Apple Inc. AAPL

Competitive advantage analysis · technology

Corporate Default
Overall moat score
84/100
Strong

Ranked against 18 peers in Consumer Electronics

About Apple Inc.

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple Vision Pro, Apple TV, Apple Watch, Beats products, and HomePod, as well as Apple branded and third-party accessories. … Full AAPL analysis →

Key strengths

  • Margins Consistently Above Peers Gross margin at 46.9% (top 0%) and operating margin at 32.0% (top 0%) indicate strong pricing power.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 1.00), demonstrating pricing resilience across cycles.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.29), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

Select any axis label to open that defense below.

Pricing Power

Strong
100

Ability to maintain or raise prices without losing volume

Key signals
Margin Level 100/100
Operating Margin
32.0% vs -11.6% median P100
Gross Profit Margin
46.9% vs 18.7% median P100
Margin Stability 100/100
Operating Margin
— vs 11.1% median
STRENGTHS
  • Margins Consistently Above Peers Gross margin at 46.9% (top 0%) and operating margin at 32.0% (top 0%) indicate strong pricing power.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 1.00), demonstrating pricing resilience across cycles.

Ability to deliver products/services at lower cost than competitors

Key signals
OpEx Control 100/100
Operating Margin
32.0% vs -11.6% median P100
SG&A Efficiency 94/100
SG&A / Revenue
6.6% vs 42.8% median P94
STRENGTHS
  • Cost Leadership Position Operating margin at 100.0th percentile with strong OpEx control demonstrates cost leadership.
  • Operating Expense Control OpEx growth is controlled (score 1.00), demonstrating operating leverage.

Customer loyalty, switching costs, recurring revenue

Key signals
Revenue Stability 75/100
Rev Growth YoY
— vs 21.1% median
Cash Reliability 100/100
FCF Margin
23.7% vs -10.1% median P100
Operating Cash Flow Margin
26.8% vs -9.9% median P100
STRENGTHS
  • Revenue Growth Consistent Revenue growth volatility is low (stability score 0.75), suggesting sticky customer base.
  • Cash Generation Consistent Cash generation is consistent (score 1.00), indicating reliable business model.

Returns on invested capital; how well the company deploys capital

Key signals
ROIC vs WACC Spread 94/100
ROE
171.4% vs -12.4% median P94
ROIC
64.8% vs -8.1% median P94
Return Durability 38/100
ROE
— vs 24.1% median
STRENGTHS
  • ROIC Sustainably Above Peers ROIC at 93.8th percentile exceeds peers and WACC, demonstrating superior capital allocation.

Financial strength, debt serviceability, ability to weather downturns

Key signals
Debt Serviceability 66/100
Net Debt/EBITDA
0.43x vs -0.91x median P38
Interest Coverage Ratio
29.06 vs -11.25 median P94
Liquidity Buffer 29/100
Current Ratio
0.89x vs 1.43x median P29
Cash Generation 100/100
FCF Margin
23.7% vs -10.1% median P100
Operating Cash Flow Margin
26.8% vs -9.9% median P100
STRENGTHS
  • Consistent Cash Generation Cash generation is strong and consistent (score 1.00).
RISKS
  • Liquidity Concerns Liquidity is concerning (score 0.29), raising questions about short-term obligations.

Market share, brand strength, distribution network

Key signals
Profitability at Scale 100/100
Operating Margin
32.0% vs -11.6% median P100
Gross Profit Margin
46.9% vs 18.7% median P100
Operating Leverage 76/100
Operating Margin
— vs -3.3% median
STRENGTHS
  • Scale Supporting Profitability Profitability at scale is strong (score 1.00), demonstrating competitive advantages.
  • Operating Leverage in Effect Operating leverage is evident (score 0.76), with margins expanding over time.

Where AAPL ranks in Consumer Electronics

Apple Inc. ranks #1 of 19 scored companies in Consumer Electronics by moat score — the top 5%. That makes it the widest moat in the group.

# Company Moat score Rating
1 Apple Inc. AAPL 84/100 Strong
2 Sony Group Corporation SONY 81/100 Strong
3 Turtle Beach Corporation TBCH 70/100 Moderate
4 Universal Electronics Inc. UEIC 64/100 Moderate
5 Sonos, Inc. SONO 63/100 Moderate
6 LG Display Co, Ltd AMERICAN DEP LPL 62/100 Moderate
7 Fenbo Holdings Limited FEBO 57/100 Moderate
8 Zepp Health Corporation ZEPP 55/100 Moderate
9 Koss Corporation KOSS 54/100 Moderate

See every General Corporate company ranked by moat score →

How AAPL scores on the Corporate Default defenses

Pricing Power

Score 100 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 97 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 86 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 69 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 62 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 87 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding AAPL's moat

What is Apple Inc.'s moat score?

Apple Inc. (AAPL) scores 84 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #1 of 19 scored companies in Consumer Electronics, the top 5%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 18 companies in Consumer Electronics. Its strongest defense is Pricing Power (100/100) and its weakest is Resilience (62/100).

How does Apple Inc. compare with other Consumer Electronics companies?

Apple Inc. ranks #1 of 19 scored companies in Consumer Electronics by moat score. That is the widest moat in Consumer Electronics. The companies ranked closest are Sony Group Corporation (SONY) at 81 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 18 companies in Consumer Electronics. The defenses are then weighted to produce the overall score out of 100.

Why is Apple Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Apple Inc.?

The Corporate Default template measures 6 defenses, and AAPL scores: Pricing Power (100), Cost Advantage (97), Customer Stickiness (86), Capital Efficiency (69), Resilience (62), Scale & Market Position (87). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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