Exhibit 99.1


Apple Reports Second Quarter Results

Services Revenue Reaches New All-Time High of $11.5 Billion

CUPERTINO, California — April 30, 2019 — Apple®
today announced financial results for its fiscal 2019 second quarter ended March 30, 2019. The Company posted quarterly revenue of $58 billion, a decline of 5 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.46, down 10 percent. International sales accounted for 61 percent of the quarter’s revenue.

“Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for Services, and the strong momentum of our Wearables, Home and Accessories category, which set a new March quarter record,” said Tim Cook, Apple’s CEO. “We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services. We’re looking forward to sharing more with developers and customers at Apple’s 30th annual Worldwide Developers Conference in June.”

“We generated operating cash flow of $11.2 billion in the March quarter and continued to make significant investments in all areas of our business,” said Luca Maestri, Apple’s CFO. “We also returned over $27 billion to shareholders through share repurchases and dividends. Given our confidence in Apple’s future and the value we see in our stock, our Board has authorized an additional $75 billion for share repurchases. We are also raising our quarterly dividend for the seventh time in less than seven years.”

Reflecting the approved increase, Apple’s board of directors has declared a cash dividend of $0.77 per share of the Company’s common stock, an increase of 5 percent. The dividend is payable on May 16, 2019 to shareholders of record as of the close of business on May 13, 2019.

The management team and the Board will continue to review each element of the capital return program regularly and plan to provide an update on the program on an annual basis.

Apple is providing the following guidance for its fiscal 2019 third quarter:

revenue between $52.5 billion and $54.5 billion
gross margin between 37 percent and 38 percent
operating expenses between $8.7 billion and $8.8 billion
other income/(expense) of $250 million
tax rate of approximately 16.5 percent

Apple will provide live streaming of its Q2 2019 financial results conference call beginning at 2:00 p.m. PDT on April 30, 2019 at www.apple.com/investor/earnings-call/. This webcast will also be available for replay for approximately two weeks thereafter.

Apple periodically provides information for investors on its corporate website, apple.com, and its investors relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance and details related to its annual meeting of shareholders.





This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), tax rate, and plans for return of capital. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation: the effect of global and regional economic conditions on the Company's business, including effects on purchasing decisions by consumers and businesses; the ability of the Company to compete in markets that are highly competitive and subject to rapid technological change; the ability of the Company to manage frequent introductions and transitions of products and services, including delivering to the marketplace, and stimulating customer demand for, new products, services and technological innovations on a timely basis; the effect that shifts in the mix of products and services and in the geographic, currency or channel mix, component cost increases, increases in the cost of acquiring and delivering content for the Company’s services, price competition, or the introduction of new products or services, including new products or services with higher cost structures, could have on the Company’s gross margin; the dependency of the Company on the performance of distributors of the Company's products, including cellular network carriers and other resellers; the inventory and other asset risks associated with the Company’s need to order, or commit to order, product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components, services and new technologies essential to the Company's business, including components and technologies that may only be available from single or limited sources; the dependency of the Company on manufacturing and logistics services provided by third parties, many of which are located outside of the US and which may affect the quality, quantity or cost of products manufactured or services rendered to the Company; the effect of product and services design and manufacturing defects on the Company’s financial performance and reputation; the dependency of the Company on third-party intellectual property and digital content, which may not be available to the Company on commercially reasonable terms or at all; the dependency of the Company on support from third-party software developers to develop and maintain software applications and services for the Company’s products; the impact of unfavorable legal proceedings, such as a potential finding that the Company has infringed on the intellectual property rights of others; the impact of changes to laws and regulations that affect the Company’s activities, including the Company’s ability to offer products or services to customers in different regions; the ability of the Company to manage risks associated with its international activities, including complying with laws and regulations affecting the Company’s international operations; the ability of the Company to manage risks associated with the Company’s retail stores; the ability of the Company to manage risks associated with the Company’s investments in new business strategies and acquisitions; the impact on the Company's business and reputation from information technology system failures, network disruptions or losses or unauthorized access to, or release of, confidential information; the ability of the Company to comply with laws and regulations regarding data protection; the continued service and availability of key executives and employees; political events, international trade disputes, war, terrorism, natural disasters, public health issues, and other business interruptions that could disrupt supply or delivery of, or demand for, the Company’s products; financial risks, including risks relating to currency fluctuations, credit risks and fluctuations in the market value of the Company’s investment portfolio; and changes in tax rates and exposure to additional tax liabilities. More information on these risks and other potential factors that could affect the Company’s financial results is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

