Apple (Malus domestica) accounts for 50% of the world’s deciduous fruit tree production. Apple, commonly known as a temperate crop, has become a gainful cash crop for the people in south-western Uganda. The objective of the study was to determine the various costs involved and how different socio-economic factors influence production in south-western Uganda. The analysis was based on data from a research institute orchard and a survey of 136 farm households. There was positive net cash flow (US$ 2,398.5) after the fourth year. Labour was the highest cost accounting for 41.8 percent of total production costs. Organic fertiliser, farmers experience and labour were the most critical factors of production. They had a positive and significant effect, explaining 63.6 percent of the variation in apple production. Organic fertiliser had the highest elasticity (0.77), followed by labour and land with 0.28 and 0.01, respectively.