Apple Reports First Quarter Results

CUPERTINO, Calif.–(BUSINESS WIRE)–Jan 27, 2021–
Apple® today announced financial results for its fiscal 2021 first quarter ended December 26, 2020. The Company posted all-time record revenue of $111.4 billion, up 21 percent year over year, and quarterly earnings per diluted share of $1.68, up 35 percent. International sales accounted for 64 percent of the quarter’s revenue.
“This quarter for Apple wouldn’t have been possible without the tireless and innovative work of every Apple team member worldwide,” said Tim Cook, Apple’s CEO. “We’re gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season. We are also focused on how we can help the communities we’re a part of build back strongly and equitably, through efforts like our Racial Equity and Justice Initiative as well as our multi-year commitment to invest $350 billion throughout the United States.”
“Our December quarter business performance was fueled by double-digit growth in each product category, which drove all-time revenue records in each of our geographic segments and an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “These results helped us generate record operating cash flow of $38.8 billion. We also returned over $30 billion to shareholders during the quarter as we maintain our target of reaching a net cash neutral position over time.”
Apple’s Board of Directors has declared a cash dividend of $0.205 per share of the Company’s common stock. The dividend is payable on February 11, 2021 to shareholders of record as of the close of business on February 8, 2021.
Apple will provide live streaming of its Q1 2021 financial results conference call beginning at 2:00 p.m. PT on January 27, 2021 at This webcast will also be available for replay for approximately two weeks thereafter.
Apple periodically provides information for investors on its corporate website,, and its investor relations website, This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about the Company’s expectations regarding the impact of the COVID-19 pandemic; anticipated revenue, gross margin, operating expenses, other income/(expense), and tax rate; plans for return of capital; our goal of maintaining a net cash neutral position; and our investment plans and initiatives. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: the effect of the COVID-19 pandemic on the Company’s business, results of operations, financial condition, and stock price; the effect of global and regional economic conditions on the Company’s business, including effects on purchasing decisions by consumers and businesses; the ability of the Company to compete in markets that are highly competitive and subject to rapid technological change; the ability of the Company to manage frequent introductions and transitions of products and services, including delivering to the marketplace, and stimulating customer demand for, new products, services, and technological innovations on a timely basis; the effect that shifts in the mix of products and services and in the geographic, currency, or channel mix, component cost increases, increases in the cost of acquiring and delivering content for the Company’s services, price competition, or the introduction of new products or services, including new products or services with higher cost structures, could have on the Company’s gross margin; the dependency of the Company on the performance of distributors of the Company’s products, including cellular network carriers and other resellers; the risk of write-downs on the value of inventory and other assets and purchase commitment cancellation risk; the continued availability on acceptable terms, or at all, of certain components, services, and new technologies essential to the Company’s business, including components and technologies that may only be available from single or limited sources; the dependency of the Company on manufacturing and logistics services provided by third parties, many of which are located outside of the US and which may affect the quality, quantity, or cost of products manufactured or services rendered to the Company; the effect of product and services design and manufacturing defects on the Company’s financial performance and reputation; the dependency of the Company on third-party intellectual property and digital content, which may not be available to the Company on commercially reasonable terms or at all; the dependency of the Company on support from third-party software developers to develop and maintain software applications and services for the Company’s products; the impact of unfavorable legal proceedings or government investigations; the impact of complex and changing laws and regulations worldwide, which expose the Company to potential liabilities, increased costs, and other adverse effects on the Company’s business; the ability of the Company to manage risks associated with the Company’s retail stores; the ability of the Company to manage risks associated with the Company’s investments in new business strategies and acquisitions; the impact on the Company’s business and reputation from information technology system failures, network disruptions, or losses or unauthorized access to, or release of, confidential information; the ability of the Company to comply with laws and regulations regarding data protection; the continued service and availability of key executives and employees; political events, international trade disputes, war, terrorism, natural disasters, public health issues, and other business interruptions that could disrupt supply or delivery of, or demand for, the Company’s products; financial risks, including risks relating to currency fluctuations, credit risks, and fluctuations in the market value of the Company’s investment portfolio; and changes in tax rates and exposure to additional tax liabilities. More information on these risks and other potential factors that could affect the Company’s business and financial results is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s five software platforms — iOS, iPadOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.
NOTE TO EDITORS: For additional information visit Apple Newsroom ( ), or call Apple’s Media Helpline at (408) 974-2042.
© 2021 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Apple Inc.
