issued and registered intellectual property rights around the world.No single intellectual proper

61、ty right is solely responsible for protecting the Companys products and services.The Company believes the duration of its intellectual property rights is adequate relative to the expected lives of its products and services.In addition to Company-owned intellectual property,many of the Companys produ

62、cts and services are designed to include intellectual property owned by third parties.It may be necessary in the future to seek or renew licenses relating to various aspects of the Companys products,processes and services.While the Company has generally been able to obtain such licenses on commercia

63、lly reasonable terms in the past,there is no guarantee that such licenses could be obtained in the future on reasonable terms or at all.Apple Inc.|2023 Form 10-K|3Business Seasonality and Product IntroductionsThe Company has historically experienced higher net sales in its first quarter compared to

64、other quarters in its fiscal year due in part to seasonal holiday demand.Additionally,new product and service introductions can significantly impact net sales,cost of sales and operating expenses.The timing of product introductions can also impact the Companys net sales to its indirect distribution

65、channels as these channels are filled with new inventory following a product launch,and channel inventory of an older product often declines as the launch of a newer product approaches.Net sales can also be affected when consumers and distributors anticipate a product introduction.Human CapitalThe C

66、ompany believes it has a talented,motivated and dedicated team,and works to create an inclusive,safe and supportive environment for all of its team members.As of September 30,2023,the Company had approximately 161,000 full-time equivalent employees.Workplace Practices and PoliciesThe Company is an e

67、qual opportunity employer committed to inclusion and diversity and to providing a workplace free of harassment or discrimination.Compensation and BenefitsThe Company believes that compensation should be competitive and equitable,and should enable employees to share in the Companys success.The Compan

68、y recognizes its people are most likely to thrive when they have the resources to meet their needs and the time and support to succeed in their professional and personal lives.In support of this,the Company offers a wide variety of benefits for employees around the world and invests in tools and res

69、ources that are designed to support employees individual growth and development.Inclusion and DiversityThe Company is committed to its vision to build and sustain a more inclusive workforce that is representative of the communities it serves.The Company continues to work to increase diverse represen

70、tation at every level,foster an inclusive culture,and support equitable pay and access to opportunity for all employees.EngagementThe Company believes that open and honest communication among team members,managers and leaders helps create an open,collaborative work environment where everyone can con

71、tribute,grow and succeed.Team members are encouraged to come to their managers with questions,feedback or concerns,and the Company conducts surveys that gauge employee sentiment in areas like career development,manager performance and inclusivity.Health and SafetyThe Company is committed to protecti

72、ng its team members everywhere it operates.The Company identifies potential workplace risks in order to develop measures to mitigate possible hazards.The Company supports employees with general safety,security and crisis management training,and by putting specific programs in place for those working

73、 in potentially high-hazard environments.Additionally,the Company works to protect the safety and security of its team members,visitors and customers through its global security team.Available InformationThe Companys Annual Reports on Form 10-K,Quarterly Reports on Form 10-Q,Current Reports on Form

74、8-K,and amendments to reports filed pursuant to Sections 13(a)and 15(d)of the Securities Exchange Act of 1934,as amended(the“Exchange Act”),are filed with the U.S.Securities and Exchange Commission(the“SEC”).Such reports and other information filed by the Company with the SEC are available free of c

75、harge at when such reports are available on the SECs website.The Company periodically provides certain information for investors on its corporate website,and its investor relations website,.This includes press releases and other information about financial performance,information on environmental,so

76、cial and governance matters,and details related to the Companys annual meeting of shareholders.The information contained on the websites referenced in this Form 10-K is not incorporated by reference into this filing.Further,the Companys references to website URLs are intended to be inactive textual

77、references only.Apple Inc.|2023 Form 10-K|4Item 1A.Risk FactorsThe Companys business,reputation,results of operations,financial condition and stock price can be affected by a number of factors,whether currently known or unknown,including those described below.When any one or more of these risks mate

78、rialize from time to time,the Companys business,reputation,results of operations,financial condition and stock price can be materially and adversely affected.Because of the following factors,as well as other factors affecting the Companys results of operations and financial condition,past financial

79、performance should not be considered to be a reliable indicator of future performance,and investors should not use historical trends to anticipate results or trends in future periods.This discussion of risk factors contains forward-looking statements.This section should be read in conjunction with P

80、art II,Item 7,“Managements Discussion and Analysis of Financial Condition and Results of Operations”and the consolidated financial statements and accompanying notes in Part II,Item 8,“Financial Statements and Supplementary Data”of this Form 10-K.Macroeconomic and Industry RisksThe Companys operation

81、s and performance depend significantly on global and regional economic conditions and adverse economic conditions can materially adversely affect the Companys business,results of operations and financial condition.The Company has international operations with sales outside the U.S.representing a maj

82、ority of the Companys total net sales.In addition,the Companys global supply chain is large and complex and a majority of the Companys supplier facilities,including manufacturing and assembly sites,are located outside the U.S.As a result,the Companys operations and performance depend significantly o

83、n global and regional economic conditions.Adverse macroeconomic conditions,including slow growth or recession,high unemployment,inflation,tighter credit,higher interest rates,and currency fluctuations,can adversely impact consumer confidence and spending and materially adversely affect demand for th

84、e Companys products and services.In addition,consumer confidence and spending can be materially adversely affected in response to changes in fiscal and monetary policy,financial market volatility,declines in income or asset values,and other economic factors.In addition to an adverse impact on demand

85、 for the Companys products and services,uncertainty about,or a decline in,global or regional economic conditions can have a significant impact on the Companys suppliers,contract manufacturers,logistics providers,distributors,cellular network carriers and other channel partners,and developers.Potenti

86、al outcomes include financial instability;inability to obtain credit to finance business operations;and insolvency.Adverse economic conditions can also lead to increased credit and collectibility risk on the Companys trade receivables;the failure of derivative counterparties and other financial inst

87、itutions;limitations on the Companys ability to issue new debt;reduced liquidity;and declines in the fair values of the Companys financial instruments.These and other impacts can materially adversely affect the Companys business,results of operations,financial condition and stock price.The Companys

88、business can be impacted by political events,trade and other international disputes,war,terrorism,natural disasters,public health issues,industrial accidents and other business interruptions.Political events,trade and other international disputes,war,terrorism,natural disasters,public health issues,

89、industrial accidents and other business interruptions can harm or disrupt international commerce and the global economy,and could have a material adverse effect on the Company and its customers,suppliers,contract manufacturers,logistics providers,distributors,cellular network carriers and other chan

90、nel partners.Apple Inc.|2023 Form 10-K|5The Company has a large,global business with sales outside the U.S.representing a majority of the Companys total net sales,and the Company believes that it generally benefits from growth in international trade.Substantially all of the Companys manufacturing is

91、 performed in whole or in part by outsourcing partners located primarily in China mainland,India,Japan,South Korea,Taiwan and Vietnam.Restrictions on international trade,such as tariffs and other controls on imports or exports of goods,technology or data,can materially adversely affect the Companys

92、operations and supply chain and limit the Companys ability to offer and distribute its products and services to customers.The impact can be particularly significant if these restrictive measures apply to countries and regions where the Company derives a significant portion of its revenues and/or has

93、 significant supply chain operations.Restrictive measures can require the Company to take various actions,including changing suppliers,restructuring business relationships,and ceasing to offer third-party applications on its platforms.Changing the Companys operations in accordance with new or change

94、d restrictions on international trade can be expensive,time-consuming and disruptive to the Companys operations.Such restrictions can be announced with little or no advance notice and the Company may not be able to effectively mitigate all adverse impacts from such measures.For example,tensions betw

