Apple's two risks live inside its two strengths: more than half its revenue is the iPhone, built mostly in Asia — and its richest engine, Services, is the part regulators are prying open.
↓ the brief below
Concentration · iPhone share of revenue
51
%
$57.0B of Apple's $111.2B came from a single product line. When one device is half the company, that device is the risk.
Source · 8-K · Item 2.02 — net sales by category · Q2 FY26 · Filed Apr 30, 2026
From the 10-K · where it's built
The Company's hardware products are manufactured by outsourcing partners that are located primarily in China mainland, India, Japan, South Korea, Taiwan and Vietnam.
↳ Half the revenue is one phone — and nearly all of Apple's hardware is assembled in Asia. Tariffs or a regional disruption land right on the core of the business.
Source · 10-K · Business / Risk Factors — manufacturing & supplier concentration · FY2025 · Filed Oct 31, 2025
✦ Teach me
When the rules force a business to change
Apple's Services profit leans on the App Store — and on Apple's commission on sales made through it. New laws and court orders are forcing Apple to allow other payment methods, which can chip away at that high-margin take.
Wall Street calls this
Regulatory / antitrust risk
The 77¢ Services margin from Chapter 3 is exactly what's under pressure.
From the 10-K · the regulators
On March 25, 2024, the Commission announced that it had opened a formal noncompliance investigation against the Company under Article 5(4) of the EU DMA. The Company is also subject to a court order preventing it from imposing any commission or fee on certain purchases that consumers make.
↳ In English: the law is reaching into the App Store's economics — the engine with the fattest margins. That's the bet you're weighing.
Source · 10-K · Legal Proceedings — Digital Markets Act & App Store · FY2025 · Filed Oct 31, 2025
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Watch
Half the revenue is one phone built in Asia; the richest engine faces regulators.