--- Page 1 --- 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 December 31, 2022 December 25, 2021 Net sales: Products /dollarsign 96,388 /dollarsign 104,429 Services 20,766 19,516 Total net sal es (1) 117,154 123,945 Cost of sales: Products 60,765 64,309 Services 6,057 5,393 Total cost of sal es 66,822 69,702 Gross margin 50,332 54,243 Operating expenses: Research and development 7,709 6,306 Selling, general and administrative 6,607 6,449 Total operat i ng expenses 14,316 12,755 Operating income 36,016 41,488 Other income/(expense), net (393) (247) Income before provision for income taxes 35,623 41,241 Provision for income taxes 5,625 6,611 Net income /dollarsign 29,998 /dollarsign 34,630 Earnings per share: Basic /dollarsign 1.89 /dollarsign 2.11 Diluted /dollarsign 1.88 /dollarsign 2.10 Shares used in computing earnings per share: Basic 15,892,723 16,391,724 Diluted 15,955,718 16,519,291 (1) Net sales by reportable segment: Americas /dollarsign 49,278 /dollarsign 51,496 Europe 27,681 29,749 Greater China 23,905 25,783 Japan 6,755 7,107 Rest of Asia Pacific 9,535 9,810 Total net sal es /dollarsign 117,154 /dollarsign 123,945 (1) Net sales by category: iPhone /dollarsign 65,775 /dollarsign 71,628 Mac 7,735 10,852 iPad 9,396 7,248 Wearables, Home and Accessories 13,482 14,701 Services 20,766 19,516 Total net sal es /dollarsign 117,154 /dollarsign 123,945 --- Page 2 --- Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands and par value) December 31, 2022 September 24, 2022 ASSETS: Current assets: Cash and cash equivalents /dollarsign 20,535 /dollarsign 23,646 Marketable securities 30,820 24,658 Accounts receivable, net 23,752 28,184 Inventories 6,820 4,946 Vendor non-trade receivables 30,428 32,748 Other current assets 16,422 21,223 Total cur rent assets 128,777 135,405 Non-current assets: Marketable securities 114,095 120,805 Property, plant and equipment, net 42,951 42,117 Other non-current assets 60,924 54,428 Total non-current assets 217,970 217,350 Total assets /dollarsign 346,747 /dollarsign 352,755 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable /dollarsign 57,918 /dollarsign 64,115 Other current liabilities 59,893 60,845 Deferred revenue 7,992 7,912 Commercial paper 1,743 9,982 Ter m debt 9,740 11,128 Total cur rent l i abi l i t i es 137,286 153,982 Non-current liabilities: Ter m debt 99,627 98,959 Other non-current liabilities 53,107 49,142 Total non-current liabilities 152,734 148,101 Total l i abi l i t i es 290,020 302,083 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, /dollarsign0.00001 par value: 50,400,000 shares authorized; 15,842,407 and 15,943,425 shares issued and outstanding, respectively 66,399 64,849 Retained earnings/(Accumulated deficit) 3,240 (3,068) Accumulated other comprehensive income/(loss) (12,912) (11,109) Total sharehol ders’ equi t y 56,727 50,672 Total l i abi l i t i es and sharehol ders’ equi t y /dollarsign 346,747 /dollarsign 352,755 --- Page 3 --- Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Three Months Ended December 31, 2022 December 25, 2021 Cash, cash equivalents and restricted cash, beginning balances /dollarsign 24,977 /dollarsign 35,929 Operating activities: Net income 29,998 34,630 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 2,916 2,697 Share-based compensation expense 2,905 2,265 Other (317) 849 Changes in operating assets and liabilities: Accounts receivable, net 4,275 (3,934) Inventories (1,807) 681 Vendor non-trade receivables 2,320 (9,812) Other current and non-current assets (4,099) (4,921) Accounts payable (6,075) 19,813 Deferred revenue 131 462 Other current and non-current liabilities 3,758 4,236 Cash generated by operating activities 34,005 46,966 Investing activities: Purchases of marketable securities (5,153) (34,913) Proceeds from maturities of marketable securities 7,127 11,309 Proceeds from sales of marketable securities 509 10,675 Payments for acquisition of property, plant and equipment (3,787) (2,803) Other (141) (374) Cash used in investing activities (1,445) (16,106) Financing activities: Payments for taxes related to net share settlement of equity awards (2,316) (2,888) Payments for dividends and dividend equivalents (3,768) (3,732) Repurchases of common stock (19,475) (20,478) Repayments of term debt (1,401) — Repayments of commercial paper, net (8,214) (1,000) Other (389) (61) Cash used in financing activities (35,563) (28,159) Increase/(Decrease) in cash, cash equivalents and restricted cash (3,003) 2,701 Cash, cash equivalents and restricted cash, ending balances /dollarsign 21,974 /dollarsign 38,630 Supplemental cash flow disclosure: Cash paid for income taxes, net /dollarsign 828 /dollarsign 5,235 Cash paid for interest /dollarsign 703 /dollarsign 531