Exhibit









Exhibit 99.1









Apple Reports Record First Quarter Results





iPhone, Services, Mac and Apple Watch Set All-Time Records









CUPERTINO, California - January 31, 2017 - Apple ® today announced financial results for its fiscal 2017 first quarter ended December 31, 2016. The Company posted all-time record quarterly revenue of $78.4 billion and all-time record quarterly earnings per diluted share of $3.36. These results compare to revenue of $75.9 billion and earnings per diluted share of $3.28 in the year-ago quarter. International sales accounted for 64 percent of the quarter's revenue.





"We're thrilled to report that our holiday quarter results generated Apple's highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch," said Tim Cook, Apple's CEO. "Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline."





"Our outstanding business performance resulted in a new all-time record for earnings per share, and over $27 billion in operating cash flow," said Luca Maestri, Apple's CFO. "We returned nearly $15 billion to investors through share repurchases and dividends during the quarter, bringing cumulative payments through our capital return program to over $200 billion."





Apple is providing the following guidance for its fiscal 2017 second quarter:

• revenue between $51.5 billion and $53.5 billion

• gross margin between 38 percent and 39 percent

• operating expenses between $6.5 billion and $6.6 billion

• other income/(expense) of $400 million

• tax rate of 26 percent





Apple's board of directors has declared a cash dividend of $0.57 per share of the Company's common stock. The dividend is payable on February 16, 2017 to shareholders of record as of the close of business on February 13, 2017.





Apple will provide live streaming of its Q1 2017 financial results conference call beginning at 2:00 p.m. PST on January 31, 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 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 24, 2016 and its Form 10-Q for the fiscal quarter ended December 31, 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 more than 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









NOTE TO EDITORS: For additional information visit Apple's PR website (www.apple.com/pr), or call Apple's Media Helpline at (408) 974-2042.









© 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.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

Three Months Ended December 31,

2016 December 26,

2015 Net sales $ 78,351

$ 75,872

Cost of sales (1) 48,175

45,449

Gross margin 30,176

30,423

Operating expenses: Research and development (1) 2,871

2,404

Selling, general and administrative (1) 3,946

3,848

Total operating expenses 6,817

6,252

Operating income 23,359

24,171

Other income/(expense), net 821

402

Income before provision for income taxes 24,180

24,573

Provision for income taxes 6,289

6,212

Net income $ 17,891

$ 18,361

Earnings per share: Basic $ 3.38

$ 3.30

Diluted $ 3.36

$ 3.28

Shares used in computing earnings per share: Basic 5,298,661

5,558,930

Diluted 5,327,995

5,594,127

Cash dividends declared per share $ 0.57

$ 0.52

(1) Includes share-based compensation expense as follows: Cost of sales $ 229

$ 204

Research and development $ 589

$ 466

Selling, general and administrative $ 438

$ 408























Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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

December 31,

2016 September 24,

2016 ASSETS: Current assets: Cash and cash equivalents $ 16,371

$ 20,484

Short-term marketable securities 44,081

46,671

Accounts receivable, less an allowance o f $5 3 in each period 14,057

15,754

Inventories 2,712

2,132

Vendor non-trade receivables 13,920

13,545

Other current assets 12,191

8,283

Total current assets 103,332

106,869

Long-term marketable securities 185,638

170,430

Property, plant and equipment, net 26,510

27,010

Goodwill 5,423

5,414

Acquired intangible assets, net 2,848

3,206

Other non-current assets 7,390

8,757

Total assets $ 331,141

$ 321,686

LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Accounts payable $ 38,510

$ 37,294

Accrued expenses 23,739

22,027

Deferred revenue 7,889

8,080

Commercial paper 10,493

8,105

Current portion of long-term debt 3,499

3,500

Total current liabilities 84,130

79,006

Deferred revenue, non-current 3,163

2,930

Long-term debt 73,557

75,427

Other non-current liabilities 37,901

36,074

Total liabilities 198,751

193,437

Commitments and contingencies Shareholders’ equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,255,423 and 5,336,166 shares issued and outstanding, respectively 32,144

31,251

Retained earnings 100,001

96,364

Accumulated other comprehensive income/(loss) 245

634

Total shareholders’ equity 132,390

128,249

Total liabilities and shareholders’ equity $ 331,141

$ 321,686























Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

Three Months Ended December 31,

2016 December 26,

2015 Cash and cash equivalents, beginning of the period $ 20,484

$ 21,120

Operating activities: Net income 17,891

18,361

Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 2,987

2,954

Share-based compensation expense 1,256

1,078

Deferred income tax expense 1,452

1,592

Other (274 ) 110

Changes in operating assets and liabilities: Accounts receivable, net 1,697

3,896

Inventories (580 ) (102 ) Vendor non-trade receivables (375 ) 1,826

Other current and non-current assets (1,446 ) (1,058 ) Accounts payable 2,460

(852 ) Deferred revenue 42

(29 ) Other current and non-current liabilities 1,946

(313 ) Cash generated by operating activities 27,056

27,463

Investing activities: Purchases of marketable securities (54,272 ) (47,836 ) Proceeds from maturities of marketable securities 6,525

3,514

Proceeds from sales of marketable securities 32,166

28,262

Payments made in connection with business acquisitions, net (17 ) (86 ) Payments for acquisition of property, plant and equipment (3,334 ) (3,612 ) Payments for acquisition of intangible assets (86 ) (394 ) Payments for strategic investments —

(126 ) Other (104 ) (172 ) Cash used in investing activities (19,122 ) (20,450 ) Financing activities: Proceeds from issuance of common stock —

1

Excess tax benefits from equity awards 178

224

Payments for taxes related to net share settlement of equity awards (629 ) (597 ) Payments for dividends and dividend equivalents (3,130 ) (2,969 ) Repurchases of common stock (10,851 ) (6,863 ) Change in commercial paper, net 2,385

(1,240 ) Cash used in financing activities (12,047 ) (11,444 ) Increase/(Decrease) in cash and cash equivalents (4,113 ) (4,431 ) Cash and cash equivalents, end of the period $ 16,371

$ 16,689

Supplemental cash flow disclosure: Cash paid for income taxes, net $ 3,510

$ 3,398

Cash paid for interest $ 497

$ 396





