California | 94-2404110 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
One Apple Park Way | ||||||||
Cupertino, California | 95014 | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.00001 par value per share | AAPL | The Nasdaq Stock Market LLC | ||||||
1.000% Notes due 2022 | — | The Nasdaq Stock Market LLC | ||||||
1.375% Notes due 2024 | — | The Nasdaq Stock Market LLC | ||||||
0.000% Notes due 2025 | — | The Nasdaq Stock Market LLC | ||||||
0.875% Notes due 2025 | — | The Nasdaq Stock Market LLC | ||||||
1.625% Notes due 2026 | — | The Nasdaq Stock Market LLC | ||||||
2.000% Notes due 2027 | — | The Nasdaq Stock Market LLC | ||||||
1.375% Notes due 2029 | — | The Nasdaq Stock Market LLC | ||||||
3.050% Notes due 2029 | — | The Nasdaq Stock Market LLC | ||||||
0.500% Notes due 2031 | — | The Nasdaq Stock Market LLC | ||||||
3.600% Notes due 2042 | — | The Nasdaq Stock Market LLC |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
Page | ||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Products | $ | 77,457 | $ | 72,683 | $ | 181,886 | $ | 168,361 | |||||||||||||||
Services | 19,821 | 16,901 | 39,337 | 32,662 | |||||||||||||||||||
Total net sales | 97,278 | 89,584 | 221,223 | 201,023 | |||||||||||||||||||
Cost of sales: | |||||||||||||||||||||||
Products | 49,290 | 46,447 | 113,599 | 108,577 | |||||||||||||||||||
Services | 5,429 | 5,058 | 10,822 | 10,039 | |||||||||||||||||||
Total cost of sales | 54,719 | 51,505 | 124,421 | 118,616 | |||||||||||||||||||
Gross margin | 42,559 | 38,079 | 96,802 | 82,407 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 6,387 | 5,262 | 12,693 | 10,425 | |||||||||||||||||||
Selling, general and administrative | 6,193 | 5,314 | 12,642 | 10,945 | |||||||||||||||||||
Total operating expenses | 12,580 | 10,576 | 25,335 | 21,370 | |||||||||||||||||||
Operating income | 29,979 | 27,503 | 71,467 | 61,037 | |||||||||||||||||||
Other income/(expense), net | 160 | 508 | (87) | 553 | |||||||||||||||||||
Income before provision for income taxes | 30,139 | 28,011 | 71,380 | 61,590 | |||||||||||||||||||
Provision for income taxes | 5,129 | 4,381 | 11,740 | 9,205 | |||||||||||||||||||
Net income | $ | 25,010 | $ | 23,630 | $ | 59,640 | $ | 52,385 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 1.54 | $ | 1.41 | $ | 3.65 | $ | 3.11 | |||||||||||||||
Diluted | $ | 1.52 | $ | 1.40 | $ | 3.62 | $ | 3.08 | |||||||||||||||
Shares used in computing earnings per share: | |||||||||||||||||||||||
Basic | 16,278,802 | 16,753,476 | 16,335,263 | 16,844,298 | |||||||||||||||||||
Diluted | 16,403,316 | 16,929,157 | 16,461,304 | 17,021,423 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||||||||||||||||
Net income | $ | 25,010 | $ | 23,630 | $ | 59,640 | $ | 52,385 | |||||||||||||||
Other comprehensive income/(loss): | |||||||||||||||||||||||
Change in foreign currency translation, net of tax | (21) | (78) | (381) | 471 | |||||||||||||||||||
Change in unrealized gains/losses on derivative instruments, net of tax: | |||||||||||||||||||||||
Change in fair value of derivative instruments | 334 | 332 | 696 | 28 | |||||||||||||||||||
Adjustment for net (gains)/losses realized and included in net income | (301) | 759 | (208) | 576 | |||||||||||||||||||
Total change in unrealized gains/losses on derivative instruments | 33 | 1,091 | 488 | 604 | |||||||||||||||||||
