Apple reports second quarter results

Services revenue reaches new all-time record

EPS sets March quarter record

CUPERTINO, Calif., May 02, 2024--(BUSINESS WIRE)--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

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Contacts

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

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