10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 30, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             .

Commission File Number: 001-36743

Apple Inc.

(Exact name of Registrant as specified in its charter)

California	94-2404110
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One Apple Park Way
Cupertino, California	95014
(Address of principal executive offices)	(Zip Code)

(408) 996-1010

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.00001 par value per share	AAPL	The Nasdaq Stock Market LLC
0.000% Notes due 2025	—	The Nasdaq Stock Market LLC
0.875% Notes due 2025	—	The Nasdaq Stock Market LLC
1.625% Notes due 2026	—	The Nasdaq Stock Market LLC
2.000% Notes due 2027	—	The Nasdaq Stock Market LLC
1.375% Notes due 2029	—	The Nasdaq Stock Market LLC
3.050% Notes due 2029	—	The Nasdaq Stock Market LLC
0.500% Notes due 2031	—	The Nasdaq Stock Market LLC
3.600% Notes due 2042	—	The Nasdaq Stock Market LLC

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ☒     No  ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).

Yes  ☒     No  ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ☐     No  ☒

15,441,881,000 shares of common stock were issued and outstanding as of January 19, 2024.

Apple Inc.

Form 10-Q

For the Fiscal Quarter Ended December 30, 2023

TABLE OF CONTENTS

		Page
Part I
Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	18
Item 4.	Controls and Procedures	18
Part II
Item 1.	Legal Proceedings	19
Item 1A.	Risk Factors	19
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	20
Item 3.	Defaults Upon Senior Securities	21
Item 4.	Mine Safety Disclosures	21
Item 5.	Other Information	21
Item 6.	Exhibits	21

PART I — FINANCIAL INFORMATION

Item 1.    Financial Statements

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
	December 30, 2023		December 31, 2022
Net sales:
Products	$	96,458	$	96,388
Services	23,117		20,766
Total net sales	119,575		117,154
Cost of sales:
Products	58,440		60,765
Services	6,280		6,057
Total cost of sales	64,720		66,822
Gross margin	54,855		50,332
Operating expenses:
Research and development	7,696		7,709
Selling, general and administrative	6,786		6,607
Total operating expenses	14,482		14,316
Operating income	40,373		36,016
Other income/(expense), net	(50)		(393)
Income before provision for income taxes	40,323		35,623
Provision for income taxes	6,407		5,625
Net income	$	33,916	$	29,998
Earnings per share:
Basic	$	2.19	$	1.89
Diluted	$	2.18	$	1.88
Shares used in computing earnings per share:
Basic	15,509,763		15,892,723
Diluted	15,576,641		15,955,718

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q1 2024 Form 10-Q | 1

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(In millions)

	Three Months Ended
	December 30, 2023		December 31, 2022
Net income	$	33,916	$	29,998
Other comprehensive income/(loss):
Change in foreign currency translation, net of tax	308		(14)
Change in unrealized gains/losses on derivative instruments, net of tax:
Change in fair value of derivative instruments	(531)		(988)
Adjustment for net (gains)/losses realized and included in net income	(823)		(1,766)
Total change in unrealized gains/losses on derivative instruments	(1,354)		(2,754)
Change in unrealized gains/losses on marketable debt securities, net of tax:
Change in fair value of marketable debt securities	3,045		900
Adjustment for net (gains)/losses realized and included in net income	75		65
Total change in unrealized gains/losses on marketable debt securities	3,120		965
Total other comprehensive income/(loss)	2,074		(1,803)
Total comprehensive income	$	35,990	$	28,195

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q1 2024 Form 10-Q | 2

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

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

	December 30, 2023		September 30, 2023
ASSETS:
Current assets:
Cash and cash equivalents	$	40,760	$	29,965
Marketable securities	32,340		31,590
Accounts receivable, net	23,194		29,508
Vendor non-trade receivables	26,908		31,477
Inventories	6,511		6,331
Other current assets	13,979		14,695
Total current assets	143,692		143,566
Non-current assets:
Marketable securities	99,475		100,544
Property, plant and equipment, net	43,666		43,715
Other non-current assets	66,681		64,758
Total non-current assets	209,822		209,017
Total assets	$	353,514	$	352,583
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	58,146	$	62,611
Other current liabilities	54,611		58,829
Deferred revenue	8,264		8,061
Commercial paper	1,998		5,985
Term debt	10,954		9,822
Total current liabilities	133,973		145,308
Non-current liabilities:
Term debt	95,088		95,281
Other non-current liabilities	50,353		49,848
Total non-current liabilities	145,441		145,129
Total liabilities	279,414		290,437
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,460,223 and 15,550,061 shares issued and outstanding, respectively	75,236		73,812
Retained earnings/(Accumulated deficit)	8,242		(214)
Accumulated other comprehensive loss	(9,378)		(11,452)
Total shareholders’ equity	74,100		62,146
Total liabilities and shareholders’ equity	$	353,514	$	352,583

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q1 2024 Form 10-Q | 3

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)

(In millions, except per-share amounts)

	Three Months Ended
	December 30, 2023		December 31, 2022
Total shareholders’ equity, beginning balances	$	62,146	$	50,672
Common stock and additional paid-in capital:
Beginning balances	73,812		64,849
Common stock withheld related to net share settlement of equity awards	(1,660)		(1,434)
Share-based compensation	3,084		2,984
Ending balances	75,236		66,399
Retained earnings/(Accumulated deficit):
Beginning balances	(214)		(3,068)
Net income	33,916		29,998
Dividends and dividend equivalents declared	(3,774)		(3,712)
Common stock withheld related to net share settlement of equity awards	(1,018)		(978)
Common stock repurchased	(20,668)		(19,000)
Ending balances	8,242		3,240
Accumulated other comprehensive income/(loss):
Beginning balances	(11,452)		(11,109)
Other comprehensive income/(loss)	2,074		(1,803)
Ending balances	(9,378)		(12,912)
Total shareholders’ equity, ending balances	$	74,100	$	56,727
Dividends and dividend equivalents declared per share or RSU	$	0.24	$	0.23

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q1 2024 Form 10-Q | 4

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

	Three Months Ended
	December 30, 2023		December 31, 2022
Cash, cash equivalents and restricted cash, beginning balances	$	30,737	$	24,977
Operating activities:
Net income	33,916		29,998
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization	2,848		2,916
Share-based compensation expense	2,997		2,905
Other	(989)		(317)
Changes in operating assets and liabilities:
Accounts receivable, net	6,555		4,275
Vendor non-trade receivables	4,569		2,320
Inventories	(137)		(1,807)
Other current and non-current assets	(1,457)		(4,099)
Accounts payable	(4,542)		(6,075)
Other current and non-current liabilities	(3,865)		3,889
Cash generated by operating activities	39,895		34,005
Investing activities:
Purchases of marketable securities	(9,780)		(5,153)
Proceeds from maturities of marketable securities	13,046		7,127
Proceeds from sales of marketable securities	1,337		509
Payments for acquisition of property, plant and equipment	(2,392)		(3,787)
Other	(284)		(141)
Cash generated by/(used in) investing activities	1,927		(1,445)
Financing activities:
Payments for taxes related to net share settlement of equity awards	(2,591)		(2,316)
Payments for dividends and dividend equivalents	(3,825)		(3,768)
Repurchases of common stock	(20,139)		(19,475)
Repayments of term debt	—		(1,401)
Repayments of commercial paper, net	(3,984)		(8,214)
Other	(46)		(389)
Cash used in financing activities	(30,585)		(35,563)
Increase/(Decrease) in cash, cash equivalents and restricted cash	11,237		(3,003)
Cash, cash equivalents and restricted cash, ending balances	$	41,974	$	21,974
Supplemental cash flow disclosure:
Cash paid for income taxes, net	$	7,255	$	828

See accompanying Notes to Condensed Consolidated Financial Statements.

Apple Inc. | Q1 2024 Form 10-Q | 5

Apple Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 1 – Summary of Significant Accounting Policies

Basis of Presentation and Preparation

The condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the use of management estimates. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (the “2023 Form 10-K”).

The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters, which occurred in the first fiscal quarter of 2023. The Company’s fiscal years 2024 and 2023 span 52 and 53 weeks, respectively. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years.

Note 2 – Revenue

Net sales disaggregated by significant products and services for the three months ended December 30, 2023 and December 31, 2022 were as follows (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
iPhone®	$	69,702	$	65,775
Mac®	7,780		7,735
iPad®	7,023		9,396
Wearables, Home and Accessories	11,953		13,482
Services	23,117		20,766
Total net sales	$	119,575	$	117,154

Total net sales include $3.5 billion of revenue recognized in the three months ended December 30, 2023 that was included in deferred revenue as of September 30, 2023 and $3.4 billion of revenue recognized in the three months ended December 31, 2022 that was included in deferred revenue as of September 24, 2022.

The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 10, “Segment Information and Geographic Data” for the three months ended December 30, 2023 and December 31, 2022, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

As of December 30, 2023 and September 30, 2023, the Company had total deferred revenue of $12.5 billion and $12.1 billion, respectively. As of December 30, 2023, the Company expects 66% of total deferred revenue to be realized in less than a year, 26% within one-to-two years, 7% within two-to-three years and 1% in greater than three years.

Apple Inc. | Q1 2024 Form 10-Q | 6

Note 3 – Earnings Per Share

The following table shows the computation of basic and diluted earnings per share for the three months ended December 30, 2023 and December 31, 2022 (net income in millions and shares in thousands):

	Three Months Ended
	December 30, 2023		December 31, 2022
Numerator:
Net income	$	33,916	$	29,998
Denominator:
Weighted-average basic shares outstanding	15,509,763		15,892,723
Effect of dilutive share-based awards	66,878		62,995
Weighted-average diluted shares	15,576,641		15,955,718
Basic earnings per share	$	2.19	$	1.89
Diluted earnings per share	$	2.18	$	1.88

Approximately 89 million restricted stock units (“RSUs”) were excluded from the computation of diluted earnings per share for the three months ended December 31, 2022 because their effect would have been antidilutive.

