AAPL Apple Inc

Services revenue reaches new all-time record

EPS sets March quarter record

Apple® today announced financial results for its fiscal 2024 second quarter ended March 30, 2024. The Company posted quarterly revenue of $90.8 billion, down 4 percent year over year, and quarterly earnings per diluted share of $1.53.

“Today Apple is reporting revenue of $90.8 billion for the March quarter, including an all-time revenue record in Services,” said Tim Cook, Apple’s CEO. “During the quarter, we were thrilled to launch Apple Vision Pro and to show the world the potential that spatial computing unlocks. We’re also looking forward to an exciting product announcement next week and an incredible Worldwide Developers Conference next month. As always, we are focused on providing the very best products and services for our customers, and doing so while living up to the core values that drive us.”

“Thanks to very high levels of customer satisfaction and loyalty, our active installed base of devices has reached a new all-time high across all products and all geographic segments, and our business performance drove a new EPS record for the March 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 $110 billion for share repurchases. We are also raising our quarterly dividend for the twelfth year in a row.”

Apple’s board of directors has declared a cash dividend of $0.25 per share of the Company’s common stock, an increase of 4 percent. The dividend is payable on May 16, 2024 to shareholders of record as of the close of business on May 13, 2024. The board of directors has also authorized an additional program to repurchase up to $110 billion of the Company’s common stock.

Apple will provide live streaming of its Q2 2024 financial results conference call beginning at 2:00 p.m. PT on May 2, 2024 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, and future business plans. 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, AirPods, Apple Watch, and Apple Vision Pro. Apple’s six software platforms — iOS, iPadOS, macOS, watchOS, visionOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, iCloud, and Apple TV+. Apple’s more than 150,000 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.

© 2024 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

 

March 30, 2024

 

April 1, 2023

 

March 30, 2024

 

April 1, 2023

Net sales:

 

 

 

 

 

 

 

Products

$

66,886

 

$

73,929

 

$

163,344

 

$

170,317

 

Services

 

23,867

 

 

20,907

 

 

46,984

 

 

41,673

 

Total net sales (1)

 

90,753

 

 

94,836

 

 

210,328

 

 

211,990

 

Cost of sales:

 

 

 

 

 

 

 

Products

 

42,424

 

 

46,795

 

 

100,864

 

 

107,560

 

Services

 

6,058

 

 

6,065

 

 

12,338

 

 

12,122

 

Total cost of sales

 

48,482

 

 

52,860

 

 

113,202

 

 

119,682

 

Gross margin

 

42,271

 

 

41,976

 

 

97,126

 

 

92,308

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

7,903

 

 

7,457

 

 

15,599

 

 

15,166

 

Selling, general and administrative

 

6,468

 

 

6,201

 

 

13,254

 

 

12,808

 

Total operating expenses

 

14,371

 

 

13,658

 

 

28,853

 

 

27,974

 

 

 

 

 

 

 

 

 

Operating income

 

27,900

 

 

28,318

 

 

68,273

 

 

64,334

 

Other income/(expense), net

 

158

 

 

64

 

 

108

 

 

(329

)

Income before provision for income taxes

 

28,058

 

 

28,382

 

 

68,381

 

 

64,005

 

Provision for income taxes

 

4,422

 

 

4,222

 

 

10,829

 

 

9,847

 

Net income

$

23,636

 

$

24,160

 

$

57,552

 

$

54,158

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Basic

$

1.53

 

$

1.53

 

$

3.72

 

$

3.42

 

Diluted

$

1.53

 

$

1.52

 

$

3.71

 

$

3.41

 

Shares used in computing earnings per share:

 

 

 

 

 

 

 

Basic

 

15,405,856

 

 

15,787,154

 

 

15,457,810

 

 

15,839,939

 

Diluted

 

15,464,709

 

 

15,847,050

 

 

15,520,675

 

 

15,901,384

 

 

 

 

 

 

 

 

 

(1) Net sales by reportable segment:

 

 

 

 

 

 

 

Americas

$

37,273

 

$

37,784

 

$

87,703

 

$

87,062

 

Europe

 

24,123

 

 

23,945

 

 

54,520

 

 

51,626

 

Greater China

 

16,372

 

 

17,812

 

 

37,191

 

 

41,717

 

Japan

 

6,262

 

 

7,176

 

 

14,029

 

 

13,931

 

Rest of Asia Pacific

 

6,723

 

 

8,119

 

 

16,885

 

 

17,654

 

Total net sales

$

90,753

 

$

94,836

 

$

210,328

 

$

211,990

 

 

 

 

 

 

 

 

 

(1) Net sales by category:

 

 

 

 

 

 

 

iPhone

$

45,963

 

$

51,334

 

$

115,665

 

$

117,109

 

Mac

 

7,451

 

 

7,168

 

 

15,231

 

 

14,903

 

iPad

 

5,559

 

 

6,670

 

 

12,582

 

 

16,066

 

