Revenue up 36 percent to new June quarter record

Services revenue reaches new all-time high

Apple® today announced financial results for its fiscal 2021 third quarter ended June 26, 2021. The Company posted a June quarter record revenue of $81.4 billion, up 36 percent year over year, and quarterly earnings per diluted share of $1.30.

“This quarter, our teams built on a period of unmatched innovation by sharing powerful new products with our users, at a time when using technology to connect people everywhere has never been more important,” said Tim Cook, Apple’s CEO. “We’re continuing to press forward in our work to infuse everything we make with the values that define us — by inspiring a new generation of developers to learn to code, moving closer to our 2030 environment goal, and engaging in the urgent work of building a more equitable future.”

“Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “We generated $21 billion of operating cash flow, returned nearly $29 billion to our shareholders during the quarter, and continued to make significant investments across our business to support our long-term growth plans.”

Apple’s board of directors has declared a cash dividend of $0.22 per share of the Company’s common stock. The dividend is payable on August 12, 2021 to shareholders of record as of the close of business on August 9, 2021.

Apple will provide live streaming of its Q3 2021 financial results conference call beginning at 2:00 p.m. PT on July 27, 2021 at 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 plans for the payment of its quarterly dividend. 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 or government investigations; 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.

NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or call Apple’s Media Helpline at (408) 974-2042.

© 2021 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 26, 2021

 

June 27, 2020

 

June 26, 2021

 

June 27, 2020

Net sales:

 

 

 

 

 

 

 

Products

$

63,948

 

 

$

46,529

 

 

$

232,309

 

 

$

170,598

 

Services

17,486

 

 

13,156

 

 

50,148

 

 

39,219

 

Total net sales (1)

81,434

 

 

59,685

 

 

282,457

 

 

209,817

 

Cost of sales:

 

 

 

 

 

 

 

Products

40,899

 

 

32,693

 

 

149,476

 

 

116,089

 

Services

5,280

 

 

4,312

 

 

15,319

 

 

13,461

 

Total cost of sales

46,179

 

 

37,005

 

 

164,795

 

 

129,550

 

Gross margin

35,255

 

 

22,680

 

 

117,662

 

 

80,267

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

5,717

 

 

4,758

 

 

16,142

 

 

13,774

 

Selling, general and administrative

5,412

 

 

4,831

 

 

16,357

 

 

14,980

 

Total operating expenses

11,129

 

 

9,589

 

 

32,499

 

 

28,754

 

 

 

 

 

 

 

 

 

Operating income

24,126

 

 

13,091

 

 

85,163

 

 

51,513

 

Other income/(expense), net

243

 

 

46

 

 

796

 

 

677

 

Income before provision for income taxes

24,369

 

 

13,137

 

 

85,959

 

 

52,190

 

Provision for income taxes

2,625

 

 

1,884

 

 

11,830

 

 

7,452

 

Net income

$

21,744

 

 

$

11,253

 

 

$

74,129

 

 

$

44,738

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Basic

$

1.31

 

 

$

0.65

 

 

$

4.42

 

 

$

2.56

 

Diluted

$

1.30

 

 

$

0.65

 

 

$

4.38

 

 

$

2.54

 

Shares used in computing earnings per share:

 

 

 

 

 

 

 

Basic

16,629,371

 

 

17,250,291

 

 

16,772,656

 

 

17,450,284

 

Diluted

16,781,735

 

 

17,419,154

 

 

16,941,527

 

 

17,618,778

 

 

 

 

 

 

 

 

 

(1) Net sales by reportable segment:

 

 

 

 

 

 

 

Americas

$

35,870

 

 

$

27,018

 

 

$

116,486

 

 

$

93,858

 

Europe

18,943

 

 

14,173

 

 

68,513

 

 

51,740

 

Greater China

14,762

 

 

9,329

 

 

53,803

 

 

32,362

 

Japan

6,464

 

 

4,966

 

 

22,491

 

 

16,395

 

Rest of Asia Pacific

5,395

 

 

4,199

 

 

21,164

 

 

15,462

 

Total net sales

$

81,434

 

 

$

59,685

 

 

$

282,457

 

 

$

209,817

 

 

 

 

 

 

 

 

 

(1) Net sales by category:

 

 

 

 

 

 

 

iPhone

$

39,570

 

 

$

26,418

 

 

$

153,105

 

 

$

111,337

 

Mac

8,235

 

 

7,079

 

 

26,012

 

 

19,590

 

iPad

7,368

 

 

6,582

 

 

23,610

 

 

16,927

 

Wearables, Home and Accessories

8,775

 

 

6,450

 

 

29,582

 

 

22,744

 

Services

17,486

 

 

13,156

 

 

50,148

 

 

39,219

 

Total net sales

$

81,434

 

 

$

59,685

 

 