Change in unrealized gains/losses on marketable debt securities, net of tax: | |||||||||||||||||||||||
Change in fair value of marketable debt securities | (5,633) | (1,403) | (6,809) | (775) | |||||||||||||||||||
Adjustment for net (gains)/losses realized and included in net income | 54 | (75) | 45 | (180) | |||||||||||||||||||
Total change in unrealized gains/losses on marketable debt securities | (5,579) | (1,478) | (6,764) | (955) | |||||||||||||||||||
Total other comprehensive income/(loss) | (5,567) | (465) | (6,657) | 120 | |||||||||||||||||||
Total comprehensive income | $ | 19,443 | $ | 23,165 | $ | 52,983 | $ | 52,505 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||||||||||||||||
Total shareholders’ equity, beginning balances | $ | 71,932 | $ | 66,224 | $ | 63,090 | $ | 65,339 | |||||||||||||||
Common stock and additional paid-in capital: | |||||||||||||||||||||||
Beginning balances | 58,424 | 51,744 | 57,365 | 50,779 | |||||||||||||||||||
Common stock issued | 593 | 561 | 593 | 561 | |||||||||||||||||||
Common stock withheld related to net share settlement of equity awards | (149) | (135) | (1,412) | (1,236) | |||||||||||||||||||
Share-based compensation | 2,313 | 2,033 | 4,635 | 4,099 | |||||||||||||||||||
Ending balances | 61,181 | 54,203 | 61,181 | 54,203 | |||||||||||||||||||
Retained earnings: | |||||||||||||||||||||||
Beginning balances | 14,435 | 14,301 | 5,562 | 14,966 | |||||||||||||||||||
Net income | 25,010 | 23,630 | 59,640 | 52,385 | |||||||||||||||||||
Dividends and dividend equivalents declared | (3,633) | (3,495) | (7,298) | (7,042) | |||||||||||||||||||
Common stock withheld related to net share settlement of equity awards | (190) | (174) | (1,920) | (2,047) | |||||||||||||||||||
Common stock repurchased | (22,910) | (19,001) | (43,272) | (43,001) | |||||||||||||||||||
Ending balances | 12,712 | 15,261 | 12,712 | 15,261 | |||||||||||||||||||
Accumulated other comprehensive income/(loss): | |||||||||||||||||||||||
Beginning balances | (927) | 179 | 163 | (406) | |||||||||||||||||||
Other comprehensive income/(loss) | (5,567) | (465) | (6,657) | 120 | |||||||||||||||||||
Ending balances | (6,494) | (286) | (6,494) | (286) | |||||||||||||||||||
Total shareholders’ equity, ending balances | $ | 67,399 | $ | 69,178 | $ | 67,399 | $ | 69,178 | |||||||||||||||
Dividends and dividend equivalents declared per share or RSU | $ | 0.22 | $ | 0.205 | $ | 0.44 | $ | 0.41 |
Six Months Ended | |||||||||||
March 26, 2022 | March 27, 2021 | ||||||||||
Cash, cash equivalents and restricted cash, beginning balances | $ | 35,929 | $ | 39,789 | |||||||
Operating activities: | |||||||||||
Net income | 59,640 | 52,385 | |||||||||
Adjustments to reconcile net income to cash generated by operating activities: | |||||||||||
Depreciation and amortization | 5,434 | 5,463 | |||||||||
Share-based compensation expense | 4,517 | 4,001 | |||||||||
Deferred income tax expense/(benefit) | 1,088 | (207) | |||||||||
Other | (20) | (474) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | 5,542 | (2,347) | |||||||||
Inventories | 1,065 | (1,226) | |||||||||
Vendor non-trade receivables | 643 | 6,792 | |||||||||
Other current and non-current assets | (3,542) | (4,333) | |||||||||
Accounts payable | (1,750) | (1,997) | |||||||||
Deferred revenue | 627 | 1,642 | |||||||||
Other current and non-current liabilities | 1,888 | 3,045 | |||||||||
