Apple shows strong profitability vs industry peers

2 min read | Published on 02 Jul 2026, 03:45 PM |Updated on 07 Jul 2026, 03:33 PM

Reviewed by

Radhika SScanX News Team

Key Highlights

Apple demonstrates strong profitability metrics against its competitors in the Technology Hardware, Storage & Peripherals industry, with an ROE of 30.39% and EBITDA of $39.32 billion significantly exceeding industry averages. While its P/E ratio of 37.85 suggests potential value, the high P/B ratio indicates a premium valuation. Despite a lower debt-to-equity ratio of 0.8, Apple's revenue growth of 16.6% trails the industry average of 106.75%.

*this image is generated using AI for illustrative purposes only.

Apple has demonstrated strong profitability metrics against its competitors in the Technology Hardware, Storage & Peripherals industry, despite trailing in revenue growth. The company's Return on Equity (ROE) stands at 30.39%, which is 11.98% above the industry average, indicating efficient use of equity to generate profits. Additionally, Apple's EBITDA of $39.32 billion is 40.12x higher than the industry average, reflecting robust cash flow generation.

Financial Performance and Valuation

Apple's gross profit reached $54.78 billion, a figure 42.14x above the industry average, highlighting stronger profitability from core operations. The stock's Price to Earnings (P/E) ratio is 37.85, which is 0.36x less than the industry average, suggesting potential value. However, the Price to Book (P/B) ratio of 43.12 exceeds the industry average by 1.84x, indicating the stock may be trading at a premium in relation to its book value. The Price to Sales (P/S) ratio of 10.28 is 0.78x the industry average, implying the stock could be deemed undervalued based on its sales performance.

Comparative Financial Metrics

The following table compares Apple's key financial indicators with its primary competitors:

Company	P/E	P/B	P/S	ROE	EBITDA (in billions)	Gross Profit (in billions)	Revenue Growth
Apple Inc	37.85	43.12	10.28	30.39%	$39.32	$54.78	16.6%
SanDisk Corp	59.62	18.75	20.08	30.14%	$4.15	$4.66	251.03%
Seagate Technology Holdings PLC	82.38	179.40	17.76	96.27%	$1.0	$1.45	44.07%
Western Digital Corp	34.56	20.56	18.45	37.73%	$3.49	$1.68	45.47%
Hewlett Packard Enterprise Co	40.33	2.26	1.49	2.38%	$1.7	$3.9	40.0%
NetApp Inc	25.76	23.72	4.75	32.2%	$0.59	$1.36	12.47%
Everpure Inc	117.77	17.92	6.86	1.67%	$0.07	$0.72	35.25%
IonQ Inc	125.31	3.67	82.52	17.93%	$-0.23	$0.02	754.72%
Super Micro Computer Inc	14.31	2.32	0.54	6.64%	$0.7	$1.02	122.68%
Logitech International SA	20.29	6.32	2.98	6.31%	$0.16	$0.48	7.44%
Diebold Nixdorf Inc	29.02	2.85	0.80	0.47%	$0.07	$0.21	6.03%
Corsair Gaming Inc	100.67	1.50	0.66	1.85%	$0.03	$0.12	-4.12%
Turtle Beach Corp	619	2.20	0.84	-12.65%	$-0.01	$0.01	-34.0%
Average	105.75	23.46	13.14	18.41%	$0.98	$1.3	106.75%

Debt-to-Equity Analysis

Apple maintains a relatively stronger financial position compared to its top four peers, evidenced by a lower debt-to-equity ratio of 0.8. This implies the company relies less on debt financing and maintains a more favorable balance between debt and equity, reducing financial risk associated with its capital structure.

How will Apple's strategy evolve to address the significant revenue growth gap compared to competitors like SanDisk and IonQ?

Can Apple sustain its high ROE and EBITDA margins if market saturation impacts hardware sales in the coming years?

What impact will Apple's low debt-to-equity ratio have on its ability to pursue acquisitions or R&D investments compared to more leveraged peers?

Supreme Court to hear Apple appeal in Epic Games app store fee battle

1 min read | Published on 01 Jul 2026, 02:02 AM |Updated on 02 Jul 2026, 01:34 AM

Reviewed by

Naman SScanX News Team

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Key Highlights

The U.S. Supreme Court agreed to hear Apple's appeal of a contempt ruling in its antitrust dispute with Epic Games. The core issue is Apple's 27% fee on external payment links, which Epic argues violates a 2021 injunction. Apple claims it complied and that the order should not apply beyond Epic. Oral arguments are set for October.

*this image is generated using AI for illustrative purposes only.

The U.S. Supreme Court has agreed to hear Apple's appeal of a contempt ruling tied to its long-running antitrust battle with Epic Games. The dispute centers on Apple's compliance with a 2021 injunction requiring the company to allow developers to link to alternative payment systems. At issue is Apple's policy of imposing a 27% fee on purchases made through those external links, compared to its standard 30% App Store commission.

The case stems from Epic Games' 2020 lawsuit challenging Apple's control over iOS in-app payments. While Apple largely won the underlying case, U.S. District Judge Yvonne Gonzalez Rogers found the company in civil contempt for failing to fully comply with the order to allow external payment options. An appeals court upheld the contempt ruling, leading to the current Supreme Court review.

Apple denies violating the injunction and argues the order should not extend beyond Epic Games. The company has asked the court to pause enforcement of the contempt label, calling it "erroneous and prejudicial" while the appeal is considered. Apple stated in court filings that global regulators are closely watching the case as they weigh app store commission structures in other major markets.

Epic Games contends that the 27% fee structure on external links still violates the injunction. A spokesperson for Epic Games stated that lower courts have rightly found Apple's fees to be illegal and anticompetitive. Epic CEO Tim Sweeney has urged regulators in the EU, U.K., and other jurisdictions to take stronger action, arguing the case could redefine digital marketplace fees beyond the U.S.

Oral arguments are expected in the Supreme Court's next term starting in October. The outcome of the case could have significant implications for how digital marketplaces handle payment processing and commission structures globally.