Apple Reports Fourth Quarter Results

Revenue Up 12 Percent and EPS Up 24 Percent to New September Quarter Records

Services Revenue Reaches All-Time High

Apple® today announced financial results for its fiscal 2017 fourth quarter ended September 30, 2017. The Company posted quarterly revenue of $52.6 billion, an increase of 12 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.07, up 24 percent. International sales accounted for 62 percent of the quarter’s revenue.

“We’re happy to report a very strong finish to a great fiscal 2017, with record fourth quarter revenue, year-over-year growth for all our product categories, and our best quarter ever for Services,” said Tim Cook, Apple’s CEO. “With fantastic new products including iPhone 8 and iPhone 8 Plus, Apple Watch Series 3, and Apple TV 4K joining our product lineup, we’re looking forward to a great holiday season, and with the launch of iPhone X getting underway right now, we couldn’t be more excited as we begin to deliver our vision for the future with this stunning device.”

“Apple’s year-over-year revenue growth rate accelerated for the fourth consecutive quarter and drove EPS growth of 24 percent in the September quarter,” said Luca Maestri, Apple’s CFO. “We also generated strong operating cash flow of $15.7 billion and returned $11 billion to investors through our capital return program.”

Apple is providing the following guidance for its fiscal 2018 first quarter:

• revenue between $84 billion and $87 billion• gross margin between 38 percent and 38.5 percent• operating expenses between $7.65 billion and $7.75 billion• other income/(expense) of $600 million• tax rate of 25.5 percent

Apple’s board of directors has declared a cash dividend of $0.63 per share of the Company’s common stock. The dividend is payable on November 16, 2017 to shareholders of record as of the close of business on November 13, 2017.

Apple will provide live streaming of its Q4 2017 financial results conference call beginning at 2:00 p.m. PDT on November 2, 2017 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 U.S. and which may affect the quality, quantity or cost of products manufactured or services rendered to the Company; the effect of product and service quality problems 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, 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 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; 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.

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 four software platforms — iOS, 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 the Apple Newsroom (www.apple.com/newsroom), or call Apple’s Media Helpline at [phone].

© 2017 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.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In millions, except number of shares which are reflected in thousands and per share amounts)

Three Months Ended

Twelve Months Ended

September 30, 2017

September 24, 2016

September 30, 2017

September 24, 2016

        
      
      
        
          Net sales
        
        
        
        
          $
        
        
          52,579
        
        
        
        
          $
        
        
          46,852
        
        
        
        
          $
        
        
          229,234
        
        
        
        
          $
        
        
          215,639
        
      
      
        
          Cost of sales (1)
        
        
        
        
          32,648
        
        
        
        
          29,039
        
        
        
        
          141,048
        
        
        
        
          131,376
        
      
      
        
          Gross margin
        
        
        
        
          19,931
        
        
        
        
          17,813
        
        
        
        
          88,186
        
        
        
        
          84,263
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating expenses:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Research and development (1)
        
        
        
        
          2,997
        
        
        
        
          2,570
        
        
        
        
          11,581
        
        
        
        
          10,045
        
      
      
        
          Selling, general and administrative (1)
        
        
        
        
          3,814
        
        
        
        
          3,482
        
        
        
        
          15,261
        
        
        
        
          14,194
        
      
      
        
          Total operating expenses
        
        
        
        
          6,811
        
        
        
        
          6,052
        
        
        
        
          26,842
        
        
        
        
          24,239
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating income
        
        
        
        
          13,120
        
        
        
        
          11,761
        
        
        
        
          61,344
        
        
        
        
          60,024
        
      
      
        
          Other income/(expense), net
        
        
        
        
          797
        
        
        
        
          427
        
        
        
        
          2,745
        
        
        
        
          1,348
        
      
      
        
          Income before provision for income taxes
        
        
        
        
          13,917
        
        
        
        
          12,188
        
        
        
        
          64,089
        
        
        
        
          61,372
        
      
      
        
          Provision for income taxes
        
        
        
        
          3,203
        
        
        
        
          3,174
        
        
        
        
          15,738
        
        
        
        
          15,685
        
      
      
        
          Net income
        
        
        
        
          $
        
        
          10,714
        
        
        
