Apple reports second quarter results

Services revenue reaches new all-time high

iPhone revenue sets March quarter record

Apple® today announced financial results for its fiscal 2023 second quarter ended April 1, 2023. The Company posted quarterly revenue of $94.8 billion, down 3 percent year over year, and quarterly earnings per diluted share of $1.52, unchanged year over year.

"We are pleased to report an all-time record in Services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high," said Tim Cook, Apple's CEO. "We continue to invest for the long term and lead with our values, including making major progress toward building carbon neutral products and supply chains by 2030."

"Our year-over-year business performance improved compared to the December quarter, and we generated strong operating cash flow of $28.6 billion while returning over $23 billion to shareholders during the quarter," said Luca Maestri, Apple's CFO. "Given our confidence in Apple's future and the value we see in our stock, our Board has authorized an additional $90 billion for share repurchases. We are also raising our quarterly dividend for the eleventh year in a row."

Apple's board of directors has declared a cash dividend of $0.24 per share of the Company's common stock, an increase of 4 percent. The dividend is payable on May 18, 2023 to shareholders of record as of the close of business on May 15, 2023. The board of directors has also authorized an additional program to repurchase up to $90 billion of the Company's common stock.

Apple will provide live streaming of its Q2 2023 financial results conference call beginning at 2:00 p.m. PT on May 4, 2023 at apple.com/investor/earnings-call. The 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 Company's plans for return of capital, the payment of its quarterly dividend, its installed base growth, and its investment plans and environmental initiatives. 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 email Apple's Media Helpline at media.help@apple.com .

© 2023 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

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

Six Months Ended

April 1,  
2023

March 26,  
2022

April 1,  
2023

March 26,  
2022

Net sales:

Products

$

73,929

$

77,457

$

170,317

$

181,886

Services

20,907

19,821

41,673

39,337

Total net sales (1)

94,836

97,278

211,990

221,223

Cost of sales:

Products

46,795

49,290

107,560

113,599

Services

6,065

5,429

12,122

10,822

Total cost of sales

52,860

54,719

119,682

124,421

Gross margin

41,976

42,559

92,308

96,802

Operating expenses:

Research and development

7,457

6,387

15,166

12,693

Selling, general and administrative

6,201

6,193

12,808

12,642

Total operating expenses

13,658

12,580

27,974

25,335

Operating income

28,318

29,979

64,334

71,467

Other income/(expense), net

64

160

(329

)

(87

)

Income before provision for income taxes

28,382

30,139

64,005

71,380

Provision for income taxes

4,222

5,129

9,847

11,740

Net income

$

24,160

$

25,010

$

54,158

$

59,640

Earnings per share:

Basic

$

1.53

$

1.54

$

3.42

$

3.65

Diluted

$

1.52

$

1.52

$

3.41

$

3.62

Shares used in computing earnings per share:

Basic

15,787,154

16,278,802

15,839,939

16,335,263

Diluted

15,847,050

16,403,316

15,901,384

16,461,304

(1) Net sales by reportable segment:

Americas

$

37,784

$

40,882

$

87,062

$

92,378

Europe

23,945

23,287

51,626

53,036

Greater China

17,812

18,343

41,717

44,126

Japan

7,176

7,724

13,931

14,831

Rest of Asia Pacific

8,119

7,042

17,654

16,852

Total net sales

$

94,836

$

97,278

$

211,990

$

221,223

(1) Net sales by category:

iPhone

$

51,334

$

50,570

$

117,109

$

122,198

Mac

7,168

10,435

14,903

21,287

iPad

6,670

7,646

16,066

14,894

Wearables, Home and Accessories

8,757

8,806

22,239

23,507

Services

20,907

19,821

41,673

39,337

Total net sales

$

94,836

$

97,278

$

211,990

$

221,223

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions, except number of shares which are reflected in thousands and par value)

April 1,  
2023

September 24,  
2022

ASSETS:

Current assets:

Cash and cash equivalents

$

24,687

$

23,646

Marketable securities

31,185

24,658

Accounts receivable, net

17,936

28,184

Inventories

7,482

4,946

Vendor non-trade receivables

17,963

32,748

Other current assets

13,660

21,223

Total current assets

112,913

135,405

Non-current assets:

Marketable securities

110,461

120,805

Property, plant and equipment, net

43,398

42,117

Other non-current assets

65,388

54,428

Total non-current assets

219,247

217,350

Total assets

$

332,160

$

352,755

LIABILITIES AND SHAREHOLDERS' EQUITY:

Current liabilities:

Accounts payable

$

42,945

$

64,115

Other current liabilities

56,425

60,845

Deferred revenue

8,131

7,912

Commercial paper

1,996

9,982

Term debt

10,578

11,128

Total current liabilities

120,075

153,982

Non-current liabilities:

Term debt

97,041

98,959

Other non-current liabilities

52,886

49,142

Total non-current liabilities

149,927

148,101

Total liabilities

270,002

302,083

Commitments and contingencies

Shareholders' equity:

Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,723,406 and 15,943,425 shares issued and outstanding, respectively

69,568

64,849

Retained earnings/(Accumulated deficit)

4,336

(3,068

)

Accumulated other comprehensive income/(loss)

(11,746

)

(11,109

)

Total shareholders' equity

62,158

50,672

Total liabilities and shareholders' equity

$

332,160

$

352,755

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

Six Months Ended

April 1,  
2023

March 26,  
2022

Cash, cash equivalents and restricted cash, beginning balances

$

24,977

$

35,929

Operating activities:

Net income

54,158

59,640

Adjustments to reconcile net income to cash generated by operating activities:

Depreciation and amortization

5,814

5,434

Share-based compensation expense

5,591

4,517

Other

(1,732

)

1,068

Changes in operating assets and liabilities:

Accounts receivable, net

9,596

5,542

Inventories

(2,548

)

1,065

Vendor non-trade receivables

14,785

643

Other current and non-current assets

(4,092

)

(3,542

)

Accounts payable

(20,764

)

(1,750

)

Other current and non-current liabilities

1,757

2,515

Cash generated by operating activities

62,565

75,132

Investing activities:

Purchases of marketable securities

(11,197

)

(61,987

)

Proceeds from maturities of marketable securities

17,124

18,000

Proceeds from sales of marketable securities

1,897

24,668

Payments for acquisition of property, plant and equipment

(6,703

)

(5,317

)

Other

(247

)

(735

)

Cash generated by/(used in) investing activities

874

(25,371

)

Financing activities:

Payments for taxes related to net share settlement of equity awards

(2,734

)

(3,218

)

Payments for dividends and dividend equivalents

(7,418

)

(7,327

)

Repurchases of common stock

(39,069

)

(43,109

)

Repayments of term debt

(3,651

)

(3,750

)

Proceeds from/(Repayments of) commercial paper, net

(7,960

)

999

Other

(455

)

(105

)

Cash used in financing activities

(61,287

)

(56,510

)

Increase/(Decrease) in cash, cash equivalents and restricted cash

2,152

(6,749

)

Cash, cash equivalents and restricted cash, ending balances

$

27,129

$

29,180

Supplemental cash flow disclosure:

Cash paid for income taxes, net

$

4,894

$

9,301

Cash paid for interest

$

1,873

$

1,406

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

Investor Relations Contact:  
Suhasini Chandramouli
Apple
suhasini@apple.com
(408) 862-5119

News Provided by Business Wire via QuoteMedia

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