Cash generated by operating activities | 75,132 | 62,744 | |||||||||
Investing activities: | |||||||||||
Purchases of marketable securities | (61,987) | (74,424) | |||||||||
Proceeds from maturities of marketable securities | 18,000 | 39,605 | |||||||||
Proceeds from sales of marketable securities | 24,668 | 21,645 | |||||||||
Payments for acquisition of property, plant and equipment | (5,317) | (5,769) | |||||||||
Payments made in connection with business acquisitions, net | (167) | (9) | |||||||||
Other | (568) | — | |||||||||
Cash used in investing activities | (25,371) | (18,952) | |||||||||
Financing activities: | |||||||||||
Payments for taxes related to net share settlement of equity awards | (3,218) | (3,160) | |||||||||
Payments for dividends and dividend equivalents | (7,327) | (7,060) | |||||||||
Repurchases of common stock | (43,109) | (43,323) | |||||||||
Proceeds from issuance of term debt, net | — | 13,923 | |||||||||
Repayments of term debt | (3,750) | (4,500) | |||||||||
Proceeds from commercial paper, net | 999 | 22 | |||||||||
Other | (105) | 523 | |||||||||
Cash used in financing activities | (56,510) | (43,575) | |||||||||
Increase/(Decrease) in cash, cash equivalents and restricted cash | (6,749) | 217 | |||||||||
Cash, cash equivalents and restricted cash, ending balances | $ | 29,180 | $ | 40,006 | |||||||
Supplemental cash flow disclosure: | |||||||||||
Cash paid for income taxes, net | $ | 9,301 | $ | 10,276 | |||||||
Cash paid for interest | $ | 1,406 | $ | 1,327 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income | $ | 25,010 | $ | 23,630 | $ | 59,640 | $ | 52,385 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average basic shares outstanding | 16,278,802 | 16,753,476 | 16,335,263 | 16,844,298 | |||||||||||||||||||
Effect of dilutive securities | 124,514 | 175,681 | 126,041 | 177,125 | |||||||||||||||||||
Weighted-average diluted shares | 16,403,316 | 16,929,157 | 16,461,304 | 17,021,423 | |||||||||||||||||||
Basic earnings per share | $ | 1.54 | $ | 1.41 | $ | 3.65 | $ | 3.11 | |||||||||||||||
Diluted earnings per share | $ | 1.52 | $ | 1.40 | $ | 3.62 | $ | 3.08 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||||||||||||||||
iPhone® (1) | $ | 50,570 | $ | 47,938 | $ | 122,198 | $ | 113,535 | |||||||||||||||
Mac® (1) | 10,435 | 9,102 | 21,287 | 17,777 | |||||||||||||||||||
iPad® (1) | 7,646 | 7,807 | 14,894 | 16,242 | |||||||||||||||||||
Wearables, Home and Accessories (1)(2) | 8,806 | 7,836 | 23,507 | 20,807 | |||||||||||||||||||
Services (3) | 19,821 | 16,901 | 39,337 | 32,662 | |||||||||||||||||||
Total net sales (4) | $ | 97,278 | $ | 89,584 | $ | 221,223 | $ | 201,023 |
March 26, 2022 | |||||||||||||||||||||||||||||||||||||||||
Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Current Marketable Securities | Non-Current Marketable Securities | |||||||||||||||||||||||||||||||||||
Cash | $ | 14,298 | $ | — | $ | — | $ | 14,298 | $ | 14,298 | $ | — | $ | — | |||||||||||||||||||||||||||
Level 1 (1): | |||||||||||||||||||||||||||||||||||||||||
Money market funds | 7,653 | — | — | 7,653 | 7,653 | — | — | ||||||||||||||||||||||||||||||||||
Mutual funds | 230 | 7 | (9) | 228 | — | 228 | — | ||||||||||||||||||||||||||||||||||
Subtotal | 7,883 | 7 | (9) | 7,881 | 7,653 | 228 | — | ||||||||||||||||||||||||||||||||||
Level 2 (2): | |||||||||||||||||||||||||||||||||||||||||