        
          $
        
        
          9,014
        
        
        
        
          $
        
        
          48,351
        
        
        
        
          $
        
        
          45,687
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Earnings per share:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
        
        
          $
        
        
          2.08
        
        
        
        
          $
        
        
          1.68
        
        
        
        
          $
        
        
          9.27
        
        
        
        
          $
        
        
          8.35
        
      
      
        
          Diluted
        
        
        
        
          $
        
        
          2.07
        
        
        
        
          $
        
        
          1.67
        
        
        
        
          $
        
        
          9.21
        
        
        
        
          $
        
        
          8.31
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Shares used in computing earnings per share:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
        
        
          5,149,428
        
        
        
        
          5,366,912
        
        
        
        
          5,217,242
        
        
        
        
          5,470,820
        
      
      
        
          Diluted
        
        
        
        
          5,183,585
        
        
        
        
          5,393,333
        
        
        
        
          5,251,692
        
        
        
        
          5,500,281
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cash dividends declared per share
        
        
        
        
          $
        
        
          0.63
        
        
        
        
          $
        
        
          0.57
        
        
        
        
          $
        
        
          2.40
        
        
        
        
          $
        
        
          2.18
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (1) Includes share-based compensation expense as follows:
        
        
        
        
        
        
        
      
      
        
          Cost of sales
        
        
        
        
          $
        
        
          215
        
        
        
        
          $
        
        
          186
        
        
        
        
          $
        
        
          877
        
        
        
        
          $
        
        
          769
        
      
      
        
          Research and development
        
        
        
        
          $
        
        
          569
        
        
        
        
          $
        
        
          476
        
        
        
        
          $
        
        
          2,299
        
        
        
        
          $
        
        
          1,889
        
      
      
        
          Selling, general and administrative
        
        
        
        
          $
        
        
          390
        
        
        
        
          $
        
        
          368
        
        
        
        
          $
        
        
          1,664
        
        
        
        
          $
        
        
          1,552
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
          

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions, except number of shares which are reflected in thousands and par value)

September 30, 2017

September 24, 2016

ASSETS:

        
      
      
        
          Current assets:
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and cash equivalents
        
        
        
        
          $
        
        
          20,289
        
        
        
        
        
        
          $
        
        
          20,484
        
      
      
        
          Short-term marketable securities
        
        
        
        
          53,892
        
        
        
        
        
        
          46,671
        
      
      
        
          Accounts receivable, less allowances of $58 and $53, respectively
        
        
        
        
          17,874
        
        
        
        
        
        
          15,754
        
      
      
        
          Inventories
        
        
        
        
          4,855
        
        
        
        
        
        
          2,132
        
      
      
        
          Vendor non-trade receivables
        
        
        
        
          17,799
        
        
        
        
        
        
          13,545
        
      
      
        
          Other current assets
        
        
        
        
          13,936
        
        
           
        
        
        
        
          8,283
        
      
      
        
          Total current assets
        
        
        
        
          128,645
        
        
        
        
        
        
          106,869
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Long-term marketable securities
        
        
        
        
          194,714
        
        
        
        
        
        
          170,430
        
      
      
        
          Property, plant and equipment, net
        
        
        
        
          33,783
        
        
        
        
        
        
          27,010
        
      
      
        
          Goodwill
        
        
        
        
          5,717
        
        
        
        
        
        
          5,414
        
      
      
        
          Acquired intangible assets, net
        
        
        
        
          2,298
        
        
        
        
        
        
          3,206
        
      
      
        
          Other non-current assets
        
        
        
        
          10,162
        
        
           
        
        
        
        
          8,757
        
      
      
        
          Total assets
        
        
        
        
          $
        
        
          375,319
        
        
           
        
        
        
        
          $
        
        
          321,686
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

LIABILITIES AND SHAREHOLDERS’ EQUITY:

        
      
      
        
          Current liabilities:
        
        
        
        
        
        
        
        
        
      
      
        
          Accounts payable
        
        
        
        
          $
        
        
          49,049
        
        
        
        
        
        
          $
        
        
          37,294
        
      
      
        
          Accrued expenses
        
        
        
        
          25,744
        
        
        
        
        
        
          22,027
        
      
      
