PRESS RELEASE 31 July 2018

Apple Reports Third Quarter Results

Revenue Up 17 Per Cent and EPS Up 40 Per Cent to New June Quarter Records

Services Revenue Reaches New All-Time High

Cupertino, California — 31 July, 2018 — Apple today announced financial results for its fiscal 2018 third quarter ended 30 June, 2018. The Company posted quarterly revenue of US$53.3 billion, an increase of 17 per cent from the year-ago quarter, and quarterly earnings per diluted share of US$2.34, up 40 per cent. International sales accounted for 60 per cent of the quarter’s revenue.
“We’re thrilled to report Apple’s best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth,” said Tim Cook, Apple’s CEO. “Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline.”
“Our strong business performance drove revenue growth in each of our geographic segments, net income of US$11.5 billion, and operating cash flow of US$14.5 billion,” said Luca Maestri, Apple’s CFO. “We returned almost US$25 billion to investors through our capital return program during the quarter, including US$20 billion in share repurchases.”
Apple is providing the following guidance for its fiscal 2018 fourth quarter:
  • revenue between US$60 billion and US$62 billion
  • gross margin between 38 per cent and 38.5 per cent
  • operating expenses between US$7.95 billion and US$8.05 billion
  • other income/(expense) of US$300 million
  • tax rate of approximately 15 per cent before discrete items
Apple’s board of directors has declared a cash dividend of US$0.73 per share of the Company’s common stock. The dividend is payable on 16 August, 2018 to shareholders of record as of the close of business on 13 August, 2018.
Apple will provide live streaming of its Q3 2018 financial results conference call beginning at 2:00 p.m. PDT on 31 July, 2018 at www.apple.com/investor/earnings-call/. This webcast will also be available for replay for approximately two weeks thereafter.
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 estimated revenue, gross margin, operating expenses, other income/(expense), tax rate, and plans for return of capital. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation: 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 product introductions and transitions, including delivering to the marketplace, and stimulating customer demand for, new products, services and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing and product mix, and increases in component and other costs 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 inventory and other asset risks associated with the Company’s need to order, or commit to order, product components in advance of customer orders; 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 sole 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 unfavourable legal proceedings, such as a potential finding that the Company has infringed on the intellectual property rights of others; the impact of changes to laws and regulations that affect the Company’s activities, including the Company’s ability to offer products or services to customers in different regions; the ability of the Company to manage risks associated with its international activities, including complying with laws and regulations affecting the Company’s international operations; 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 unauthorised 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, public health issues, natural disasters, 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 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.

Press Contact

Elizabeth Cave

Apple

lcave@apple.com

+61 418 445 940

Alex Waldron

Apple

awaldron@apple.com

+61 2 8987 8670

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