Installed base of active devices sets all-time record
CUPERTINO, CALIFORNIA — 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.
Press Contact:
Josh Rosenstock
Apple
jrosenstock@apple.com
(408) 862-1142
Investor Relations Contact:
Saori Casey
Apple
scasey@apple.com
(408) 974-3123
NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or email Apple’s Media Helpline at media.help@apple.com.
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