        
          Deferred revenue
        
        
        
        
          7,548
        
        
        
        
        
        
          8,080
        
      
      
        
          Commercial paper
        
        
        
        
          11,977
        
        
        
        
        
        
          8,105
        
      
      
        
          Current portion of long-term debt
        
        
        
        
          6,496
        
        
           
        
        
        
        
          3,500
        
      
      
        
          Total current liabilities
        
        
        
        
          100,814
        
        
        
        
        
        
          79,006
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Deferred revenue, non-current
        
        
        
        
          2,836
        
        
        
        
        
        
          2,930
        
      
      
        
          Long-term debt
        
        
        
        
          97,207
        
        
        
        
        
        
          75,427
        
      
      
        
          Other non-current liabilities
        
        
        
        
          40,415
        
        
           
        
        
        
        
          36,074
        
      
      
        
          Total liabilities
        
        
        
        
          241,272
        
        
           
        
        
        
        
          193,437
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Commitments and contingencies
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Shareholders’ equity:
        
        
        
        
        
        
        
        
        
      
      
        
          Common stock and additional paid-in capital, $0.00001 par value: 
          12,600,000 shares authorized; 5,126,201 and 5,336,166 shares issued 
          and outstanding, respectively
        
        
        
        
          35,867
        
        
        
        
        
        
          31,251
        
      
      
        
          Retained earnings
        
        
        
        
          98,330
        
        
        
        
        
        
          96,364
        
      
      
        
          Accumulated other comprehensive income/(loss)
        
        
        
        
          (150
        
        
          )
        
        
        
        
          634
        
      
      
        
          Total shareholders’ equity
        
        
        
        
          134,047
        
        
           
        
        
        
        
          128,249
        
      
      
        
          Total liabilities and shareholders’ equity
        
        
        
        
          $
        
        
          375,319
        
        
           
        
        
        
        
          $
        
        
          321,686
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
          

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

Twelve Months Ended

September 30,

2017

September 24,

2016

        
      
      
        
          Cash and cash equivalents, beginning of the period
        
        
        
        
          $
        
        
          20,484
        
        
           
        
        
        
        
          $
        
        
          21,120
        
        
           
        
      
      
        
          Operating activities:
        
        
        
        
        
        
        
        
        
      
      
        
          Net income
        
        
        
        
          48,351
        
        
        
        
        
        
          45,687
        
        
        
      
      
        
          Adjustments to reconcile net income to cash generated by operating 
          activities:
        
        
        
        
        
        
        
        
        
      
      
        
          Depreciation and amortization
        
        
        
        
          10,157
        
        
        
        
        
        
          10,505
        
        
        
      
      
        
          Share-based compensation expense
        
        
        
        
          4,840
        
        
        
        
        
        
          4,210
        
        
        
      
      
        
          Deferred income tax expense
        
        
        
        
          5,966
        
        
        
        
        
        
          4,938
        
        
        
      
      
        
          Other
        
        
        
        
          (166
        
        
          )
        
        
        
        
          486
        
        
        
      
      
        
          Changes in operating assets and liabilities:
        
        
        
        
        
        
        
        
        
      
      
        
          Accounts receivable, net
        
        
        
        
          (2,093
        
        
          )
        
        
        
        
          527
        
        
        
      
      
        
          Inventories
        
        
        
        
          (2,723
        
        
          )
        
        
        
        
          217
        
        
        
      
      
        
          Vendor non-trade receivables
        
        
        
        
          (4,254
        
        
          )
        
        
        
        
          (51
        
        
          )
        
      
      
        
          Other current and non-current assets
        
        
        
        
          (5,318
        
        
          )
        
        
        
        
          1,055
        
        
        
      
      
        
          Accounts payable
        
        
        
        
          9,618
        
        
        
        
        
        
          1,837
        
        
        
      
      
        
          Deferred revenue
        
        
        
        
          (626
        
        
          )
        
        
        
        
          (1,554
        
        
          )
        
      
      
        
          Other current and non-current liabilities
        
        
        
        
          (154
        
        
          )
        
        
        
        
          (2,033
        
        
          )
        
      
      
        
          Cash generated by operating activities
        
        
        
        
          63,598
        
        
           
