Exhibit 99.1


Apple Reports Third Quarter Results

Company Revenue Sets June Quarter Record

Services Revenue Reaches New All-Time High

CUPERTINO, California — July 30, 2019 — Apple®
today announced financial results for its fiscal 2019 third quarter ended June 29, 2019. The Company posted quarterly revenue of $53.8 billion, an increase of 1 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.18, down 7 percent. International sales accounted for 59 percent of the quarter’s revenue.

“This was our biggest June quarter ever — driven by all-time record revenue from Services, accelerating growth from Wearables, strong performance from iPad and Mac and significant improvement in iPhone trends,” said Tim Cook, Apple’s CEO. “These results are promising across all our geographic segments, and we’re confident about what’s ahead. The balance of calendar 2019 will be an exciting period, with major launches on all of our platforms, new services and several new products.”

“Our year-over-year business performance improved compared to the March quarter and drove strong operating cash flow of $11.6 billion,” said Luca Maestri, Apple’s CFO. “We returned over $21 billion to shareholders during the quarter, including $17 billion through open market repurchases of almost 88 million Apple shares, and $3.6 billion in dividends and equivalents.”

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

revenue between $61 billion and $64 billion
gross margin between 37.5 percent and 38.5 percent
operating expenses between $8.7 billion and $8.8 billion
other income/(expense) of $200 million
tax rate of approximately 16.5 percent

Apple’s board of directors has declared a cash dividend of $0.77 per share of the Company’s common stock. The dividend is payable on August 15, 2019 to shareholders of record as of the close of business on August 12, 2019.

Apple will provide live streaming of its Q3 2019 financial results conference call beginning at 2:00 p.m. PDT on July 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
Tejas Gala
Apple
tgala@apple.com
(669) 227-2402

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





Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares which are reflected in thousands and per share amounts)
 
Three Months Ended
 
Nine Months Ended
 
June 29,
2019
 
June 30,
2018
 
June 29,
2019
 
June 30,
2018
Net sales:
 
 
 
 
 
 
 
   Products
$
42,354

 
$
43,095

 
$
162,354

 
$
173,546

   Services
11,455

 
10,170

 
33,780

 
29,149

Total net sales (1)
53,809

 
53,265

 
196,134

 
202,695

Cost of sales:
 
 
 
 
 
 
 
   Products
29,473

 
28,956

 
109,758

 
113,467

   Services
4,109

 
3,888

 
12,297

 
11,473

Total cost of sales
33,582

 
32,844

 
122,055

 
124,940

Gross margin
20,227

 
20,421

 
74,079

 
77,755

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Research and development
4,257

 
3,701

 
12,107

 
10,486

Selling, general and administrative
4,426

 
4,108

 
13,667

 
12,489

Total operating expenses
8,683

 
7,809

 
25,774

 
22,975

 
 
 
 
 
 
 
 
Operating income
11,544

 
12,612

 
48,305

 
54,780

Other income/(expense), net
367

 
672

 
1,305

 
1,702

Income before provision for income taxes
11,911

 
13,284

 
49,610

 
56,482

Provision for income taxes
1,867

 
1,765

 
8,040

 
11,076

Net income
$
10,044

 
$
11,519

 
$
41,570

 
$
45,406

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
Basic
$
2.20

 
$
2.36

 
$
8.92

 
$
9.07

Diluted
$
2.18

 
$
2.34

 
$
8.86

 
$
8.99

Shares used in computing earnings per share:
 
 
 
 
 
 
 
Basic
4,570,633

 
4,882,167

 
4,660,175

 
5,006,640

Diluted
4,601,380

 
4,926,609

 
4,691,759

 
5,050,963

 
 
 
 
 
 
 
 
(1) Net sales by reportable segment:
 
 
 
 
 
 
 
Americas
$
25,056

 
$
24,542

 
$
87,592

 
$
84,576

Europe
11,925

 
12,138

 
45,342

 
47,038

Greater China
9,157

 
9,551

 
32,544

 
40,531

Japan
4,082

 
3,867

 
16,524

 
16,572

Rest of Asia Pacific
3,589

 
3,167

 
14,132

 
13,978

Total net sales
$
53,809

 
$
53,265

 
$
196,134

 
$
202,695

 
 
 
 
 
 
 
 
(1) Net sales by category:
 
 
 
 
 