Note 4 – Financial Instruments

Cash, Cash Equivalents and Marketable Securities

The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of December 30, 2023 and September 30, 2023 (in millions):

	December 30, 2023
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Marketable Securities		Non-Current Marketable Securities
Cash	$	29,542	$	—	$	—	$	29,542	$	29,542	$	—	$	—
Level 1:
Money market funds	2,000		—		—		2,000		2,000		—		—
Mutual funds	448		35		(11)		472		—		472		—
Subtotal	2,448		35		(11)		2,472		2,000		472		—
Level 2 (1):
U.S. Treasury securities	24,041		12		(920)		23,133		7,303		4,858		10,972
U.S. agency securities	5,791		—		(448)		5,343		243		98		5,002
Non-U.S. government securities	17,326		54		(675)		16,705		—		11,175		5,530
Certificates of deposit and time deposits	1,448		—		—		1,448		1,119		329		—
Commercial paper	1,361		—		—		1,361		472		889		—
Corporate debt securities	75,360		112		(3,964)		71,508		81		13,909		57,518
Municipal securities	562		—		(14)		548		—		185		363
Mortgage- and asset-backed securities	22,369		53		(1,907)		20,515		—		425		20,090
Subtotal	148,258		231		(7,928)		140,561		9,218		31,868		99,475
Total (2)	$	180,248	$	266	$	(7,939)	$	172,575	$	40,760	$	32,340	$	99,475

Apple Inc. | Q1 2024 Form 10-Q | 7

	September 30, 2023
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Marketable Securities		Non-Current Marketable Securities
Cash	$	28,359	$	—	$	—	$	28,359	$	28,359	$	—	$	—
Level 1:
Money market funds	481		—		—		481		481		—		—
Mutual funds and equity securities	442		12		(26)		428		—		428		—
Subtotal	923		12		(26)		909		481		428		—
Level 2 (1):
U.S. Treasury securities	19,406		—		(1,292)		18,114		35		5,468		12,611
U.S. agency securities	5,736		—		(600)		5,136		36		271		4,829
Non-U.S. government securities	17,533		6		(1,048)		16,491		—		11,332		5,159
Certificates of deposit and time deposits	1,354		—		—		1,354		1,034		320		—
Commercial paper	608		—		—		608		—		608		—
Corporate debt securities	76,840		6		(5,956)		70,890		20		12,627		58,243
Municipal securities	628		—		(26)		602		—		192		410
Mortgage- and asset-backed securities	22,365		6		(2,735)		19,636		—		344		19,292
Subtotal	144,470		18		(11,657)		132,831		1,125		31,162		100,544
Total (2)	$	173,752	$	30	$	(11,683)	$	162,099	$	29,965	$	31,590	$	100,544

(1)The valuation techniques used to measure the fair values of the Company’s Level 2 financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data.

(2)As of December 30, 2023 and September 30, 2023, total marketable securities included $13.9 billion and $13.8 billion, respectively, that were restricted from general use, related to the European Commission decision finding that Ireland granted state aid to the Company, and other agreements.

The following table shows the fair value of the Company’s non-current marketable debt securities, by contractual maturity, as of December 30, 2023 (in millions):

Due after 1 year through 5 years	$	72,994
Due after 5 years through 10 years	9,368
Due after 10 years	17,113
Total fair value	$	99,475

Derivative Instruments and Hedging

The Company may use derivative instruments to partially offset its business exposure to foreign exchange and interest rate risk. However, the Company may choose not to hedge certain exposures for a variety of reasons, including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates.

Foreign Exchange Rate Risk

To protect gross margins from fluctuations in foreign exchange rates, the Company may use forwards, options or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months.

To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign exchange rates, the Company may use forwards, cross-currency swaps or other instruments. The Company designates these instruments as either cash flow or fair value hedges. As of December 30, 2023, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for term debt–related foreign currency transactions is 19 years.

The Company may also use derivative instruments that are not designated as accounting hedges to protect gross margins from certain fluctuations in foreign exchange rates, as well as to offset a portion of the foreign currency gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies.

Apple Inc. | Q1 2024 Form 10-Q | 8

Interest Rate Risk

To protect the Company’s term debt or marketable securities from fluctuations in interest rates, the Company may use interest rate swaps, options or other instruments. The Company designates these instruments as either cash flow or fair value hedges.

The notional amounts of the Company’s outstanding derivative instruments as of December 30, 2023 and September 30, 2023 were as follows (in millions):

	December 30, 2023		September 30, 2023
Derivative instruments designated as accounting hedges:
Foreign exchange contracts	$	66,735	$	74,730
Interest rate contracts	$	19,375	$	19,375
Derivative instruments not designated as accounting hedges:
Foreign exchange contracts	$	102,108	$	104,777

The carrying amounts of the Company’s hedged items in fair value hedges as of December 30, 2023 and September 30, 2023 were as follows (in millions):

	December 30, 2023		September 30, 2023
Hedged assets/(liabilities):
Current and non-current marketable securities	$	15,102	$	14,433
Current and non-current term debt	$	(18,661)	$	(18,247)

Accounts Receivable

Trade Receivables

The Company’s third-party cellular network carriers accounted for 34% and 41% of total trade receivables as of December 30, 2023 and September 30, 2023, respectively. The Company requires third-party credit support or collateral from certain customers to limit credit risk.

Vendor Non-Trade Receivables

The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. The Company does not reflect the sale of these components in products net sales. Rather, the Company recognizes any gain on these sales as a reduction of products cost of sales when the related final products are sold by the Company. As of December 30, 2023, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 50% and 20%. As of September 30, 2023, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 48% and 23%.

Note 5 – Condensed Consolidated Financial Statement Details

The following table shows the Company’s condensed consolidated financial statement details as of December 30, 2023 and September 30, 2023 (in millions):

Property, Plant and Equipment, Net

	December 30, 2023		September 30, 2023
Gross property, plant and equipment	$	116,176	$	114,599
Accumulated depreciation	(72,510)		(70,884)
Total property, plant and equipment, net	$	43,666	$	43,715

Apple Inc. | Q1 2024 Form 10-Q | 9

Note 6 – Debt

Commercial Paper

The Company issues unsecured short-term promissory notes pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of December 30, 2023 and September 30, 2023, the Company had $2.0 billion and $6.0 billion of commercial paper outstanding, respectively. The following table provides a summary of cash flows associated with the issuance and maturities of commercial paper for the three months ended December 30, 2023 and December 31, 2022 (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
Maturities 90 days or less:
Repayments of commercial paper, net	$	(3,984)	$	(5,569)
Maturities greater than 90 days:
Repayments of commercial paper	—		(2,645)
Total repayments of commercial paper, net	$	(3,984)	$	(8,214)

Term Debt

As of December 30, 2023 and September 30, 2023, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $106.0 billion and $105.1 billion, respectively (collectively the “Notes”). As of December 30, 2023 and September 30, 2023, the fair value of the Company’s Notes, based on Level 2 inputs, was $96.7 billion and $90.8 billion, respectively.

Note 7 – Shareholders’ Equity

Share Repurchase Program

During the three months ended December 30, 2023, the Company repurchased 118 million shares of its common stock for $20.5 billion. The Company’s share repurchase program does not obligate the Company to acquire a minimum amount of shares. Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Note 8 – Share-Based Compensation

Restricted Stock Units

A summary of the Company’s RSU activity and related information for the three months ended December 30, 2023 is as follows:

	Number of RSUs (in thousands)	Weighted-Average Grant Date Fair Value Per RSU		Aggregate Fair Value (in millions)
Balance as of September 30, 2023	180,247	$	135.91
RSUs granted	74,241	$	171.58
RSUs vested	(42,490)	$	110.75
RSUs canceled	(3,026)	$	109.05
Balance as of December 30, 2023	208,972	$	154.09	$	40,233

The fair value as of the respective vesting dates of RSUs was $7.7 billion and $6.8 billion for the three months ended December 30, 2023 and December 31, 2022, respectively.

Apple Inc. | Q1 2024 Form 10-Q | 10

Share-Based Compensation

The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three months ended December 30, 2023 and December 31, 2022 (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
Share-based compensation expense	$	2,997	$	2,905
Income tax benefit related to share-based compensation expense	$	(1,235)	$	(1,178)

As of December 30, 2023, the total unrecognized compensation cost related to outstanding RSUs was $27.4 billion, which the Company expects to recognize over a weighted-average period of 2.9 years.

Note 9 – Contingencies

The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully resolved. The outcome of litigation is inherently uncertain. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other claims.

Note 10 – Segment Information and Geographic Data

The following table shows information by reportable segment for the three months ended December 30, 2023 and December 31, 2022 (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
Americas:
Net sales	$	50,430	$	49,278
Operating income	$	20,357	$	17,864
Europe:
Net sales	$	30,397	$	27,681
Operating income	$	12,711	$	10,017
Greater China:
Net sales	$	20,819	$	23,905
Operating income	$	8,622	$	10,437
Japan:
Net sales	$	7,767	$	6,755
Operating income	$	3,819	$	3,236
Rest of Asia Pacific:
Net sales	$	10,162	$	9,535
Operating income	$	4,579	$	3,851

Apple Inc. | Q1 2024 Form 10-Q | 11

A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three months ended December 30, 2023 and December 31, 2022 is as follows (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
Segment operating income	$	50,088	$	45,405
Research and development expense	(7,696)		(7,709)
Other corporate expenses, net	(2,019)		(1,680)
Total operating income	$	40,373	$	36,016

Apple Inc. | Q1 2024 Form 10-Q | 12

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Item and other sections of this Quarterly Report on Form 10-Q (“Form 10-Q”) contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. For example, statements in this Form 10-Q regarding the potential future impact of macroeconomic conditions on the Company’s business and results of operations are forward-looking statements. Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed in Part I, Item 1A of the 2023 Form 10-K under the heading “Risk Factors.” The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law.

Unless otherwise stated, all information presented herein is based on the Company’s fiscal calendar, and references to particular years, quarters, months or periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years.

The following discussion should be read in conjunction with the 2023 Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) and the condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Form 10-Q.

Available Information

The Company periodically provides certain information for investors on its corporate website, www.apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, information on environmental, social and governance matters, and details related to the Company’s annual meeting of shareholders. The information contained on the websites referenced in this Form 10-Q is not incorporated by reference into this filing. Further, the Company’s references to website URLs are intended to be inactive textual references only.

Business Seasonality and Product Introductions

The Company has historically experienced higher net sales in its first quarter compared to other quarters in its fiscal year due in part to seasonal holiday demand. Additionally, new product and service introductions can significantly impact net sales, cost of sales and operating expenses. The timing of product introductions can also impact the Company’s net sales to its indirect distribution channels as these channels are filled with new inventory following a product launch, and channel inventory of an older product often declines as the launch of a newer product approaches. Net sales can also be affected when consumers and distributors anticipate a product introduction.

Fiscal Period

The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters, which occurred in the first quarter of 2023. The Company’s fiscal years 2024 and 2023 span 52 and 53 weeks, respectively.

Quarterly Highlights

The Company’s first quarter of 2024 included 13 weeks, compared to 14 weeks during the first quarter of 2023.

