--- 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 30, 2023 December 31, 2022 Net sales: Products /dollarsign 96,458 /dollarsign 96,388 Services 23,117 20,766 Total net sales (1) 119,575 117,154 Cost of sales: Products 58,440 60,765 Services 6,280 6,057 Total cost of sales 64,720 66,822 Gross margin 54,855 50,332 Operating expenses: Research and development 7,696 7,709 Selling, general and administrative 6,786 6,607 Total operating expenses 14,482 14,316 Operating income 40,373 36,016 Other income/(expense), net (50) (393) Income before provision for income taxes 40,323 35,623 Provision for income taxes 6,407 5,625 Net income /dollarsign 33,916 /dollarsign 29,998 Earnings per share: Basic /dollarsign 2.19 /dollarsign 1.89 Diluted /dollarsign 2.18 /dollarsign 1.88 Shares used in computing earnings per share: Basic 15,509,763 15,892,723 Diluted 15,576,641 15,955,718 (1) Net sales by reportable segment: Americas /dollarsign 50,430 /dollarsign 49,278 Europe 30,397 27,681 Greater China 20,819 23,905 Japan 7,767 6,755 Rest of Asia Pacific 10,162 9,535 Total net sales /dollarsign 119,575 /dollarsign 117,154 (1) Net sales by category: iPhone /dollarsign 69,702 /dollarsign 65,775 Mac 7,780 7,735 iPad 7,023 9,396 Wearables, Home and Accessories 11,953 13,482 Services 23,117 20,766 Total net sales /dollarsign 119,575 /dollarsign 117,154 --- Page 2 --- Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and par value) December 30, 2023 September 30, 2023 ASSETS: Current assets: Cash and cash equivalents /dollarsign 40,760 /dollarsign 29,965 Marketable securities 32,340 31,590 Accounts receivable, net 23,194 29,508 Vendor non-trade receivables 26,908 31,477 Inventories 6,511 6,331 Other current assets 13,979 14,695 Total current assets 143,692 143,566 Non-current assets: Marketable securities 99,475 100,544 Property, plant and equipment, net 43,666 43,715 Other non-current assets 66,681 64,758 Total non-current assets 209,822 209,017 Total assets /dollarsign 353,514 /dollarsign 352,583 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable /dollarsign 58,146 /dollarsign 62,611 Other current liabilities 54,611 58,829 Deferred revenue 8,264 8,061 Commercial paper 1,998 5,985 Term debt 10,954 9,822 Total current liabilities 133,973 145,308 Non-current liabilities: Term debt 95,088 95,281 Other non-current liabilities 50,353 49,848 Total non-current liabilities 145,441 145,129 Total liabilities 279,414 290,437 Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, /dollarsign0.00001 par value: 50,400,000 shares authorized; 15,460,223 and 15,550,061 shares issued and outstanding, respectively 75,236 73,812 Retained earnings/(Accumulated deficit) 8,242 (214) Accumulated other comprehensive loss (9,378) (11,452) Total shareholders’ equity 74,100 62,146 Total liabilities and shareholders’ equity /dollarsign 353,514 /dollarsign 352,583 --- Page 3 --- Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Three Months Ended December 30, 2023 December 31, 2022 Cash, cash equivalents and restricted cash, beginning balances /dollarsign 30,737 /dollarsign 24,977 Operating activities: Net income 33,916 29,998 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 2,848 2,916 Share-based compensation expense 2,997 2,905 Other (989) (317) Changes in operating assets and liabilities: Accounts receivable, net 6,555 4,275 Vendor non-trade receivables 4,569 2,320 Inventories (137) (1,807) Other current and non-current assets (1,457) (4,099) Accounts payable (4,542) (6,075) Other current and non-current liabilities (3,865) 3,889 Cash generated by operating activities 39,895 34,005 Investing activities: Purchases of marketable securities (9,780) (5,153) Proceeds from maturities of marketable securities 13,046 7,127 Proceeds from sales of marketable securities 1,337 509 Payments for acquisition of property, plant and equipment (2,392) (3,787) Other (284) (141) Cash generated by/(used in) investing activities 1,927 (1,445) Financing activities: Payments for taxes related to net share settlement of equity awards (2,591) (2,316) Payments for dividends and dividend equivalents (3,825) (3,768) Repurchases of common stock (20,139) (19,475) Repayments of term debt — (1,401) Repayments of commercial paper, net (3,984) (8,214) Other (46) (389) Cash used in financing activities (30,585) (35,563) Increase/(Decrease) in cash, cash equivalents and restricted cash 11,237 (3,003) Cash, cash equivalents and restricted cash, ending balances /dollarsign 41,974 /dollarsign 21,974 Supplemental cash flow disclosure: Cash paid for income taxes, net /dollarsign 7,255 /dollarsign 828