iPhone revenue sets September quarter record

Services revenue reaches new all-time high

Apple® today announced financial results for its fiscal 2023 fourth quarter ended September 30, 2023. The Company posted quarterly revenue of $89.5 billion, down 1 percent year over year, and quarterly earnings per diluted share of $1.46, up 13 percent year over year.

“Today Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in Services,” said Tim Cook, Apple’s CEO. “We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030.”

“Our active installed base of devices has again reached a new all-time high across all products and all geographic segments, thanks to the strength of our ecosystem and unparalleled customer loyalty,” said Luca Maestri, Apple’s CFO. “During the September quarter, our business performance drove double digit EPS growth and we returned nearly $25 billion to our shareholders, while continuing 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 November 16, 2023 to shareholders of record as of the close of business on November 13, 2023.

Apple will provide live streaming of its Q4 2023 financial results conference call beginning at 2:00 p.m. PT on November 2, 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 and its environmental goals and 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, 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

 

Twelve Months Ended

 

September 30, 2023

 

September 24, 2022

 

September 30, 2023

 

September 24, 2022

Net sales:

 

 

 

 

 

 

 

Products

$

67,184

 

$

70,958

 

 

$

298,085

 

 

$

316,199

 

Services

 

22,314

 

 

19,188

 

 

 

85,200

 

 

 

78,129

 

Total net sales (1)

 

89,498

 

 

90,146

 

 

 

383,285

 

 

 

394,328

 

Cost of sales:

 

 

 

 

 

 

 

Products

 

42,586

 

 

46,387

 

 

 

189,282

 

 

 

201,471

 

Services

 

6,485

 

 

5,664

 

 

 

24,855

 

 

 

22,075

 

Total cost of sales

 

49,071

 

 

52,051

 

 

 

214,137

 

 

 

223,546

 

Gross margin

 

40,427

 

 

38,095

 

 

 

169,148

 

 

 

170,782

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

7,307

 

 

6,761

 

 

 

29,915

 

 

 

26,251

 

Selling, general and administrative

 

6,151

 

 

6,440

 

 

 

24,932

 

 

 

25,094

 

Total operating expenses

 

13,458

 

 

13,201

 

 

 

54,847

 

 

 

51,345

 

 

 

 

 

 

 

 

 

Operating income

 

26,969

 

 

24,894

 

 

 

114,301

 

 

 

119,437

 

Other income/(expense), net

 

29

 

 

(237

)

 

 

(565

)

 

 

(334

)

Income before provision for income taxes

 

26,998

 

 

24,657

 

 

 

113,736

 

 

 

119,103

 

Provision for income taxes

 

4,042

 

 

3,936

 

 

 

16,741

 

 

 

19,300

 

Net income

$

22,956

 

$

20,721

 

 

$

96,995

 

 

$

99,803

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Basic

$

1.47

 

$

1.29

 

 

$

6.16

 

 

$

6.15

 

Diluted

$

1.46

 

$

1.29

 

 

$

6.13

 

 

$

6.11

 

Shares used in computing earnings per share:

 

 

 

 

 

 

 

Basic

 

15,599,434

 

 

16,030,382

 

 

 

15,744,231

 

 

 

16,215,963

 

Diluted

 

15,672,400

 

 

16,118,465

 

 

 

15,812,547

 

 

 

16,325,819

 

 

 

 

 

 

 

 

 

(1) Net sales by reportable segment:

 

 

 

 

 

 

 

Americas

$

40,115

 

$

39,808

 

 

$

162,560

 

 

$

169,658

 

Europe

 

22,463

 

 

22,795

 

 

 

94,294

 

 

 

95,118

 

Greater China

 

15,084

 

 

15,470

 

 

 

72,559

 

 

 

74,200

 

Japan

 

5,505

 

 

5,700

 

 

 

24,257

 

 

 

25,977

 

Rest of Asia Pacific

 

6,331

 

 

6,373

 

 

 

29,615

 

 

 

29,375

 

Total net sales

$

89,498

 

$

90,146

 

 

$

383,285

 

 

$

394,328

 

 

 

 

 

 

 

 

 

(1) Net sales by category:

 

 

 

 

 

 

 

iPhone

$

43,805

 

$

42,626

 

 

$

200,583

 

 

$

205,489

 

Mac

 

7,614

 

 

11,508

 

 

 

29,357

 

 

 

40,177

 

iPad

 

6,443

 

 

7,174

 

 

 

28,300

 

 

 

29,292

 

Wearables, Home and Accessories

 

9,322

 

 

9,650

 

 

 

39,845

 

 

 

41,241

 

Services

 

22,314

 

 

19,188

 

 

 

85,200

 

 

 

78,129

 

Total net sales

$

89,498

 

$

90,146

 

 

$

383,285

 

 

$

394,328

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

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

 

 