The Company’s total net sales increased 2% or $2.4 billion during the first quarter of 2024 compared to the same quarter in 2023, driven primarily by higher net sales of iPhone and Services, partially offset by lower net sales of iPad and Wearables, Home and Accessories.

During the first quarter of 2024, the Company announced an updated MacBook Pro® 14-in., MacBook Pro 16-in. and iMac®.

The Company repurchased $20.5 billion of its common stock and paid dividends and dividend equivalents of $3.8 billion during the first quarter of 2024.

Macroeconomic Conditions

Macroeconomic conditions, including inflation, changes in interest rates, and currency fluctuations, have directly and indirectly impacted, and could in the future materially impact, the Company’s results of operations and financial condition.

Apple Inc. | Q1 2024 Form 10-Q | 13

Segment Operating Performance

The following table shows net sales by reportable segment for the three months ended December 30, 2023 and December 31, 2022 (dollars in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022		Change
Net sales by reportable segment:
Americas	$	50,430	$	49,278	2	%
Europe	30,397		27,681		10	%
Greater China	20,819		23,905		(13)	%
Japan	7,767		6,755		15	%
Rest of Asia Pacific	10,162		9,535		7	%
Total net sales	$	119,575	$	117,154	2	%

Americas

Americas net sales increased 2% or $1.2 billion during the first quarter of 2024 compared to the same quarter in 2023 due primarily to higher net sales of Services and iPhone, partially offset by lower net sales of iPad. The strength in foreign currencies relative to the U.S. dollar had a net favorable year-over-year impact on Americas net sales during the first quarter of 2024.

Europe

Europe net sales increased 10% or $2.7 billion during the first quarter of 2024 compared to the same quarter in 2023 due primarily to higher net sales of iPhone. The strength in foreign currencies relative to the U.S. dollar had a net favorable year-over-year impact on Europe net sales during the first quarter of 2024.

Greater China

Greater China net sales decreased 13% or $3.1 billion during the first quarter of 2024 compared to the same quarter in 2023 due primarily to lower net sales of iPhone, iPad and Wearables, Home and Accessories. The weakness in the renminbi relative to the U.S. dollar had an unfavorable year-over-year impact on Greater China net sales during the first quarter of 2024.

Japan

Japan net sales increased 15% or $1.0 billion during the first quarter of 2024 compared to the same quarter in 2023 due primarily to higher net sales of iPhone. The weakness in the yen relative to the U.S. dollar had an unfavorable year-over-year impact on Japan net sales during the first quarter of 2024.

Rest of Asia Pacific

Rest of Asia Pacific net sales increased 7% or $627 million during the first quarter of 2024 compared to the same quarter in 2023 due primarily to higher net sales of iPhone, partially offset by lower net sales of Wearables, Home and Accessories.

Apple Inc. | Q1 2024 Form 10-Q | 14

Products and Services Performance

The following table shows net sales by category for the three months ended December 30, 2023 and December 31, 2022 (dollars in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022		Change
Net sales by category:
iPhone	$	69,702	$	65,775	6	%
Mac	7,780		7,735		1	%
iPad	7,023		9,396		(25)	%
Wearables, Home and Accessories	11,953		13,482		(11)	%
Services	23,117		20,766		11	%
Total net sales	$	119,575	$	117,154	2	%

iPhone

iPhone net sales increased 6% or $3.9 billion during the first quarter of 2024 compared to the same quarter in 2023 due primarily to higher net sales of Pro models, partially offset by lower net sales of other models.

Mac

Mac net sales were relatively flat during the first quarter of 2024 compared to the same quarter in 2023.

iPad

iPad net sales decreased 25% or $2.4 billion during the first quarter of 2024 compared to the same quarter in 2023 due primarily to lower net sales of iPad Pro, iPad 9th generation and iPad Air.

Wearables, Home and Accessories

Wearables, Home and Accessories net sales decreased 11% or $1.5 billion during the first quarter of 2024 compared to the same quarter in 2023 due primarily to lower net sales of Wearables and Accessories.

Services

Services net sales increased 11% or $2.4 billion during the first quarter of 2024 compared to the same quarter in 2023 due primarily to higher net sales from advertising, video and cloud services.

Apple Inc. | Q1 2024 Form 10-Q | 15

Gross Margin

Products and Services gross margin and gross margin percentage for the three months ended December 30, 2023 and December 31, 2022 were as follows (dollars in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
Gross margin:
Products	$	38,018	$	35,623
Services	16,837		14,709
Total gross margin	$	54,855	$	50,332

Gross margin percentage:
Products	39.4	%	37.0	%
Services	72.8	%	70.8	%
Total gross margin percentage	45.9	%	43.0	%

Products Gross Margin

Products gross margin increased during the first quarter of 2024 compared to the same quarter in 2023 due primarily to cost savings and a different Products mix, partially offset by the weakness in foreign currencies relative to the U.S. dollar and lower Products volume.

Products gross margin percentage increased during the first quarter of 2024 compared to the same quarter in 2023 due primarily to cost savings and a different Products mix, partially offset by the weakness in foreign currencies relative to the U.S. dollar.

Services Gross Margin

Services gross margin increased during the first quarter of 2024 compared to the same quarter in 2023 due primarily to higher Services net sales and a different Services mix.

Services gross margin percentage increased during the first quarter of 2024 compared to the same quarter in 2023 due primarily to a different Services mix.

The Company’s future gross margins can be impacted by a variety of factors, as discussed in Part I, Item 1A of the 2023 Form 10-K under the heading “Risk Factors.” As a result, the Company believes, in general, gross margins will be subject to volatility and downward pressure.

Apple Inc. | Q1 2024 Form 10-Q | 16

Operating Expenses

Operating expenses for the three months ended December 30, 2023 and December 31, 2022 were as follows (dollars in millions):

	Three Months Ended
	December 30, 2023			December 31, 2022
Research and development	$	7,696		$	7,709
Percentage of total net sales	6		%	7		%
Selling, general and administrative	$	6,786		$	6,607
Percentage of total net sales	6		%	6		%
Total operating expenses	$	14,482		$	14,316
Percentage of total net sales	12		%	12		%

Research and Development

Research and development (“R&D”) expense was relatively flat during the first quarter of 2024 compared to the same quarter in 2023.

Selling, General and Administrative

Selling, general and administrative expense increased 3% or $179 million during the first quarter of 2024 compared to the same quarter in 2023.

Provision for Income Taxes

Provision for income taxes, effective tax rate and statutory federal income tax rate for the three months ended December 30, 2023 and December 31, 2022 were as follows (dollars in millions):

	Three Months Ended
	December 30, 2023			December 31, 2022
Provision for income taxes	$	6,407		$	5,625
Effective tax rate	15.9		%	15.8		%
Statutory federal income tax rate	21		%	21		%

The Company’s effective tax rate for the first quarter of 2024 was lower than the statutory federal income tax rate due primarily to a lower effective tax rate on foreign earnings, tax benefits from share-based compensation, and the impact of the U.S. federal R&D credit, partially offset by state income taxes.

The Company’s effective tax rate for the first quarter of 2024 was relatively flat compared to the same quarter in 2023.

Liquidity and Capital Resources

The Company believes its balances of cash, cash equivalents and unrestricted marketable securities, along with cash generated by ongoing operations and continued access to debt markets, will be sufficient to satisfy its cash requirements and capital return program over the next 12 months and beyond.

The Company’s contractual cash requirements have not changed materially since the 2023 Form 10-K, except for manufacturing purchase obligations.

Manufacturing Purchase Obligations

The Company utilizes several outsourcing partners to manufacture subassemblies for the Company’s products and to perform final assembly and testing of finished products. The Company also obtains individual components for its products from a wide variety of individual suppliers. As of December 30, 2023, the Company had manufacturing purchase obligations of $38.0 billion, with $37.9 billion payable within 12 months.

Apple Inc. | Q1 2024 Form 10-Q | 17

Capital Return Program

In addition to its contractual cash requirements, the Company has an authorized share repurchase program. The program does not obligate the Company to acquire a minimum amount of shares. As of December 30, 2023, the Company’s quarterly cash dividend was $0.24 per share. The Company intends to increase its dividend on an annual basis, subject to declaration by the Board of Directors.

Recent Accounting Pronouncements

Income Taxes

In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. The Company will adopt ASU 2023-09 in its fourth quarter of 2026. ASU 2023-09 allows for adoption using either a prospective or retrospective transition method.

Segment Reporting

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which will require the Company to disclose segment expenses that are significant and regularly provided to the Company’s chief operating decision maker (“CODM”). In addition, ASU 2023-07 will require the Company to disclose the title and position of its CODM and how the CODM uses segment profit or loss information in assessing segment performance and deciding how to allocate resources. The Company will adopt ASU 2023-07 in its fourth quarter of 2025 using a retrospective transition method.

Critical Accounting Estimates

The preparation of financial statements and related disclosures in conformity with GAAP and the Company’s discussion and analysis of its financial condition and operating results require the Company’s management to make judgments, assumptions and estimates that affect the amounts reported. Note 1, “Summary of Significant Accounting Policies” of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q and in the Notes to Consolidated Financial Statements in Part II, Item 8 of the 2023 Form 10-K describe the significant accounting policies and methods used in the preparation of the Company’s condensed consolidated financial statements. There have been no material changes to the Company’s critical accounting estimates since the 2023 Form 10-K.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes to the Company’s market risk during the first three months of 2024. For a discussion of the Company’s exposure to market risk, refer to the Company’s market risk disclosures set forth in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of the 2023 Form 10-K.

Item 4.    Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Based on an evaluation under the supervision and with the participation of the Company’s management, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act were effective as of December 30, 2023 to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the first quarter of 2024, which were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Apple Inc. | Q1 2024 Form 10-Q | 18

PART II — OTHER INFORMATION

Item 1.    Legal Proceedings

Epic Games

Epic Games, Inc. (“Epic”) filed a lawsuit in the U.S. District Court for the Northern District of California (the “District Court”) against the Company alleging violations of federal and state antitrust laws and California’s unfair competition law based upon the Company’s operation of its App Store®. On September 10, 2021, the District Court ruled in favor of the Company with respect to nine out of the ten counts included in Epic’s claim. The District Court found that certain provisions of the Company’s App Store Review Guidelines violate California’s unfair competition law and issued an injunction enjoining the Company from prohibiting developers from including in their apps external links that direct customers to purchasing mechanisms other than Apple in-app purchasing. The injunction applies to apps on the U.S. storefront of the iOS and iPadOS® App Store. On April 24, 2023, the U.S. Court of Appeals for the Ninth Circuit (the “Circuit Court”) affirmed the District Court’s ruling. On June 7, 2023, the Company and Epic filed petitions with the Circuit Court requesting further review of the decision. On June 30, 2023, the Circuit Court denied both petitions. On July 17, 2023, the Circuit Court granted Apple’s motion to stay enforcement of the injunction pending appeal to the U.S. Supreme Court (the “Supreme Court”). On January 16, 2024, the Supreme Court denied both the Company’s and Epic’s petitions and the stay terminated. The Supreme Court’s denial of Epic’s petition confirms the District Court’s ruling in favor of the Company with respect to all of the antitrust claims. Following termination of the stay, the Company implemented a plan to comply with the injunction and filed a statement of compliance with the District Court. On January 31, 2024, Epic filed a notice with the District Court indicating its intent to dispute the Company’s compliance plan.

