How much do depreciation assumptions change Apple Inc.'s earnings?
Gross property and equipment, depreciation and capital spending, with an alternative useful-life calculator. Cash spending is kept separate.
Depreciation against the asset base
Gross property and equipment of $125.85B against $11.70B of depreciation and amortization implies an average life of about 10.8 years (gross assets ÷ annual charge). The charge includes amortization where the company reports them together.
| Fiscal year | Gross PP&E | Net PP&E | Depreciation & amortization | Implied life (yrs) | Capital expenditure (cash) |
|---|---|---|---|---|---|
| 2020 | $103.53B | $36.77B | $11.06B | 9.4 | $7.31B |
| 2021 | $109.72B | $39.44B | $11.28B | 9.7 | $11.09B |
| 2022 | $114.46B | $42.12B | $11.10B | 10.3 | $10.71B |
| 2023 | $114.60B | $43.72B | $11.52B | 9.9 | $10.96B |
| 2024 | $119.13B | $45.68B | $11.45B | 10.4 | $9.45B |
| 2025 | $125.85B | $49.83B | $11.70B | 10.8 | $12.71B |
10-K filed 2025-10-31 · DepreciationDepletionAndAmortization
Compare an alternative useful life
A 12-year average life gives an annual charge of $10.49B instead of $11.70B. After tax at 21%, net income would be higher by $956.4M. Cash spending ($12.71B) is unchanged.
Straight-line on gross assets, no salvage value; land and construction in progress are not separated. Treat as an order-of-magnitude comparison.