$

282,457

 

 

$

209,817

 

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

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

 

 

June 26, 2021

 

September 26, 2020

ASSETS:

Current assets:

 

 

 

Cash and cash equivalents

$

34,050

 

 

$

38,016

 

Marketable securities

27,646

 

 

52,927

 

Accounts receivable, net

17,475

 

 

16,120

 

Inventories

5,178

 

 

4,061

 

Vendor non-trade receivables

16,433

 

 

21,325

 

Other current assets

13,641

 

 

11,264

 

Total current assets

114,423

 

 

143,713

 

 

 

 

 

Non-current assets:

 

 

 

Marketable securities

131,948

 

 

100,887

 

Property, plant and equipment, net

38,615

 

 

36,766

 

Other non-current assets

44,854

 

 

42,522

 

Total non-current assets

215,417

 

 

180,175

 

Total assets

$

329,840

 

 

$

323,888

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:

 

 

 

Accounts payable

$

40,409

 

 

$

42,296

 

Other current liabilities

43,625

 

 

42,684

 

Deferred revenue

7,681

 

 

6,643

 

Commercial paper

8,000

 

 

4,996

 

Term debt

8,039

 

 

8,773

 

Total current liabilities

107,754

 

 

105,392

 

 

 

 

 

Non-current liabilities:

 

 

 

Term debt

105,752

 

 

98,667

 

Other non-current liabilities

52,054

 

 

54,490

 

Total non-current liabilities

157,806

 

 

153,157

 

Total liabilities

265,560

 

 

258,549

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,556,942 and 16,976,763 shares issued and outstanding, respectively

54,989

 

 

50,779

 

Retained earnings

9,233

 

 

14,966

 

Accumulated other comprehensive income/(loss)

58

 

 

(406)

 

Total shareholders’ equity

64,280

 

 

65,339

 

Total liabilities and shareholders’ equity

$

329,840

 

 

$

323,888

 

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

 

Nine Months Ended

 

June 26, 2021

 

June 27, 2020

Cash, cash equivalents and restricted cash, beginning balances

$

39,789

 

 

$

50,224

 

Operating activities:

 

 

 

Net income

74,129

 

 

44,738

 

Adjustments to reconcile net income to cash generated by operating activities:

 

 

 

Depreciation and amortization

8,295

 

 

8,354

 

Share-based compensation expense

5,961

 

 

5,105

 

Deferred income tax expense/(benefit)

(737)

 

 

182

 

Other

(689)

 

 

(94)

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

(1,316)

 

 

5,149

 

Inventories

(1,213)

 

 

10

 

Vendor non-trade receivables

4,892

 

 

8,685

 

Other current and non-current assets

(5,899)

 

 

(6,760)

 

Accounts payable

(1,786)

 

 

(10,787)

 

Deferred revenue

1,738

 

 

1,649

 

Other current and non-current liabilities

463

 

 

3,867

 

Cash generated by operating activities

83,838

 

 

60,098

 

Investing activities:

 

 

 

Purchases of marketable securities

(94,052)

 

 

(96,606)

 

Proceeds from maturities of marketable securities

49,880

 

 

54,865

 

Proceeds from sales of marketable securities

36,745

 

 

39,760

 

Payments for acquisition of property, plant and equipment

(7,862)

 

 

(5,525)

 

Payments made in connection with business acquisitions, net

(13)

 

 

(1,473)

 

Other

(78)

 

 

(841)

 

Cash used in investing activities

(15,380)

 

 

(9,820)

 

Financing activities:

 

 

 

Proceeds from issuance of common stock

561

 

 

430

 

Payments for taxes related to net share settlement of equity awards

(5,855)

 

 

(3,234)

 

Payments for dividends and dividend equivalents

(10,827)

 

 

(10,570)

 

Repurchases of common stock

(66,223)

 

 

(55,171)

 

Proceeds from issuance of term debt, net

13,923

 

 

10,635

 

Repayments of term debt

(7,500)

 

 

(12,629)

 

Proceeds from commercial paper, net

3,022

 

 

31

 

Proceeds from repurchase agreements

 

 

5,165

 

Other

(72)

 

 

(120)

 

Cash used in financing activities

(72,971)

 

 

(65,463)

 

Decrease in cash, cash equivalents and restricted cash

(4,513)

 

 

(15,185)

 

Cash, cash equivalents and restricted cash, ending balances

$

35,276

 

 

$

35,039

 

Supplemental cash flow disclosure:

 

 

 

Cash paid for income taxes, net

$

18,536

 

 

$

8,410

 

Cash paid for interest

$

1,870

 

 

$

2,275

 

 

Press Contact: Josh Rosenstock Apple jrosenstock@apple.com (408) 862-1142

Investor Relations Contact: Tejas Gala Apple tgala@apple.com (669) 227-2402

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