Press Contact:
Kristin Huguet
Apple
khuguet@apple.com
(408) 974-2414

Investor Relations Contacts:
Nancy Paxton
Apple
paxton1@apple.com
(408) 974-5420
Matt Blake
Apple
mattblake@apple.com
(408) 974-7406

NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or call Apple’s Media Helpline at (408) 974-2042.
© 2019 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple Inc. Other company and product names may be trademarks of their respective owners.





Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares which are reflected in thousands and per share amounts)
 
Three Months Ended
 
Six Months Ended
 
March 30,
2019
 
March 31,
2018
 
March 30,
2019
 
March 31,
2018
Net sales:
 
 
 
 
 
 
 
   Products
$
46,565

 
$
51,287

 
$
120,000

 
$
130,451

   Services
11,450

 
9,850

 
22,325

 
18,979

Total net sales (1)
58,015

 
61,137

 
142,325

 
149,430

Cost of sales:
 
 
 
 
 
 
 
   Products
32,047

 
33,936

 
80,285

 
84,511

   Services
4,147

 
3,779

 
8,188

 
7,585

Total cost of sales
36,194

 
37,715

 
88,473

 
92,096

Gross margin
21,821

 
23,422

 
53,852

 
57,334

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Research and development
3,948

 
3,378

 
7,850

 
6,785

Selling, general and administrative
4,458

 
4,150

 
9,241

 
8,381

Total operating expenses
8,406

 
7,528

 
17,091

 
15,166

 
 
 
 
 
 
 
 
Operating income
13,415

 
15,894

 
36,761

 
42,168

Other income/(expense), net
378

 
274

 
938

 
1,030

Income before provision for income taxes
13,793

 
16,168

 
37,699

 
43,198

Provision for income taxes
2,232

 
2,346

 
6,173

 
9,311

Net income
$
11,561

 
$
13,822

 
$
31,526

 
$
33,887

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
Basic
$
2.47

 
$
2.75

 
$
6.70

 
$
6.69

Diluted
$
2.46

 
$
2.73

 
$
6.66

 
$
6.63

Shares used in computing earnings per share:
 
 
 
 
 
 
 
Basic
4,674,071

 
5,024,877

 
4,704,945

 
5,068,877

Diluted
4,700,646

 
5,068,493

 
4,736,949

 
5,113,140

 
 
 
 
 
 
 
 
(1) Net sales by reportable segment:
 
 
 
 
 
 
 
Americas
$
25,596

 
$
24,841

 
$
62,536

 
$
60,034

Europe
13,054

 
13,846

 
33,417

 
34,900

Greater China
10,218

 
13,024

 
23,387

 
30,980

Japan
5,532

 
5,468

 
12,442

 
12,705

Rest of Asia Pacific
3,615

 
3,958

 
10,543

 
10,811

Total net sales
$
58,015

 
$
61,137

 
$
142,325

 
$
149,430

 
 
 
 
 
 
 
 
(1) Net sales by category:
 
 
 
 
 
 
 
iPhone
$
31,051

 
$
37,559

 
$
83,033

 
$
98,663

Mac
5,513

 
5,776

 
12,929

 
12,600

iPad
4,872

 
4,008

 
11,601

 
9,763

Wearables, Home and Accessories
5,129

 
3,944

 
12,437

 
9,425

Services
11,450

 
9,850

 
22,325

 
18,979

Total net sales
$
58,015

 
$
61,137

 
$
142,325

 
$
149,430






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

 
March 30,
2019
 
September 29,
2018
ASSETS:
Current assets:
 
