Answer: Apple trees need a second, different apple variety nearby for good pollination. If the flowers are not pollinated, the tiny fruit will drop off the tree. If you have only one apple tree, you will not get fruit. The holes in the leaves caused by caterpillar feeding won't stop your tree from setting fruit. Caterpillars can be controlled with a product called Bt (bacillus thuringensis) sold as Dipel. This product won't hurt your tree but it will take care of the caterpillars. Hope this answers all your questions! Good luck with your apple tree.
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