Apple Reports Third Quarter Results

- July 27th, 2021

Revenue up 36 percent to new June quarter record Services revenue reaches new all-time high Apple® today announced financial results for its fiscal 2021 third quarter ended June 26, 2021. The Company posted a June quarter record revenue of $81.4 billion, up 36 percent year over year, and quarterly earnings per diluted share of $1.30. “This quarter, our teams built on a period of unmatched innovation by sharing …

Revenue up 36 percent to new June quarter record

Services revenue reaches new all-time high

Apple® today announced financial results for its fiscal 2021 third quarter ended June 26, 2021. The Company posted a June quarter record revenue of $81.4 billion, up 36 percent year over year, and quarterly earnings per diluted share of $1.30.

“This quarter, our teams built on a period of unmatched innovation by sharing powerful new products with our users, at a time when using technology to connect people everywhere has never been more important,” said Tim Cook, Apple’s CEO. “We’re continuing to press forward in our work to infuse everything we make with the values that define us — by inspiring a new generation of developers to learn to code, moving closer to our 2030 environment goal, and engaging in the urgent work of building a more equitable future.”

“Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “We generated $21 billion of operating cash flow, returned nearly $29 billion to our shareholders during the quarter, and continued to make significant investments across our business to support our long-term growth plans.”

Apple’s board of directors has declared a cash dividend of $0.22 per share of the Company’s common stock. The dividend is payable on August 12, 2021 to shareholders of record as of the close of business on August 9, 2021.

Apple will provide live streaming of its Q3 2021 financial results conference call beginning at 2:00 p.m. PT on July 27, 2021 at apple.com/investor/earnings-call . This webcast will also 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 the payment of its 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: the effect of the COVID-19 pandemic on the Company’s business, results of operations, financial condition, and stock price; the effect of global and regional economic conditions on the Company’s business, including effects on purchasing decisions by consumers and businesses; the ability of the Company to compete in markets that are highly competitive and subject to rapid technological change; the ability of the Company to manage frequent introductions and transitions of products and services, including delivering to the marketplace, and stimulating customer demand for, new products, services, and technological innovations on a timely basis; the effect that shifts in the mix of products and services and in the geographic, currency, or channel mix, component cost increases, increases in the cost of acquiring and delivering content for the Company’s services, price competition, or the introduction of new products or services, including new products or services with higher cost structures, could have on the Company’s gross margin; the dependency of the Company on the performance of distributors of the Company’s products, including cellular network carriers and other resellers; the risk of write-downs on the value of inventory and other assets and purchase commitment cancellation risk; the continued availability on acceptable terms, or at all, of certain components, services, and new technologies essential to the Company’s business, including components and technologies that may only be available from single or limited sources; the dependency of the Company on manufacturing and logistics services provided by third parties, many of which are located outside of the US and which may affect the quality, quantity, or cost of products manufactured or services rendered to the Company; the effect of product and services design and manufacturing defects on the Company’s financial performance and reputation; the dependency of the Company on third-party intellectual property and digital content, which may not be available to the Company on commercially reasonable terms or at all; the dependency of the Company on support from third-party software developers to develop and maintain software applications and services for the Company’s products; the impact of unfavorable legal proceedings or government investigations; the impact of complex and changing laws and regulations worldwide, which expose the Company to potential liabilities, increased costs, and other adverse effects on the Company’s business; the ability of the Company to manage risks associated with the Company’s retail stores; the ability of the Company to manage risks associated with the Company’s investments in new business strategies and acquisitions; the impact on the Company’s business and reputation from information technology system failures, network disruptions, or losses or unauthorized access to, or release of, confidential information; the ability of the Company to comply with laws and regulations regarding data protection; the continued service and availability of key executives and employees; political events, international trade disputes, war, terrorism, natural disasters, public health issues, and other business interruptions that could disrupt supply or delivery of, or demand for, the Company’s products; financial risks, including risks relating to currency fluctuations, credit risks, and fluctuations in the market value of the Company’s investment portfolio; and changes in tax rates and exposure to additional tax liabilities. More information on these risks and other potential factors that could affect the Company’s business and financial results 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.

© 2021 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

June 26,
2021

June 27,
2020

June 26,
2021

June 27,
2020

Net sales:

Products

$

63,948

$

46,529

$

232,309

$

170,598

Services

17,486

13,156

50,148

39,219

Total net sales (1)

81,434

59,685

282,457

209,817

Cost of sales:

Products

40,899

32,693

149,476

116,089

Services

5,280

4,312

15,319

13,461

Total cost of sales

46,179

37,005

164,795

129,550

Gross margin

35,255

22,680

117,662

80,267

Operating expenses:

Research and development

5,717

4,758

16,142

13,774

Selling, general and administrative

5,412

4,831

16,357

14,980

Total operating expenses

11,129

9,589

32,499

28,754

Operating income

24,126

13,091

85,163

51,513

Other income/(expense), net

243

46

796

677

Income before provision for income taxes

24,369

13,137

85,959

52,190

Provision for income taxes

2,625

1,884

11,830

7,452

Net income

$

21,744

$

11,253

$

74,129

$

44,738

Earnings per share:

Basic

$

1.31

$

0.65

$

4.42

$

2.56

Diluted

$

1.30

$

0.65

$

4.38

$

2.54

Shares used in computing earnings per share:

Basic

16,629,371

17,250,291

16,772,656

17,450,284

Diluted

16,781,735

17,419,154

16,941,527

17,618,778

(1) Net sales by reportable segment:

Americas

$

35,870

$

27,018

$

116,486

$

93,858

Europe

18,943

14,173

68,513

51,740

Greater China

14,762

9,329

53,803

32,362

Japan

6,464

4,966

22,491

16,395

Rest of Asia Pacific

5,395

4,199

21,164

15,462

Total net sales

$

81,434

$

59,685

$

282,457

$

209,817

(1) Net sales by category:

iPhone

$

39,570

$

26,418

$

153,105

$

111,337

Mac

8,235

7,079

26,012

19,590

iPad

7,368

6,582

23,610

16,927

Wearables, Home and Accessories

8,775

6,450

29,582

22,744

Services

17,486

13,156

50,148

39,219

Total net sales

$

81,434

$

59,685

$

282,457

$

209,817

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

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

June 26,
2021

September 26,
2020

ASSETS:

Current assets:

Cash and cash equivalents

$

34,050

$

38,016

Marketable securities

27,646

52,927

Accounts receivable, net

17,475

16,120

Inventories

5,178

4,061

Vendor non-trade receivables

16,433

21,325

Other current assets

13,641

11,264

Total current assets

114,423

143,713

Non-current assets:

Marketable securities

131,948

100,887

Property, plant and equipment, net

38,615

36,766

Other non-current assets

44,854

42,522

Total non-current assets

215,417

180,175

Total assets

$

329,840

$

323,888

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:

Accounts payable

$

40,409

$

42,296

Other current liabilities

43,625

42,684

Deferred revenue

7,681

6,643

Commercial paper

8,000

4,996

Term debt

8,039

8,773

Total current liabilities

107,754

105,392

Non-current liabilities:

Term debt

105,752

98,667

Other non-current liabilities

52,054

54,490

Total non-current liabilities

157,806

153,157

Total liabilities

265,560

258,549

Commitments and contingencies

Shareholders’ equity:

Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,556,942 and 16,976,763 shares issued and outstanding, respectively

54,989

50,779

Retained earnings

9,233

14,966

Accumulated other comprehensive income/(loss)

58

(406)

Total shareholders’ equity

64,280

65,339

Total liabilities and shareholders’ equity

$

329,840

$

323,888

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

Nine Months Ended

June 26,
2021

June 27,
2020

Cash, cash equivalents and restricted cash, beginning balances

$

39,789

$

50,224

Operating activities:

Net income

74,129

44,738

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

Depreciation and amortization

8,295

8,354

Share-based compensation expense

5,961

5,105

Deferred income tax expense/(benefit)

(737)

182

Other

(689)

(94)

Changes in operating assets and liabilities:

Accounts receivable, net

(1,316)

5,149

Inventories

(1,213)

10

Vendor non-trade receivables

4,892

8,685

Other current and non-current assets

(5,899)

(6,760)

Accounts payable

(1,786)

(10,787)

Deferred revenue

1,738

1,649

Other current and non-current liabilities

463

3,867

Cash generated by operating activities

83,838

60,098

Investing activities:

Purchases of marketable securities

(94,052)

(96,606)

Proceeds from maturities of marketable securities

49,880

54,865

Proceeds from sales of marketable securities

36,745

39,760

Payments for acquisition of property, plant and equipment

(7,862)

(5,525)

Payments made in connection with business acquisitions, net

(13)

(1,473)

Other

(78)

(841)

Cash used in investing activities

(15,380)

(9,820)

Financing activities:

Proceeds from issuance of common stock

561

430

Payments for taxes related to net share settlement of equity awards

(5,855)

(3,234)

Payments for dividends and dividend equivalents

(10,827)

(10,570)

Repurchases of common stock

(66,223)

(55,171)

Proceeds from issuance of term debt, net

13,923

10,635

Repayments of term debt

(7,500)

(12,629)

Proceeds from commercial paper, net

3,022

31

Proceeds from repurchase agreements

5,165

Other

(72)

(120)

Cash used in financing activities

(72,971)

(65,463)

Decrease in cash, cash equivalents and restricted cash

(4,513)

(15,185)

Cash, cash equivalents and restricted cash, ending balances

$

35,276

$

35,039

Supplemental cash flow disclosure:

Cash paid for income taxes, net

$

18,536

$

8,410

Cash paid for interest

$

1,870

$

2,275

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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