Masimo

Masimo Corporation and Cercacor Laboratories, Inc. (together, “Masimo”) filed a complaint before the U.S. International Trade Commission (the “ITC”) alleging infringement by the Company of five patents relating to the functionality of the blood oxygen feature in Apple Watch® Series 6 and 7. In its complaint, Masimo sought a permanent exclusion order prohibiting importation to the U.S. of certain Apple Watch models that include blood oxygen sensing functionality. On October 26, 2023, the ITC entered a limited exclusion order (the “Order”) prohibiting importation and sales in the U.S. of Apple Watch models with blood oxygen sensing functionality, which includes Apple Watch Series 9 and Apple Watch Ultra™ 2. The Company subsequently proposed a redesign of Apple Watch Series 9 and Apple Watch Ultra 2 to the U.S. Customs and Border Protection (the “CBP”) and appealed the Order. On January 12, 2024, the CBP found that the Company’s proposed redesign of Apple Watch Series 9 and Apple Watch Ultra 2 falls outside the scope of the Order, permitting the Company to import and sell the models in the U.S.

Other Legal Proceedings

The Company is subject to other legal proceedings and claims that have not been fully resolved and that have arisen in the ordinary course of business. The Company settled certain matters during the first quarter of 2024 that did not individually or in the aggregate have a material impact on the Company’s financial condition or operating results. The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts above management’s expectations, the Company’s financial condition and operating results for that reporting period could be materially adversely affected.

Item 1A.    Risk Factors

The Company’s business, reputation, results of operations, financial condition and stock price can be affected by a number of factors, whether currently known or unknown, including those described in Part I, Item 1A of the 2023 Form 10-K under the heading “Risk Factors.” When any one or more of these risks materialize from time to time, the Company’s business, reputation, results of operations, financial condition and stock price can be materially and adversely affected. Except as set forth below, there have been no material changes to the Company’s risk factors since the 2023 Form 10-K.

The technology industry, including, in some instances, the Company, is subject to intense media, political and regulatory scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions and penalties.

From time to time, the Company has made changes to its App Store, including actions taken in response to litigation, competition, market conditions and legal and regulatory requirements. The Company expects to make further business changes in the future. For example, in the U.S. the Company has implemented changes to how developers communicate with consumers within apps on the U.S. storefront of the iOS and iPadOS App Store regarding alternative purchasing mechanisms.

Apple Inc. | Q1 2024 Form 10-Q | 19

In January 2024, the Company announced changes to iOS, the App Store and Safari® in the European Union to comply with the Digital Markets Act (the “DMA”), including new business terms and alternative fee structures for iOS apps, alternative methods of distribution for iOS apps, alternative payment processing for apps across the Company’s operating systems, and additional tools and application programming interfaces (“APIs”) for developers. Although the Company’s compliance plan is intended to address the DMA’s obligations, it is still subject to potential challenge by the European Commission or private litigants. In addition, other jurisdictions may seek to require the Company to make changes to its business. While the changes introduced by the Company in the European Union are intended to reduce new privacy and security risks the DMA poses to European Union users, many risks will remain.

The Company is also currently subject to antitrust investigations in various jurisdictions around the world, which can result in legal proceedings and claims against the Company that could, individually or in the aggregate, have a materially adverse impact on the Company’s business, results of operations and financial condition. For example, the Company is the subject of investigations in Europe and other jurisdictions relating to App Store terms and conditions. If such investigations result in adverse findings against the Company, the Company could be exposed to significant fines and may be required to make further changes to its App Store business, all of which could materially adversely affect the Company’s business, results of operations and financial condition.

Further, the Company has commercial relationships with other companies in the technology industry that are or may become subject to investigations and litigation that, if resolved against those other companies, could materially adversely affect the Company’s commercial relationships with those business partners and materially adversely affect the Company’s business, results of operations and financial condition. For example, the Company earns revenue from licensing arrangements with other companies to offer their search services on the Company’s platforms and applications, and certain of these arrangements are currently subject to government investigations and legal proceedings.

There can be no assurance the Company’s business will not be materially adversely affected, individually or in the aggregate, by the outcomes of such investigations, litigation or changes to laws and regulations in the future. Changes to the Company’s business practices to comply with new laws and regulations or in connection with other legal proceedings can negatively impact the reputation of the Company’s products for privacy and security and otherwise adversely affect the experience for users of the Company’s products and services, and result in harm to the Company’s reputation, loss of competitive advantage, poor market acceptance, reduced demand for products and services, and lost sales.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Share repurchase activity during the three months ended December 30, 2023 was as follows (in millions, except number of shares, which are reflected in thousands, and per-share amounts):

Periods	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1)
October 1, 2023 to November 4, 2023:
August 2023 ASRs	6,498	(2)		6,498
Open market and privately negotiated purchases	45,970	$	174.03	45,970
November 5, 2023 to December 2, 2023:
Open market and privately negotiated purchases	33,797	$	187.14	33,797
December 3, 2023 to December 30, 2023:
Open market and privately negotiated purchases	31,782	$	194.29	31,782
Total	118,047				$	53,569

(1)As of December 30, 2023, the Company was authorized by the Board of Directors to purchase up to $90 billion of the Company’s common stock under a share repurchase program announced on May 4, 2023, of which $36.4 billion had been utilized. The program does not obligate the Company to acquire a minimum amount of shares. Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.

(2)In August 2023, the Company entered into accelerated share repurchase agreements (“ASRs”) to purchase up to a total of $5.0 billion of the Company’s common stock. In October 2023, the purchase periods for these ASRs ended and an additional 6 million shares were delivered and retired. In total, 29 million shares were delivered under these ASRs at an average repurchase price of $174.93 per share.

Apple Inc. | Q1 2024 Form 10-Q | 20

Item 3.    Defaults Upon Senior Securities

None.

Item 4.    Mine Safety Disclosures

Not applicable.

Item 5.    Other Information

Insider Trading Arrangements

On November 11, 2023 and November 27, 2023, respectively, Luca Maestri, the Company’s Senior Vice President and Chief Financial Officer, and Katherine L. Adams, the Company’s Senior Vice President and General Counsel, each entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. The plans provide for the sale of all shares vested during the duration of the plans pursuant to certain equity awards granted to Mr. Maestri and Ms. Adams, respectively, excluding any shares withheld by the Company to satisfy income tax withholding and remittance obligations. Mr. Maestri’s plan will expire on December 31, 2024, and Ms. Adams’s plan will expire on November 1, 2024, subject to early termination for certain specified events set forth in the plans.

Item 6.    Exhibits

		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	Exhibit	Filing Date/ Period End Date
31.1*	Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer.
31.2*	Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer.
32.1**	Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer.
101*	Inline XBRL Document Set for the condensed consolidated financial statements and accompanying notes in Part I, Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q.
104*	Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.

*    Filed herewith.

**    Furnished herewith.

Apple Inc. | Q1 2024 Form 10-Q | 21

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: February 1, 2024	Apple Inc.
	By:	/s/ Luca Maestri
		Luca Maestri
		Senior Vice President, Chief Financial Officer

Apple Inc. | Q1 2024 Form 10-Q | 22

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Timothy D. Cook, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Apple Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: February 1, 2024

By:	/s/ Timothy D. Cook
	Timothy D. Cook
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Luca Maestri, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Apple Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: February 1, 2024

By:	/s/ Luca Maestri
	Luca Maestri
	Senior Vice President, Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Timothy D. Cook, certify, as of the date hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Apple Inc. on Form 10-Q for the period ended December 30, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of Apple Inc. at the dates and for the periods indicated.

Date: February 1, 2024

By:	/s/ Timothy D. Cook
	Timothy D. Cook
	Chief Executive Officer

I, Luca Maestri, certify, as of the date hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Apple Inc. on Form 10-Q for the period ended December 30, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of Apple Inc. at the dates and for the periods indicated.

Date: February 1, 2024

By:	/s/ Luca Maestri
	Luca Maestri
	Senior Vice President, Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Apple Inc. and will be retained by Apple Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Net sales	$ 119,575	$ 117,154
Cost of sales	64,720	66,822
Gross margin	54,855	50,332
Operating expenses:
Research and development	7,696	7,709
Selling, general and administrative	6,786	6,607
Total operating expenses	14,482	14,316
Operating income	40,373	36,016
Other income/(expense), net	(50)	(393)
Income before provision for income taxes	40,323	35,623
Provision for income taxes	6,407	5,625
Net income	$ 33,916	$ 29,998
Earnings per share:
Basic (in dollars per share)	$ 2.19	$ 1.89
Diluted (in dollars per share)	$ 2.18	$ 1.88
Shares used in computing earnings per share:
Basic (in shares)	15,509,763	15,892,723
Diluted (in shares)	15,576,641	15,955,718
Products
Net sales	$ 96,458	$ 96,388
Cost of sales	58,440	60,765
Services
Net sales	23,117	20,766
Cost of sales	$ 6,280	$ 6,057

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 33,916	$ 29,998
Other comprehensive income/(loss):
Change in foreign currency translation, net of tax	308	(14)
Change in unrealized gains/losses on derivative instruments, net of tax:
Change in fair value of derivative instruments	(531)	(988)
Adjustment for net (gains)/losses realized and included in net income	(823)	(1,766)
Total change in unrealized gains/losses on derivative instruments	(1,354)	(2,754)
Change in unrealized gains/losses on marketable debt securities, net of tax:
Change in fair value of marketable debt securities	3,045	900
Adjustment for net (gains)/losses realized and included in net income	75	65
Total change in unrealized gains/losses on marketable debt securities	3,120	965
Total other comprehensive income/(loss)	2,074	(1,803)
Total comprehensive income	$ 35,990	$ 28,195

