Trojan Warriors

CUPERTINO, California — July 26, 2016 — Apple® today announced financial results for its fiscal 2016 third quarter ended June 25, 2016. The Company posted quarterly revenue of $42.4 billion and quarterly net income of $7.8 billion, or $1.42 per diluted share. These results compare to revenue of $49.6 billion and net income of $10.7 billion, or $1.85 per diluted share, in the year-ago quarter. Gross margin was 38 percent compared to 39.7 percent in the year-ago quarter. International sales accounted for 63 percent of the quarter’s revenue.

“We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter,” said Tim Cook, Apple’s CEO. “We had a very successful launch of iPhone SE and we’re thrilled by customers’ and developers’ response to software and services we previewed at WWDC in June.”

“Our Services business grew 19 percent year-over-year and App Store revenue was the highest ever, as our installed base continued to grow and transacting customers hit an all-time record,” said Luca Maestri, Apple’s CFO. “We returned over $13 billion to investors through share repurchases and dividends, and we have now completed almost $177 billion of our $250 billion capital return program.”

Apple is providing the following guidance for its fiscal 2016 fourth quarter:

• revenue between $45.5 billion and $47.5 billion
• gross margin between 37.5 percent and 38 percent
• operating expenses between $6.05 billion and $6.15 billion
• other income/(expense) of $350 million
• tax rate of 25.5 percent

Apple’s board of directors has declared a cash dividend of $.57 per share of the Company’s common stock.  The dividend is payable on August 11, 2016 to shareholders of record as of the close of business on August 8, 2016.

Apple will provide live streaming of its Q3 2016 financial results conference call beginning at 2:00 p.m. PDT on July 26, 2016 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 including without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk 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 and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 26, 2015, its Form 10-Q for the fiscal quarter ended December 26, 2015, its Form 10-Q for the fiscal quarter ended March 26, 2016, and its Form 10-Q for the fiscal quarter ended June 25, 2016 to be filed with the SEC. 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 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

Press Contact:
Kristin Huguet
Apple
khuguet@apple.com
(408) 974-2414

Investor Relations Contacts:
Nancy Paxton
Apple
paxton1@apple.com
(408) 974-5420

Joan Hoover
Apple
hoover1@apple.com
(408) 974-4570

WHAT: Apple® FY 16 Third Quarter Results Conference Call

WHERE: Via conference call. The dial-in numbers for press are (877) 616-0071 (toll-free) or (816) 581-1577. Please enter confirmation code 576314.

WHEN: Tuesday, July 26, 2016, 2:00 p.m. PDT/5:00 p.m. EDT

REBROADCAST: The conference call will be available as a continuous rebroadcast beginning Tuesday, July 26 at 5:00 p.m. PDT/8:00 p.m. EDT through Tuesday, August 9 at 5:00 p.m. PDT/8:00 p.m. EDT. The dial-in number for the rebroadcast is (888) 203-1112 (toll-free) or (719) 457-0820. Please enter confirmation code 4944387.

WEBCAST: Apple will provide live audio streaming of its FY 16 Third Quarter Results Conference Call using Apple’s HTTP Live Streaming (HLS) technology. The live webcast will begin at 2:00 p.m. PDT on July 26, 2016 at www.apple.com/investor/earnings-call/ and will also be available for replay for approximately two weeks thereafter. Live audio streaming requires an iPhone®, iPad® or iPod touch® with Safari® on iOS 7.0 or later, a Mac® with Safari 6.0.5 or later on OS X® v10.8.5 or later, or a PC with Microsoft Edge on Windows 10.

This recording is the property of Apple and protected by US copyright law and international treaties. Any reproduction or distribution is strictly prohibited without prior written approval from Apple. Please contact Apple Public Relations or Investor Relations with any questions.

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 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

Press Contact:
Kristin Huguet
Apple
khuguet@apple.com
(408) 974-2414

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Cupertino, CA and Richmond, VA — July 5, 2016 — Apple® and Donate Life America announced today that, for the first time ever, iPhone® users will be able to sign up to be an organ, eye and tissue donor right from the Health app with the release of iOS 10. Through a simple sign up process, iPhone users can learn more and take action with just a few taps. All registrations submitted from iPhone are sent directly to the National Donate Life Registry managed by Donate Life America. The ability to quickly and easily become a nationally-registered donor enables people to carry their decision with them wherever they go.

“On average, one person dies every hour in the United States waiting for an organ transplant because the demand for lifesaving transplants far exceeds the available supply of organs — and one donor can save as many as eight lives,” said David Fleming, President & CEO of Donate Life America. “By working with Apple to bring the National Donate Life Registry to the Health app on iPhone, we’re making it easier for people to find out about organ, eye and tissue donation and quickly register. This is a huge step forward that will ultimately help save lives.”

Over 120,000 Americans are currently waiting for a lifesaving transplant — and every 10 minutes, a new individual is added to the national transplant waiting list. Each organ donor can save as many as eight lives and heal many more through the gifts of tissue and eye donation. In the absence of donor registration, families are left to make the decision about donation in what is often the worst moment of their lives, the sudden and unexpected loss of a loved one.

“Apple’s mission has always been to create products that transform people’s lives. With the updated Health app, we’re providing education and awareness about organ donation and making it easier than ever to register. It’s a simple process that takes just a few seconds and could help save up to eight lives,” said Jeff Williams, Apple’s chief operating officer. “Together with Donate Life America, we’re excited to deliver this new feature to iPhone users in the US with iOS 10.”

The Health app on iPhone provides a complete view of your health and fitness data all in one place. The app includes Medical ID, which makes critical health information available in case of emergency to first responders and is accessible from the iPhone lock screen. Medical ID can display categories like medical conditions, allergies, medications, blood type and emergency contacts. And with iOS 10, Medical ID offers the ability to register as an organ, eye and tissue donor with Donate Life America.

Availability 
The developer preview of iOS 10 is currently available to iOS Developer Program members at developer.apple.com, and a public beta program will be available to iOS users this month at beta.apple.com. iOS 10 will be available this fall as a free software update. For more information, visit apple.com/ios/ios10-preview.

Donate Life America is a 501(c)3 not-for-profit alliance of national organizations and state teams across the United States committed to increasing organ, eye and tissue donation. Donate Life America manages and promotes the national brand for donation, Donate Life, and assists Donate Life State Teams and national partners in facilitating high-performing donor registries including the management of the National Donate Life Registry; developing and executing effective multi-media donor education programs; and motivating the American public to register now as organ, eye and tissue donors. For more information, visit DonateLife.net.

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 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

Press Contacts:
Hilary Czarda
Donate Life America
hczarda@donatelife.net
(804) 377-3584

Jacqueline Roy
Apple
jacqueline_roy@apple.com
(408) 862-4386