95、een governments,including the U.S.and China,have in the past led to tariffs and other restrictions being imposed on the Companys business.If disputes and conflicts further escalate in the future,actions by governments in response could be significantly more severe and restrictive and could materiall

96、y adversely affect the Companys business.Political uncertainty surrounding trade and other international disputes could also have a negative effect on consumer confidence and spending,which could adversely affect the Companys business.Many of the Companys operations and facilities,as well as critica

97、l business operations of the Companys suppliers and contract manufacturers,are in locations that are prone to earthquakes and other natural disasters.In addition,such operations and facilities are subject to the risk of interruption by fire,power shortages,nuclear power plant accidents and other ind

98、ustrial accidents,terrorist attacks and other hostile acts,ransomware and other cybersecurity attacks,labor disputes,public health issues,including pandemics such as the COVID-19 pandemic,and other events beyond the Companys control.Global climate change is resulting in certain types of natural disa

99、sters,such as droughts,floods,hurricanes and wildfires,occurring more frequently or with more intense effects.Such events can make it difficult or impossible for the Company to manufacture and deliver products to its customers,create delays and inefficiencies in the Companys supply and manufacturing

100、 chain,and result in slowdowns and outages to the Companys service offerings,and negatively impact consumer spending and demand in affected areas.Following an interruption to its business,the Company can require substantial recovery time,experience significant expenditures to resume operations,and l

101、ose significant sales.Because the Company relies on single or limited sources for the supply and manufacture of many critical components,a business interruption affecting such sources would exacerbate any negative consequences to the Company.The Companys operations are also subject to the risks of i

102、ndustrial accidents at its suppliers and contract manufacturers.While the Companys suppliers are required to maintain safe working environments and operations,an industrial accident could occur and could result in serious injuries or loss of life,disruption to the Companys business,and harm to the C

103、ompanys reputation.Major public health issues,including pandemics such as the COVID-19 pandemic,have adversely affected,and could in the future materially adversely affect,the Company due to their impact on the global economy and demand for consumer products;the imposition of protective public safet

104、y measures,such as stringent employee travel restrictions and limitations on freight services and the movement of products between regions;and disruptions in the Companys operations,supply chain and sales and distribution channels,resulting in interruptions to the supply of current products and offe

105、ring of existing services,and delays in production ramps of new products and development of new services.While the Company maintains insurance coverage for certain types of losses,such insurance coverage may be insufficient to cover all losses that may arise.Global markets for the Companys products

106、and services are highly competitive and subject to rapid technological change,and the Company may be unable to compete effectively in these markets.The Companys products and services are offered in highly competitive global markets characterized by aggressive price competition and resulting downward

107、 pressure on gross margins,frequent introduction of new products and services,short product life cycles,evolving industry standards,continual improvement in product price and performance characteristics,rapid adoption of technological advancements by competitors,and price sensitivity on the part of

108、consumers and businesses.The Companys ability to compete successfully depends heavily on ensuring the continuing and timely introduction of innovative new products,services and technologies to the marketplace.The Company designs and develops nearly the entire solution for its products,including the

109、hardware,operating system,numerous software applications and related services.As a result,the Company must make significant investments in R&D.There can be no assurance these investments will achieve expected returns,and the Company may not be able to develop and market new products and services suc

110、cessfully.Apple Inc.|2023 Form 10-K|6The Company currently holds a significant number of patents,trademarks and copyrights and has registered,and applied to register,additional patents,trademarks and copyrights.In contrast,many of the Companys competitors seek to compete primarily through aggressive

111、 pricing and very low cost structures,and by imitating the Companys products and infringing on its intellectual property.Effective intellectual property protection is not consistently available in every country in which the Company operates.If the Company is unable to continue to develop and sell in

112、novative new products with attractive margins or if competitors infringe on the Companys intellectual property,the Companys ability to maintain a competitive advantage could be materially adversely affected.The Company has a minority market share in the global smartphone,personal computer and tablet

113、 markets.The Company faces substantial competition in these markets from companies that have significant technical,marketing,distribution and other resources,as well as established hardware,software and digital content supplier relationships.In addition,some of the Companys competitors have broader

114、product lines,lower-priced products and a larger installed base of active devices.Competition has been particularly intense as competitors have aggressively cut prices and lowered product margins.Certain competitors have the resources,experience or cost structures to provide products at little or no

115、 profit or even at a loss.Some of the markets in which the Company competes have from time to time experienced little to no growth or contracted overall.Additionally,the Company faces significant competition as competitors imitate the Companys product features and applications within their products

116、or collaborate to offer solutions that are more competitive than those they currently offer.The Company also expects competition to intensify as competitors imitate the Companys approach to providing components seamlessly within their offerings or work collaboratively to offer integrated solutions.T

117、he Companys services also face substantial competition,including from companies that have significant resources and experience and have established service offerings with large customer bases.The Company competes with business models that provide content to users for free.The Company also competes w

118、ith illegitimate means to obtain third-party digital content and applications.The Companys business,results of operations and financial condition depend substantially on the Companys ability to continually improve its products and services to maintain their functional and design advantages.There can

119、 be no assurance the Company will be able to continue to provide products and services that compete effectively.Business RisksTo remain competitive and stimulate customer demand,the Company must successfully manage frequent introductions and transitions of products and services.Due to the highly vol

120、atile and competitive nature of the markets and industries in which the Company competes,the Company must continually introduce new products,services and technologies,enhance existing products and services,effectively stimulate customer demand for new and upgraded products and services,and successfu

121、lly manage the transition to these new and upgraded products and services.The success of new product and service introductions depends on a number of factors,including timely and successful development,market acceptance,the Companys ability to manage the risks associated with new technologies and pr

122、oduction ramp-up issues,the availability of application software for the Companys products,the effective management of purchase commitments and inventory levels in line with anticipated product demand,the availability of products in appropriate quantities and at expected costs to meet anticipated de

123、mand,and the risk that new products and services may have quality or other defects or deficiencies.There can be no assurance the Company will successfully manage future introductions and transitions of products and services.The Company depends on component and product manufacturing and logistical se

124、rvices provided by outsourcing partners,many of which are located outside of the U.S.Substantially all of the Companys manufacturing is performed in whole or in part by outsourcing partners located primarily in China mainland,India,Japan,South Korea,Taiwan and Vietnam,and a significant concentration

125、 of this manufacturing is currently performed by a small number of outsourcing partners,often in single locations.Changes or additions to the Companys supply chain require considerable time and resources and involve significant risks and uncertainties.The Company has also outsourced much of its tran

126、sportation and logistics management.While these arrangements can lower operating costs,they also reduce the Companys direct control over production and distribution.Such diminished control has from time to time and may in the future have an adverse effect on the quality or quantity of products manuf

127、actured or services provided,or adversely affect the Companys flexibility to respond to changing conditions.Although arrangements with these partners may contain provisions for product defect expense reimbursement,the Company generally remains responsible to the consumer for warranty and out-of-warr

128、anty service in the event of product defects and experiences unanticipated product defect liabilities from time to time.While the Company relies on its partners to adhere to its supplier code of conduct,violations of the supplier code of conduct occur from time to time and can materially adversely a

129、ffect the Companys business,reputation,results of operations and financial condition.Apple Inc.|2023 Form 10-K|7The Company relies on single-source outsourcing partners in the U.S.,Asia and Europe to supply and manufacture many components,and on outsourcing partners primarily located in Asia,for fin

130、al assembly of substantially all of the Companys hardware products.Any failure of these partners to perform can have a negative impact on the Companys cost or supply of components or finished goods.In addition,manufacturing or logistics in these locations or transit to final destinations can be disr