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Dec. 30, 2023	Sep. 30, 2023
Current assets:
Cash and cash equivalents	$ 40,760	$ 29,965
Marketable securities	32,340	31,590
Accounts receivable, net	23,194	29,508
Vendor non-trade receivables	26,908	31,477
Inventories	6,511	6,331
Other current assets	13,979	14,695
Total current assets	143,692	143,566
Non-current assets:
Marketable securities	99,475	100,544
Property, plant and equipment, net	43,666	43,715
Other non-current assets	66,681	64,758
Total non-current assets	209,822	209,017
Total assets	353,514	352,583
Current liabilities:
Accounts payable	58,146	62,611
Other current liabilities	54,611	58,829
Deferred revenue	8,264	8,061
Commercial paper	1,998	5,985
Term debt	10,954	9,822
Total current liabilities	133,973	145,308
Non-current liabilities:
Term debt	95,088	95,281
Other non-current liabilities	50,353	49,848
Total non-current liabilities	145,441	145,129
Total liabilities	279,414	290,437
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,460,223 and 15,550,061 shares issued and outstanding, respectively	75,236	73,812
Retained earnings/(Accumulated deficit)	8,242	(214)
Accumulated other comprehensive loss	(9,378)	(11,452)
Total shareholders’ equity	74,100	62,146
Total liabilities and shareholders’ equity	$ 353,514	$ 352,583

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Dec. 30, 2023	Sep. 30, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	50,400,000,000	50,400,000,000
Common stock, shares issued (in shares)	15,460,223,000	15,550,061,000
Common stock, shares outstanding (in shares)	15,460,223,000	15,550,061,000

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CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions	Total	Common stock and additional paid-in capital	Retained earnings/(Accumulated deficit)	Accumulated other comprehensive income/(loss)
Beginning balances at Sep. 24, 2022	$ 50,672	$ 64,849	$ (3,068)	$ (11,109)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock withheld related to net share settlement of equity awards		(1,434)	(978)
Share-based compensation		2,984
Net income	29,998		29,998
Dividends and dividend equivalents declared			(3,712)
Common stock repurchased			(19,000)
Other comprehensive income/(loss)	(1,803)			(1,803)
Ending balances at Dec. 31, 2022	$ 56,727	66,399	3,240	(12,912)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU)	$ 0.23
Beginning balances at Sep. 30, 2023	$ 62,146	73,812	(214)	(11,452)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock withheld related to net share settlement of equity awards		(1,660)	(1,018)
Share-based compensation		3,084
Net income	33,916		33,916
Dividends and dividend equivalents declared			(3,774)
Common stock repurchased	(20,500)		(20,668)
Other comprehensive income/(loss)	2,074			2,074
Ending balances at Dec. 30, 2023	$ 74,100	$ 75,236	$ 8,242	$ (9,378)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU)	$ 0.24

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Statement of Cash Flows [Abstract]
Cash, cash equivalents and restricted cash, beginning balances	$ 30,737	$ 24,977
Operating activities:
Net income	33,916	29,998
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization	2,848	2,916
Share-based compensation expense	2,997	2,905
Other	(989)	(317)
Changes in operating assets and liabilities:
Accounts receivable, net	6,555	4,275
Vendor non-trade receivables	4,569	2,320
Inventories	(137)	(1,807)
Other current and non-current assets	(1,457)	(4,099)
Accounts payable	(4,542)	(6,075)
Other current and non-current liabilities	(3,865)	3,889
Cash generated by operating activities	39,895	34,005
Investing activities:
Purchases of marketable securities	(9,780)	(5,153)
Proceeds from maturities of marketable securities	13,046	7,127
Proceeds from sales of marketable securities	1,337	509
Payments for acquisition of property, plant and equipment	(2,392)	(3,787)
Other	(284)	(141)
Cash generated by/(used in) investing activities	1,927	(1,445)
Financing activities:
Payments for taxes related to net share settlement of equity awards	(2,591)	(2,316)
Payments for dividends and dividend equivalents	(3,825)	(3,768)
Repurchases of common stock	(20,139)	(19,475)
Repayments of term debt	0	(1,401)
Repayments of commercial paper, net	(3,984)	(8,214)
Other	(46)	(389)
Cash used in financing activities	(30,585)	(35,563)
Increase/(Decrease) in cash, cash equivalents and restricted cash	11,237	(3,003)
Cash, cash equivalents and restricted cash, ending balances	41,974	21,974
Supplemental cash flow disclosure:
Cash paid for income taxes, net	$ 7,255	$ 828

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Summary of Significant Accounting Policies

3 Months Ended

Dec. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation and Preparation

The condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the use of management estimates. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (the “2023 Form 10-K”).

The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters, which occurred in the first fiscal quarter of 2023. The Company’s fiscal years 2024 and 2023 span 52 and 53 weeks, respectively. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years.

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Revenue

3 Months Ended

Dec. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Net sales disaggregated by significant products and services for the three months ended December 30, 2023 and December 31, 2022 were as follows (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
iPhone®	$	69,702	$	65,775
Mac®	7,780		7,735
iPad®	7,023		9,396
Wearables, Home and Accessories	11,953		13,482
Services	23,117		20,766
Total net sales	$	119,575	$	117,154

Total net sales include $3.5 billion of revenue recognized in the three months ended December 30, 2023 that was included in deferred revenue as of September 30, 2023 and $3.4 billion of revenue recognized in the three months ended December 31, 2022 that was included in deferred revenue as of September 24, 2022.

The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 10, “Segment Information and Geographic Data” for the three months ended December 30, 2023 and December 31, 2022, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales.

As of December 30, 2023 and September 30, 2023, the Company had total deferred revenue of $12.5 billion and $12.1 billion, respectively. As of December 30, 2023, the Company expects 66% of total deferred revenue to be realized in less than a year, 26% within one-to-two years, 7% within two-to-three years and 1% in greater than three years.

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Earnings Per Share

3 Months Ended

Dec. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table shows the computation of basic and diluted earnings per share for the three months ended December 30, 2023 and December 31, 2022 (net income in millions and shares in thousands):

	Three Months Ended
	December 30, 2023		December 31, 2022
Numerator:
Net income	$	33,916	$	29,998
Denominator:
Weighted-average basic shares outstanding	15,509,763		15,892,723
Effect of dilutive share-based awards	66,878		62,995
Weighted-average diluted shares	15,576,641		15,955,718
Basic earnings per share	$	2.19	$	1.89
Diluted earnings per share	$	2.18	$	1.88

Approximately 89 million restricted stock units (“RSUs”) were excluded from the computation of diluted earnings per share for the three months ended December 31, 2022 because their effect would have been antidilutive.

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Financial Instruments

3 Months Ended

Dec. 30, 2023

Financial Instruments [Abstract]

Financial Instruments

Financial Instruments

Cash, Cash Equivalents and Marketable Securities

The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of December 30, 2023 and September 30, 2023 (in millions):

	December 30, 2023
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Marketable Securities		Non-Current Marketable Securities
Cash	$	29,542	$	—	$	—	$	29,542	$	29,542	$	—	$	—
Level 1:
Money market funds	2,000		—		—		2,000		2,000		—		—
Mutual funds	448		35		(11)		472		—		472		—
Subtotal	2,448		35		(11)		2,472		2,000		472		—
Level 2 (1):
U.S. Treasury securities	24,041		12		(920)		23,133		7,303		4,858		10,972
U.S. agency securities	5,791		—		(448)		5,343		243		98		5,002
Non-U.S. government securities	17,326		54		(675)		16,705		—		11,175		5,530
Certificates of deposit and time deposits	1,448		—		—		1,448		1,119		329		—
Commercial paper	1,361		—		—		1,361		472		889		—
Corporate debt securities	75,360		112		(3,964)		71,508		81		13,909		57,518
Municipal securities	562		—		(14)		548		—		185		363
Mortgage- and asset-backed securities	22,369		53		(1,907)		20,515		—		425		20,090
Subtotal	148,258		231		(7,928)		140,561		9,218		31,868		99,475
Total (2)	$	180,248	$	266	$	(7,939)	$	172,575	$	40,760	$	32,340	$	99,475

	September 30, 2023
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Marketable Securities		Non-Current Marketable Securities
Cash	$	28,359	$	—	$	—	$	28,359	$	28,359	$	—	$	—
Level 1:
Money market funds	481		—		—		481		481		—		—
Mutual funds and equity securities	442		12		(26)		428		—		428		—
Subtotal	923		12		(26)		909		481		428		—
Level 2 (1):
U.S. Treasury securities	19,406		—		(1,292)		18,114		35		5,468		12,611
U.S. agency securities	5,736		—		(600)		5,136		36		271		4,829
Non-U.S. government securities	17,533		6		(1,048)		16,491		—		11,332		5,159
Certificates of deposit and time deposits	1,354		—		—		1,354		1,034		320		—
Commercial paper	608		—		—		608		—		608		—
Corporate debt securities	76,840		6		(5,956)		70,890		20		12,627		58,243
Municipal securities	628		—		(26)		602		—		192		410
Mortgage- and asset-backed securities	22,365		6		(2,735)		19,636		—		344		19,292
Subtotal	144,470		18		(11,657)		132,831		1,125		31,162		100,544
Total (2)	$	173,752	$	30	$	(11,683)	$	162,099	$	29,965	$	31,590	$	100,544

(1)The valuation techniques used to measure the fair values of the Company’s Level 2 financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data.

(2)As of December 30, 2023 and September 30, 2023, total marketable securities included $13.9 billion and $13.8 billion, respectively, that were restricted from general use, related to the European Commission decision finding that Ireland granted state aid to the Company, and other agreements.

The following table shows the fair value of the Company’s non-current marketable debt securities, by contractual maturity, as of December 30, 2023 (in millions):

Due after 1 year through 5 years	$	72,994
Due after 5 years through 10 years	9,368
Due after 10 years	17,113
Total fair value	$	99,475

Derivative Instruments and Hedging

The Company may use derivative instruments to partially offset its business exposure to foreign exchange and interest rate risk. However, the Company may choose not to hedge certain exposures for a variety of reasons, including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates.

Foreign Exchange Rate Risk

To protect gross margins from fluctuations in foreign exchange rates, the Company may use forwards, options or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months.

To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign exchange rates, the Company may use forwards, cross-currency swaps or other instruments. The Company designates these instruments as either cash flow or fair value hedges. As of December 30, 2023, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for term debt–related foreign currency transactions is 19 years.

