Apple reports fourth quarter results

Rhea-AI Summary

Apple announced its financial results for the fiscal 2023 fourth quarter, with quarterly revenue of $89.5 billion, down 1% YoY, and quarterly earnings per diluted share of $1.46, up 13% YoY. iPhone revenue set a September quarter record, and Services revenue reached a new all-time high. The company also declared a cash dividend of $0.24 per share.

Positive

• iPhone revenue set a September quarter record.
• Services revenue reached a new all-time high.
• Quarterly earnings per diluted share increased by 13% YoY.

Negative

• None.

iPhone revenue sets September quarter record

Services revenue reaches new all-time high

CUPERTINO, Calif.--(BUSINESS WIRE)-- Apple® today announced financial results for its fiscal 2023 fourth quarter ended September 30, 2023. The Company posted quarterly revenue of $89.5 billion, down 1 percent year over year, and quarterly earnings per diluted share of $1.46, up 13 percent year over year.

“Today Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in Services,” said Tim Cook, Apple’s CEO. “We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030.”

“Our active installed base of devices has again reached a new all-time high across all products and all geographic segments, thanks to the strength of our ecosystem and unparalleled customer loyalty,” said Luca Maestri, Apple’s CFO. “During the September quarter, our business performance drove double digit EPS growth and we returned nearly $25 billion to our shareholders, while continuing 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 November 16, 2023 to shareholders of record as of the close of business on November 13, 2023.

Apple will provide live streaming of its Q4 2023 financial results conference call beginning at 2:00 p.m. PT on November 2, 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 and its environmental goals and 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, 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.

NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or email Apple’s Media Helpline at media.help@apple.com.

© 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							Twelve Months Ended
	September 30, 2023			September 24, 2022				September 30, 2023				September 24, 2022
Net sales:
Products	$	67,184		$	70,958			$	298,085			$	316,199
Services		22,314			19,188				85,200				78,129
Total net sales (1)		89,498			90,146				383,285				394,328
Cost of sales:
Products		42,586			46,387				189,282				201,471
Services		6,485			5,664				24,855				22,075
Total cost of sales		49,071			52,051				214,137				223,546
Gross margin		40,427			38,095				169,148				170,782
Operating expenses:
Research and development		7,307			6,761				29,915				26,251
Selling, general and administrative		6,151			6,440				24,932				25,094
Total operating expenses		13,458			13,201				54,847				51,345
Operating income		26,969			24,894				114,301				119,437
Other income/(expense), net		29			(237	)			(565	)			(334	)
Income before provision for income taxes		26,998			24,657				113,736				119,103
Provision for income taxes		4,042			3,936				16,741				19,300
Net income	$	22,956		$	20,721			$	96,995			$	99,803
Earnings per share:
Basic	$	1.47		$	1.29			$	6.16			$	6.15
Diluted	$	1.46		$	1.29			$	6.13			$	6.11
Shares used in computing earnings per share:
Basic		15,599,434			16,030,382				15,744,231				16,215,963
Diluted		15,672,400			16,118,465				15,812,547				16,325,819
(1) Net sales by reportable segment:
Americas	$	40,115		$	39,808			$	162,560			$	169,658
Europe		22,463			22,795				94,294				95,118
Greater China		15,084			15,470				72,559				74,200
Japan		5,505			5,700				24,257				25,977
Rest of Asia Pacific		6,331			6,373				29,615				29,375
Total net sales	$	89,498		$	90,146			$	383,285			$	394,328
(1) Net sales by category:
iPhone	$	43,805		$	42,626			$	200,583			$	205,489
Mac		7,614			11,508				29,357				40,177
iPad		6,443			7,174				28,300				29,292
Wearables, Home and Accessories		9,322			9,650				39,845				41,241
Services		22,314			19,188				85,200				78,129
Total net sales	$	89,498		$	90,146			$	383,285			$	394,328

Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and par value)
	September 30, 2023				September 24, 2022
ASSETS:
Current assets:
Cash and cash equivalents	$	29,965			$	23,646
Marketable securities		31,590				24,658
Accounts receivable, net		29,508				28,184
Vendor non-trade receivables		31,477				32,748
Inventories		6,331				4,946
Other current assets		14,695				21,223
Total current assets		143,566				135,405
Non-current assets:
Marketable securities		100,544				120,805
Property, plant and equipment, net		43,715				42,117
Other non-current assets		64,758				54,428
Total non-current assets		209,017				217,350
Total assets	$	352,583			$	352,755
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	62,611			$	64,115
Other current liabilities		58,829				60,845
Deferred revenue		8,061				7,912
Commercial paper		5,985				9,982
Term debt		9,822				11,128
Total current liabilities		145,308				153,982
Non-current liabilities:
Term debt		95,281				98,959
Other non-current liabilities		49,848				49,142
Total non-current liabilities		145,129				148,101
Total liabilities		290,437				302,083
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,550,061 and 15,943,425 shares issued and outstanding, respectively		73,812				64,849
Accumulated deficit		(214	)			(3,068	)
Accumulated other comprehensive loss		(11,452	)			(11,109	)
Total shareholders’ equity		62,146				50,672
Total liabilities and shareholders’ equity	$	352,583			$	352,755

Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)
	Twelve Months Ended
	September 30, 2023				September 24, 2022
Cash, cash equivalents and restricted cash, beginning balances	$	24,977			$	35,929
Operating activities:
Net income		96,995				99,803
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization		11,519				11,104
Share-based compensation expense		10,833				9,038
Other		(2,227	)			1,006
Changes in operating assets and liabilities:
Accounts receivable, net		(1,688	)			(1,823	)
Vendor non-trade receivables		1,271				(7,520	)
Inventories		(1,618	)			1,484
Other current and non-current assets		(5,684	)			(6,499	)
Accounts payable		(1,889	)			9,448
Other current and non-current liabilities		3,031				6,110
Cash generated by operating activities		110,543				122,151
Investing activities:
Purchases of marketable securities		(29,513	)			(76,923	)
Proceeds from maturities of marketable securities		39,686				29,917
Proceeds from sales of marketable securities		5,828				37,446
Payments for acquisition of property, plant and equipment		(10,959	)			(10,708	)
Other		(1,337	)			(2,086	)
Cash generated by/(used in) investing activities		3,705				(22,354	)
Financing activities:
Payments for taxes related to net share settlement of equity awards		(5,431	)			(6,223	)
Payments for dividends and dividend equivalents		(15,025	)			(14,841	)
Repurchases of common stock		(77,550	)			(89,402	)
Proceeds from issuance of term debt, net		5,228				5,465
Repayments of term debt		(11,151	)			(9,543	)
Proceeds from/(Repayments of) commercial paper, net		(3,978	)			3,955
Other		(581	)			(160	)
Cash used in financing activities		(108,488	)			(110,749	)
Increase/(Decrease) in cash, cash equivalents and restricted cash		5,760				(10,952	)
Cash, cash equivalents and restricted cash, ending balances	$	30,737			$	24,977
Supplemental cash flow disclosure:
Cash paid for income taxes, net	$	18,679			$	19,573
Cash paid for interest	$	3,803			$	2,865

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231102622200/en/

Press Contact:

Josh Rosenstock

Apple

jrosenstock@apple.com

(408) 862-1142

Investor Relations Contact:

Investor Relations

Apple

investor_relations@apple.com

(408) 974-3123

Source: Apple Inc.

FAQ

What were Apple's quarterly revenue and earnings per diluted share for the fiscal 2023 fourth quarter?

Apple's quarterly revenue was $89.5 billion, down 1% YoY, and earnings per diluted share were $1.46, up 13% YoY.

What records did Apple achieve in the September quarter?

Apple set a September quarter record for iPhone revenue and reached a new all-time high in Services revenue.

What milestone did Apple achieve in its efforts towards carbon neutrality?

Apple introduced its first carbon neutral Apple Watch models, a major milestone in its efforts to make all Apple products carbon neutral by 2030.

What dividend did Apple declare for its common stock?

Apple declared a cash dividend of $0.24 per share of the Company's common stock.

When is the dividend payable?

The dividend is payable on November 16, 2023, to shareholders of record as of November 13, 2023.