131、upted for a variety of reasons,including natural and man-made disasters,information technology system failures,commercial disputes,armed conflict,economic,business,labor,environmental,public health or political issues,or international trade disputes.The Company has invested in manufacturing process

132、equipment,much of which is held at certain of its outsourcing partners,and has made prepayments to certain of its suppliers associated with long-term supply agreements.While these arrangements help ensure the supply of components and finished goods,if these outsourcing partners or suppliers experien

133、ce severe financial problems or other disruptions in their business,such continued supply can be reduced or terminated,and the recoverability of manufacturing process equipment or prepayments can be negatively impacted.Future operating results depend upon the Companys ability to obtain components in

134、 sufficient quantities on commercially reasonable terms.Because the Company currently obtains certain components from single or limited sources,the Company is subject to significant supply and pricing risks.Many components,including those that are available from multiple sources,are at times subject

135、 to industry-wide shortages and significant commodity pricing fluctuations that can materially adversely affect the Companys business,results of operations and financial condition.For example,the global semiconductor industry has in the past experienced high demand and shortages of supply,which adve

136、rsely affected the Companys ability to obtain sufficient quantities of components and products on commercially reasonable terms or at all.Such disruptions could occur in the future.While the Company has entered into agreements for the supply of many components,there can be no assurance the Company w

137、ill be able to extend or renew these agreements on similar terms,or at all.Component suppliers may suffer from poor financial conditions,which can lead to business failure for the supplier or consolidation within a particular industry,further limiting the Companys ability to obtain sufficient quanti

138、ties of components on commercially reasonable terms or at all.The effects of global or regional economic conditions on the Companys suppliers,described in“The Companys operations and performance depend significantly on global and regional economic conditions and adverse economic conditions can mater

139、ially adversely affect the Companys business,results of operations and financial condition,”above,can also affect the Companys ability to obtain components.Therefore,the Company remains subject to significant risks of supply shortages and price increases that can materially adversely affect its busi

140、ness,results of operations and financial condition.The Companys new products often utilize custom components available from only one source.When a component or product uses new technologies,initial capacity constraints may exist until the suppliers yields have matured or their manufacturing capaciti

141、es have increased.The continued availability of these components at acceptable prices,or at all,can be affected for any number of reasons,including if suppliers decide to concentrate on the production of common components instead of components customized to meet the Companys requirements.When the Co

142、mpanys supply of components for a new or existing product has been delayed or constrained,or when an outsourcing partner has delayed shipments of completed products to the Company,the Companys business,results of operations and financial condition have been adversely affected and future delays or co

143、nstraints could materially adversely affect the Companys business,results of operations and financial condition.The Companys business and financial performance could also be materially adversely affected depending on the time required to obtain sufficient quantities from the source,or to identify an

144、d obtain sufficient quantities from an alternative source.The Companys products and services may be affected from time to time by design and manufacturing defects that could materially adversely affect the Companys business and result in harm to the Companys reputation.The Company offers complex har

145、dware and software products and services that can be affected by design and manufacturing defects.Sophisticated operating system software and applications,such as those offered by the Company,often have issues that can unexpectedly interfere with the intended operation of hardware or software produc

146、ts and services.Defects can also exist in components and products the Company purchases from third parties.Component defects could make the Companys products unsafe and create a risk of environmental or property damage and personal injury.These risks may increase as the Companys products are introdu

147、ced into specialized applications,including health.In addition,the Companys service offerings can have quality issues and from time to time experience outages,service slowdowns or errors.As a result,from time to time the Companys services have not performed as anticipated and may not meet customer e

148、xpectations.There can be no assurance the Company will be able to detect and fix all issues and defects in the hardware,software and services it offers.Failure to do so can result in widespread technical and performance issues affecting the Companys products and services.In addition,the Company can

149、be exposed to product liability claims,recalls,product replacements or modifications,write-offs of inventory,property,plant and equipment or intangible assets,and significant warranty and other expenses,including litigation costs and regulatory fines.Quality problems can also adversely affect the ex

150、perience for users of the Companys products and services,and result in harm to the Companys reputation,loss of competitive advantage,poor market acceptance,reduced demand for products and services,delay in new product and service introductions and lost sales.Apple Inc.|2023 Form 10-K|8The Company is

151、 exposed to the risk of write-downs on the value of its inventory and other assets,in addition to purchase commitment cancellation risk.The Company records a write-down for product and component inventories that have become obsolete or exceed anticipated demand,or for which cost exceeds net realizab

152、le value.The Company also accrues necessary cancellation fee reserves for orders of excess products and components.The Company reviews long-lived assets,including capital assets held at its suppliers facilities and inventory prepayments,for impairment whenever events or circumstances indicate the as

153、sets may not be recoverable.If the Company determines that an impairment has occurred,it records a write-down equal to the amount by which the carrying value of the asset exceeds its fair value.Although the Company believes its inventory,capital assets,inventory prepayments and other assets and purc

154、hase commitments are currently recoverable,there can be no assurance the Company will not incur write-downs,fees,impairments and other charges given the rapid and unpredictable pace of product obsolescence in the industries in which the Company competes.The Company orders components for its products

155、 and builds inventory in advance of product announcements and shipments.Manufacturing purchase obligations cover the Companys forecasted component and manufacturing requirements,typically for periods up to 150 days.Because the Companys markets are volatile,competitive and subject to rapid technology

156、 and price changes,there is a risk the Company will forecast incorrectly and order or produce excess or insufficient amounts of components or products,or not fully utilize firm purchase commitments.The Company relies on access to third-party intellectual property,which may not be available to the Co

157、mpany on commercially reasonable terms or at all.The Companys products and services are designed to include intellectual property owned by third parties,which requires licenses from those third parties.In addition,because of technological changes in the industries in which the Company currently comp

158、etes or in the future may compete,current extensive patent coverage and the rapid rate of issuance of new patents,the Companys products and services can unknowingly infringe existing patents or intellectual property rights of others.From time to time,the Company has been notified that it may be infr

159、inging certain patents or other intellectual property rights of third parties.Based on experience and industry practice,the Company believes licenses to such third-party intellectual property can generally be obtained on commercially reasonable terms.However,there can be no assurance the necessary l

160、icenses can be obtained on commercially reasonable terms or at all.Failure to obtain the right to use third-party intellectual property,or to use such intellectual property on commercially reasonable terms,can preclude the Company from selling certain products or services,or otherwise have a materia

161、l adverse impact on the Companys business,results of operations and financial condition.The Companys future performance depends in part on support from third-party software developers.The Company believes decisions by customers to purchase its hardware products depend in part on the availability of

162、third-party software applications and services.There can be no assurance third-party developers will continue to develop and maintain software applications and services for the Companys products.If third-party software applications and services cease to be developed and maintained for the Companys p

163、roducts,customers may choose not to buy the Companys products.The Company believes the availability of third-party software applications and services for its products depends in part on the developers perception and analysis of the relative benefits of developing,maintaining and upgrading such softw

164、are and services for the Companys products compared to competitors platforms,such as Android for smartphones and tablets,Windows for personal computers and tablets,and PlayStation,Nintendo and Xbox for gaming platforms.This analysis may be based on factors such as the market position of the Company

165、and its products,the anticipated revenue that may be generated,expected future growth of product sales,and the costs of developing such applications and services.The Companys minority market share in the global smartphone,personal computer and tablet markets can make developers less inclined to deve

166、lop or upgrade software for the Companys products and more inclined to devote their resources to developing and upgrading software for competitors products with larger market share.When developers focus their efforts on these competing platforms,the availability and quality of applications for the C