Equity securities | 1,527 | — | (1,132) | 395 | — | 395 | — | ||||||||||||||||||||||||||||||||||
U.S. Treasury securities | 28,711 | 2 | (1,037) | 27,676 | 2,306 | 3,554 | 21,816 | ||||||||||||||||||||||||||||||||||
U.S. agency securities | 6,561 | — | (407) | 6,154 | 251 | 683 | 5,220 | ||||||||||||||||||||||||||||||||||
Non-U.S. government securities | 18,868 | 44 | (551) | 18,361 | 25 | 4,526 | 13,810 | ||||||||||||||||||||||||||||||||||
Certificates of deposit and time deposits | 2,872 | — | — | 2,872 | 2,221 | 601 | 50 | ||||||||||||||||||||||||||||||||||
Commercial paper | 2,913 | — | — | 2,913 | 1,310 | 1,603 | — | ||||||||||||||||||||||||||||||||||
Corporate debt securities | 93,057 | 94 | (4,266) | 88,885 | 34 | 11,309 | 77,542 | ||||||||||||||||||||||||||||||||||
Municipal securities | 990 | 1 | (22) | 969 | — | 162 | 807 | ||||||||||||||||||||||||||||||||||
Mortgage- and asset-backed securities | 23,613 | 3 | (1,290) | 22,326 | — | 352 | 21,974 | ||||||||||||||||||||||||||||||||||
Subtotal | 179,112 | 144 | (8,705) | 170,551 | 6,147 | 23,185 | 141,219 | ||||||||||||||||||||||||||||||||||
Total (3) | $ | 201,293 | $ | 151 | $ | (8,714) | $ | 192,730 | $ | 28,098 | $ | 23,413 | $ | 141,219 | |||||||||||||||||||||||||||
September 25, 2021 | |||||||||||||||||||||||||||||||||||||||||
Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Current Marketable Securities | Non-Current Marketable Securities | |||||||||||||||||||||||||||||||||||
Cash | $ | 17,305 | $ | — | $ | — | $ | 17,305 | $ | 17,305 | $ | — | $ | — | |||||||||||||||||||||||||||
Level 1 (1): | |||||||||||||||||||||||||||||||||||||||||
Money market funds | 9,608 | — | — | 9,608 | 9,608 | — | — | ||||||||||||||||||||||||||||||||||
Mutual funds | 175 | 11 | (1) | 185 | — | 185 | — | ||||||||||||||||||||||||||||||||||
Subtotal | 9,783 | 11 | (1) | 9,793 | 9,608 | 185 | — | ||||||||||||||||||||||||||||||||||
Level 2 (2): | |||||||||||||||||||||||||||||||||||||||||
Equity securities | 1,527 | — | (564) | 963 | — | 963 | — | ||||||||||||||||||||||||||||||||||
U.S. Treasury securities | 22,878 | 102 | (77) | 22,903 | 3,596 | 6,625 | 12,682 | ||||||||||||||||||||||||||||||||||
U.S. agency securities | 8,949 | 2 | (64) | 8,887 | 1,775 | 1,930 | 5,182 | ||||||||||||||||||||||||||||||||||
Non-U.S. government securities | 20,201 | 211 | (101) | 20,311 | 390 | 3,091 | 16,830 | ||||||||||||||||||||||||||||||||||
Certificates of deposit and time deposits | 1,300 | — | — | 1,300 | 490 | 810 | — | ||||||||||||||||||||||||||||||||||
Commercial paper | 2,639 | — | — | 2,639 | 1,776 | 863 | — | ||||||||||||||||||||||||||||||||||
Corporate debt securities | 83,883 | 1,242 | (267) | 84,858 | — | 12,327 | 72,531 | ||||||||||||||||||||||||||||||||||
Municipal securities | 967 | 14 | — | 981 | — | 130 | 851 | ||||||||||||||||||||||||||||||||||
Mortgage- and asset-backed securities | 20,529 | 171 | (124) | 20,576 | — | 775 | 19,801 | ||||||||||||||||||||||||||||||||||
Subtotal | 162,873 | 1,742 | (1,197) | 163,418 | 8,027 | 27,514 | 127,877 | ||||||||||||||||||||||||||||||||||
Total (3) | $ | 189,961 | $ | 1,753 | $ | (1,198) | $ | 190,516 | $ | 34,940 | $ | 27,699 | $ | 127,877 |
Due after 1 year through 5 years | $ | 97,603 | |||
Due after 5 years through 10 years | 22,899 | ||||
Due after 10 years | 20,717 | ||||
Total fair value | $ | 141,219 |
March 26, 2022 | September 25, 2021 | ||||||||||
