Apple reports first quarter results

Installed base crosses 2 billion active devices and hits all-time high for all major product categories

Services set new all-time revenue record

Apple® today announced financial results for its fiscal 2023 first quarter ended December 31, 2022. The Company posted quarterly revenue of $117.2 billion, down 5 percent year over year, and quarterly earnings per diluted share of $1.88.

"As we all continue to navigate a challenging environment, we are proud to have our best lineup of products and services ever, and as always, we remain focused on the long term and are leading with our values in everything we do," said Tim Cook, Apple's CEO. "During the December quarter, we achieved a major milestone and are excited to report that we now have more than 2 billion active devices as part of our growing installed base."

"We set an all-time revenue record of $20.8 billion in our Services business, and in spite of a difficult macroeconomic environment and significant supply constraints, we grew total company revenue on a constant currency basis," said Luca Maestri, Apple's CFO. "We generated $34 billion in operating cash flow and returned over $25 billion to shareholders during the quarter while continuing to invest in our long-term growth plans."

Apple's board of directors has declared a cash dividend of $0.23 per share of the Company's common stock. The dividend is payable on February 16, 2023 to shareholders of record as of the close of business on February 13, 2023.

Apple will provide live streaming of its Q1 2023 financial results conference call beginning at 2:00 p.m. PT on February 2, 2023 at apple.com/investor/earnings-call . This webcast will be available for replay for approximately two weeks thereafter.

Apple periodically provides information for investors on its corporate website, apple.com , and its investor relations website, investor.apple.com . This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about the payment of the Company's quarterly dividend, its installed base growth, and its long-term plans. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: effects of global and regional economic conditions, including as a result of government policies, war, terrorism, natural disasters, and public health issues; risks relating to the design, manufacture, introduction, and transition of products and services in highly competitive and rapidly changing markets, including from reliance on third parties for components, technology, manufacturing, applications, and content; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; and effects of unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. More information on these risks and other potential factors that could affect the Company's business, reputation, results of operations, financial condition, and stock price is included in the Company's filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple's five software platforms — iOS, iPadOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple's more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

NOTE TO EDITORS: For additional information visit Apple Newsroom ( www.apple.com/newsroom ), or call Apple's Media Helpline at (408) 974-2042.


Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)

	Three Months Ended
	December 31, 2022			December 25, 2021
Net sales:
Products	$	96,388		$	104,429
Services		20,766			19,516
Total net sales ⁽¹⁾		117,154			123,945
Cost of sales:
Products		60,765			64,309
Services		6,057			5,393
Total cost of sales		66,822			69,702
Gross margin		50,332			54,243

Operating expenses:
Research and development		7,709			6,306
Selling, general and administrative		6,607			6,449
Total operating expenses		14,316			12,755

Operating income		36,016			41,488
Other income/(expense), net		(393	)		(247	)
Income before provision for income taxes		35,623			41,241
Provision for income taxes		5,625			6,611
Net income	$	29,998		$	34,630

Earnings per share:
Basic	$	1.89		$	2.11
Diluted	$	1.88		$	2.10
Shares used in computing earnings per share:
Basic		15,892,723			16,391,724
Diluted		15,955,718			16,519,291

⁽¹⁾ Net sales by reportable segment:
Americas	$	49,278		$	51,496
Europe		27,681			29,749
Greater China		23,905			25,783
Japan		6,755			7,107
Rest of Asia Pacific		9,535			9,810
Total net sales	$	117,154		$	123,945

⁽¹⁾ Net sales by category:
iPhone	$	65,775		$	71,628
Mac		7,735			10,852
iPad		9,396			7,248
Wearables, Home and Accessories		13,482			14,701
Services		20,766			19,516
Total net sales	$	117,154		$	123,945

Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands and par value)

	December 31, 2022			September 24, 2022
ASSETS:
Current assets:
Cash and cash equivalents	$	20,535		$	23,646
Marketable securities		30,820			24,658
Accounts receivable, net		23,752			28,184
Inventories		6,820			4,946
Vendor non-trade receivables		30,428			32,748
Other current assets		16,422			21,223
Total current assets		128,777			135,405

Non-current assets:
Marketable securities		114,095			120,805
Property, plant and equipment, net		42,951			42,117
Other non-current assets		60,924			54,428
Total non-current assets		217,970			217,350
Total assets	$	346,747		$	352,755

LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable	$	57,918		$	64,115
Other current liabilities		59,893			60,845
Deferred revenue		7,992			7,912
Commercial paper		1,743			9,982
Term debt		9,740			11,128
Total current liabilities		137,286			153,982

Non-current liabilities:
Term debt		99,627			98,959
Other non-current liabilities		53,107			49,142
Total non-current liabilities		152,734			148,101
Total liabilities		290,020			302,083

Commitments and contingencies

Shareholders' equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,842,407 and 15,943,425 shares issued and outstanding, respectively		66,399			64,849
Retained earnings/(Accumulated deficit)		3,240			(3,068	)
Accumulated other comprehensive income/(loss)		(12,912	)		(11,109	)
Total shareholders' equity		56,727			50,672
Total liabilities and shareholders' equity	$	346,747		$	352,755

Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)

	Three Months Ended
	December 31, 2022			December 25, 2021
Cash, cash equivalents and restricted cash, beginning balances	$	24,977		$	35,929
Operating activities:
Net income		29,998			34,630
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization		2,916			2,697
Share-based compensation expense		2,905			2,265
Other		(317	)		849
Changes in operating assets and liabilities:
Accounts receivable, net		4,275			(3,934	)
Inventories		(1,807	)		681
Vendor non-trade receivables		2,320			(9,812	)
Other current and non-current assets		(4,099	)		(4,921	)
Accounts payable		(6,075	)		19,813
Deferred revenue		131			462
Other current and non-current liabilities		3,758			4,236
Cash generated by operating activities		34,005			46,966
Investing activities:
Purchases of marketable securities		(5,153	)		(34,913	)
Proceeds from maturities of marketable securities		7,127			11,309
Proceeds from sales of marketable securities		509			10,675
Payments for acquisition of property, plant and equipment		(3,787	)		(2,803	)
Other		(141	)		(374	)
Cash used in investing activities		(1,445	)		(16,106	)
Financing activities:
Payments for taxes related to net share settlement of equity awards		(2,316	)		(2,888	)
Payments for dividends and dividend equivalents		(3,768	)		(3,732	)
Repurchases of common stock		(19,475	)		(20,478	)
Repayments of term debt		(1,401	)		—
Repayments of commercial paper, net		(8,214	)		(1,000	)
Other		(389	)		(61	)
Cash used in financing activities		(35,563	)		(28,159	)
Increase/(Decrease) in cash, cash equivalents and restricted cash		(3,003	)		2,701
Cash, cash equivalents and restricted cash, ending balances	$	21,974		$	38,630
Supplemental cash flow disclosure:
Cash paid for income taxes, net	$	828		$	5,235
Cash paid for interest	$	703		$	531

View source version on businesswire.com: https://www.businesswire.com/news/home/20230202005816/en/

Press Contact:
Josh Rosenstock
Apple
jrosenstock@apple.com
(408) 862-1142

Investor Relations Contact:
Tejas Gala
Apple
tgala@apple.com
(669) 227-2402

News Provided by Business Wire via QuoteMedia

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Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and per-share amounts)

	Three Months Ended					Nine Months Ended
	June 29, 2024		July 1, 2023			June 29, 2024		July 1, 2023
Net sales:
Products	$	61,564	$	60,584		$	224,908	$	230,901
Services		24,213		21,213			71,197		62,886
Total net sales ⁽¹⁾		85,777		81,797			296,105		293,787
Cost of sales:
Products		39,803		39,136			140,667		146,696
Services		6,296		6,248			18,634		18,370
Total cost of sales		46,099		45,384			159,301		165,066
Gross margin		39,678		36,413			136,804		128,721

Operating expenses:
Research and development		8,006		7,442			23,605		22,608
Selling, general and administrative		6,320		5,973			19,574		18,781
Total operating expenses		14,326		13,415			43,179		41,389

Operating income		25,352		22,998			93,625		87,332
Other income/(expense), net		142		(265	)		250		(594	)
Income before provision for income taxes		25,494		22,733			93,875		86,738
Provision for income taxes		4,046		2,852			14,875		12,699
Net income	$	21,448	$	19,881		$	79,000	$	74,039