 
 
iPhone
$
25,986

 
$
29,470

 
$
109,019

 
$
128,133

Mac
5,820

 
5,258

 
18,749

 
17,858

iPad
5,023

 
4,634

 
16,624

 
14,397

Wearables, Home and Accessories
5,525

 
3,733

 
17,962

 
13,158

Services
11,455

 
10,170

 
33,780

 
29,149

Total net sales
$
53,809

 
$
53,265

 
$
196,134

 
$
202,695






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

 
June 29,
2019
 
September 29,
2018
ASSETS:
Current assets:
 
 
 
Cash and cash equivalents
$
50,530

 
$
25,913

Marketable securities
44,084

 
40,388

Accounts receivable, net
14,148

 
23,186

Inventories
3,355

 
3,956

Vendor non-trade receivables
12,326

 
25,809

Other current assets
10,530

 
12,087

Total current assets
134,973

 
131,339

 
 
 
 
Non-current assets:
 
 
 
Marketable securities
115,996

 
170,799

Property, plant and equipment, net
37,636

 
41,304

Other non-current assets
33,634

 
22,283

Total non-current assets
187,266

 
234,386

Total assets
$
322,239

 
$
365,725

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
 
 
 
Accounts payable
$
29,115

 
$
55,888

Other current liabilities
31,673

 
33,327

Deferred revenue
5,434

 
5,966

Commercial paper
9,953

 
11,964

Term debt
13,529

 
8,784

Total current liabilities
89,704

 
115,929

 
 
 
 
Non-current liabilities:
 
 
 
Term debt
84,936

 
93,735

Other non-current liabilities
51,143

 
48,914

Total non-current liabilities
136,079

 
142,649

Total liabilities
225,783

 
258,578

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Shareholders’ equity:
 
 
 
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,531,395 and 4,754,986 shares issued and outstanding, respectively
43,371

 
40,201

Retained earnings
53,724

 
70,400

Accumulated other comprehensive income/(loss)
(639
)
 
(3,454
)
Total shareholders’ equity
96,456

 
107,147

Total liabilities and shareholders’ equity
$
322,239

 
$
365,725







Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
 
Nine Months Ended
 
June 29,
2019
 
June 30,
2018
Cash, cash equivalents and restricted cash, beginning balances
$
25,913

 
$
20,289

Operating activities:
 
 
 
Net income
41,570

 
45,406

Adjustments to reconcile net income to cash generated by operating activities:
 
 
 
Depreciation and amortization
9,368

 
8,149

Share-based compensation expense
4,569

 
3,995

Deferred income tax benefit
(38
)
 
(33,109
)
Other
(340
)
 
(410
)
Changes in operating assets and liabilities:
 
 
 
Accounts receivable, net
9,013

 
3,756

Inventories
496

 
(1,114
)
Vendor non-trade receivables
13,483

 
5,536

Other current and non-current assets
693

 
(65
)
Accounts payable
(19,804
)
 
(10,410
)
Deferred revenue
(776
)
 
(73
)
Other current and non-current liabilities
(8,753
)
 
36,250

Cash generated by operating activities
49,481

 
57,911

Investing activities:
 
 
 
Purchases of marketable securities
(21,902
)
 
(56,133
)
Proceeds from maturities of marketable securities
26,783

 
46,290

Proceeds from sales of marketable securities
49,516

 
41,614

Payments for acquisition of property, plant and equipment
(7,718
)
 
(10,272
)
Payments made in connection with business acquisitions, net
(611
)
 
(431
)
Purchases of non-marketable securities
(632
)
 
(1,788
)
Proceeds from non-marketable securities
1,526

 
310

Other
(268
)
 
(523
)
Cash generated by investing activities
46,694

 
19,067

Financing activities:
 
 
 
Proceeds from issuance of common stock
391

 
328

Payments for taxes related to net share settlement of equity awards
(2,626
)
 
(2,267
)
Payments for dividends and dividend equivalents
(10,640
)
 
(10,182
)
Repurchases of common stock
(49,453
)
 
(53,634
)
Proceeds from issuance of term debt, net

 
6,969

Repayments of term debt
(5,500
)
 
(6,500
)
Repayments of commercial paper, net
(2,026
)
 
(10
)
Other
(83
)
 

Cash used in financing activities
(69,937
)
 
(65,296
)
Increase in cash, cash equivalents and restricted cash
26,238

 
11,682

Cash, cash equivalents and restricted cash, ending balances
$
52,151

 
$
31,971

Supplemental cash flow disclosure:
 
 
 
Cash paid for income taxes, net
$
11,795

 
$
8,819

Cash paid for interest
$
2,563

 
$
2,120



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