167、ompanys devices can suffer.The Company relies on the continued availability and development of compelling and innovative software applications for its products.The Companys products and operating systems are subject to rapid technological change,and when third-party developers are unable to or choos

168、e not to keep up with this pace of change,their applications can fail to take advantage of these changes to deliver improved customer experiences,can operate incorrectly,and can result in dissatisfied customers and lower customer demand for the Companys products.Apple Inc.|2023 Form 10-K|9The Compan

169、y distributes third-party applications for its products through the App Store.For the vast majority of applications,developers keep all of the revenue they generate on the App Store.The Company retains a commission from sales of applications and sales of digital services or goods initiated within an

170、 application.From time to time,the Company has made changes to its App Store,including actions taken in response to competition,market conditions and legal and regulatory requirements.The Company expects to make further business changes in the future,including as a result of legislative initiatives

171、impacting the App Store,such as the European Union(“EU”)Digital Markets Act,which the Company is required to comply with by March 2024.The Company is also subject to litigation and investigations relating to the App Store,which have resulted in changes to the Companys business practices,and may in t

172、he future result in further changes.Changes have included how developers communicate with consumers outside the App Store regarding alternative purchasing mechanisms.Future changes could also affect what the Company charges developers for access to its platforms,how it manages distribution of apps o

173、utside of the App Store,and how and to what extent it allows developers to communicate with consumers inside the App Store regarding alternative purchasing mechanisms.This could reduce the volume of sales,and the commission that the Company earns on those sales,would decrease.If the rate of the comm

174、ission that the Company retains on such sales is reduced,or if it is otherwise narrowed in scope or eliminated,the Companys business,results of operations and financial condition could be materially adversely affected.Failure to obtain or create digital content that appeals to the Companys customers

175、,or to make such content available on commercially reasonable terms,could have a material adverse impact on the Companys business,results of operations and financial condition.The Company contracts with numerous third parties to offer their digital content to customers.This includes the right to sel

176、l,or offer subscriptions to,third-party content,as well as the right to incorporate specific content into the Companys own services.The licensing or other distribution arrangements for this content can be for relatively short time periods and do not guarantee the continuation or renewal of these arr

177、angements on commercially reasonable terms,or at all.Some third-party content providers and distributors currently or in the future may offer competing products and services,and can take actions to make it difficult or impossible for the Company to license or otherwise distribute their content.Other

178、 content owners,providers or distributors may seek to limit the Companys access to,or increase the cost of,such content.The Company may be unable to continue to offer a wide variety of content at commercially reasonable prices with acceptable usage rules.The Company also produces its own digital con

179、tent,which can be costly to produce due to intense and increasing competition for talent,content and subscribers,and may fail to appeal to the Companys customers.Some third-party digital content providers require the Company to provide digital rights management and other security solutions.If requir

180、ements change,the Company may have to develop or license new technology to provide these solutions.There can be no assurance the Company will be able to develop or license such solutions at a reasonable cost and in a timely manner.The Companys success depends largely on the talents and efforts of it

181、s team members,the continued service and availability of highly skilled employees,including key personnel,and the Companys ability to nurture its distinctive and inclusive culture.Much of the Companys future success depends on the talents and efforts of its team members and the continued availabilit

182、y and service of key personnel,including its Chief Executive Officer,executive team and other highly skilled employees.Experienced personnel in the technology industry are in high demand and competition for their talents is intense,especially in Silicon Valley,where most of the Companys key personne

183、l are located.In addition to intense competition for talent,workforce dynamics are constantly evolving.If the Company does not manage changing workforce dynamics effectively,it could materially adversely affect the Companys culture,reputation and operational flexibility.The Company believes that its

184、 distinctive and inclusive culture is a significant driver of its success.If the Company is unable to nurture its culture,it could materially adversely affect the Companys ability to recruit and retain the highly skilled employees who are critical to its success,and could otherwise materially advers

185、ely affect the Companys business,reputation,results of operations and financial condition.The Company depends on the performance of carriers,wholesalers,retailers and other resellers.The Company distributes its products and certain of its services through cellular network carriers,wholesalers,retail

186、ers and resellers,many of which distribute products and services from competitors.The Company also sells its products and services and resells third-party products in most of its major markets directly to consumers,small and mid-sized businesses,and education,enterprise and government customers thro

187、ugh its retail and online stores and its direct sales force.Some carriers providing cellular network service for the Companys 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 sam

188、e amounts.Apple Inc.|2023 Form 10-K|10The Company has invested and will continue to invest in programs to enhance reseller sales,including staffing selected resellers stores with Company employees and contractors,and improving product placement displays.These programs can require a substantial inves

189、tment while not assuring return or incremental sales.The financial condition of these resellers could weaken,these resellers could stop distributing the Companys products,or uncertainty regarding demand for some or all of the Companys products could cause resellers to reduce their ordering and marke

190、ting of the Companys products.The Companys business and reputation are impacted by information technology system failures and network disruptions.The Company and its global supply chain are dependent on complex information technology systems and are exposed to information technology system failures

191、or network disruptions caused by natural disasters,accidents,power disruptions,telecommunications failures,acts of terrorism or war,computer viruses,physical or electronic break-ins,ransomware or other cybersecurity incidents,or other events or disruptions.System upgrades,redundancy and other contin

192、uity measures may be ineffective or inadequate,and the Companys or its vendors business continuity and disaster recovery planning may not be sufficient for all eventualities.Such failures or disruptions can adversely impact the Companys business by,among other things,preventing access to the Company

193、s online services,interfering with customer transactions or impeding the manufacturing and shipping of the Companys products.These events could materially adversely affect the Companys business,reputation,results of operations and financial condition.Losses or unauthorized access to or releases of c

194、onfidential information,including personal information,could subject the Company to significant reputational,financial,legal and operational consequences.The Companys business requires it to use and store confidential information,including personal information,with respect to the Companys customers

195、and employees.The Company devotes significant resources to network and data security,including through the use of encryption and other security measures intended to protect its systems and data.But these measures cannot provide absolute security,and losses or unauthorized access to or releases of co

196、nfidential information occur and could materially adversely affect the Companys business,reputation,results of operations and financial condition.The Companys business also requires it to share confidential information with suppliers and other third parties.The Company relies on global suppliers tha

197、t are also exposed to ransomware and other malicious attacks that can disrupt business operations.Although the Company takes steps to secure confidential information that is provided to or accessible by third parties working on the Companys behalf,such measures are not always effective and losses or

198、 unauthorized access to,or releases of,confidential information occur.Such incidents and other malicious attacks could materially adversely affect the Companys business,reputation,results of operations and financial condition.The Company experiences malicious attacks and other attempts to gain unaut

199、horized access to its systems on a regular basis.These attacks seek to compromise the confidentiality,integrity or availability of confidential information or disrupt normal business operations,and can,among other things,impair the Companys ability to attract and retain customers for its products an

200、d services,impact the Companys stock price,materially damage commercial relationships,and expose the Company to litigation or government investigations,which could result in penalties,fines or judgments against the Company.Globally,attacks are expected to continue accelerating in both frequency and

201、sophistication with increasing use by actors of tools and techniques that are designed to circumvent controls,avoid detection,and remove or obfuscate forensic evidence,all of which hinders the Companys ability to identify,investigate and recover from incidents.In addition,attacks against the Company

202、 and its customers can escalate during periods of severe diplomatic or armed conflict.Although malicious attacks perpetrated to gain access to confidential information,including personal information,affect many companies across various industries,the Company is at a relatively greater risk of being

203、targeted because of its high profile and the value of the confidential information it creates,owns,manages,stores and processes.The Company has implemented systems and processes intended to secure its information technology systems and prevent unauthorized access to or loss of sensitive data,and mit

