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EX-99.1 2 a8-kex991q1202212252021.htm EX-99.1 Document

Exhibit 99.1

Apple Reports First Quarter Results

Revenue up 11 percent to new all-time record

iPhone, Mac, Wearables, and Services revenue reach new all-time highs

CUPERTINO, California — January 27, 2022 — Apple® today announced financial results for its fiscal 2022 first quarter ended December 25, 2021. The Company posted an all-time revenue record of $123.9 billion, up 11 percent year over year, and quarterly earnings per diluted share of $2.10.

“This quarter’s record results were made possible by our most innovative lineup of products and services ever,” said Tim Cook, Apple’s CEO. “We are gratified to see the response from customers around the world at a time when staying connected has never been more important. We are doing all we can to help build a better world — making progress toward our goal of becoming carbon neutral across our supply chain and products by 2030, and pushing forward with our work in education and racial equity and justice.”

“The very strong customer response to our recent launch of new products and services drove double-digit growth in revenue and earnings, and helped set an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “These record operating results allowed us to return nearly $27 billion to our shareholders during the quarter, as we maintain our target of reaching a net cash neutral position over time.”

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 February 10, 2022 to shareholders of record as of the close of business on February 7, 2022.

Apple will provide live streaming of its Q1 2022 financial results conference call beginning at 2:00 p.m. PT on January 27, 2022 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 return of capital, the payment of its quarterly dividend, and its investment plans and environmental initiatives. 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 developing, 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; failure to obtain or create digital content that appeals to the Company’s customers, or to make such content available on commercially reasonable terms; the dependency of the Company on third-party intellectual property, 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 intense media, political, and regulatory scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions, and penalties; 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 highly skilled employees, including key personnel; political events, trade and other international disputes, war, terrorism, natural disasters, public health issues, industrial accidents, 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, the adoption of new US or international tax legislation, 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:
Josh Rosenstock
(408) 862-1142

Investor Relations Contact:
Tejas Gala
(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.

© 2022 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.
(In millions, except number of shares which are reflected in thousands and per share amounts)
Three Months Ended
December 25,
December 26,
Net sales:
   Products$104,429 $95,678 
   Services19,516 15,761 
Total net sales (1)
123,945 111,439 
Cost of sales:
   Products64,309 62,130 
   Services5,393 4,981 
Total cost of sales69,702 67,111 
Gross margin
54,243 44,328 
Operating expenses:
Research and development
6,306 5,163 
Selling, general and administrative
6,449 5,631 
Total operating expenses
12,755 10,794 
Operating income
41,488 33,534 
Other income/(expense), net
Income before provision for income taxes
41,241 33,579 
Provision for income taxes
6,611 4,824 
Net income
$34,630 $28,755 
Earnings per share:
$2.11 $1.70 
$2.10 $1.68 
Shares used in computing earnings per share:
16,391,724 16,935,119 
16,519,291 17,113,688 
(1) Net sales by reportable segment:
$51,496 $46,310 
29,749 27,306 
Greater China
25,783 21,313 
7,107 8,285 
Rest of Asia Pacific
9,810 8,225 
Total net sales
$123,945 $111,439 
(1) Net sales by category:
$71,628 $65,597 
10,852 8,675 
7,248 8,435 
Wearables, Home and Accessories
14,701 12,971 
19,516 15,761 
Total net sales
$123,945 $111,439 

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

December 25,
September 25,
Current assets:
Cash and cash equivalents
$37,119 $34,940 
Marketable securities
26,794 27,699 
Accounts receivable, net
30,213 26,278 
5,876 6,580 
Vendor non-trade receivables
35,040 25,228 
Other current assets
18,112 14,111 
Total current assets
153,154 134,836 
Non-current assets:
Marketable securities
138,683 127,877 
Property, plant and equipment, net
39,245 39,440 
Other non-current assets
50,109 48,849 
Total non-current assets
228,037 216,166 
Total assets
$381,191 $351,002 
Current liabilities:
Accounts payable
$74,362 $54,763 
Other current liabilities
49,167 47,493 
Deferred revenue
7,876 7,612 
Commercial paper
5,000 6,000 
Term debt
11,169 9,613 
Total current liabilities
147,574 125,481 
Non-current liabilities:
Term debt
106,629 109,106 
Other non-current liabilities
55,056 53,325 
Total non-current liabilities
161,685 162,431 
Total liabilities
309,259 287,912 
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,340,851 and 16,426,786 shares issued and outstanding, respectively
58,424 57,365 
Retained earnings
14,435 5,562 
Accumulated other comprehensive income/(loss)
Total shareholders’ equity
71,932 63,090 
Total liabilities and shareholders’ equity
$381,191 $351,002 

Apple Inc.
(In millions)

Three Months Ended
December 25,
December 26,
Cash, cash equivalents and restricted cash, beginning balances
$35,929 $39,789 
Operating activities:
Net income34,630 28,755 
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization2,697 2,666 
Share-based compensation expense2,265 2,020 
Deferred income tax expense/(benefit)682 (58)
Other167 25 
Changes in operating assets and liabilities:
Accounts receivable, net(3,934)(10,945)
Inventories681 (950)
Vendor non-trade receivables(9,812)(10,194)
Other current and non-current assets(4,921)(3,526)
Accounts payable19,813 21,670 
Deferred revenue462 1,341 
Other current and non-current liabilities4,236 7,959 
Cash generated by operating activities46,966 38,763 
Investing activities:
Purchases of marketable securities(34,913)(39,800)
Proceeds from maturities of marketable securities11,309 25,177 
Proceeds from sales of marketable securities10,675 9,344 
Payments for acquisition of property, plant and equipment(2,803)(3,500)
Cash used in investing activities(16,106)(8,584)
Financing activities:
Payments for taxes related to net share settlement of equity awards(2,888)(2,861)
Payments for dividends and dividend equivalents(3,732)(3,613)
Repurchases of common stock(20,478)(24,775)
Repayments of term debt— (1,000)
Proceeds from/(Repayments of) commercial paper, net(1,000)22 
Cash used in financing activities(28,159)(32,249)
Increase/(Decrease) in cash, cash equivalents and restricted cash2,701 (2,070)
Cash, cash equivalents and restricted cash, ending balances$38,630 $37,719 
Supplemental cash flow disclosure:
Cash paid for income taxes, net$5,235 $1,787 
Cash paid for interest$531 $619