--- 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 Six Months Ended April 1, 2023 March 26, 2022 April 1, 2023 March 26, 2022 Net sales: Products /dollarsign 73,929 /dollarsign 77,457 /dollarsign 170,317 /dollarsign 181,886 Services 20,907 19,821 41,673 39,337 Total net sal es (1) 94,836 97,278 211,990 221,223 Cost of sales: Products 46,795 49,290 107,560 113,599 Services 6,065 5,429 12,122 10,822 Total cost of sal es 52,860 54,719 119,682 124,421 Gross margin 41,976 42,559 92,308 96,802 Operating expenses: Research and development 7,457 6,387 15,166 12,693 Selling, general and administrative 6,201 6,193 12,808 12,642 Total operat i ng expenses 13,658 12,580 27,974 25,335 Operating income 28,318 29,979 64,334 71,467 Other income/(expense), net 64 160 (329) (87) Income before provision for income taxes 28,382 30,139 64,005 71,380 Provision for income taxes 4,222 5,129 9,847 11,740 Net income /dollarsign 24,160 /dollarsign 25,010 /dollarsign 54,158 /dollarsign 59,640 Earnings per share: Basic /dollarsign 1.53 /dollarsign 1.54 /dollarsign 3.42 /dollarsign 3.65 Diluted /dollarsign 1.52 /dollarsign 1.52 /dollarsign 3.41 /dollarsign 3.62 Shares used in computing earnings per share: Basic 15,787,154 16,278,802 15,839,939 16,335,263 Diluted 15,847,050 16,403,316 15,901,384 16,461,304 (1) Net sales by reportable segment: Americas /dollarsign 37,784 /dollarsign 40,882 /dollarsign 87,062 /dollarsign 92,378 Europe 23,945 23,287 51,626 53,036 Greater China 17,812 18,343 41,717 44,126 Japan 7,176 7,724 13,931 14,831 Rest of Asia Pacific 8,119 7,042 17,654 16,852 Total net sal es /dollarsign 94,836 /dollarsign 97,278 /dollarsign 211,990 /dollarsign 221,223 (1) Net sales by category: iPhone /dollarsign 51,334 /dollarsign 50,570 /dollarsign 117,109 /dollarsign 122,198 Mac 7,168 10,435 14,903 21,287 iPad 6,670 7,646 16,066 14,894 Wearables, Home and Accessories 8,757 8,806 22,239 23,507 Services 20,907 19,821 41,673 39,337 Total net sal es /dollarsign 94,836 /dollarsign 97,278 /dollarsign 211,990 /dollarsign 221,223 --- Page 2 --- Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands and par value) April 1, 2023 September 24, 2022 ASSETS: Current assets: Cash and cash equivalents /dollarsign 24,687 /dollarsign 23,646 Marketable securities 31,185 24,658 Accounts receivable, net 17,936 28,184 Inventories 7,482 4,946 Vendor non-trade receivables 17,963 32,748 Other current assets 13,660 21,223 Total cur rent assets 112,913 135,405 Non-current assets: Marketable securities 110,461 120,805 Property, plant and equipment, net 43,398 42,117 Other non-current assets 65,388 54,428 Total non-current assets 219,247 217,350 Total assets /dollarsign 332,160 /dollarsign 352,755 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable /dollarsign 42,945 /dollarsign 64,115 Other current liabilities 56,425 60,845 Deferred revenue 8,131 7,912 Commercial paper 1,996 9,982 Ter m debt 10,578 11,128 Total cur rent l i abi l i t i es 120,075 153,982 Non-current liabilities: Ter m debt 97,041 98,959 Other non-current liabilities 52,886 49,142 Total non-current liabilities 149,927 148,101 Total l i abi l i t i es 270,002 302,083 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, /dollarsign0.00001 par value: 50,400,000 shares authorized; 15,723,406 and 15,943,425 shares issued and outstanding, respectively 69,568 64,849 Retained earnings/(Accumulated deficit) 4,336 (3,068) Accumulated other comprehensive income/(loss) (11,746) (11,109) Total sharehol ders’ equi t y 62,158 50,672 Total l i abi l i t i es and sharehol ders’ equi t y /dollarsign 332,160 /dollarsign 352,755 --- Page 3 --- Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Six Months Ended April 1, 2023 March 26, 2022 Cash, cash equivalents and restricted cash, beginning balances /dollarsign 24,977 /dollarsign 35,929 Operating activities: Net income 54,158 59,640 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 5,814 5,434 Share-based compensation expense 5,591 4,517 Other (1,732) 1,068 Changes in operating assets and liabilities: Accounts receivable, net 9,596 5,542 Inventories (2,548) 1,065 Vendor non-trade receivables 14,785 643 Other current and non-current assets (4,092) (3,542) Accounts payable (20,764) (1,750) Other current and non-current liabilities 1,757 2,515 Cash generated by operating activities 62,565 75,132 Investing activities: Purchases of marketable securities (11,197) (61,987) Proceeds from maturities of marketable securities 17,124 18,000 Proceeds from sales of marketable securities 1,897 24,668 Payments for acquisition of property, plant and equipment (6,703) (5,317) Other (247) (735) Cash generated by/(used in) investing activities 874 (25,371) Financing activities: Payments for taxes related to net share settlement of equity awards (2,734) (3,218) Payments for dividends and dividend equivalents (7,418) (7,327) Repurchases of common stock (39,069) (43,109) Repayments of term debt (3,651) (3,750) Proceeds from/(Repayments of) commercial paper, net (7,960) 999 Other (455) (105) Cash used in financing activities (61,287) (56,510) Increase/(Decrease) in cash, cash equivalents and restricted cash 2,152 (6,749) Cash, cash equivalents and restricted cash, ending balances /dollarsign 27,129 /dollarsign 29,180 Supplemental cash flow disclosure: Cash paid for income taxes, net /dollarsign 4,894 /dollarsign 9,301 Cash paid for interest /dollarsign 1,873 /dollarsign 1,406