204、igate the impact of unauthorized access,including through the use of encryption and authentication technologies.As with all companies,these security measures may not be sufficient for all eventualities and may be vulnerable to hacking,ransomware attacks,employee error,malfeasance,system error,faulty

205、 password management or other irregularities.For example,third parties can fraudulently induce the Companys or its vendors employees or customers into disclosing usernames,passwords or other sensitive information,which can,in turn,be used for unauthorized access to the Companys or its vendors system

206、s and services.To help protect customers and the Company,the Company deploys and makes available technologies like multifactor authentication,monitors its services and systems for unusual activity and may freeze accounts under suspicious circumstances,which,among other things,can result in the delay

207、 or loss of customer orders or impede customer access to the Companys products and services.While the Company maintains insurance coverage that is intended to address certain aspects of data security risks,such insurance coverage may be insufficient to cover all losses or all types of claims that ma

208、y arise.Apple Inc.|2023 Form 10-K|11Investment in new business strategies and acquisitions could disrupt the Companys ongoing business,present risks not originally contemplated and materially adversely affect the Companys business,reputation,results of operations and financial condition.The Company

209、has invested,and in the future may invest,in new business strategies or acquisitions.Such endeavors may involve significant risks and uncertainties,including distraction of management from current operations,greater-than-expected liabilities and expenses,economic,political,legal and regulatory chall

210、enges associated with operating in new businesses,regions or countries,inadequate return on capital,potential impairment of tangible and intangible assets,and significant write-offs.Investment and acquisition transactions are exposed to additional risks,including failing to obtain required regulator

211、y approvals on a timely basis or at all,or the imposition of onerous conditions that could delay or prevent the Company from completing a transaction or otherwise limit the Companys ability to fully realize the anticipated benefits of a transaction.These new ventures are inherently risky and may not

212、 be successful.The failure of any significant investment could materially adversely affect the Companys business,reputation,results of operations and financial condition.The Companys retail stores are subject to numerous risks and uncertainties.The Companys retail operations are subject to many fact

213、ors that pose risks and uncertainties and could adversely impact the Companys business,results of operations and financial condition,including macroeconomic factors that could have an adverse effect on general retail activity.Other factors include the Companys ability to:manage costs associated with

214、 retail store construction and operation;manage relationships with existing retail partners;manage costs associated with fluctuations in the value of retail inventory;and obtain and renew leases in quality retail locations at a reasonable cost.Legal and Regulatory Compliance RisksThe Companys busine

215、ss,results of operations and financial condition could be adversely impacted by unfavorable results of legal proceedings or government investigations.The Company is subject to various claims,legal proceedings and government investigations that have arisen in the ordinary course of business and have

216、not yet been fully resolved,and new matters may arise in the future.In addition,agreements entered into by the Company sometimes include indemnification provisions which can subject the Company to costs and damages in the event of a claim against an indemnified third party.The number of claims,legal

217、 proceedings and government investigations involving the Company,and the alleged magnitude of such claims,proceedings and government investigations,has generally increased over time and may continue to increase.The Company has faced and continues to face a significant number of patent claims relatin

218、g to its cellular-enabled products,and new claims may arise in the future,including as a result of new legal or regulatory frameworks.For example,technology and other patent-holding companies frequently assert their patents and seek royalties and often enter into litigation based on allegations of p

219、atent infringement or other violations of intellectual property rights.The Company is vigorously defending infringement actions in courts in several U.S.jurisdictions,as well as internationally in various countries.The plaintiffs in these actions frequently seek injunctions and substantial damages.R

220、egardless of the merit of particular claims,defending against litigation or responding to government investigations can be expensive,time-consuming and disruptive to the Companys operations.In recognition of these considerations,the Company may enter into agreements or other arrangements to settle l

221、itigation and resolve such challenges.There can be no assurance such agreements can be obtained on acceptable terms or that litigation will not occur.These agreements can also significantly increase the Companys cost of sales and operating expenses and require the Company to change its business prac

222、tices and limit the Companys ability to offer certain products and services.Except as described in Part I,Item 3 of this Form 10-K under the heading“Legal Proceedings”and in Part II,Item 8 of this Form 10-K in the Notes to Consolidated Financial Statements in Note 12,“Commitments,Contingencies and S

223、upply Concentrations”under the heading“Contingencies,”in the opinion of management,there was not at least a reasonable possibility the Company may have incurred a material loss,or a material loss greater than a recorded accrual,concerning loss contingencies for asserted legal and other claims.The ou

224、tcome of litigation or government investigations is inherently uncertain.If one or more legal matters were resolved against the Company or an indemnified third party in a reporting period for amounts above managements expectations,the Companys results of operations and financial condition for that r

225、eporting period could be materially adversely affected.Further,such an outcome can result in significant compensatory,punitive or trebled monetary damages,disgorgement of revenue or profits,remedial corporate measures or injunctive relief against the Company,and has from time to time required,and ca

226、n in the future require,the Company to change its business practices and limit the Companys ability to offer certain products and services,all of which could materially adversely affect the Companys business,reputation,results of operations and financial condition.While the Company maintains insuran

227、ce coverage for certain types of claims,such insurance coverage may be insufficient to cover all losses or all types of claims that may arise.Apple Inc.|2023 Form 10-K|12The Company is subject to complex and changing laws and regulations worldwide,which exposes the Company to potential liabilities,i

228、ncreased costs and other adverse effects on the Companys business.The Companys global operations are subject to complex and changing laws and regulations on subjects,including antitrust;privacy,data security and data localization;consumer protection;advertising,sales,billing and e-commerce;financial

229、 services and technology;product liability;intellectual property ownership and infringement;digital platforms;machine learning and artificial intelligence;internet,telecommunications and mobile communications;media,television,film and digital content;availability of third-party software applications

230、 and services;labor and employment;anticorruption;import,export and trade;foreign exchange controls and cash repatriation restrictions;antimoney laundering;foreign ownership and investment;tax;and environmental,health and safety,including electronic waste,recycling,product design and climate change.

231、Compliance with these laws and regulations is onerous and expensive.New and changing laws and regulations can adversely affect the Companys business by increasing the Companys costs,limiting the Companys ability to offer a product,service or feature to customers,imposing changes to the design of the

232、 Companys products and services,impacting customer demand for the Companys products and services,and requiring changes to the Companys supply chain and its business.New and changing laws and regulations can also create uncertainty about how such laws and regulations will be interpreted and applied.T

233、hese risks and costs may increase as the Companys products and services are introduced into specialized applications,including health and financial services.The Company has implemented policies and procedures designed to ensure compliance with applicable laws and regulations,but there can be no assu

234、rance the Companys employees,contractors or agents will not violate such laws and regulations or the Companys policies and procedures.If the Company is found to have violated laws and regulations,it could materially adversely affect the Companys business,reputation,results of operations and financia

235、l condition.Regulatory changes and other actions that materially adversely affect the Companys business may be announced with little or no advance notice and the Company may not be able to effectively mitigate all adverse impacts from such measures.For example,the Company is subject to changing regu

236、lations relating to the export and import of its products.Although the Company has programs,policies and procedures in place that are designed to satisfy regulatory requirements,there can be no assurance that such policies and procedures will be effective in preventing a violation or a claim of a vi

237、olation.As a result,the Companys products could be banned,delayed or prohibited from importation,which could materially adversely affect the Companys business,reputation,results of operations and financial condition.Expectations relating to environmental,social and governance considerations and rela

238、ted reporting obligations expose the Company to potential liabilities,increased costs,reputational harm,and other adverse effects on the Companys business.Many governments,regulators,investors,employees,customers and other stakeholders are increasingly focused on environmental,social and governance