The Company may also use derivative instruments that are not designated as accounting hedges to protect gross margins from certain fluctuations in foreign exchange rates, as well as to offset a portion of the foreign currency gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies.

Interest Rate Risk

To protect the Company’s term debt or marketable securities from fluctuations in interest rates, the Company may use interest rate swaps, options or other instruments. The Company designates these instruments as either cash flow or fair value hedges.

The notional amounts of the Company’s outstanding derivative instruments as of December 30, 2023 and September 30, 2023 were as follows (in millions):

	December 30, 2023		September 30, 2023
Derivative instruments designated as accounting hedges:
Foreign exchange contracts	$	66,735	$	74,730
Interest rate contracts	$	19,375	$	19,375
Derivative instruments not designated as accounting hedges:
Foreign exchange contracts	$	102,108	$	104,777

The carrying amounts of the Company’s hedged items in fair value hedges as of December 30, 2023 and September 30, 2023 were as follows (in millions):

	December 30, 2023		September 30, 2023
Hedged assets/(liabilities):
Current and non-current marketable securities	$	15,102	$	14,433
Current and non-current term debt	$	(18,661)	$	(18,247)

Accounts Receivable

Trade Receivables

The Company’s third-party cellular network carriers accounted for 34% and 41% of total trade receivables as of December 30, 2023 and September 30, 2023, respectively. The Company requires third-party credit support or collateral from certain customers to limit credit risk.

Vendor Non-Trade Receivables

The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. The Company does not reflect the sale of these components in products net sales. Rather, the Company recognizes any gain on these sales as a reduction of products cost of sales when the related final products are sold by the Company. As of December 30, 2023, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 50% and 20%. As of September 30, 2023, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 48% and 23%.

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Condensed Consolidated Financial Statement Details

3 Months Ended

Dec. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Financial Statement Details

Condensed Consolidated Financial Statement Details

The following table shows the Company’s condensed consolidated financial statement details as of December 30, 2023 and September 30, 2023 (in millions):

Property, Plant and Equipment, Net

	December 30, 2023		September 30, 2023
Gross property, plant and equipment	$	116,176	$	114,599
Accumulated depreciation	(72,510)		(70,884)
Total property, plant and equipment, net	$	43,666	$	43,715

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Debt

3 Months Ended

Dec. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

Commercial Paper

The Company issues unsecured short-term promissory notes pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of December 30, 2023 and September 30, 2023, the Company had $2.0 billion and $6.0 billion of commercial paper outstanding, respectively. The following table provides a summary of cash flows associated with the issuance and maturities of commercial paper for the three months ended December 30, 2023 and December 31, 2022 (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
Maturities 90 days or less:
Repayments of commercial paper, net	$	(3,984)	$	(5,569)
Maturities greater than 90 days:
Repayments of commercial paper	—		(2,645)
Total repayments of commercial paper, net	$	(3,984)	$	(8,214)

Term Debt

As of December 30, 2023 and September 30, 2023, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $106.0 billion and $105.1 billion, respectively (collectively the “Notes”). As of December 30, 2023 and September 30, 2023, the fair value of the Company’s Notes, based on Level 2 inputs, was $96.7 billion and $90.8 billion, respectively.

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Shareholders' Equity

3 Months Ended

Dec. 30, 2023

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

Share Repurchase Program

During the three months ended December 30, 2023, the Company repurchased 118 million shares of its common stock for $20.5 billion. The Company’s share repurchase program does not obligate the Company to acquire a minimum amount of shares. Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

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Share-Based Compensation

3 Months Ended

Dec. 30, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

Share-Based Compensation

Restricted Stock Units

A summary of the Company’s RSU activity and related information for the three months ended December 30, 2023 is as follows:

	Number of RSUs (in thousands)	Weighted-Average Grant Date Fair Value Per RSU		Aggregate Fair Value (in millions)
Balance as of September 30, 2023	180,247	$	135.91
RSUs granted	74,241	$	171.58
RSUs vested	(42,490)	$	110.75
RSUs canceled	(3,026)	$	109.05
Balance as of December 30, 2023	208,972	$	154.09	$	40,233

The fair value as of the respective vesting dates of RSUs was $7.7 billion and $6.8 billion for the three months ended December 30, 2023 and December 31, 2022, respectively.

Share-Based Compensation

The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three months ended December 30, 2023 and December 31, 2022 (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
Share-based compensation expense	$	2,997	$	2,905
Income tax benefit related to share-based compensation expense	$	(1,235)	$	(1,178)

As of December 30, 2023, the total unrecognized compensation cost related to outstanding RSUs was $27.4 billion, which the Company expects to recognize over a weighted-average period of 2.9 years.

XML

Contingencies

3 Months Ended

Dec. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully resolved. The outcome of litigation is inherently uncertain. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other claims.

XML

Segment Information and Geographic Data

3 Months Ended

Dec. 30, 2023

Segment Reporting [Abstract]

Segment Information and Geographic Data

Segment Information and Geographic Data

The following table shows information by reportable segment for the three months ended December 30, 2023 and December 31, 2022 (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
Americas:
Net sales	$	50,430	$	49,278
Operating income	$	20,357	$	17,864
Europe:
Net sales	$	30,397	$	27,681
Operating income	$	12,711	$	10,017
Greater China:
Net sales	$	20,819	$	23,905
Operating income	$	8,622	$	10,437
Japan:
Net sales	$	7,767	$	6,755
Operating income	$	3,819	$	3,236
Rest of Asia Pacific:
Net sales	$	10,162	$	9,535
Operating income	$	4,579	$	3,851

A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three months ended December 30, 2023 and December 31, 2022 is as follows (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
Segment operating income	$	50,088	$	45,405
Research and development expense	(7,696)		(7,709)
Other corporate expenses, net	(2,019)		(1,680)
Total operating income	$	40,373	$	36,016

XML

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net income	$ 33,916	$ 29,998

XML

Insider Trading Arrangements

3 Months Ended

Dec. 30, 2023

Trading Arrangements, by Individual

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

Luca Maestri [Member]

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

On November 11, 2023 and November 27, 2023, respectively, Luca Maestri, the Company’s Senior Vice President and Chief Financial Officer, and Katherine L. Adams, the Company’s Senior Vice President and General Counsel, each entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. The plans provide for the sale of all shares vested during the duration of the plans pursuant to certain equity awards granted to Mr. Maestri and Ms. Adams, respectively, excluding any shares withheld by the Company to satisfy income tax withholding and remittance obligations. Mr. Maestri’s plan will expire on December 31, 2024, and Ms. Adams’s plan will expire on November 1, 2024, subject to early termination for certain specified events set forth in the plans.

Name

Luca Maestri

Title

Senior Vice President and Chief Financial Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

November 11, 2023

Arrangement Duration

416 days

Katherine L. Adams [Member]

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

On November 11, 2023 and November 27, 2023, respectively, Luca Maestri, the Company’s Senior Vice President and Chief Financial Officer, and Katherine L. Adams, the Company’s Senior Vice President and General Counsel, each entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. The plans provide for the sale of all shares vested during the duration of the plans pursuant to certain equity awards granted to Mr. Maestri and Ms. Adams, respectively, excluding any shares withheld by the Company to satisfy income tax withholding and remittance obligations. Mr. Maestri’s plan will expire on December 31, 2024, and Ms. Adams’s plan will expire on November 1, 2024, subject to early termination for certain specified events set forth in the plans.

Name

Katherine L. Adams

Title

Senior Vice President and General Counsel

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

November 27, 2023

Arrangement Duration

340 days

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Dec. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation and Preparation

Basis of Presentation and Preparation

The condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the use of management estimates. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (the “2023 Form 10-K”).

Fiscal Period

The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters, which occurred in the first fiscal quarter of 2023. The Company’s fiscal years 2024 and 2023 span 52 and 53 weeks, respectively. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years.

Fair Value Measurements

The valuation techniques used to measure the fair values of the Company’s Level 2 financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data.

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Revenue (Tables)

3 Months Ended

Dec. 30, 2023

Revenue from Contract with Customer [Abstract]

Net Sales Disaggregated by Significant Products and Services

Net sales disaggregated by significant products and services for the three months ended December 30, 2023 and December 31, 2022 were as follows (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
iPhone®	$	69,702	$	65,775
Mac®	7,780		7,735
iPad®	7,023		9,396
Wearables, Home and Accessories	11,953		13,482
Services	23,117		20,766
Total net sales	$	119,575	$	117,154

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Earnings Per Share (Tables)

3 Months Ended

Dec. 30, 2023

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table shows the computation of basic and diluted earnings per share for the three months ended December 30, 2023 and December 31, 2022 (net income in millions and shares in thousands):

	Three Months Ended
	December 30, 2023		December 31, 2022
Numerator:
Net income	$	33,916	$	29,998
Denominator:
Weighted-average basic shares outstanding	15,509,763		15,892,723
Effect of dilutive share-based awards	66,878		62,995
Weighted-average diluted shares	15,576,641		15,955,718
Basic earnings per share	$	2.19	$	1.89
Diluted earnings per share	$	2.18	$	1.88

XML

Financial Instruments (Tables)

3 Months Ended

Dec. 30, 2023

Financial Instruments [Abstract]

Cash, Cash Equivalents and Marketable Securities by Significant Investment Category

The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of December 30, 2023 and September 30, 2023 (in millions):

	December 30, 2023
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Marketable Securities		Non-Current Marketable Securities
Cash	$	29,542	$	—	$	—	$	29,542	$	29,542	$	—	$	—
Level 1:
Money market funds	2,000		—		—		2,000		2,000		—		—
Mutual funds	448		35		(11)		472		—		472		—
Subtotal	2,448		35		(11)		2,472		2,000		472		—
Level 2 (1):
U.S. Treasury securities	24,041		12		(920)		23,133		7,303		4,858		10,972
U.S. agency securities	5,791		—		(448)		5,343		243		98		5,002
Non-U.S. government securities	17,326		54		(675)		16,705		—		11,175		5,530
Certificates of deposit and time deposits	1,448		—		—		1,448		1,119		329		—
Commercial paper	1,361		—		—		1,361		472		889		—
Corporate debt securities	75,360		112		(3,964)		71,508		81		13,909		57,518
Municipal securities	562		—		(14)		548		—		185		363
Mortgage- and asset-backed securities	22,369		53		(1,907)		20,515		—		425		20,090
Subtotal	148,258		231		(7,928)		140,561		9,218		31,868		99,475
Total (2)	$	180,248	$	266	$	(7,939)	$	172,575	$	40,760	$	32,340	$	99,475

	September 30, 2023
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Current Marketable Securities		Non-Current Marketable Securities
Cash	$	28,359	$	—	$	—	$	28,359	$	28,359	$	—	$	—
Level 1:
Money market funds	481		—		—		481		481		—		—
Mutual funds and equity securities	442		12		(26)		428		—		428		—
Subtotal	923		12		(26)		909		481		428		—
Level 2 (1):
U.S. Treasury securities	19,406		—		(1,292)		18,114		35		5,468		12,611
U.S. agency securities	5,736		—		(600)		5,136		36		271		4,829
Non-U.S. government securities	17,533		6		(1,048)		16,491		—		11,332		5,159
Certificates of deposit and time deposits	1,354		—		—		1,354		1,034		320		—
Commercial paper	608		—		—		608		—		608		—
Corporate debt securities	76,840		6		(5,956)		70,890		20		12,627		58,243
Municipal securities	628		—		(26)		602		—		192		410
Mortgage- and asset-backed securities	22,365		6		(2,735)		19,636		—		344		19,292
Subtotal	144,470		18		(11,657)		132,831		1,125		31,162		100,544
Total (2)	$	173,752	$	30	$	(11,683)	$	162,099	$	29,965	$	31,590	$	100,544

(1)The valuation techniques used to measure the fair values of the Company’s Level 2 financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data.