(In millions, except number of shares which are reflected in thousands and per share amounts)
  Three Months Ended
  December 26,
  December 28,
Net sales:      
Products $ 95,678     $ 79,104  
Services 15,761     12,715  
Total net sales (1) 111,439     91,819  
Cost of sales:      
Products 62,130     52,075  
Services 4,981     4,527  
Total cost of sales 67,111     56,602  
Gross margin 44,328     35,217  
Operating expenses:      
Research and development 5,163     4,451  
Selling, general and administrative 5,631     5,197  
Total operating expenses 10,794     9,648  
Operating income 33,534     25,569  
Other income/(expense), net 45     349  
Income before provision for income taxes 33,579     25,918  
Provision for income taxes 4,824     3,682  
Net income $ 28,755     $ 22,236  
Earnings per share:      
Basic $ 1.70     $ 1.26  
Diluted $ 1.68     $ 1.25  
Shares used in computing earnings per share:      
Basic 16,935,119     17,660,160  
Diluted 17,113,688     17,818,417  
(1) Net sales by reportable segment:      
Americas $ 46,310     $ 41,367  
Europe 27,306     23,273  
Greater China 21,313     13,578  
Japan 8,285     6,223  
Rest of Asia Pacific 8,225     7,378  
Total net sales $ 111,439     $ 91,819  
(1) Net sales by category:      
iPhone $ 65,597     $ 55,957  
Mac 8,675     7,160  
iPad 8,435     5,977  
Wearables, Home and Accessories 12,971     10,010  
Services 15,761     12,715  
Total net sales $ 111,439     $ 91,819  
Apple Inc.
(In millions, except number of shares which are reflected in thousands and par value)
  December 26,
  September 26,
Current assets:      
Cash and cash equivalents $ 36,010     $ 38,016  
Marketable securities 40,816     52,927  
Accounts receivable, net 27,101     16,120  
Inventories 4,973     4,061  
Vendor non-trade receivables 31,519     21,325  
Other current assets 13,687     11,264  
Total current assets 154,106     143,713  
Non-current assets:      
Marketable securities 118,745     100,887  
Property, plant and equipment, net 37,933     36,766  
Other non-current assets 43,270     42,522  
Total non-current assets 199,948     180,175  
Total assets $ 354,054     $ 323,888  
Current liabilities:      
Accounts payable $ 63,846     $ 42,296  
Other current liabilities 48,504     42,684  
Deferred revenue 7,395     6,643  
Commercial paper 5,000     4,996  
Term debt 7,762     8,773  
Total current liabilities 132,507     105,392  
Non-current liabilities:      
Term debt 99,281     98,667  
Other non-current liabilities 56,042     54,490  
Total non-current liabilities 155,323     153,157  
Total liabilities 287,830     258,549  
Commitments and contingencies      
Shareholders’ equity:      
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,823,263 and 16,976,763 shares issued and outstanding, respectively 51,744     50,779  
Retained earnings 14,301     14,966  
Accumulated other comprehensive income/(loss) 179     (406)  
Total shareholders’ equity 66,224     65,339  
Total liabilities and shareholders’ equity $ 354,054     $ 323,888  
Apple Inc.
(In millions)
  Three Months Ended
  December 26,
  December 28,
Cash, cash equivalents and restricted cash, beginning balances $ 39,789     $ 50,224  
Operating activities:      
Net income 28,755     22,236  
Adjustments to reconcile net income to cash generated by operating activities:      
Depreciation and amortization 2,666     2,816  
Share-based compensation expense 2,020     1,710  
Deferred income tax benefit (58)     (349)  
Other 25     (142)  
Changes in operating assets and liabilities:      
Accounts receivable, net (10,945)     2,015  
Inventories (950)     (28)  
Vendor non-trade receivables (10,194)     3,902  
Other current and non-current assets (3,526)     (7,054)  
Accounts payable 21,670     (1,089)  
Deferred revenue 1,341     985  
Other current and non-current liabilities 7,959     5,514  
Cash generated by operating activities 38,763     30,516  
Investing activities:      
Purchases of marketable securities (39,800)     (37,416)  
Proceeds from maturities of marketable securities 25,177     19,740  
Proceeds from sales of marketable securities 9,344     7,280  
Payments for acquisition of property, plant and equipment (3,500)     (2,107)  
Payments made in connection with business acquisitions, net (9)     (958)  
Other 204     (207)  
Cash used in investing activities (8,584)     (13,668)  
Financing activities:      
Proceeds from issuance of common stock     2  
Payments for taxes related to net share settlement of equity awards (2,861)     (1,379)  
Payments for dividends and dividend equivalents (3,613)     (3,539)  
Repurchases of common stock (24,775)     (20,706)  
Proceeds from issuance of term debt, net     2,210  
Repayments of term debt (1,000)     (1,000)  
Proceeds from/(Repayments of) commercial paper, net 22     (979)  
Other (22)     (16)  
Cash used in financing activities (32,249)     (25,407)  
Decrease in cash, cash equivalents and restricted cash (2,070)     (8,559)  
Cash, cash equivalents and restricted cash, ending balances $ 37,719     $ 41,665  
Supplemental cash flow disclosure:      
Cash paid for income taxes, net $ 1,787     $ 4,393  
Cash paid for interest $ 619     $ 771  

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SOURCE: Apple Inc.
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PUB: 01/27/2021 04:30 PM/DISC: 01/27/2021 04:31 PM