Derivative instruments designated as accounting hedges: | |||||||||||
Foreign exchange contracts | $ | 65,140 | $ | 76,475 | |||||||
Interest rate contracts | $ | 20,775 | $ | 16,875 | |||||||
Derivative instruments not designated as accounting hedges: | |||||||||||
Foreign exchange contracts | $ | 110,758 | $ | 126,918 |
March 26, 2022 | September 25, 2021 | ||||||||||
Hedged assets/(liabilities): | |||||||||||
Current and non-current marketable securities | $ | 14,943 | $ | 15,954 | |||||||
Current and non-current term debt | $ | (19,766) | $ | (17,857) |
March 26, 2022 | September 25, 2021 | ||||||||||
Gross property, plant and equipment | $ | 109,324 | $ | 109,723 | |||||||
Accumulated depreciation and amortization | (70,020) | (70,283) | |||||||||
Total property, plant and equipment, net | $ | 39,304 | $ | 39,440 |
March 26, 2022 | September 25, 2021 | ||||||||||
Long-term taxes payable | $ | 20,711 | $ | 24,689 | |||||||
Other non-current liabilities | 31,721 | 28,636 | |||||||||
Total other non-current liabilities | $ | 52,432 | $ | 53,325 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||||||||||||||||
Interest and dividend income | $ | 700 | $ | 718 | $ | 1,350 | $ | 1,465 | |||||||||||||||
Interest expense | (691) | (670) | (1,385) | (1,308) | |||||||||||||||||||
Other income/(expense), net | 151 | 460 | (52) | 396 | |||||||||||||||||||
Total other income/(expense), net | $ | 160 | $ | 508 | $ | (87) | $ | 553 |
Six Months Ended | |||||||||||
March 26, 2022 | March 27, 2021 | ||||||||||
Maturities 90 days or less: | |||||||||||
Proceeds from commercial paper, net | $ | 4,952 | $ | 2,008 | |||||||
Maturities greater than 90 days: | |||||||||||
Proceeds from commercial paper | 1,191 | 1,368 | |||||||||
Repayments of commercial paper | (5,144) | (3,354) | |||||||||
Repayments of commercial paper, net | (3,953) | (1,986) | |||||||||
Total proceeds from commercial paper, net | $ | 999 | $ | 22 |
Number of RSUs (in thousands) | Weighted-Average Grant Date Fair Value Per RSU | Aggregate Fair Value (in millions) | |||||||||||||||
Balance as of September 25, 2021 | 240,427 | $ | 75.16 | ||||||||||||||
RSUs granted | 76,920 | $ | 149.72 | ||||||||||||||
RSUs vested | (62,476) | $ | 62.86 | ||||||||||||||
RSUs canceled | (8,407) | $ | 95.86 | ||||||||||||||
Balance as of March 26, 2022 | 246,464 | $ | 100.84 | $ | 43,062 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||||||||||||||||
Share-based compensation expense | $ | 2,252 | $ | 1,981 | $ | 4,517 | $ | 4,001 | |||||||||||||||
Income tax benefit related to share-based compensation expense | $ | (649) | $ | (575) | $ | (2,185) | $ | (2,199) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||||||||||||||||
Beginning accrued warranty and related costs | $ | 3,530 | $ | 4,124 | $ | 3,364 | $ | 3,354 | |||||||||||||||
Cost of warranty claims | (581) | (649) | (1,253) | (1,372) | |||||||||||||||||||
Accruals for product warranty | 257 | 309 | 1,095 | 1,802 | |||||||||||||||||||
Ending accrued warranty and related costs | $ | 3,206 | $ | 3,784 | $ | 3,206 | $ | 3,784 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||||||||||||||||
Americas: | |||||||||||||||||||||||
Net sales | $ | 40,882 | $ | 34,306 | $ | 92,378 | $ | 80,616 | |||||||||||||||
Operating income | $ | 15,279 | $ | 12,050 | $ | 34,864 | $ | 27,835 | |||||||||||||||
Europe: | |||||||||||||||||||||||
