Apple reports second quarter results

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 [e-mail].

© 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