Wearables, Home and Accessories

 

7,913

 

 

8,757

 

 

19,866

 

 

22,239

 

Services

 

23,867

 

 

20,907

 

 

46,984

 

 

41,673

 

Total net sales

$

90,753

 

$

94,836

 

$

210,328

 

$

211,990

 

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

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

 

 

March 30, 2024

 

September 30, 2023

ASSETS:

Current assets:

 

 

 

Cash and cash equivalents

$

32,695

 

 

$

29,965

 

Marketable securities

 

34,455

 

 

 

31,590

 

Accounts receivable, net

 

21,837

 

 

 

29,508

 

Vendor non-trade receivables

 

19,313

 

 

 

31,477

 

Inventories

 

6,232

 

 

 

6,331

 

Other current assets

 

13,884

 

 

 

14,695

 

Total current assets

 

128,416

 

 

 

143,566

 

 

 

 

 

Non-current assets:

 

 

 

Marketable securities

 

95,187

 

 

 

100,544

 

Property, plant and equipment, net

 

43,546

 

 

 

43,715

 

Other non-current assets

 

70,262

 

 

 

64,758

 

Total non-current assets

 

208,995

 

 

 

209,017

 

Total assets

$

337,411

 

 

$

352,583

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:

 

 

 

Accounts payable

$

45,753

 

 

$

62,611

 

Other current liabilities

 

57,298

 

 

 

58,829

 

Deferred revenue

 

8,012

 

 

 

8,061

 

Commercial paper

 

1,997

 

 

 

5,985

 

Term debt

 

10,762

 

 

 

9,822

 

Total current liabilities

 

123,822

 

 

 

145,308

 

 

 

 

 

Non-current liabilities:

 

 

 

Term debt

 

91,831

 

 

 

95,281

 

Other non-current liabilities

 

47,564

 

 

 

49,848

 

Total non-current liabilities

 

139,395

 

 

 

145,129

 

Total liabilities

 

263,217

 

 

 

290,437

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively

 

78,815

 

 

 

73,812

 

Retained earnings/(Accumulated deficit)

 

4,339

 

 

 

(214

)

Accumulated other comprehensive loss

 

(8,960

)

 

 

(11,452

)

Total shareholders’ equity

 

74,194

 

 

 

62,146

 

Total liabilities and shareholders’ equity

$

337,411

 

 

$

352,583

 

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

 

 

Six Months Ended

 

March 30, 2024

 

April 1, 2023

Cash, cash equivalents and restricted cash, beginning balances

$

30,737

 

 

$

24,977

 

 

 

 

 

Operating activities:

 

 

 

Net income

 

57,552

 

 

 

54,158

 

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

 

 

 

Depreciation and amortization

 

5,684

 

 

 

5,814

 

Share-based compensation expense

 

5,961

 

 

 

5,591

 

Other

 

(1,971

)

 

 

(1,732

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

7,727

 

 

 

9,596

 

Vendor non-trade receivables

 

12,164

 

 

 

14,785

 

Inventories

 

53

 

 

 

(2,548

)

Other current and non-current assets

 

(4,438

)

 

 

(4,092

)

Accounts payable

 

(16,710

)

 

 

(20,764

)

Other current and non-current liabilities

 

(3,437

)

 

 

1,757

 

Cash generated by operating activities

 

62,585

 

 

 

62,565

 

 

 

 

 

Investing activities:

 

 

 

Purchases of marketable securities

 

(25,042

)

 

 

(11,197

)

Proceeds from maturities of marketable securities

 

27,462

 

 

 

17,124

 

Proceeds from sales of marketable securities

 

4,314

 

 

 

1,897

 

Payments for acquisition of property, plant and equipment

 

(4,388

)

 

 

(6,703

)

Other

 

(729

)

 

 

(247

)

Cash generated by investing activities

 

1,617

 

 

 

874

 

 

 

 

 

Financing activities:

 

 

 

Payments for taxes related to net share settlement of equity awards

 

(2,875

)

 

 

(2,734

)

Payments for dividends and dividend equivalents

 

(7,535

)

 

 

(7,418

)

Repurchases of common stock

 

(43,344

)

 

 

(39,069

)

Repayments of term debt

 

(3,150

)

 

 

(3,651

)

Repayments of commercial paper, net

 

(3,982

)

 

 

(7,960

)

Other

 

(132

)

 

 

(455

)

Cash used in financing activities

 

(61,018

)

 

 

(61,287

)

 

 

 

 

Increase in cash, cash equivalents and restricted cash

 

3,184

 

 

 

2,152

 

Cash, cash equivalents and restricted cash, ending balances

$

33,921

 

 

$

27,129

 

 

 

 

 

Supplemental cash flow disclosure:

 

 

 

Cash paid for income taxes, net

$

14,531

 

 

$

4,894

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240502965412/en/

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

Investor Relations Contact: Suhasini Chandramouli Apple suhasini@apple.com (408) 974-3123