Net sales | $ | 23,287 | $ | 22,264 | $ | 53,036 | $ | 49,570 | |||||||||||||||
Operating income | $ | 8,505 | $ | 8,265 | $ | 20,050 | $ | 17,854 | |||||||||||||||
Greater China: | |||||||||||||||||||||||
Net sales | $ | 18,343 | $ | 17,728 | $ | 44,126 | $ | 39,041 | |||||||||||||||
Operating income | $ | 8,112 | $ | 7,758 | $ | 19,295 | $ | 16,288 | |||||||||||||||
Japan: | |||||||||||||||||||||||
Net sales | $ | 7,724 | $ | 7,742 | $ | 14,831 | $ | 16,027 | |||||||||||||||
Operating income | $ | 3,496 | $ | 3,428 | $ | 6,845 | $ | 6,931 | |||||||||||||||
Rest of Asia Pacific: | |||||||||||||||||||||||
Net sales | $ | 7,042 | $ | 7,544 | $ | 16,852 | $ | 15,769 | |||||||||||||||
Operating income | $ | 2,823 | $ | 2,736 | $ | 6,818 | $ | 5,689 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||||||||||||||||
Segment operating income | $ | 38,215 | $ | 34,237 | $ | 87,872 | $ | 74,597 | |||||||||||||||
Research and development expense | (6,387) | (5,262) | (12,693) | (10,425) | |||||||||||||||||||
Other corporate expenses, net | (1,849) | (1,472) | (3,712) | (3,135) | |||||||||||||||||||
Total operating income | $ | 29,979 | $ | 27,503 | $ | 71,467 | $ | 61,037 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | Change | March 26, 2022 | March 27, 2021 | Change | ||||||||||||||||||||||||||||||
Net sales by category: | |||||||||||||||||||||||||||||||||||
iPhone (1) | $ | 50,570 | $ | 47,938 | 5 | % | $ | 122,198 | $ | 113,535 | 8 | % | |||||||||||||||||||||||
Mac (1) | 10,435 | 9,102 | 15 | % | 21,287 | 17,777 | 20 | % | |||||||||||||||||||||||||||
iPad (1) | 7,646 | 7,807 | (2) | % | 14,894 | 16,242 | (8) | % | |||||||||||||||||||||||||||
Wearables, Home and Accessories (1)(2) | 8,806 | 7,836 | 12 | % | 23,507 | 20,807 | 13 | % | |||||||||||||||||||||||||||
Services (3) | 19,821 | 16,901 | 17 | % | 39,337 | 32,662 | 20 | % | |||||||||||||||||||||||||||
Total net sales | $ | 97,278 | $ | 89,584 | 9 | % | $ | 221,223 | $ | 201,023 | 10 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | Change | March 26, 2022 | March 27, 2021 | Change | ||||||||||||||||||||||||||||||
Net sales by reportable segment: | |||||||||||||||||||||||||||||||||||
Americas | $ | 40,882 | $ | 34,306 | 19 | % | $ | 92,378 | $ | 80,616 | 15 | % | |||||||||||||||||||||||
Europe | 23,287 | 22,264 | 5 | % | 53,036 | 49,570 | 7 | % | |||||||||||||||||||||||||||
Greater China | 18,343 | 17,728 | 3 | % | 44,126 | 39,041 | 13 | % | |||||||||||||||||||||||||||
Japan | 7,724 | 7,742 | — | % | 14,831 | 16,027 | (7) | % | |||||||||||||||||||||||||||
Rest of Asia Pacific | 7,042 | 7,544 | (7) | % | 16,852 | 15,769 | 7 | % | |||||||||||||||||||||||||||
Total net sales | $ | 97,278 | $ | 89,584 | 9 | % | $ | 221,223 | $ | 201,023 | 10 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||||||||||||||||
Gross margin: | |||||||||||||||||||||||
Products | $ | 28,167 | $ | 26,236 | $ | 68,287 | $ | 59,784 | |||||||||||||||
Services | 14,392 | 11,843 | 28,515 | 22,623 | |||||||||||||||||||
Total gross margin | $ | 42,559 | $ | 38,079 | $ | 96,802 | $ | 82,407 |
Gross margin percentage: | |||||||||||||||||||||||
Products | 36.4 | % | 36.1 | % | 37.5 | % | 35.5 | % | |||||||||||||||
Services | 72.6 | % | 70.1 | % | 72.5 | % | 69.3 | % | |||||||||||||||
Total gross margin percentage | 43.7 | % | 42.5 | % | 43.8 | % | 41.0 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||||||||||||||||
