Exhibit 99.1


Apple Reports Second Quarter Results

Total Revenue Grows, Services Revenue Reaches New All-Time High of $13.3 Billion

CUPERTINO, California — April 30, 2020 — Apple®
today announced financial results for its fiscal 2020 second quarter ended March 28, 2020. The Company posted quarterly revenue of $58.3 billion, an increase of 1 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.55, up 4 percent. International sales accounted for 62 percent of the quarter’s revenue.

“Despite COVID-19’s unprecedented global impact, we’re proud to report that Apple grew for the quarter, driven by an all-time record in Services and a quarterly record for Wearables,” said Tim Cook, Apple’s CEO. “In this difficult environment, our users are depending on Apple products in renewed ways to stay connected, informed, creative, and productive. We feel motivated and inspired to not only keep meeting these needs in innovative ways, but to continue giving back to support the global response, from the tens of millions of face masks and custom-built face shields we’ve sent to medical professionals around the world, to the millions we’ve donated to organizations like Global Citizen and America’s Food Fund.”

“We are proud of our Apple teams around the world and how resilient our business and financial performance has been during these challenging times,” said Luca Maestri, Apple’s CFO. “Our active installed base of devices reached an all-time high in all of our geographic segments and all major product categories. We also generated operating cash flow of $13.3 billion during the quarter, up $2.2 billion over a year ago. We are confident in our future and continue to make significant investments in all areas of our business to enrich our customers’ lives and support our long-term plans — including our five-year commitment to contribute $350 billion to the United States economy.”

Apple’s board of directors has declared a cash dividend of $0.82 per share of the Company’s common stock, an increase of 6 percent. The dividend is payable on May 14, 2020 to shareholders of record as of the close of business on May 11, 2020. The board of directors has also authorized an increase of $50 billion to the existing share repurchase program.

Apple will provide live streaming of its Q2 2020 financial results conference call beginning at 2:00 p.m. PT on April 30, 2020 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 investor relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.





This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about the Company’s expectations regarding the impact of the COVID-19 pandemic; anticipated revenue, gross margin, operating expenses, other income/(expense), and tax rate; and plans for return of capital. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: the effect of the COVID-19 pandemic on the Company’s business, results of operations, financial condition, and stock price; 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 risk of write-downs on the value of inventory and other assets and purchase commitment cancellation risk; 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 complex and changing laws and regulations worldwide, which expose the Company to potential liabilities, increased costs, and other adverse effects on the Company’s business; 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 business and 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 five software platforms — iOS, iPadOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

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

Investor Relations Contact:
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.
© 2020 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.





Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares which are reflected in thousands and per share amounts)
 
Three Months Ended
 
Six Months Ended
 
March 28,
2020
 
March 30,
2019
 
March 28,
2020
 
March 30,
2019
Net sales:
 
 
 
 
 
 
 
   Products
$
44,965

 
$
46,565

 
$
124,069

 
$
120,000

   Services
13,348

 
11,450

 
26,063

 
22,325

Total net sales (1)
58,313

 
58,015

 
150,132

 
142,325

Cost of sales:
 
 
 
 
 
 
 
   Products
31,321

 
32,047

 
83,396

 
80,285

   Services
4,622

 
4,147

 
9,149

 
8,188

Total cost of sales
35,943

 
36,194

 
92,545

 
88,473

Gross margin
22,370

 
21,821

 
57,587

 
53,852

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Research and development
4,565

 
3,948

 
9,016

 
7,850

Selling, general and administrative
4,952

 
4,458

 
10,149

 
9,241

Total operating expenses
9,517

 
8,406

 
19,165

 
17,091

 
 
 
 
 
 
 
 
Operating income
12,853

 
13,415

 
38,422

 
36,761

Other income/(expense), net
282

 
378

 
631

 
938

Income before provision for income taxes
13,135

 
13,793

 
39,053

 
37,699

Provision for income taxes
1,886

 
2,232

 
5,568

 
6,173

Net income
$
11,249

 
$
11,561

 
$
33,485

 
$
31,526

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
Basic
$
2.58

 
$
2.47

 
$
7.63

 
$
6.70

Diluted
$
2.55

 
$
2.46

 
$
7.56

 
$
6.66

Shares used in computing earnings per share:
 
 
 
 
 
 
 
Basic
4,360,101

 
4,674,071

 
4,387,570

 
4,704,945

Diluted
4,404,691

 
4,700,646

 
4,429,648

 
4,736,949

 
 
 
 
 
 
 
 
(1) Net sales by reportable segment:
 
 
 
 
 
 
 
Americas
$
25,473

 
$
25,596

 
$
66,840

 
$
62,536

Europe
14,294

 
13,054

 
37,567

 
33,417

Greater China
9,455

 
10,218

 
23,033

 
23,387

Japan
5,206

 
5,532

 
11,429

 
12,442

Rest of Asia Pacific
3,885

 
3,615

 
11,263

 
10,543

Total net sales
$
58,313

 
$
58,015

 
$
150,132

 
$
142,325

 
 
