Apple’s Regional Segments for Financial Reporting

My recent focus on the European Union’s DMA and the notion that, if the EU pushes too hard, Apple might pull back from sales in the EU, had me looking at how the company defines the “Europe” segment in its financial reporting. On the surface one might think that Apple’s “Europe” is just the EU plus the United Kingdom and Norway. But it’s actually much bigger than that: it’s all of Europe, Africa, the Middle East, and India. (Last I checked Africa is a pretty big continent, and India a pretty populous country.)

Today’s financial report for Q2 FY2024 got me wondering how exactly Apple defines its other regions. From their 2023 10-K (PDF):

The Company manages its business primarily on a geographic basis. The Company’s 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 Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company’s 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 of the Company’s customers and distribution partners and the unique market dynamics of each geographic region.

“Japan and Rest of Asia Pacific” are two segments, but that clause is one of those examples that exemplifies why the Oxford Comma ought to be house style everywhere — as written, sans comma, that could easily be misread as a single segment.

Thursday, 2 May 2024