239、considerations relating to businesses,including climate change and greenhouse gas emissions,human and civil rights,and diversity,equity and inclusion.In addition,the Company makes statements about its goals and initiatives through its various non-financial reports,information provided on its website

240、,press statements and other communications.Responding to these environmental,social and governance considerations and implementation of these goals and initiatives involves risks and uncertainties,requires investments,and depends in part on third-party performance or data that is outside the Company

241、s control.The Company cannot guarantee that it will achieve its announced environmental,social and governance goals and initiatives.In addition,some stakeholders may disagree with the Companys goals and initiatives.Any failure,or perceived failure,by the Company to achieve its goals,further its init

242、iatives,adhere to its public statements,comply with federal,state or international environmental,social and governance laws and regulations,or meet evolving and varied stakeholder expectations and standards could result in legal and regulatory proceedings against the Company and materially adversely

243、 affect the Companys business,reputation,results of operations,financial condition and stock price.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 investigation

244、s,legal actions and penalties.From time to time,the Company has made changes to its App Store,including actions taken in response to litigation,competition,market conditions and legal and regulatory requirements.The Company expects to make further business changes in the future,including as a result

245、 of legislative initiatives impacting the App Store,such as the EU Digital Markets Act,which the Company is required to comply with by March 2024,or similar laws in other jurisdictions.Changes have included how developers communicate with consumers outside the App Store regarding alternative purchas

246、ing mechanisms.Future changes could also affect what the Company charges developers for access to its platforms,how it manages distribution of apps outside of the App Store,and how and to what extent it allows developers to communicate with consumers inside the App Store regarding alternative purcha

247、sing mechanisms.Apple Inc.|2023 Form 10-K|13The Company is also currently subject to antitrust investigations in various jurisdictions around the world,which can result in legal proceedings and claims against the Company that could,individually or in the aggregate,have a materially adverse impact on

248、 the Companys business,results of operations and financial condition.For example,the Company is the subject of investigations in Europe and other jurisdictions relating to App Store terms and conditions.If such investigations result in adverse findings against the Company,the Company could be expose

249、d to significant fines and may be required to make changes to its App Store business,all of which could materially adversely affect the Companys business,results of operations and financial condition.The Company is also subject to litigation relating to the App Store,which has resulted in changes to

250、 the Companys business practices,and may in the future result in further changes.Further,the Company has commercial relationships with other companies in the technology industry that are or may become subject to investigations and litigation that,if resolved against those other companies,could mater

251、ially adversely affect the Companys commercial relationships with those business partners and materially adversely affect the Companys business,results of operations and financial condition.For example,the Company earns revenue from licensing arrangements with other companies to offer their search s

252、ervices on the Companys platforms and applications,and certain of these arrangements are currently subject to government investigations and legal proceedings.There can be no assurance the Companys business will not be materially adversely affected,individually or in the aggregate,by the outcomes of

253、such investigations,litigation or changes to laws and regulations in the future.Changes to the Companys business practices to comply with new laws and regulations or in connection with other legal proceedings could negatively impact the reputation of the Companys products for privacy and security an

254、d otherwise adversely affect the experience for users of the Companys products and services,and result in harm to the Companys reputation,loss of competitive advantage,poor market acceptance,reduced demand for products and services,and lost sales.The Companys business is subject to a variety of U.S.

255、and international laws,rules,policies and other obligations regarding data protection.The Company is subject to an increasing number of federal,state and international laws relating to the collection,use,retention,security and transfer of various types of personal information.In many cases,these law

256、s apply not only to third-party transactions,but also restrict transfers of personal information among the Company and its international subsidiaries.Several jurisdictions have passed laws in this area,and additional jurisdictions are considering imposing additional restrictions or have laws that ar

257、e pending.These laws continue to develop and may be inconsistent from jurisdiction to jurisdiction.Complying with emerging and changing requirements causes the Company to incur substantial costs and has required and may in the future require the Company to change its business practices.Noncompliance

258、 could result in significant penalties or legal liability.The Company makes statements about its use and disclosure of personal information through its privacy policy,information provided on its website,press statements and other privacy notices provided to customers.Any failure by the Company to co

259、mply with these public statements or with other federal,state or international privacy or data protection laws and regulations could result in inquiries or proceedings against the Company by governmental entities or others.In addition to reputational impacts,penalties could include ongoing audit req

260、uirements and significant legal liability.In addition to the risks generally relating to the collection,use,retention,security and transfer of personal information,the Company is also subject to specific obligations relating to information considered sensitive under applicable laws,such as health da

261、ta,financial data and biometric data.Health data and financial data are subject to additional privacy,security and breach notification requirements,and the Company is subject to audit by governmental authorities regarding the Companys compliance with these obligations.If the Company fails to adequat

262、ely comply with these rules and requirements,or if health data or financial data is handled in a manner not permitted by law or under the Companys agreements with healthcare or financial institutions,the Company can be subject to litigation or government investigations,and can be liable for associat

263、ed investigatory expenses,and can also incur significant fees or fines.Payment card data is also subject to additional requirements.Under payment card rules and obligations,if cardholder information is potentially compromised,the Company can be liable for associated investigatory expenses and can al

264、so incur significant fees or fines if the Company fails to follow payment card industry data security standards.The Company could also experience a significant increase in payment card transaction costs or lose the ability to process payment cards if it fails to follow payment card industry data sec

265、urity standards,which could materially adversely affect the Companys business,reputation,results of operations and financial condition.Apple Inc.|2023 Form 10-K|14Financial RisksThe Company expects its quarterly net sales and results of operations to fluctuate.The Companys profit margins vary across

266、 its products,services,geographic segments and distribution channels.For example,the gross margins on the Companys products and services vary significantly and can change over time.The Companys gross margins are subject to volatility and downward pressure due to a variety of factors,including:contin

267、ued industry-wide global product pricing pressures and product pricing actions that the Company may take in response to such pressures;increased competition;the Companys ability to effectively stimulate demand for certain of its products and services;compressed product life cycles;supply shortages;p

268、otential increases in the cost of components,outside manufacturing services,and developing,acquiring and delivering content for the Companys services;the Companys ability to manage product quality and warranty costs effectively;shifts in the mix of products and services,or in the geographic,currency

269、 or channel mix,including to the extent that regulatory changes require the Company to modify its product and service offerings;fluctuations in foreign exchange rates;inflation and other macroeconomic pressures;and the introduction of new products or services,including new products or services with

270、higher cost structures.These and other factors could have a materially adverse impact on the Companys results of operations and financial condition.The Company has historically experienced higher net sales in its first quarter compared to other quarters in its fiscal year due in part to seasonal hol

271、iday demand.Additionally,new product and service introductions can significantly impact net sales,cost of sales and operating expenses.Further,the Company generates a significant portion of its net sales from a single product and a decline in demand for that product could significantly impact quarte

272、rly net sales.The Company could also be subject to unexpected developments,such as lower-than-anticipated demand for the Companys products or services,issues with new product or service introductions,information technology system failures or network disruptions,or failure of one of the Companys logi

273、stics,components supply,or manufacturing partners.The Companys financial performance is subject to risks associated with changes in the value of the U.S.dollar relative to local currencies.The Companys primary exposure to movements in foreign exchange rates relates to nonU.S.dollardenominated sales,

274、cost of sales and operating expenses worldwide.Gross margins on the Companys products in foreign countries and on products that include components obtained from foreign suppliers have in the past been adversely affected and could in the future be materially adversely affected by foreign exchange rat