Research and development | $ | 6,387 | $ | 5,262 | $ | 12,693 | $ | 10,425 | |||||||||||||||
Percentage of total net sales | 7 | % | 6 | % | 6 | % | 5 | % | |||||||||||||||
Selling, general and administrative | $ | 6,193 | $ | 5,314 | $ | 12,642 | $ | 10,945 | |||||||||||||||
Percentage of total net sales | 6 | % | 6 | % | 6 | % | 5 | % | |||||||||||||||
Total operating expenses | $ | 12,580 | $ | 10,576 | $ | 25,335 | $ | 21,370 | |||||||||||||||
Percentage of total net sales | 13 | % | 12 | % | 11 | % | 11 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | Change | March 26, 2022 | March 27, 2021 | Change | ||||||||||||||||||||||||||||||
Interest and dividend income | $ | 700 | $ | 718 | $ | 1,350 | $ | 1,465 | |||||||||||||||||||||||||||
Interest expense | (691) | (670) | (1,385) | (1,308) | |||||||||||||||||||||||||||||||
Other income/(expense), net | 151 | 460 | (52) | 396 | |||||||||||||||||||||||||||||||
Total other income/(expense), net | $ | 160 | $ | 508 | (69) | % | $ | (87) | $ | 553 | (116) | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
March 26, 2022 | March 27, 2021 | March 26, 2022 | March 27, 2021 | ||||||||||||||||||||
Provision for income taxes | $ | 5,129 | $ | 4,381 | $ | 11,740 | $ | 9,205 | |||||||||||||||
Effective tax rate | 17.0 | % | 15.6 | % | 16.4 | % | 14.9 | % | |||||||||||||||
Statutory federal income tax rate | 21 | % | 21 | % | 21 | % | 21 | % |
Periods | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||||
December 26, 2021 to January 29, 2022: | ||||||||||||||||||||||||||
November 2021 ASRs | 4,887 | (2) | 4,887 | |||||||||||||||||||||||
Open market and privately negotiated purchases | 43,330 | $ | 170.99 | 43,330 | ||||||||||||||||||||||
January 30, 2022 to February 26, 2022: | ||||||||||||||||||||||||||
Open market and privately negotiated purchases | 42,895 | $ | 169.71 | 42,895 | ||||||||||||||||||||||
February 27, 2022 to March 26, 2022: | ||||||||||||||||||||||||||
Open market and privately negotiated purchases | 50,822 | $ | 161.75 | 50,822 | ||||||||||||||||||||||
Total | 141,934 | $ | 17,579 |
Incorporated by Reference | ||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | Exhibit | Filing Date/ Period End Date | ||||||||||||||||||||||
10.1* | 8-K | 10.1 | 3/4/22 | |||||||||||||||||||||||
10.2* | 8-K | 10.2 | 3/4/22 | |||||||||||||||||||||||
10.3* | 8-K | 10.3 | 3/4/22 | |||||||||||||||||||||||
31.1** | ||||||||||||||||||||||||||
31.2** | ||||||||||||||||||||||||||
32.1*** | ||||||||||||||||||||||||||
101** | Inline XBRL Document Set for the condensed consolidated financial statements and accompanying notes in Part I, Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q. | |||||||||||||||||||||||||
104** | Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set. |
Date: April 28, 2022 | Apple Inc. | ||||||||||
By: | /s/ Luca Maestri | ||||||||||
Luca Maestri | |||||||||||
Senior Vice President, Chief Financial Officer |
By: | /s/ Timothy D. Cook | ||||||||||
Timothy D. Cook | |||||||||||
Chief Executive Officer |
By: | /s/ Luca Maestri | ||||||||||
Luca Maestri | |||||||||||
Senior Vice President, Chief Financial Officer |
By: | /s/ Timothy D. Cook | ||||||||||
Timothy D. Cook | |||||||||||
Chief Executive Officer |
By: | /s/ Luca Maestri | ||||||||||
Luca Maestri | |||||||||||
Senior Vice President, Chief Financial Officer |