New September quarter record with revenue up 29 percent
Services and Mac revenue reach new all-time highs
CUPERTINO, California — October 28, 2021 — Apple® today announced financial results for its fiscal 2021 fourth quarter ended September 25, 2021. The Company posted a September quarter revenue record of $83.4 billion, up 29 percent year over year, and quarterly earnings per diluted share of $1.24.
“This year we launched our most powerful products ever, from M1-powered Macs to an iPhone 13 lineup that is setting a new standard for performance and empowering our customers to create and connect in new ways,” said Tim Cook, Apple’s CEO. “We are infusing our values into everything we make — moving closer to our 2030 goal of being carbon neutral up and down our supply chain and across the lifecycle of our products, and ever advancing our mission to build a more equitable future.”
“Our record September quarter results capped off a remarkable fiscal year of strong double-digit growth, during which we set new revenue records in all of our geographic segments and product categories in spite of continued uncertainty in the macro environment,” said Luca Maestri, Apple’s CFO. “The combination of our record sales performance, unmatched customer loyalty, and strength of our ecosystem drove our active installed base of devices to a new all-time high. During the September quarter, we returned over $24 billion to our shareholders, as we continue to make progress toward our goal of reaching a net cash neutral position over time.”
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 November 11, 2021 to shareholders of record as of the close of business on November 8, 2021.
Apple will provide live streaming of its Q4 2021 financial results conference call beginning at 2:00 p.m. PT on October 28, 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 return of capital, the payment of its quarterly dividend, 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: 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 developing, 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; failure to obtain or create digital content that appeals to the Company’s customers, or to make such content available on commercially reasonable terms; the dependency of the Company on third-party intellectual property, 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 intense media, political, and regulatory scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions, and penalties; 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 highly skilled employees, including key personnel; political events, trade and other international disputes, war, terrorism, natural disasters, public health issues, industrial accidents, 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, the adoption of new U.S. or international tax legislation, 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.
Press Contact:
Josh Rosenstock
Apple
jrosenstock@apple.com
(408) 862-1142
Investor Relations Contact:
Tejas Gala
Apple
tgala@apple.com
(669) 227-2402
NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or call Apple’s Media Helpline at (408) 974-2042.
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 25, 2021
September 26, 2020
September 25, 2021
September 26, 2020
Net sales:
Products
$
65,083
$
50,149
$
297,392
$
220,747
Services
18,277
14,549
68,425
53,768
Total net sales (1)
83,360
64,698
365,817
274,515
Cost of sales:
Products
42,790
35,197
192,266
151,286
Services
5,396
4,812
20,715
18,273
Total cost of sales
48,186
40,009
212,981
169,559
Gross margin
35,174
24,689
152,836
104,956
Operating expenses:
Research and development
5,772
4,978
21,914
18,752
Selling, general and administrative
5,616
4,936
21,973
19,916
Total operating expenses
11,388
9,914
43,887
38,668
Operating income
23,786
14,775
108,949
66,288
Other income/(expense), net
(538)
126
258
803
Income before provision for income taxes
23,248
14,901
109,207
67,091
Provision for income taxes
2,697
2,228
14,527
9,680
Net income
$
20,551
$
12,673
$
94,680
$
57,411
Earnings per share:
Basic
$
1.25
$
0.74
$
5.67
$
3.31
Diluted
$
1.24
$
0.73
$
5.61
$
3.28
Shares used in computing earnings per share:
Basic
16,487,121
17,057,622
16,701,272
17,352,119
Diluted
16,635,097
17,256,521
16,864,919
17,528,214
(1) Net sales by reportable segment:
Americas
$
36,820
$
30,698
$
153,306
$
124,556
Europe
20,794
16,900
89,307
68,640
Greater China
14,563
7,946
68,366
40,308
Japan
5,991
5,023
28,482
21,418
Rest of Asia Pacific
5,192
4,131
26,356
19,593
Total net sales
$
83,360
$
64,698
$
365,817
$
274,515
(1) Net sales by category:
iPhone
$
38,868
$
26,444
$
191,973
$
137,781
Mac
9,178
9,032
35,190
28,622
iPad
8,252
6,797
31,862
23,724
Wearables, Home and Accessories
8,785
7,876
38,367
30,620
Services
18,277
14,549
68,425
53,768
Total net sales
$
83,360
$
64,698
$
365,817
$
274,515
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares which are reflected in thousands and par value)
September 25, 2021
September 26, 2020
ASSETS:
Current assets:
Cash and cash equivalents
$
34,940
$
38,016
Marketable securities
27,699
52,927
Accounts receivable, net
26,278
16,120
Inventories
6,580
4,061
Vendor non-trade receivables
25,228
21,325
Other current assets
14,111
11,264
Total current assets
134,836
143,713
Non-current assets:
Marketable securities
127,877
100,887
Property, plant and equipment, net
39,440
36,766
Other non-current assets
48,849
42,522
Total non-current assets
216,166
180,175
Total assets
$
351,002
$
323,888
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable
$
54,763
$
42,296
Other current liabilities
47,493
42,684
Deferred revenue
7,612
6,643
Commercial paper
6,000
4,996
Term debt
9,613
8,773
Total current liabilities
125,481
105,392
Non-current liabilities:
Term debt
109,106
98,667
Other non-current liabilities
53,325
54,490
Total non-current liabilities
162,431
153,157
Total liabilities
287,912
258,549
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,426,786 and 16,976,763 shares issued and outstanding, respectively
57,365
50,779
Retained earnings
5,562
14,966
Accumulated other comprehensive income/(loss)
163
(406)
Total shareholders’ equity
63,090
65,339
Total liabilities and shareholders’ equity
$
351,002
$
323,888
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
Twelve Months Ended
September 25, 2021
September 26, 2020
Cash, cash equivalents and restricted cash, beginning balances
$
39,789
$
50,224
Operating activities:
Net income
94,680
57,411
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization
11,284
11,056
Share-based compensation expense
7,906
6,829
Deferred income tax benefit
(4,774)
(215)
Other
(147)
(97)
Changes in operating assets and liabilities:
Accounts receivable, net
(10,125)
6,917
Inventories
(2,642)
(127)
Vendor non-trade receivables
(3,903)
1,553
Other current and non-current assets
(8,042)
(9,588)
Accounts payable
12,326
(4,062)
Deferred revenue
1,676
2,081
Other current and non-current liabilities
5,799
8,916
Cash generated by operating activities
104,038
80,674
Investing activities:
Purchases of marketable securities
(109,558)
(114,938)
Proceeds from maturities of marketable securities
59,023
69,918
Proceeds from sales of marketable securities
47,460
50,473
Payments for acquisition of property, plant and equipment
(11,085)
(7,309)
Payments made in connection with business acquisitions, net
(33)
(1,524)
Other
(352)
(909)
Cash used in investing activities
(14,545)
(4,289)
Financing activities:
Proceeds from issuance of common stock
1,105
880
Payments for taxes related to net share settlement of equity awards
(6,556)
(3,634)
Payments for dividends and dividend equivalents
(14,467)
(14,081)
Repurchases of common stock
(85,971)
(72,358)
Proceeds from issuance of term debt, net
20,393
16,091
Repayments of term debt
(8,750)
(12,629)
Proceeds from/(Repayments of) commercial paper, net
1,022
(963)
Other
(129)
(126)
Cash used in financing activities
(93,353)
(86,820)
Decrease in cash, cash equivalents and restricted cash
(3,860)
(10,435)
Cash, cash equivalents and restricted cash, ending balances