Is Apple Stock Halal? A Complete Analysis

The Short Answer

Apple stock (AAPL) is generally considered halal by most Islamic scholars and Sharia screening agencies. It passes the standard financial ratios used by Sharia boards, and its core business — consumer electronics and software — is entirely permissible.

However, like many large companies, Apple has a small amount of interest income that requires purification — a process where you donate a small percentage of your dividends to charity.

Sharia Screening Methodology

Islamic scholars use several criteria to screen stocks:

• Business activity screen: Is the company's primary business halal?
• Debt ratio: Total debt / market cap must be under 33%
• Interest income: Interest income / total revenue must be under 5%
• Haram revenue: Revenue from haram sources must be under 5%
• Receivables ratio: Total receivables / total assets must be under 49-70% (varies by board)

Apple's Business Activity

Apple's primary business is the design, manufacture, and sale of:

• iPhone, iPad, Mac computers, Apple Watch, AirPods
• Software and operating systems (iOS, macOS)
• Services (App Store, iCloud, Apple Music, Apple TV+)

None of these core activities violate Sharia principles. Apple does not engage in banking, weapons, alcohol, gambling, or adult entertainment as its primary business.

Financial Ratios (2025)

Based on Apple's most recent financial statements:

• Total Debt / Market Cap: ~8% ✅ (threshold: under 33%)
• Interest Income / Revenue: ~1.2% ✅ (threshold: under 5%)
• Haram Revenue: Minimal — small financial services ✅
• Receivables Ratio: Within limits ✅

Apple passes all four key Sharia financial screens comfortably.

Concerns to Be Aware Of

1. Interest Income (Minor)

Apple earns interest on its substantial cash reserves — approximately $67 billion in cash and short-term investments. The interest income represents about 1-2% of total revenue. Most scholars require purification of this portion of any dividends received.

Action required: Donate approximately 1-2% of any Apple dividends to charity to purify this income.

2. Apple TV+ Content

Apple TV+ is a streaming service that includes some content of a mature nature. However, since this represents a small percentage of Apple's total revenue (under 5%), most scholars still consider AAPL permissible with purification.

3. Payment Services (Apple Pay, Apple Card)

Apple Card is a credit card that charges interest to users who don't pay in full. However, Apple partners with Goldman Sachs for the actual financial product — Apple earns a fee rather than the interest itself. Still, some scholars prefer to avoid this.

Verdict from Major Screening Agencies

Apple stock is screened as compliant (halal) by:

• MSCI Islamic Index — Included ✅
• S&P 500 Sharia Index — Included ✅
• Zoya App — Compliant ✅
• Wahed Invest Sharia Board — Approved ✅
• Amana Funds (Saturna Capital) — Held in portfolio ✅

How to Invest in Apple Halal

If you want to invest in Apple while maintaining Sharia compliance:

1. Open an account with a halal broker like Wahed Invest
2. Purchase AAPL shares through a halal equity account
3. If you receive dividends, donate 1-2% to charity as purification
4. Alternatively, use Zoya app to track your purification amount automatically

Bottom Line

Apple (AAPL) is generally halal for Muslim investors. Its core business is entirely permissible, it passes all Sharia financial ratios, and it is included in major Islamic equity indices. A small purification amount (1-2% of dividends) is advisable to account for interest income.

If you're unsure, consult a qualified Islamic scholar or use tools like Zoya for ongoing screening.