EX-99.1 2 a8-kex991q4202209242022.htm EX-99.1 Document

Exhibit 99.1

Apple Reports Fourth Quarter Results

September quarter record for Revenue and EPS

Active installed base of devices reaches all-time high for all major product categories

CUPERTINO, California — October 27, 2022 — Apple® today announced financial results for its fiscal 2022 fourth quarter ended September 24, 2022. The Company posted a September quarter record revenue of $90.1 billion, up 8 percent year over year, and quarterly earnings per diluted share of $1.29, up 4 percent year over year. Annual revenue was $394.3 billion, up 8 percent year over year, and annual earnings per diluted share were $6.11, up 9 percent year over year.

“This quarter’s results reflect Apple’s commitment to our customers, to the pursuit of innovation, and to leaving the world better than we found it,” said Tim Cook, Apple’s CEO. “As we head into the holiday season with our most powerful lineup ever, we are leading with our values in every action we take and every decision we make. We are deeply committed to protecting the environment, to securing user privacy, to strengthening accessibility, and to creating products and services that can unlock humanity’s full creative potential.”

“Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop,” said Luca Maestri, Apple’s CFO. “We continued to invest in our long-term growth plans, generated over $24 billion in operating cash flow, and returned over $29 billion to our shareholders during the quarter. The strength of our ecosystem, unmatched customer loyalty, and record sales spurred our active installed base of devices to a new all-time high. This quarter capped another record-breaking year for Apple, with revenue growing over $28 billion and operating cash flow up $18 billion versus last year.”

Apple’s board of directors has declared a cash dividend of $0.23 per share of the Company’s common stock. The dividend is payable on November 10, 2022 to shareholders of record as of the close of business on November 7, 2022.

Apple will provide live streaming of its Q4 2022 financial results conference call beginning at 2:00 p.m. PT on October 27, 2022 at apple.com/investor/earnings-call. This 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 payment of the Company’s quarterly dividend, its environmental initiatives, and its plans for new features, products, and long-term growth. 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
(408) 862-1142

Investor Relations Contact:
Tejas Gala
(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.

© 2022 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.
(In millions, except number of shares which are reflected in thousands and per share amounts)
Three Months EndedTwelve Months Ended
September 24,
September 25,
September 24,
September 25,
Net sales:
   Products$70,958 $65,083 $316,199 $297,392 
   Services19,188 18,277 78,129 68,425 
Total net sales (1)
90,146 83,360 394,328 365,817 
Cost of sales:
   Products46,387 42,790 201,471 192,266 
   Services5,664 5,396 22,075 20,715 
Total cost of sales52,051 48,186 223,546 212,981 
Gross margin
38,095 35,174 170,782 152,836 
Operating expenses:
Research and development
6,761 5,772 26,251 21,914 
Selling, general and administrative
6,440 5,616 25,094 21,973 
Total operating expenses
13,201 11,388 51,345 43,887 
Operating income
24,894 23,786 119,437 108,949 
Other income/(expense), net
Income before provision for income taxes
24,657 23,248 119,103 109,207 
Provision for income taxes
3,936 2,697 19,300 14,527 
Net income
$20,721 $20,551 $99,803 $94,680 
Earnings per share:
$1.29 $1.25 $6.15 $5.67 
$1.29 $1.24 $6.11 $5.61 
Shares used in computing earnings per share:
16,030,382 16,487,121 16,215,963 16,701,272 
16,118,465 16,635,097 16,325,819 16,864,919 
(1) Net sales by reportable segment:
$39,808 $36,820 $169,658 $153,306 
22,795 20,794 95,118 89,307 
Greater China
15,470 14,563 74,200 68,366 
5,700 5,991 25,977 28,482 
Rest of Asia Pacific
6,373 5,192 29,375 26,356 
Total net sales
$90,146 $83,360 $394,328 $365,817 
(1) Net sales by category:
$42,626 $38,868 $205,489 $191,973 
11,508 9,178 40,177 35,190 
7,174 8,252 29,292 31,862 
Wearables, Home and Accessories
9,650 8,785 41,241 38,367 
19,188 18,277 78,129 68,425 
Total net sales
$90,146 $83,360 $394,328 $365,817 

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

September 24,
September 25,
Current assets:
Cash and cash equivalents
$23,646 $34,940 
Marketable securities
24,658 27,699 
Accounts receivable, net
28,184 26,278 
4,946 6,580 
Vendor non-trade receivables
32,748 25,228 
Other current assets
21,223 14,111 
Total current assets
135,405 134,836 
Non-current assets:
Marketable securities
120,805 127,877 
Property, plant and equipment, net
42,117 39,440 
Other non-current assets
54,428 48,849 
Total non-current assets
217,350 216,166 
Total assets
$352,755 $351,002 
Current liabilities:
Accounts payable
$64,115 $54,763 
Other current liabilities
60,845 47,493 
Deferred revenue
7,912 7,612 
Commercial paper
9,982 6,000 
Term debt
11,128 9,613 
Total current liabilities
153,982 125,481 
Non-current liabilities:
Term debt
98,959 109,106 
Other non-current liabilities
49,142 53,325 
Total non-current liabilities
148,101 162,431 
Total liabilities
302,083 287,912 
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,943,425 and 16,426,786 shares issued and outstanding, respectively
64,849 57,365 
Retained earnings/(Accumulated deficit)(3,068)5,562 
Accumulated other comprehensive income/(loss)
Total shareholders’ equity
50,672 63,090 
Total liabilities and shareholders’ equity
$352,755 $351,002 

Apple Inc.
(In millions)

Twelve Months Ended
September 24,
September 25,
Cash, cash equivalents and restricted cash, beginning balances
$35,929 $39,789 
Operating activities:
Net income99,803 94,680 
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization11,104 11,284 
Share-based compensation expense9,038 7,906 
Deferred income tax expense/(benefit)895 (4,774)
Other111 (147)
Changes in operating assets and liabilities:
Accounts receivable, net(1,823)(10,125)
Inventories1,484 (2,642)
Vendor non-trade receivables(7,520)(3,903)
Other current and non-current assets(6,499)(8,042)
Accounts payable9,448 12,326 
Deferred revenue478 1,676 
Other current and non-current liabilities5,632 5,799 
Cash generated by operating activities122,151 104,038 
Investing activities:
Purchases of marketable securities(76,923)(109,558)
Proceeds from maturities of marketable securities29,917 59,023 
Proceeds from sales of marketable securities37,446 47,460 
Payments for acquisition of property, plant and equipment(10,708)(11,085)
Payments made in connection with business acquisitions, net(306)(33)
Cash used in investing activities(22,354)(14,545)
Financing activities:
Payments for taxes related to net share settlement of equity awards(6,223)(6,556)
Payments for dividends and dividend equivalents(14,841)(14,467)
Repurchases of common stock(89,402)(85,971)
Proceeds from issuance of term debt, net5,465 20,393 
Repayments of term debt(9,543)(8,750)
Proceeds from commercial paper, net3,955 1,022 
Cash used in financing activities(110,749)(93,353)
Decrease in cash, cash equivalents and restricted cash(10,952)(3,860)
Cash, cash equivalents and restricted cash, ending balances$24,977 $35,929 
Supplemental cash flow disclosure:
Cash paid for income taxes, net$19,573 $25,385 
Cash paid for interest$2,865 $2,687