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Apple reports second quarter results

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Services revenue reaches new all-time high

iPhone revenue sets March quarter record

CUPERTINO, Calif.--(BUSINESS WIRE)-- 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

Source: Apple Inc.

Apple Inc.

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Apple Inc. is an American multinational technology company headquartered in Cupertino, California. Apple is the worlds largest technology company by revenue, with US$394.3 billion in 2022 revenue. As of March 2023, Apple is the worlds biggest company by market capitalization.