Apple reports third quarter results

Services revenue reaches new all-time high

Installed base of active devices sets all-time record

Apple® today announced financial results for its fiscal 2023 third quarter ended July 1, 2023. The Company posted quarterly revenue of $81.8 billion, down 1 percent year over year, and quarterly earnings per diluted share of $1.26, up 5 percent year over year.

"We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone," said Tim Cook, Apple's CEO. "From education to the environment, we are continuing to advance our values, while championing innovation that enriches the lives of our customers and leaves the world better than we found it."

"Our June quarter year-over-year business performance improved from the March quarter, and our installed base of active devices reached an all-time high in every geographic segment," said Luca Maestri, Apple's CFO. "During the quarter, we generated very strong operating cash flow of $26 billion, returned over $24 billion to our shareholders, and continued to invest in our long-term growth plans."

Apple's board of directors has declared a cash dividend of $0.24 per share of the Company's common stock. The dividend is payable on August 17, 2023 to shareholders of record as of the close of business on August 14, 2023.

Apple will provide live streaming of its Q3 2023 financial results conference call beginning at 2:00 p.m. PT on August 3, 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 payment of the Company's quarterly dividend. 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, which speak only as of the date they are made.

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

Nine Months Ended

July 1,  
2023

June 25,  
2022

July 1,  
2023

June 25,  
2022

Net sales:

Products

$

60,584

$

63,355

$

230,901

$

245,241

Services

21,213

19,604

62,886

58,941

Total net sales (1)

81,797

82,959

293,787

304,182

Cost of sales:

Products

39,136

41,485

146,696

155,084

Services

6,248

5,589

18,370

16,411

Total cost of sales

45,384

47,074

165,066

171,495

Gross margin

36,413

35,885

128,721

132,687

Operating expenses:

Research and development

7,442

6,797

22,608

19,490

Selling, general and administrative

5,973

6,012

18,781

18,654

Total operating expenses

13,415

12,809

41,389

38,144

Operating income

22,998

23,076

87,332

94,543

Other income/(expense), net

(265

)

(10

)

(594

)

(97

)

Income before provision for income taxes

22,733

23,066

86,738

94,446

Provision for income taxes

2,852

3,624

12,699

15,364

Net income

$

19,881

$

19,442

$

74,039

$

79,082

Earnings per share:

Basic

$

1.27

$

1.20

$

4.69

$

4.86

Diluted

$

1.26

$

1.20

$

4.67

$

4.82

Shares used in computing earnings per share:

Basic

15,697,614

16,162,945

15,792,497

16,277,824

Diluted

15,775,021

16,262,203

15,859,263

16,394,937

(1) Net sales by reportable segment:

Americas

$

35,383

$

37,472

$

122,445

$

129,850

Europe

20,205

19,287

71,831

72,323

Greater China

15,758

14,604

57,475

58,730

Japan

4,821

5,446

18,752

20,277

Rest of Asia Pacific

5,630

6,150

23,284

23,002

Total net sales

$

81,797

$

82,959

$

293,787

$

304,182

(1) Net sales by category:

iPhone

$

39,669

$

40,665

$

156,778

$

162,863

Mac

6,840

7,382

21,743

28,669

iPad

5,791

7,224

21,857

22,118

Wearables, Home and Accessories

8,284

8,084

30,523

31,591

Services

21,213

19,604

62,886

58,941

Total net sales

$

81,797

$

82,959

$

293,787

$

304,182

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

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

July 1,  
2023

September 24,  
2022

ASSETS:

Current assets:

Cash and cash equivalents

$

28,408

$

23,646

Marketable securities

34,074

24,658

Accounts receivable, net

19,549

28,184

Inventories

7,351

4,946

Vendor non-trade receivables

19,637

32,748

Other current assets

13,640

21,223

Total current assets

122,659

135,405

Non-current assets:

Marketable securities

104,061

120,805

Property, plant and equipment, net

43,550

42,117

Other non-current assets

64,768

54,428

Total non-current assets

212,379

217,350

Total assets

$

335,038

$

352,755

LIABILITIES AND SHAREHOLDERS' EQUITY:

Current liabilities:

Accounts payable

$

46,699

$

64,115

Other current liabilities

58,897

60,845

Deferred revenue

8,158

7,912

Commercial paper

3,993

9,982

Term debt

7,216

11,128

Total current liabilities

124,963

153,982

Non-current liabilities:

Term debt

98,071

98,959

Other non-current liabilities

51,730

49,142

Total non-current liabilities

149,801

148,101

Total liabilities

274,764

302,083

Commitments and contingencies

Shareholders' equity:

Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,647,868 and 15,943,425 shares issued and outstanding, respectively

70,667

64,849

Retained earnings/(Accumulated deficit)

1,408

(3,068

)

Accumulated other comprehensive income/(loss)

(11,801

)

(11,109

)

Total shareholders' equity

60,274

50,672

Total liabilities and shareholders' equity

$

335,038

$

352,755

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

Nine Months Ended

July 1,  
2023

June 25,  
2022

Cash, cash equivalents and restricted cash, beginning balances

$

24,977

$

35,929

Operating activities:

Net income

74,039

79,082

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

Depreciation and amortization

8,866

8,239

Share-based compensation expense

8,208

6,760

Other

(1,651

)

2,695

Changes in operating assets and liabilities:

Accounts receivable, net

7,609

4,561

Inventories

(2,570

)

1,049

Vendor non-trade receivables

13,111

4,789

Other current and non-current assets

(4,863

)

(3,289

)

Accounts payable

(16,790

)

(6,108

)

Other current and non-current liabilities

2,986

246

Cash generated by operating activities

88,945

98,024

Investing activities:

Purchases of marketable securities

(20,956

)

(70,178

)

Proceeds from maturities of marketable securities

27,857

24,203

Proceeds from sales of marketable securities

3,959

33,609

Payments for acquisition of property, plant and equipment

(8,796

)

(7,419

)

Other

(753

)

(1,352

)

Cash generated by/(used in) investing activities

1,311

(21,137

)

Financing activities:

Payments for taxes related to net share settlement of equity awards

(5,119

)

(5,915

)

Payments for dividends and dividend equivalents

(11,267

)

(11,138

)

Repurchases of common stock

(56,547

)

(64,974

)

Proceeds from issuance of term debt, net

5,228

Repayments of term debt

(11,151

)

(6,750

)

Proceeds from/(Repayments of) commercial paper, net

(5,971

)

4,970

Other

(508

)

(148

)

Cash used in financing activities

(85,335

)

(83,955

)

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

4,921

(7,068

)

Cash, cash equivalents and restricted cash, ending balances

$

29,898

$

28,861

Supplemental cash flow disclosure:

Cash paid for income taxes, net

$

7,020

$

12,251

Cash paid for interest

$

2,590

$

1,910

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

Investor Relations Contact:  
Saori Casey
Apple
scasey@apple.com
(408) 974-3123

News Provided by Business Wire via QuoteMedia

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