Earnings per share:
Basic	$	1.40	$	1.27		$	5.13	$	4.69
Diluted	$	1.40	$	1.26		$	5.11	$	4.67
Shares used in computing earnings per share:
Basic		15,287,521		15,697,614			15,401,047		15,792,497
Diluted		15,348,175		15,775,021			15,463,175		15,859,263

⁽¹⁾ Net sales by reportable segment:
Americas	$	37,678	$	35,383		$	125,381	$	122,445
Europe		21,884		20,205			76,404		71,831
Greater China		14,728		15,758			51,919		57,475
Japan		5,097		4,821			19,126		18,752
Rest of Asia Pacific		6,390		5,630			23,275		23,284
Total net sales	$	85,777	$	81,797		$	296,105	$	293,787

⁽¹⁾ Net sales by category:
iPhone	$	39,296	$	39,669		$	154,961	$	156,778
Mac		7,009		6,840			22,240		21,743
iPad		7,162		5,791			19,744		21,857
Wearables, Home and Accessories		8,097		8,284			27,963		30,523
Services		24,213		21,213			71,197		62,886
Total net sales	$	85,777	$	81,797		$	296,105	$	293,787

Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and par value)

	June 29, 2024			September 30, 2023
ASSETS:
Current assets:
Cash and cash equivalents	$	25,565		$	29,965
Marketable securities		36,236			31,590
Accounts receivable, net		22,795			29,508
Vendor non-trade receivables		20,377			31,477
Inventories		6,165			6,331
Other current assets		14,297			14,695
Total current assets		125,435			143,566

Non-current assets:
Marketable securities		91,240			100,544
Property, plant and equipment, net		44,502			43,715
Other non-current assets		70,435			64,758
Total non-current assets		206,177			209,017
Total assets	$	331,612		$	352,583

LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable	$	47,574		$	62,611
Other current liabilities		60,889			58,829
Deferred revenue		8,053			8,061
Commercial paper		2,994			5,985
Term debt		12,114			9,822
Total current liabilities		131,624			145,308

Non-current liabilities:
Term debt		86,196			95,281
Other non-current liabilities		47,084			49,848
Total non-current liabilities		133,280			145,129
Total liabilities		264,904			290,437

Commitments and contingencies

Shareholders' equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively		79,850			73,812
Accumulated deficit		(4,726	)		(214	)
Accumulated other comprehensive loss		(8,416	)		(11,452	)
Total shareholders' equity		66,708			62,146
Total liabilities and shareholders' equity	$	331,612		$	352,583

Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)

	Nine Months Ended
	June 29, 2024			July 1, 2023
Cash, cash equivalents and restricted cash, beginning balances	$	30,737		$	24,977

Operating activities:
Net income		79,000			74,039
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization		8,534			8,866
Share-based compensation expense		8,830			8,208
Other		(1,964	)		(1,651	)
Changes in operating assets and liabilities:
Accounts receivable, net		6,697			7,609
Vendor non-trade receivables		11,100			13,111
Inventories		41			(2,570	)
Other current and non-current assets		(5,626	)		(4,863	)
Accounts payable		(15,171	)		(16,790	)
Other current and non-current liabilities		2			2,986
Cash generated by operating activities		91,443			88,945

Investing activities:
Purchases of marketable securities		(38,074	)		(20,956	)
Proceeds from maturities of marketable securities		39,838			27,857
Proceeds from sales of marketable securities		7,382			3,959
Payments for acquisition of property, plant and equipment		(6,539	)		(8,796	)
Other		(1,117	)		(753	)
Cash generated by investing activities		1,490			1,311

Financing activities:
Payments for taxes related to net share settlement of equity awards		(5,163	)		(5,119	)
Payments for dividends and dividend equivalents		(11,430	)		(11,267	)
Repurchases of common stock		(69,866	)		(56,547	)
Proceeds from issuance of term debt, net		—			5,228
Repayments of term debt		(7,400	)		(11,151	)
Repayments of commercial paper, net		(2,985	)		(5,971	)
Other		(191	)		(508	)
Cash used in financing activities		(97,035	)		(85,335	)

Increase/(Decrease) in cash, cash equivalents and restricted cash		(4,102	)		4,921
Cash, cash equivalents and restricted cash, ending balances	$	26,635		$	29,898

Supplemental cash flow disclosure:
Cash paid for income taxes, net	$	19,230		$	7,020

Apple reports first quarter results

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