(2)As of December 30, 2023 and September 30, 2023, total marketable securities included $13.9 billion and $13.8 billion, respectively, that were restricted from general use, related to the European Commission decision finding that Ireland granted state aid to the Company, and other agreements.

Non-Current Marketable Debt Securities by Contractual Maturity

The following table shows the fair value of the Company’s non-current marketable debt securities, by contractual maturity, as of December 30, 2023 (in millions):

Due after 1 year through 5 years	$	72,994
Due after 5 years through 10 years	9,368
Due after 10 years	17,113
Total fair value	$	99,475

Notional Amounts of Outstanding Derivative Instruments

The notional amounts of the Company’s outstanding derivative instruments as of December 30, 2023 and September 30, 2023 were as follows (in millions):

	December 30, 2023		September 30, 2023
Derivative instruments designated as accounting hedges:
Foreign exchange contracts	$	66,735	$	74,730
Interest rate contracts	$	19,375	$	19,375
Derivative instruments not designated as accounting hedges:
Foreign exchange contracts	$	102,108	$	104,777

Carrying Amounts of Hedged Items in Fair Value Hedges

The carrying amounts of the Company’s hedged items in fair value hedges as of December 30, 2023 and September 30, 2023 were as follows (in millions):

	December 30, 2023		September 30, 2023
Hedged assets/(liabilities):
Current and non-current marketable securities	$	15,102	$	14,433
Current and non-current term debt	$	(18,661)	$	(18,247)

XML

Condensed Consolidated Financial Statement Details (Tables)

3 Months Ended

Dec. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Property, Plant and Equipment, Net

The following table shows the Company’s condensed consolidated financial statement details as of December 30, 2023 and September 30, 2023 (in millions):

Property, Plant and Equipment, Net

	December 30, 2023		September 30, 2023
Gross property, plant and equipment	$	116,176	$	114,599
Accumulated depreciation	(72,510)		(70,884)
Total property, plant and equipment, net	$	43,666	$	43,715

XML

Debt (Tables)

3 Months Ended

Dec. 30, 2023

Debt Disclosure [Abstract]

Summary of Cash Flows Associated with the Issuance and Maturities of Commercial Paper

The following table provides a summary of cash flows associated with the issuance and maturities of commercial paper for the three months ended December 30, 2023 and December 31, 2022 (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
Maturities 90 days or less:
Repayments of commercial paper, net	$	(3,984)	$	(5,569)
Maturities greater than 90 days:
Repayments of commercial paper	—		(2,645)
Total repayments of commercial paper, net	$	(3,984)	$	(8,214)

XML

Share-Based Compensation (Tables)

3 Months Ended

Dec. 30, 2023

Share-Based Payment Arrangement [Abstract]

Restricted Stock Unit Activity

A summary of the Company’s RSU activity and related information for the three months ended December 30, 2023 is as follows:

	Number of RSUs (in thousands)	Weighted-Average Grant Date Fair Value Per RSU		Aggregate Fair Value (in millions)
Balance as of September 30, 2023	180,247	$	135.91
RSUs granted	74,241	$	171.58
RSUs vested	(42,490)	$	110.75
RSUs canceled	(3,026)	$	109.05
Balance as of December 30, 2023	208,972	$	154.09	$	40,233

Summary of Share-Based Compensation Expense and the Related Income Tax Benefit

The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three months ended December 30, 2023 and December 31, 2022 (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
Share-based compensation expense	$	2,997	$	2,905
Income tax benefit related to share-based compensation expense	$	(1,235)	$	(1,178)

XML

Segment Information and Geographic Data (Tables)

3 Months Ended

Dec. 30, 2023

Segment Reporting [Abstract]

Information by Reportable Segment

The following table shows information by reportable segment for the three months ended December 30, 2023 and December 31, 2022 (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
Americas:
Net sales	$	50,430	$	49,278
Operating income	$	20,357	$	17,864
Europe:
Net sales	$	30,397	$	27,681
Operating income	$	12,711	$	10,017
Greater China:
Net sales	$	20,819	$	23,905
Operating income	$	8,622	$	10,437
Japan:
Net sales	$	7,767	$	6,755
Operating income	$	3,819	$	3,236
Rest of Asia Pacific:
Net sales	$	10,162	$	9,535
Operating income	$	4,579	$	3,851

Reconciliation of Segment Operating Income to the Condensed Consolidated Statements of Operations

A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three months ended December 30, 2023 and December 31, 2022 is as follows (in millions):

	Three Months Ended
	December 30, 2023		December 31, 2022
Segment operating income	$	50,088	$	45,405
Research and development expense	(7,696)		(7,709)
Other corporate expenses, net	(2,019)		(1,680)
Total operating income	$	40,373	$	36,016

XML

Revenue - Net Sales Disaggregated by Significant Products and Services (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 119,575	$ 117,154
iPhone
Disaggregation of Revenue [Line Items]
Net sales	69,702	65,775
Mac
Disaggregation of Revenue [Line Items]
Net sales	7,780	7,735
iPad
Disaggregation of Revenue [Line Items]
Net sales	7,023	9,396
Wearables, Home and Accessories
Disaggregation of Revenue [Line Items]
Net sales	11,953	13,482
Services
Disaggregation of Revenue [Line Items]
Net sales	$ 23,117	$ 20,766

XML

Revenue - Additional Information (Details) - USD ($) $ in Billions	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue recognized that was included in deferred revenue at the beginning of the period	$ 3.5	$ 3.4
Total deferred revenue	$ 12.5		$ 12.1

XML

Revenue - Deferred Revenue, Expected Timing of Realization (Details)	Dec. 30, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, expected timing of realization, percentage	66.00%
Deferred revenue, expected timing of realization, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, expected timing of realization, percentage	26.00%
Deferred revenue, expected timing of realization, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, expected timing of realization, percentage	7.00%
Deferred revenue, expected timing of realization, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-12-27
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue, expected timing of realization, percentage	1.00%
Deferred revenue, expected timing of realization, period

XML

Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Numerator:
Net income	$ 33,916	$ 29,998
Denominator:
Weighted-average basic shares outstanding (in shares)	15,509,763	15,892,723
Effect of dilutive share-based awards (in shares)	66,878	62,995
Weighted-average diluted shares (in shares)	15,576,641	15,955,718
Basic earnings per share (in dollars per share)	$ 2.19	$ 1.89
Diluted earnings per share (in dollars per share)	$ 2.18	$ 1.88

XML

Earnings Per Share - Additional Information (Details) shares in Millions	3 Months Ended
	Dec. 31, 2022 shares
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Restricted stock units excluded from the computation of diluted earnings per share because their effect would have been antidilutive (in shares)	89