275、e fluctuations.The weakening of foreign currencies relative to the U.S.dollar adversely affects the U.S.dollar value of the Companys foreign currencydenominated sales and earnings,and generally leads the Company to raise international pricing,potentially reducing demand for the Companys products.In

276、some circumstances,for competitive or other reasons,the Company may decide not to raise international pricing to offset the U.S.dollars strengthening,which would adversely affect the U.S.dollar value of the gross margins the Company earns on foreign currencydenominated sales.Conversely,a strengtheni

277、ng of foreign currencies relative to the U.S.dollar,while generally beneficial to the Companys foreign currencydenominated sales and earnings,could cause the Company to reduce international pricing or incur losses on its foreign currency derivative instruments,thereby limiting the benefit.Additional

278、ly,strengthening of foreign currencies may increase the Companys cost of product components denominated in those currencies,thus adversely affecting gross margins.The Company uses derivative instruments,such as foreign currency forward and option contracts,to hedge certain exposures to fluctuations

279、in foreign exchange rates.The use of such hedging activities may not be effective to offset any,or more than a portion,of the adverse financial effects of unfavorable movements in foreign exchange rates over the limited time the hedges are in place.The Company is exposed to credit risk and fluctuati

280、ons in the values of its investment portfolio.The Companys investments can be negatively affected by changes in liquidity,credit deterioration,financial results,market and economic conditions,political risk,sovereign risk,interest rate fluctuations or other factors.As a result,the value and liquidit

281、y of the Companys cash,cash equivalents and marketable securities may fluctuate substantially.Therefore,although the Company has not realized any significant losses on its cash,cash equivalents and marketable securities,future fluctuations in their value could result in significant losses and could

282、have a material adverse impact on the Companys results of operations and financial condition.Apple Inc.|2023 Form 10-K|15The 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 heighte

283、ned during periods when economic conditions worsen.The Company distributes its products and certain of its services through third-party cellular network carriers,wholesalers,retailers and resellers.The Company also sells its products and services directly to small and mid-sized businesses and educat

284、ion,enterprise and government customers.A substantial majority of the Companys outstanding trade receivables are not covered by collateral,third-party bank support or financing arrangements,or credit insurance,and a significant portion of the Companys trade receivables can be concentrated within cel

285、lular network carriers or other resellers.The Companys exposure to credit and collectibility risk on its trade receivables is higher in certain international markets and its ability to mitigate such risks may be limited.The Company also has unsecured vendor non-trade receivables resulting from purch

286、ases of components by outsourcing partners and other vendors that manufacture subassemblies or assemble final products for the Company.In addition,the Company has made prepayments associated with long-term supply agreements to secure supply of inventory components.As of September30,2023,the Companys

287、 vendor non-trade receivables and prepayments related to long-term supply agreements were concentrated among a few individual vendors located primarily in Asia.While the Company has procedures to monitor and limit exposure to credit risk on its trade and vendor non-trade receivables,as well as long-

288、term prepayments,there can be no assurance such procedures will effectively limit its credit risk and avoid losses.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.The Company is subject to taxes in the

289、 U.S.and numerous foreign jurisdictions,including Ireland and Singapore,where a number of the Companys subsidiaries are organized.Due to economic and political conditions,tax laws and tax rates for income taxes and other non-income taxes in various jurisdictions may be subject to significant change.

290、For example,the Organisation for Economic Co-operation and Development continues to advance proposals for modernizing international tax rules,including the introduction of global minimum tax standards.The Companys effective tax rates are affected by changes in the mix of earnings in countries with d

291、iffering statutory tax rates,changes in the valuation of deferred tax assets and liabilities,the introduction of new taxes,and changes in tax laws or their interpretation.The application of tax laws may be uncertain,require significant judgment and be subject to differing interpretations.The Company

292、 is also subject to the examination of its tax returns and other tax matters by the U.S.Internal Revenue Service and other tax authorities and governmental bodies.The Company regularly assesses the likelihood of an adverse outcome resulting from these examinations to determine the adequacy of its pr

293、ovision for taxes.There can be no assurance as to the outcome of these examinations.If the Companys effective tax rates were to increase,or if the ultimate determination of the Companys taxes owed is for an amount in excess of amounts previously accrued,the Companys business,results of operations an

294、d financial condition could be materially adversely affected.General RisksThe price of the Companys stock is subject to volatility.The Companys stock has experienced substantial price volatility in the past and may continue to do so in the future.Additionally,the Company,the technology industry and

295、the stock market as a whole have,from time to time,experienced extreme stock price and volume fluctuations that have affected stock prices in ways that may have been unrelated to these companies operating performance.Price volatility may cause the average price at which the Company repurchases its s

296、tock in a given period to exceed the stocks price at a given point in time.The Company believes the price of its stock should reflect expectations of future growth and profitability.The Company also believes the price of its stock should reflect expectations that its cash dividend will continue at c

297、urrent levels or grow,and that its current share repurchase program will be fully consummated.Future dividends are subject to declaration by the Companys Board of Directors,and the Companys share repurchase program does not obligate it to acquire any specific number of shares.If the Company fails to

298、 meet expectations related to future growth,profitability,dividends,share repurchases or other market expectations,the price of the Companys stock may decline significantly,which could have a material adverse impact on investor confidence and employee retention.Item 1B.Unresolved Staff CommentsNone.

299、Item 1C.CybersecurityNot applicable.Apple Inc.|2023 Form 10-K|16Item 2.PropertiesThe Companys headquarters is located in Cupertino,California.As of September30,2023,the Company owned or leased facilities and land for corporate functions,R&D,data centers,retail and other purposes at locations through

300、out the U.S.and in various places outside the U.S.The Company believes its existing facilities and equipment,which are used by all reportable segments,are in good operating condition and are suitable for the conduct of its business.Item 3.Legal ProceedingsEpic GamesEpic Games,Inc.(“Epic”)filed a law

301、suit in the U.S.District Court for the Northern District of California(the“District Court”)against the Company alleging violations of federal and state antitrust laws and Californias unfair competition law based upon the Companys operation of its App Store.On September 10,2021,the District Court rul

302、ed in favor of the Company with respect to nine out of the ten counts included in Epics claim.The District Court found that certain provisions of the Companys App Store Review Guidelines violate Californias unfair competition law and issued an injunction enjoining the Company from prohibiting develo

303、pers from including in their apps external links that direct customers to purchasing mechanisms other than Apple in-app purchasing.The injunction applies to apps on the U.S.storefront of the iOS and iPadOS App Store.On April 24,2023,the U.S.Court of Appeals for the Ninth Circuit(the“Circuit Court”)a

304、ffirmed the District Courts ruling.On June 7,2023,the Company and Epic filed petitions with the Circuit Court requesting further review of the decision.On June 30,2023,the Circuit Court denied both petitions.On July 17,2023,the Circuit Court granted Apples motion to stay enforcement of the injunctio

305、n pending appeal to the U.S.Supreme Court.If the U.S.Supreme Court denies Apples petition,the stay of the injunction will expire.MasimoMasimo Corporation and Cercacor Laboratories,Inc.(together,“Masimo”)filed a complaint before the U.S.International Trade Commission(the“ITC”)alleging infringement by

306、 the Company of five patents relating to the functionality of the blood oxygen feature in Apple Watch Series 6 and 7.In its complaint,Masimo sought a permanent exclusion order prohibiting importation to the United States of certain Apple Watch models that include blood oxygen sensing functionality.O

307、n October 26,2023,the ITC entered a limited exclusion order(the“Order”)prohibiting importation and sales in the United States of Apple Watch models with blood oxygen sensing functionality,which includes Apple Watch Series 9 and Ultra 2.The Order will not go into effect until the end of the administr

