--- 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 Nine Months Ended July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Net sales: Products /dollarsign 60,584 /dollarsign 63,355 /dollarsign 230,901 /dollarsign 245,241 Services 21,213 19,604 62,886 58,941 Total net sal es (1) 81,797 82,959 293,787 304,182 Cost of sales: Products 39,136 41,485 146,696 155,084 Services 6,248 5,589 18,370 16,411 Total cost of sal es 45,384 47,074 165,066 171,495 Gross margin 36,413 35,885 128,721 132,687 Operating expenses: Research and development 7,442 6,797 22,608 19,490 Selling, general and administrative 5,973 6,012 18,781 18,654 Total operat i ng expenses 13,415 12,809 41,389 38,144 Operating income 22,998 23,076 87,332 94,543 Other income/(expense), net (265) (10) (594) (97) Income before provision for income taxes 22,733 23,066 86,738 94,446 Provision for income taxes 2,852 3,624 12,699 15,364 Net income /dollarsign 19,881 /dollarsign 19,442 /dollarsign 74,039 /dollarsign 79,082 Earnings per share: Basic /dollarsign 1.27 /dollarsign 1.20 /dollarsign 4.69 /dollarsign 4.86 Diluted /dollarsign 1.26 /dollarsign 1.20 /dollarsign 4.67 /dollarsign 4.82 Shares used in computing earnings per share: Basic 15,697,614 16,162,945 15,792,497 16,277,824 Diluted 15,775,021 16,262,203 15,859,263 16,394,937 (1) Net sales by reportable segment: Americas /dollarsign 35,383 /dollarsign 37,472 /dollarsign 122,445 /dollarsign 129,850 Europe 20,205 19,287 71,831 72,323 Greater China 15,758 14,604 57,475 58,730 Japan 4,821 5,446 18,752 20,277 Rest of Asia Pacific 5,630 6,150 23,284 23,002 Total net sal es /dollarsign 81,797 /dollarsign 82,959 /dollarsign 293,787 /dollarsign 304,182 (1) Net sales by category: iPhone /dollarsign 39,669 /dollarsign 40,665 /dollarsign 156,778 /dollarsign 162,863 Mac 6,840 7,382 21,743 28,669 iPad 5,791 7,224 21,857 22,118 Wearables, Home and Accessories 8,284 8,084 30,523 31,591 Services 21,213 19,604 62,886 58,941 Total net sal es /dollarsign 81,797 /dollarsign 82,959 /dollarsign 293,787 /dollarsign 304,182 --- Page 2 --- Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands and par value) July 1, 2023 September 24, 2022 ASSETS: Current assets: Cash and cash equivalents /dollarsign 28,408 /dollarsign 23,646 Marketable securities 34,074 24,658 Accounts receivable, net 19,549 28,184 Inventories 7,351 4,946 Vendor non-trade receivables 19,637 32,748 Other current assets 13,640 21,223 Total cur rent assets 122,659 135,405 Non-current assets: Marketable securities 104,061 120,805 Property, plant and equipment, net 43,550 42,117 Other non-current assets 64,768 54,428 Total non-current assets 212,379 217,350 Total assets /dollarsign 335,038 /dollarsign 352,755 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable /dollarsign 46,699 /dollarsign 64,115 Other current liabilities 58,897 60,845 Deferred revenue 8,158 7,912 Commercial paper 3,993 9,982 Ter m debt 7,216 11,128 Total cur rent l i abi l i t i es 124,963 153,982 Non-current liabilities: Ter m debt 98,071 98,959 Other non-current liabilities 51,730 49,142 Total non-current liabilities 149,801 148,101 Total l i abi l i t i es 274,764 302,083 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, /dollarsign0.00001 par value: 50,400,000 shares authorized; 15,647,868 and 15,943,425 shares issued and outstanding, respectively 70,667 64,849 Retained earnings/(Accumulated deficit) 1,408 (3,068) Accumulated other comprehensive income/(loss) (11,801) (11,109) Total sharehol ders’ equi t y 60,274 50,672 Total l i abi l i t i es and sharehol ders’ equi t y /dollarsign 335,038 /dollarsign 352,755 --- Page 3 --- Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Nine Months Ended July 1, 2023 June 25, 2022 Cash, cash equivalents and restricted cash, beginning balances /dollarsign 24,977 /dollarsign 35,929 Operating activities: Net income 74,039 79,082 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 8,866 8,239 Share-based compensation expense 8,208 6,760 Other (1,651) 2,695 Changes in operating assets and liabilities: Accounts receivable, net 7,609 4,561 Inventories (2,570) 1,049 Vendor non-trade receivables 13,111 4,789 Other current and non-current assets (4,863) (3,289) Accounts payable (16,790) (6,108) Other current and non-current liabilities 2,986 246 Cash generated by operating activities 88,945 98,024 Investing activities: Purchases of marketable securities (20,956) (70,178) Proceeds from maturities of marketable securities 27,857 24,203 Proceeds from sales of marketable securities 3,959 33,609 Payments for acquisition of property, plant and equipment (8,796) (7,419) Other (753) (1,352) Cash generated by/(used in) investing activities 1,311 (21,137) Financing activities: Payments for taxes related to net share settlement of equity awards (5,119) (5,915) Payments for dividends and dividend equivalents (11,267) (11,138) Repurchases of common stock (56,547) (64,974) Proceeds from issuance of term debt, net 5,228 — Repayments of term debt (11,151) (6,750) Proceeds from/(Repayments of) commercial paper, net (5,971) 4,970 Other (508) (148) Cash used in financing activities (85,335) (83,955) Increase/(Decrease) in cash, cash equivalents and restricted cash 4,921 (7,068) Cash, cash equivalents and restricted cash, ending balances /dollarsign 29,898 /dollarsign 28,861 Supplemental cash flow disclosure: Cash paid for income taxes, net /dollarsign 7,020 /dollarsign 12,251 Cash paid for interest /dollarsign 2,590 /dollarsign 1,910