 
 
 
 
 
 
(1) Net sales by category:
 
 
 
 
 
 
 
iPhone
$
28,962

 
$
31,051

 
$
84,919

 
$
83,033

Mac
5,351

 
5,513

 
12,511

 
12,929

iPad
4,368

 
4,872

 
10,345

 
11,601

Wearables, Home and Accessories
6,284

 
5,129

 
16,294

 
12,437

Services
13,348

 
11,450

 
26,063

 
22,325

Total net sales
$
58,313

 
$
58,015

 
$
150,132

 
$
142,325






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

 
March 28,
2020
 
September 28,
2019
ASSETS:
Current assets:
 
 
 
Cash and cash equivalents
$
40,174

 
$
48,844

Marketable securities
53,877

 
51,713

Accounts receivable, net
15,722

 
22,926

Inventories
3,334

 
4,106

Vendor non-trade receivables
14,955

 
22,878

Other current assets
15,691

 
12,352

Total current assets
143,753

 
162,819

 
 
 
 
Non-current assets:
 
 
 
Marketable securities
98,793

 
105,341

Property, plant and equipment, net
35,889

 
37,378

Other non-current assets
41,965

 
32,978

Total non-current assets
176,647

 
175,697

Total assets
$
320,400

 
$
338,516

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
 
 
 
Accounts payable
$
32,421

 
$
46,236

Other current liabilities
37,324

 
37,720

Deferred revenue
5,928

 
5,522

Commercial paper and repurchase agreement
10,029

 
5,980

Term debt
10,392

 
10,260

Total current liabilities
96,094

 
105,718

 
 
 
 
Non-current liabilities:
 
 
 
Term debt
89,086

 
91,807

Other non-current liabilities
56,795

 
50,503

Total non-current liabilities
145,881

 
142,310

Total liabilities
241,975

 
248,028

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Shareholders’ equity:
 
 
 
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,323,987 and 4,443,236 shares issued and outstanding, respectively
48,032

 
45,174

Retained earnings
33,182

 
45,898

Accumulated other comprehensive income/(loss)
(2,789
)
 
(584
)
Total shareholders’ equity
78,425

 
90,488

Total liabilities and shareholders’ equity
$
320,400

 
$
338,516







Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
 
Six Months Ended
 
March 28,
2020
 
March 30,
2019
Cash, cash equivalents and restricted cash, beginning balances
$
50,224

 
$
25,913

Operating activities:
 
 
 
Net income
33,485

 
31,526

Adjustments to reconcile net income to cash generated by operating activities:
 
 
 
Depreciation and amortization
5,602

 
6,435

Share-based compensation expense
3,407

 
3,073

Deferred income tax benefit
(651
)
 
(124
)
Other
(259
)
 
(215
)
Changes in operating assets and liabilities:
 
 
 
Accounts receivable, net
7,284

 
8,094

Inventories
699

 
(1,006
)
Vendor non-trade receivables
7,923

 
14,616

Other current and non-current assets
(8,866
)
 
(717
)
Accounts payable
(13,520
)
 
(20,024
)
Deferred revenue
1,223

 
(540
)
Other current and non-current liabilities
7,500

 
(3,273
)
Cash generated by operating activities
43,827

 
37,845

Investing activities:
 
 
 
Purchases of marketable securities
(66,489
)
 
(13,854
)
Proceeds from maturities of marketable securities
39,738

 
16,880

Proceeds from sales of marketable securities
27,762

 
22,635

Payments for acquisition of property, plant and equipment
(3,960
)
 
(5,718
)
Payments made in connection with business acquisitions, net
(1,134
)
 
(291
)
Purchases of non-marketable securities
(146
)
 
(490
)
Other
(426
)
 
30

Cash generated by/(used in) investing activities
(4,655
)
 
19,192

Financing activities:
 
 
 
Proceeds from issuance of common stock
430

 
390

Payments for taxes related to net share settlement of equity awards
(1,566
)
 
(1,427
)
Payments for dividends and dividend equivalents
(6,914
)
 
(7,011
)
Repurchases of common stock
(39,280
)
 
(32,498
)
Proceeds from issuance of term debt, net
2,210

 

Repayments of term debt
(5,250
)
 
(2,500
)
Proceeds from/(Repayments of) commercial paper, net
1,518

 
(36
)
Proceeds from repurchase agreement
2,556

 

Other
(51
)
 
(51
)
Cash used in financing activities
(46,347
)
 
(43,133
)
Increase/(Decrease) in cash, cash equivalents and restricted cash
(7,175
)
 
13,904

Cash, cash equivalents and restricted cash, ending balances
$
43,049

 
$
39,817

Supplemental cash flow disclosure:
 
 
 
Cash paid for income taxes, net
$
7,505

 
$
9,497

Cash paid for interest
$
1,689

 
$
1,762



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