        
        
        
        
          65,824
        
        
           
        
      
      
        
          Investing activities:
        
        
        
        
        
        
        
        
        
      
      
        
          Purchases of marketable securities
        
        
        
        
          (159,486
        
        
          )
        
        
        
        
          (142,428
        
        
          )
        
      
      
        
          Proceeds from maturities of marketable securities
        
        
        
        
          31,775
        
        
        
        
        
        
          21,258
        
        
        
      
      
        
          Proceeds from sales of marketable securities
        
        
        
        
          94,564
        
        
        
        
        
        
          90,536
        
        
        
      
      
        
          Payments made in connection with business acquisitions, net
        
        
        
        
          (329
        
        
          )
        
        
        
        
          (297
        
        
          )
        
      
      
        
          Payments for acquisition of property, plant and equipment
        
        
        
        
          (12,451
        
        
          )
        
        
        
        
          (12,734
        
        
          )
        
      
      
        
          Payments for acquisition of intangible assets
        
        
        
        
          (344
        
        
          )
        
        
        
        
          (814
        
        
          )
        
      
      
        
          Payments for strategic investments, net
        
        
        
        
          (395
        
        
          )
        
        
        
        
          (1,388
        
        
          )
        
      
      
        
          Other
        
        
        
        
          220
        
        
           
        
        
        
        
          (110
        
        
          )
        
      
      
        
          Cash used in investing activities
        
        
        
        
          (46,446
        
        
          )
        
        
        
        
          (45,977
        
        
          )
        
      
      
        
          Financing activities:
        
        
        
        
        
        
        
        
        
      
      
        
          Proceeds from issuance of common stock
        
        
        
        
          555
        
        
        
        
        
        
          495
        
        
        
      
      
        
          Excess tax benefits from equity awards
        
        
        
        
          627
        
        
        
        
        
        
          407
        
        
        
      
      
        
          Payments for taxes related to net share settlement of equity awards
        
        
        
        
          (1,874
        
        
          )
        
        
        
        
          (1,570
        
        
          )
        
      
      
        
          Payments for dividends and dividend equivalents
        
        
        
        
          (12,769
        
        
          )
        
        
        
        
          (12,150
        
        
          )
        
      
      
        
          Repurchases of common stock
        
        
        
        
          (32,900
        
        
          )
        
        
        
        
          (29,722
        
        
          )
        
      
      
        
          Proceeds from issuance of term debt, net
        
        
        
        
          28,662
        
        
        
        
        
        
          24,954
        
        
        
      
      
        
          Repayments of term debt
        
        
        
        
          (3,500
        
        
          )
        
        
        
        
          (2,500
        
        
          )
        
      
      
        
          Change in commercial paper, net
        
        
        
        
          3,852
        
        
           
        
        
        
        
          (397
        
        
          )
        
      
      
        
          Cash used in financing activities
        
        
        
        
          (17,347
        
        
          )
        
        
        
        
          (20,483
        
        
          )
        
      
      
        
          Increase/(Decrease) in cash and cash equivalents
        
        
        
        
          (195
        
        
          )
        
        
        
        
          (636
        
        
          )
        
      
      
        
          Cash and cash equivalents, end of the period
        
        
        
        
          $
        
        
          20,289
        
        
           
        
        
        
        
          $
        
        
          20,484
        
        
           
        
      
      
        
          Supplemental cash flow disclosure:
        
        
        
        
        
        
        
        
        
      
      
        
          Cash paid for income taxes, net
        
        
        
        
          $
        
        
          11,591
        
        
        
        
        
        
          $
        
        
          10,444
        
        
        
      
      
        
          Cash paid for interest
        
        
        
        
          $
        
        
          2,092
        
        
        
        
        
        
          $
        
        
          1,316
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
          

Apple Inc.