308、ative review period,which is currently expected to end on December 25,2023.The Company intends to appeal the Order and seek a stay pending the appeal.Other Legal ProceedingsThe Company is subject to other legal proceedings and claims that have not been fully resolved and that have arisen in the ordi

309、nary course of business.The Company settled certain matters during the fourth quarter of 2023 that did not individually or in the aggregate have a material impact on the Companys financial condition or operating results.The outcome of litigation is inherently uncertain.If one or more legal matters w

310、ere resolved against the Company in a reporting period for amounts above managements expectations,the Companys financial condition and operating results for that reporting period could be materially adversely affected.Item 4.Mine Safety DisclosuresNot applicable.Apple Inc.|2023 Form 10-K|17PART IIIt

311、em 5.Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of Equity SecuritiesThe Companys common stock is traded on The Nasdaq Stock Market LLC under the symbol AAPL.HoldersAs of October20,2023,there were 23,763 shareholders of record.Purchases of Equity Securities

312、by the Issuer and Affiliated PurchasersShare repurchase activity during the three months ended September30,2023 was as follows(in millions,except number of shares,which are reflected in thousands,and per-share amounts):PeriodsTotal Numberof Shares PurchasedAverage PricePaid Per ShareTotal Number of

313、SharesPurchased as Part of PubliclyAnnounced Plans or ProgramsApproximate Dollar Value ofShares That May Yet Be PurchasedUnder the Plans or Programs(1)July 2,2023 to August 5,2023:Open market and privately negotiated purchases 33,864$191.62 33,864 August 6,2023 to September 2,2023:August 2023 ASRs 2

314、2,085(2)(2)22,085(2)Open market and privately negotiated purchases 30,299$178.99 30,299 September 3,2023 to September 30,2023:Open market and privately negotiated purchases 20,347$176.31 20,347 Total 106,595$74,069(1)As of September30,2023,the Company was authorized by the Board of Directors to purc

315、hase up to$90 billion of the Companys common stock under a share repurchase program announced on May 4,2023,of which$15.9 billion had been utilized.During the fourth quarter of 2023,the Company also utilized the final$4.6 billion under its previous repurchase program,which was most recently authoriz

316、ed in April 2022.The programs do not obligate the Company to acquire a minimum amount of shares.Under the programs,shares may be repurchased in privately negotiated or open market transactions,including under plans complying with Rule 10b5-1 under the Exchange Act.(2)In August 2023,the Company enter

317、ed into new accelerated share repurchase agreements(“ASRs”).Under the terms of the ASRs,two financial institutions committed to deliver shares of the Companys common stock during the purchase periods in exchange for up-front payments totaling$5.0 billion.The total number of shares ultimately deliver

318、ed under the ASRs,and therefore the average repurchase price paid per share,is determined based on the volume-weighted average price of the Companys common stock during the ASRs purchase periods,which end in the first quarter of 2024.Apple Inc.|2023 Form 10-K|18Company Stock PerformanceThe following

319、 graph shows a comparison of five-year cumulative total shareholder return,calculated on a dividend-reinvested basis,for the Company,the S&P 500 Index and the Dow Jones U.S.Technology Supersector Index.The graph assumes$100 was invested in each of the Companys common stock,the S&P 500 Index and the

320、Dow Jones U.S.Technology Supersector Index as of the market close on September28,2018.Past stock price performance is not necessarily indicative of future stock price performance.COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURNAmong Apple Inc.,the S&P 500 Index and the Dow Jones U.S.Technology Supersect

321、or IndexApple Inc.S&P 500 IndexDow Jones U.S.Technology Supersector Index9/28/189/28/199/26/209/25/219/24/229/30/23$0$100$200$300$400September 2018September 2019September 2020September 2021September 2022September 2023Apple Inc.$100$98$204$269$277$317 S&P 500 Index$100$104$118$161$136$160 Dow Jones U

322、.S.Technology Supersector Index$100$105$154$227$164$226 Item 6.ReservedApple Inc.|2023 Form 10-K|19Item 7.Managements Discussion and Analysis of Financial Condition and Results of OperationsThe following discussion should be read in conjunction with the consolidated financial statements and accompan

323、ying notes included in Part II,Item 8 of this Form 10-K.This Item generally discusses 2023 and 2022 items and year-to-year comparisons between 2023 and 2022.Discussions of 2021 items and year-to-year comparisons between 2022 and 2021 are not included,and can be found in“Managements Discussion and An

324、alysis of Financial Condition and Results of Operations”in Part II,Item 7 of the Companys Annual Report on Form 10-K for the fiscal year ended September24,2022.Fiscal PeriodThe Companys fiscal year is the 52-or 53-week period that ends on the last Saturday of September.An additional week is included

325、 in the first fiscal quarter every five or six years to realign the Companys fiscal quarters with calendar quarters,which occurred in the first quarter of 2023.The Companys fiscal year 2023 spanned 53 weeks,whereas fiscal years 2022 and 2021 spanned 52 weeks each.Fiscal Year HighlightsThe Companys t

326、otal net sales were$383.3 billion and net income was$97.0 billion during 2023.The Companys total net sales decreased 3%or$11.0 billion during 2023 compared to 2022.The weakness in foreign currencies relative to the U.S.dollar accounted for more than the entire year-over-year decrease in total net sa

327、les,which consisted primarily of lower net sales of Mac and iPhone,partially offset by higher net sales of Services.The Company announces new product,service and software offerings at various times during the year.Significant announcements during fiscal year 2023 included the following:First Quarter

328、 2023:iPad and iPad Pro;Next-generation Apple TV 4K;andMLS Season Pass,a Major League Soccer subscription streaming service.Second Quarter 2023:MacBook Pro 14”,MacBook Pro 16”and Mac mini;andSecond-generation HomePod.Third Quarter 2023:MacBook Air 15”,Mac Studio and Mac Pro;Apple Vision Pro,the Comp

329、anys first spatial computer featuring its new visionOS,expected to be available in early calendar year 2024;andiOS 17,macOS Sonoma,iPadOS 17,tvOS 17 and watchOS 10,updates to the Companys operating systems.Fourth Quarter 2023:iPhone 15,iPhone 15 Plus,iPhone 15 Pro and iPhone 15 Pro Max;andApple Watc

330、h Series 9 and Apple Watch Ultra 2.In May 2023,the Company announced a new share repurchase program of up to$90 billion and raised its quarterly dividend from$0.23 to$0.24 per share beginning in May 2023.During 2023,the Company repurchased$76.6 billion of its common stock and paid dividends and divi

331、dend equivalents of$15.0 billion.Macroeconomic ConditionsMacroeconomic conditions,including inflation,changes in interest rates,and currency fluctuations,have directly and indirectly impacted,and could in the future materially impact,the Companys results of operations and financial condition.Apple I

332、nc.|2023 Form 10-K|20Segment Operating PerformanceThe following table shows net sales by reportable segment for 2023,2022 and 2021(dollars in millions):2023Change2022Change2021Net sales by reportable segment:Americas$162,560 (4)%$169,658 11%$153,306 Europe 94,294 (1)%95,118 7%89,307 Greater China 72

333、,559 (2)%74,200 9%68,366 Japan 24,257 (7)%25,977 (9)%28,482 Rest of Asia Pacific 29,615 1%29,375 11%26,356 Total net sales$383,285 (3)%$394,328 8%$365,817 AmericasAmericas net sales decreased 4%or$7.1 billion during 2023 compared to 2022 due to lower net sales of iPhone and Mac,partially offset by higher net sales of Services.EuropeEurope net sales decreased 1%or$824 million during 2023 compared