CUPERTINO, CALIFORNIA — 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.
Press Contact:
Josh Rosenstock
Apple
jrosenstock@apple.com
(408) 862-1142
Investor Relations Contact:
Suhasini Chandramouli
Apple
suhasini@apple.com
(408) 862-5119
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
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