September 30, 2023

 

September 24, 2022

ASSETS:

Current assets:

 

 

 

Cash and cash equivalents

$

29,965

 

 

$

23,646

 

Marketable securities

 

31,590

 

 

 

24,658

 

Accounts receivable, net

 

29,508

 

 

 

28,184

 

Vendor non-trade receivables

 

31,477

 

 

 

32,748

 

Inventories

 

6,331

 

 

 

4,946

 

Other current assets

 

14,695

 

 

 

21,223

 

Total current assets

 

143,566

 

 

 

135,405

 

 

 

 

 

Non-current assets:

 

 

 

Marketable securities

 

100,544

 

 

 

120,805

 

Property, plant and equipment, net

 

43,715

 

 

 

42,117

 

Other non-current assets

 

64,758

 

 

 

54,428

 

Total non-current assets

 

209,017

 

 

 

217,350

 

Total assets

$

352,583

 

 

$

352,755

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:

 

 

 

Accounts payable

$

62,611

 

 

$

64,115

 

Other current liabilities

 

58,829

 

 

 

60,845

 

Deferred revenue

 

8,061

 

 

 

7,912

 

Commercial paper

 

5,985

 

 

 

9,982

 

Term debt

 

9,822

 

 

 

11,128

 

Total current liabilities

 

145,308

 

 

 

153,982

 

 

 

 

 

Non-current liabilities:

 

 

 

Term debt

 

95,281

 

 

 

98,959

 

Other non-current liabilities

 

49,848

 

 

 

49,142

 

Total non-current liabilities

 

145,129

 

 

 

148,101

 

Total liabilities

 

290,437

 

 

 

302,083

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,550,061 and 15,943,425 shares issued and outstanding, respectively

 

73,812

 

 

 

64,849

 

Accumulated deficit

 

(214

)

 

 

(3,068

)

Accumulated other comprehensive loss

 

(11,452

)

 

 

(11,109

)

Total shareholders’ equity

 

62,146

 

 

 

50,672

 

Total liabilities and shareholders’ equity

$

352,583

 

 

$

352,755

 

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

 

 

Twelve Months Ended

 

September 30, 2023

 

September 24, 2022

Cash, cash equivalents and restricted cash, beginning balances

$

24,977

 

 

$

35,929

 

 

 

 

 

Operating activities:

 

 

 

Net income

 

96,995

 

 

 

99,803

 

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

 

 

 

Depreciation and amortization

 

11,519

 

 

 

11,104

 

Share-based compensation expense

 

10,833

 

 

 

9,038

 

Other

 

(2,227

)

 

 

1,006

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

(1,688

)

 

 

(1,823

)

Vendor non-trade receivables

 

1,271

 

 

 

(7,520

)

Inventories

 

(1,618

)

 

 

1,484

 

Other current and non-current assets

 

(5,684

)

 

 

(6,499

)

Accounts payable

 

(1,889

)

 

 

9,448

 

Other current and non-current liabilities

 

3,031

 

 

 

6,110

 

Cash generated by operating activities

 

110,543

 

 

 

122,151

 

 

 

 

 

Investing activities:

 

 

 

Purchases of marketable securities

 

(29,513

)

 

 

(76,923

)

Proceeds from maturities of marketable securities

 

39,686

 

 

 

29,917

 

Proceeds from sales of marketable securities

 

5,828

 

 

 

37,446

 

Payments for acquisition of property, plant and equipment

 

(10,959

)

 

 

(10,708

)

Other

 

(1,337

)

 

 

(2,086

)

Cash generated by/(used in) investing activities

 

3,705

 

 

 

(22,354

)

 

 

 

 

Financing activities:

 

 

 

Payments for taxes related to net share settlement of equity awards

 

(5,431

)

 

 

(6,223

)

Payments for dividends and dividend equivalents

 

(15,025

)

 

 

(14,841

)

Repurchases of common stock

 

(77,550

)

 

 

(89,402

)

Proceeds from issuance of term debt, net

 

5,228

 

 

 

5,465

 

Repayments of term debt

 

(11,151

)

 

 

(9,543

)

Proceeds from/(Repayments of) commercial paper, net

 

(3,978

)

 

 

3,955

 

Other

 

(581

)

 

 

(160

)

Cash used in financing activities

 

(108,488

)

 

 

(110,749

)

 

 

 

 

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

 

5,760

 

 

 

(10,952

)

Cash, cash equivalents and restricted cash, ending balances

$

30,737

 

 

$

24,977

 

 

 

 

 

Supplemental cash flow disclosure:

 

 

 

Cash paid for income taxes, net

$

18,679

 

 

$

19,573

 

Cash paid for interest

$

3,803

 

 

$

2,865

 

 

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

Investor Relations Contact: Investor Relations Apple investor_relations@apple.com (408) 974-3123

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