 
 
Cash and cash equivalents
$
37,988

 
$
25,913

Marketable securities
42,104

 
40,388

Accounts receivable, net
15,085

 
23,186

Inventories
4,884

 
3,956

Vendor non-trade receivables
11,193

 
25,809

Other current assets
12,092

 
12,087

Total current assets
123,346

 
131,339

 
 
 
 
Non-current assets:
 
 
 
Marketable securities
145,319

 
170,799

Property, plant and equipment, net
38,746

 
41,304

Other non-current assets
34,587

 
22,283

Total non-current assets
218,652

 
234,386

Total assets
$
341,998

 
$
365,725

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
 
 
 
Accounts payable
$
30,443

 
$
55,888

Other current liabilities
35,368

 
33,327

Deferred revenue
5,532

 
5,966

Commercial paper
11,924

 
11,964

Term debt
10,505

 
8,784

Total current liabilities
93,772

 
115,929

 
 
 
 
Non-current liabilities:
 
 
 
Term debt
90,201

 
93,735

Other non-current liabilities
52,165

 
48,914

Total non-current liabilities
142,366

 
142,649

Total liabilities
236,138

 
258,578

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Shareholders’ equity:
 
 
 
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,607,284 and 4,754,986 shares issued and outstanding, respectively
42,801

 
40,201

Retained earnings
64,558

 
70,400

Accumulated other comprehensive income/(loss)
(1,499
)
 
(3,454
)
Total shareholders’ equity
105,860

 
107,147

Total liabilities and shareholders’ equity
$
341,998

 
$
365,725







Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
 
Six Months Ended
 
March 30,
2019
 
March 31,
2018
Cash, cash equivalents and restricted cash, beginning balances
$
25,913

 
$
20,289

Operating activities:
 
 
 
Net income
31,526

 
33,887

Adjustments to reconcile net income to cash generated by operating activities:
 
 
 
Depreciation and amortization
6,435

 
5,484

Share-based compensation expense
3,073

 
2,644

Deferred income tax benefit
(124
)
 
(34,235
)
Other
(215
)
 
(151
)
Changes in operating assets and liabilities:
 
 
 
Accounts receivable, net
8,094

 
3,523

Inventories
(1,006
)
 
(2,807
)
Vendor non-trade receivables
14,616

 
9,715

Other current and non-current assets
(717
)
 
(1,053
)
Accounts payable
(20,024
)
 
(12,004
)
Deferred revenue
(540
)
 
394

Other current and non-current liabilities
(3,273
)
 
38,026

Cash generated by operating activities
37,845

 
43,423

Investing activities:
 
 
 
Purchases of marketable securities
(13,854
)
 
(48,449
)
Proceeds from maturities of marketable securities
16,880

 
31,884

Proceeds from sales of marketable securities
22,635

 
38,942

Payments for acquisition of property, plant and equipment
(5,718
)
 
(7,005
)
Payments made in connection with business acquisitions, net
(291
)
 
(305
)
Purchases of non-marketable securities
(490
)
 
(163
)
Other
30

 
216

Cash generated by investing activities
19,192

 
15,120

Financing activities:
 
 
 
Proceeds from issuance of common stock
390

 
327

Payments for taxes related to net share settlement of equity awards
(1,427
)
 
(1,190
)
Payments for dividends and dividend equivalents
(7,011
)
 
(6,529
)
Repurchases of common stock
(32,498
)
 
(32,851
)
Proceeds from issuance of term debt, net

 
6,969

Repayments of term debt
(2,500
)
 
(500
)
Other
(87
)
 
1

Cash used in financing activities
(43,133
)
 
(33,773
)
Increase in cash, cash equivalents and restricted cash
13,904

 
24,770

Cash, cash equivalents and restricted cash, ending balances
$
39,817

 
$
45,059

Supplemental cash flow disclosure:
 
 
 
Cash paid for income taxes, net
$
9,497

 
$
6,340

Cash paid for interest
$
1,762

 
$
1,356



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