Is Apple (AAPL) Halal?
Complete 2026 AAOIFI Shariah screening with exact ratios
Verdict: Apple is Halal
Based on AAOIFI Shariah Standard 21 (Q4 2025 data)
Apple passes all three AAOIFI screening ratios. The 1.9% impure revenue requires dividend purification — donate 1.9% of dividends to charity.
Data Source: Apple Q4 2025 10-K Filing, Yahoo Finance
Breaking Down Each Ratio
Debt Ratio
Threshold: < 30%
Calculation: $112B debt ÷ $2.8T market cap = 4% (using trailing 12-month average: 14%)
Apple maintains conservative leverage. Most debt is for share buybacks, not operations.
Cash Ratio
Threshold: < 30%
Calculation: $62B cash ÷ $2.8T market cap = 2.2% (including securities: 15%)
Apple holds significant cash but it's a small fraction of market cap.
Impure Revenue
Threshold: < 5%
Calculation: ~$7B impure ÷ $383B revenue = 1.9%
Source: Apple Card interest income, some App Store content. Requires purification.
Where Does Apple's Impure Revenue Come From?
Apple's 1.9% impure revenue primarily comes from:
- 💳 Apple Card Interest: Goldman Sachs partnership earns interest on card balances
- 🎮 Gaming Revenue: Some App Store games may involve gambling mechanics
- 📺 Apple TV+ Content: Potentially non-compliant entertainment content
- 🏦 Interest on Cash: Apple earns interest on its $62B cash holdings
⚠️ Purification Required
Since Apple has 1.9% impure revenue, you must purify your returns:
Dividends: Donate 1.9% to charity (e.g., $1.90 per $100 dividend)
Capital gains: Some scholars require purification of gains too
Implications for Muslim Investors
Apple can remain in a Shariah-compliant portfolio, but there are considerations:
- ✅ Core business is halal: Consumer electronics, software, and services are permissible
- ✅ Conservative debt: 14% debt ratio is well within limits
- ⚠️ Services growth risk: If Apple Card and financial services grow faster, impure % could rise
- ⚠️ Quarterly recheck: Ratios can change with each earnings report
Historical Compliance
Apple has been Shariah-compliant for over a decade. The company's focus on hardware manufacturing (iPhones, Macs, iPads) keeps its core business halal. The main risk is the growing Services segment, which includes Apple Card and financial products.
Frequently Asked Questions
Is owning Apple stock haram?
No, Apple stock is halal based on AAOIFI standards. The company passes all three screening ratios (debt, cash, impure revenue). However, you must purify 1.9% of any dividends received.
Can I hold Apple in my halal portfolio?
Yes. Apple is included in major Islamic indices (MSCI Islamic, Dow Jones Islamic, S&P Shariah). It's one of the most widely held stocks in Shariah-compliant portfolios globally.
What happens if Apple becomes non-compliant?
If Apple's ratios exceed thresholds (e.g., impure revenue goes above 5%), scholars advise exiting the position within a reasonable time (typically 90 days). HalalSignalz monitors this quarterly.
Should I invest in Apple now?
We don't provide investment advice. This article confirms Shariah compliance only. Fundamental and technical analysis should inform your investment decision separately.
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