Q4 2017 Unaudited Summary Data

        
      
      
        
          (Units in thousands, Revenue in millions)
        
      
      
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
           
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          

Q4 2017

Q3 2017

Q4 2016

Sequential Change

Year/Year Change

Operating Segments

Revenue

Revenue

Revenue

Revenue

Revenue

        
      
      
        
        
        
          Americas
        
        
        
        
        
        
        
        
          $23,099
        
        
        
        
        
        
        
        
          $20,376
        
        
        
        
        
        
        
        
          $20,229
        
        
        
        
        
        
        
        
          13%
        
        
        
        
        
        
        
        
          14%
        
      
      
        
        
        
          Europe
        
        
        
        
        
        
        
        
          13,009
        
        
        
        
        
        
        
        
          10,675
        
        
        
        
        
        
        
        
          10,842
        
        
        
        
        
        
        
        
          22%
        
        
        
        
        
        
        
        
          20%
        
      
      
        
        
        
          Greater China
        
        
        
        
        
        
        
        
          9,801
        
        
        
        
        
        
        
        
          8,004
        
        
        
        
        
        
        
        
          8,785
        
        
        
        
        
        
        
        
          22%
        
        
        
        
        
        
        
        
          12%
        
      
      
        
        
        
          Japan
        
        
        
        
        
        
        
        
          3,858
        
        
        
        
        
        
        
        
          3,624
        
        
        
        
        
        
        
        
          4,324
        
        
        
        
        
        
        
        
          6%
        
        
        
        
        
        
        
        
          - 11%
        
      
      
        
        
        
          Rest of Asia Pacific
        
        
        
        
        
        
        
        
          2,812
        
        
        
        
        
        
        
        
          2,729
        
        
        
        
        
        
        
        
          2,672
        
        
        
        
        
        
        
        
          3%
        
        
        
        
        
        
        
        
          5%
        
      
      
        
          

Total Apple

$52,579

$45,408

$46,852

16%

12%

Q4 2017

Q3 2017

Q4 2016

Sequential Change

Year/Year Change

Product Summary

Units

Revenue

Units

Revenue

Units

Revenue

Units

Revenue

Units

Revenue

        
      
      
        
        
        
          iPhone (1)
        
        
        
        
          46,677
        
        
        
        
          $28,846
        
        
        
        
          41,026
        
        
        
        
          $24,846
        
        
        
        
          45,513
        
        
        
        
          $28,160
        
        
        
        
          14%
        
        
        
        
          16%
        
        
        
        
          3%
        
        
        
        
          2%
        
      
      
        
        
        
          iPad (1)
        
        
        
        
          10,326
        
        
        
        
          4,831
        
        
        
        
          11,424
        
        
        
        
          4,969
        
        
        
        
          9,267
        
        
        
        
          4,255
        
        
        
        
          - 10%
        
        
        
        
          - 3%
        
        
        
        
          11%
        
        
        
        
          14%
        
      
      
        
        
        
          Mac (1)
        
        
        
        
          5,386
        
        
        
        
          7,170
        
        
        
        
          4,292
        
        
        
        
          5,592
        
        
        
        
          4,886
        
        
        
        
          5,739
        
        
        
        
          25%
        
        
        
        
          28%
        
        
        
        
          10%
        
        
        
        
          25%
        
      
      
        
        
        
          Services (2)
        
        
        
        
        
        
        
        
          8,501
        
        
        
        
        
        
        
        
          7,266
        
        
        
        
        
        
        
        
          6,325
        
        
        
        
        
        
        
        
          17%
        
        
        
        
        
        
        
        
          34%
        
      
      
        
        
        
          Other Products (1)(3)
        
        
        
        
        
        
        
        
          3,231
        
        
        
        
        
        
        
        
          2,735
        
        
        
        
        
        
        
        
          2,373
        
        
        
        
        
        
        
        
          18%
        
        
        
        
        
        
        
        
          36%
        
      
      
        
          

Total Apple

$52,579

$45,408

$46,852

16%

12%

(1)

Includes deferrals and amortization of related software upgrade rights and non-software services.

(2)

Includes revenue from Digital Content and Services, AppleCare, Apple Pay, licensing and other services. Services revenue in the fourth quarter of 2017 included a favorable one-time adjustment of $640 million due to a change in estimate based on the availability of additional supporting information.

(3)

Includes sales of Apple TV, Apple Watch, Beats products, iPod touch and Apple-branded and third-party accessories.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171102006728/en/

ApplePress:Kristin Huguet, [e-mail] Relations:Nancy Paxton, [e-mail] Hoover, [e-mail]