XML

Financial Instruments - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Millions	Dec. 30, 2023	Sep. 30, 2023
Marketable Securities [Line Items]
Cash, Cash Equivalents and Marketable Securities, Adjusted Cost	$ 180,248	$ 173,752
Cash Equivalents and Marketable Securities, Unrealized Gains	266	30
Cash Equivalents and Marketable Securities, Unrealized Losses	(7,939)	(11,683)
Cash, Cash Equivalents and Marketable Securities, Fair Value	172,575	162,099
Cash and Cash Equivalents	40,760	29,965
Current Marketable Securities	32,340	31,590
Non-Current Marketable Securities	99,475	100,544
Total marketable securities that were restricted from general use	13,900	13,800
Level 1
Marketable Securities [Line Items]
Marketable Securities, Equity, Adjusted Cost	2,448	923
Marketable Securities, Equity, Unrealized Gains	35	12
Marketable Securities, Equity, Unrealized Losses	(11)	(26)
Marketable Securities, Equity, Fair Value	2,472	909
Cash and Cash Equivalents	2,000	481
Current Marketable Securities	472	428
Non-Current Marketable Securities	0	0
Level 2
Marketable Securities [Line Items]
Marketable Securities, Debt, Adjusted Cost	148,258	144,470
Marketable Securities, Debt, Unrealized Gains	231	18
Marketable Securities, Debt, Unrealized Losses	(7,928)	(11,657)
Marketable Securities, Debt, Fair Value	140,561	132,831
Cash and Cash Equivalents	9,218	1,125
Current Marketable Securities	31,868	31,162
Non-Current Marketable Securities	99,475	100,544
Cash
Marketable Securities [Line Items]
Cash	29,542	28,359
Cash and Cash Equivalents	29,542	28,359
Current Marketable Securities	0	0
Non-Current Marketable Securities	0	0
Money market funds | Level 1
Marketable Securities [Line Items]
Marketable Securities, Equity, Adjusted Cost	2,000	481
Marketable Securities, Equity, Unrealized Gains	0	0
Marketable Securities, Equity, Unrealized Losses	0	0
Marketable Securities, Equity, Fair Value	2,000	481
Cash and Cash Equivalents	2,000	481
Current Marketable Securities	0	0
Non-Current Marketable Securities	0	0
Mutual funds | Level 1
Marketable Securities [Line Items]
Marketable Securities, Equity, Adjusted Cost	448
Marketable Securities, Equity, Unrealized Gains	35
Marketable Securities, Equity, Unrealized Losses	(11)
Marketable Securities, Equity, Fair Value	472
Cash and Cash Equivalents	0
Current Marketable Securities	472
Non-Current Marketable Securities	0
Mutual funds and equity securities | Level 1
Marketable Securities [Line Items]
Marketable Securities, Equity, Adjusted Cost		442
Marketable Securities, Equity, Unrealized Gains		12
Marketable Securities, Equity, Unrealized Losses		(26)
Marketable Securities, Equity, Fair Value		428
Cash and Cash Equivalents		0
Current Marketable Securities		428
Non-Current Marketable Securities		0
U.S. Treasury securities | Level 2
Marketable Securities [Line Items]
Marketable Securities, Debt, Adjusted Cost	24,041	19,406
Marketable Securities, Debt, Unrealized Gains	12	0
Marketable Securities, Debt, Unrealized Losses	(920)	(1,292)
Marketable Securities, Debt, Fair Value	23,133	18,114
Cash and Cash Equivalents	7,303	35
Current Marketable Securities	4,858	5,468
Non-Current Marketable Securities	10,972	12,611
U.S. agency securities | Level 2
Marketable Securities [Line Items]
Marketable Securities, Debt, Adjusted Cost	5,791	5,736
Marketable Securities, Debt, Unrealized Gains	0	0
Marketable Securities, Debt, Unrealized Losses	(448)	(600)
Marketable Securities, Debt, Fair Value	5,343	5,136
Cash and Cash Equivalents	243	36
Current Marketable Securities	98	271
Non-Current Marketable Securities	5,002	4,829
Non-U.S. government securities | Level 2
Marketable Securities [Line Items]
Marketable Securities, Debt, Adjusted Cost	17,326	17,533
Marketable Securities, Debt, Unrealized Gains	54	6
Marketable Securities, Debt, Unrealized Losses	(675)	(1,048)
Marketable Securities, Debt, Fair Value	16,705	16,491
Cash and Cash Equivalents	0	0
Current Marketable Securities	11,175	11,332
Non-Current Marketable Securities	5,530	5,159
Certificates of deposit and time deposits | Level 2
Marketable Securities [Line Items]
Marketable Securities, Debt, Adjusted Cost	1,448	1,354
Marketable Securities, Debt, Unrealized Gains	0	0
Marketable Securities, Debt, Unrealized Losses	0	0
Marketable Securities, Debt, Fair Value	1,448	1,354
Cash and Cash Equivalents	1,119	1,034
Current Marketable Securities	329	320
Non-Current Marketable Securities	0	0
Commercial paper | Level 2
Marketable Securities [Line Items]
Marketable Securities, Debt, Adjusted Cost	1,361	608
Marketable Securities, Debt, Unrealized Gains	0	0
Marketable Securities, Debt, Unrealized Losses	0	0
Marketable Securities, Debt, Fair Value	1,361	608
Cash and Cash Equivalents	472	0
Current Marketable Securities	889	608
Non-Current Marketable Securities	0	0
Corporate debt securities | Level 2
Marketable Securities [Line Items]
Marketable Securities, Debt, Adjusted Cost	75,360	76,840
Marketable Securities, Debt, Unrealized Gains	112	6
Marketable Securities, Debt, Unrealized Losses	(3,964)	(5,956)
Marketable Securities, Debt, Fair Value	71,508	70,890
Cash and Cash Equivalents	81	20
Current Marketable Securities	13,909	12,627
Non-Current Marketable Securities	57,518	58,243
Municipal securities | Level 2
Marketable Securities [Line Items]
Marketable Securities, Debt, Adjusted Cost	562	628
Marketable Securities, Debt, Unrealized Gains	0	0
Marketable Securities, Debt, Unrealized Losses	(14)	(26)
Marketable Securities, Debt, Fair Value	548	602
Cash and Cash Equivalents	0	0
Current Marketable Securities	185	192
Non-Current Marketable Securities	363	410
Mortgage- and asset-backed securities | Level 2
Marketable Securities [Line Items]
Marketable Securities, Debt, Adjusted Cost	22,369	22,365
Marketable Securities, Debt, Unrealized Gains	53	6
Marketable Securities, Debt, Unrealized Losses	(1,907)	(2,735)
Marketable Securities, Debt, Fair Value	20,515	19,636
Cash and Cash Equivalents	0	0
Current Marketable Securities	425	344
Non-Current Marketable Securities	$ 20,090	$ 19,292

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Financial Instruments - Non-Current Marketable Debt Securities by Contractual Maturity (Details) $ in Millions	Dec. 30, 2023 USD ($)
Fair value of non-current marketable debt securities by contractual maturity
Due after 1 year through 5 years	$ 72,994
Due after 5 years through 10 years	9,368
Due after 10 years	17,113
Total fair value	$ 99,475

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Financial Instruments - Additional Information (Details) - Vendor	3 Months Ended	12 Months Ended
	Dec. 30, 2023	Sep. 30, 2023
Trade receivables | Credit concentration risk | Cellular network carriers
Financial Instruments [Line Items]
Concentration risk, percentage	34.00%	41.00%
Non-trade receivables | Credit concentration risk
Financial Instruments [Line Items]
Number of vendors that individually represented 10% or more of total vendor non-trade receivables	2	2
Non-trade receivables | Credit concentration risk | Vendor one
Financial Instruments [Line Items]
Concentration risk, percentage	50.00%	48.00%
Non-trade receivables | Credit concentration risk | Vendor two
Financial Instruments [Line Items]
Concentration risk, percentage	20.00%	23.00%
Hedges of foreign currency exposure associated with revenue and inventory purchases
Financial Instruments [Line Items]
Maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for foreign currency transactions	12 months
Hedges of foreign currency exposure associated with term debt
Financial Instruments [Line Items]
Maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for foreign currency transactions	19 years

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Financial Instruments - Notional Amounts of Derivative Instruments (Details) - USD ($) $ in Millions	Dec. 30, 2023	Sep. 30, 2023
Derivatives designated as accounting hedges | Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Derivatives, notional amount	$ 66,735	$ 74,730
Derivatives designated as accounting hedges | Interest rate contracts
Derivatives, Fair Value [Line Items]
Derivatives, notional amount	19,375	19,375
Derivatives not designated as accounting hedges | Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Derivatives, notional amount	$ 102,108	$ 104,777

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Financial Instruments - Derivative Instruments Designated as Fair Value Hedges and Related Hedged Items (Details) - USD ($) $ in Millions	Dec. 30, 2023	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Carrying amount of hedged marketable securities	$ 15,102	$ 14,433
Hedged asset, statement of financial position [Extensible Enumeration]	Marketable securities, Marketable securities	Marketable securities, Marketable securities
Carrying amount of hedged term debt	$ (18,661)	$ (18,247)
Hedged liability, statement of financial position [Extensible Enumeration]	Term debt, Term debt	Term debt, Term debt

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Condensed Consolidated Financial Statement Details - Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions	Dec. 30, 2023	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Gross property, plant and equipment	$ 116,176	$ 114,599
Accumulated depreciation	(72,510)	(70,884)
Total property, plant and equipment, net	$ 43,666	$ 43,715

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Debt - Additional Information (Details) - USD ($) $ in Millions	Dec. 30, 2023	Sep. 30, 2023
Debt Instrument [Line Items]
Commercial paper	$ 1,998	$ 5,985
Fixed-rate notes, aggregate carrying amount	106,000	105,100
Commercial paper
Debt Instrument [Line Items]
Commercial paper	2,000	6,000
Level 2
Debt Instrument [Line Items]
Fixed-rate notes, aggregate fair value	$ 96,700	$ 90,800

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Debt - Summary of Cash Flows Associated with Commercial Paper (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Maturities 90 days or less:
Repayments of commercial paper, net	$ (3,984)	$ (5,569)
Maturities greater than 90 days:
Repayments of commercial paper	0	(2,645)
Total repayments of commercial paper, net	$ (3,984)	$ (8,214)

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Shareholders' Equity - Additional Information (Details) shares in Millions, $ in Billions	3 Months Ended
	Dec. 30, 2023 USD ($) shares
Stockholders' Equity Note [Abstract]
Number of shares repurchased (in shares) | shares	118
Amount of share repurchases, excluding excise tax | $	$ 20.5

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Share-Based Compensation - Restricted Stock Unit Activity and Related Information (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Dec. 30, 2023 USD ($) $ / shares shares
Number of Restricted Stock Units
Beginning balance (in shares) | shares	180,247
RSUs granted (in shares) | shares	74,241
RSUs vested (in shares) | shares	(42,490)
RSUs canceled (in shares) | shares	(3,026)
Ending balance (in shares) | shares	208,972
Weighted-Average Grant Date Fair Value Per RSU
Beginning balance (in dollars per share) | $ / shares	$ 135.91
RSUs granted (in dollars per share) | $ / shares	171.58
RSUs vested (in dollars per share) | $ / shares	110.75
RSUs canceled (in dollars per share) | $ / shares	109.05
Ending balance (in dollars per share) | $ / shares	$ 154.09
Aggregate Fair Value
Aggregate fair value of RSUs | $	$ 40,233

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Share-Based Compensation - Additional Information (Details) - Restricted stock units - USD ($) $ in Billions	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of RSUs as of the respective vesting dates	$ 7.7	$ 6.8
Total unrecognized compensation cost related to RSUs	$ 27.4
Total unrecognized compensation cost related to RSUs, weighted-average recognition period	2 years 10 months 24 days

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Share-Based Compensation - Summary of Share-Based Compensation Expense and the Related Income Tax Benefit (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Share-based compensation expense	$ 2,997	$ 2,905
Income tax benefit related to share-based compensation expense	$ (1,235)	$ (1,178)

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Segment Information and Geographic Data - Information by Reportable Segment (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Net sales	$ 119,575	$ 117,154
Operating income	40,373	36,016
Americas
Segment Reporting Information [Line Items]
Net sales	50,430	49,278
Operating income	20,357	17,864
Europe
Segment Reporting Information [Line Items]
Net sales	30,397	27,681
Operating income	12,711	10,017
Greater China
Segment Reporting Information [Line Items]
Net sales	20,819	23,905
Operating income	8,622	10,437
Japan
Segment Reporting Information [Line Items]
Net sales	7,767	6,755
Operating income	3,819	3,236
Rest of Asia Pacific
Segment Reporting Information [Line Items]
Net sales	10,162	9,535
Operating income	$ 4,579	$ 3,851

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Segment Information and Geographic Data - Reconciliation of Segment Operating Income to the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income	$ 40,373	$ 36,016
Research and development expense	(7,696)	(7,709)
Operating segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income	50,088	45,405
Segment reconciling items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Research and development expense	(7,696)	(7,709)
Corporate non-segment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Other corporate expenses, net	$ (2,019)	$ (1,680)