Cover Page
Cover Page - shares shares in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Jan. 20, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-36743 | |
Entity Registrant Name | Apple Inc. | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 94-2404110 | |
Entity Address, Address Line One | One Apple Park Way | |
Entity Address, City or Town | Cupertino | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95014 | |
City Area Code | 408 | |
Local Phone Number | 996-1010 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 15,821,946 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000320193 | |
Current Fiscal Year End Date | --09-30 | |
Common Stock, $0.00001 par value per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.00001 par value per share | |
Trading Symbol | AAPL | |
Security Exchange Name | NASDAQ | |
1.375% Notes due 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.375% Notes due 2024 | |
No Trading Symbol Flag | true | |
Security Exchange Name | NASDAQ | |
0.000% Notes due 2025 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.000% Notes due 2025 | |
No Trading Symbol Flag | true | |
Security Exchange Name | NASDAQ | |
0.875% Notes due 2025 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.875% Notes due 2025 | |
No Trading Symbol Flag | true | |
Security Exchange Name | NASDAQ | |
1.625% Notes due 2026 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.625% Notes due 2026 | |
No Trading Symbol Flag | true | |
Security Exchange Name | NASDAQ | |
2.000% Notes due 2027 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.000% Notes due 2027 | |
No Trading Symbol Flag | true | |
Security Exchange Name | NASDAQ | |
1.375% Notes due 2029 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.375% Notes due 2029 | |
No Trading Symbol Flag | true | |
Security Exchange Name | NASDAQ | |
3.050% Notes due 2029 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 3.050% Notes due 2029 | |
No Trading Symbol Flag | true | |
Security Exchange Name | NASDAQ | |
0.500% Notes due 2031 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.500% Notes due 2031 | |
No Trading Symbol Flag | true | |
Security Exchange Name | NASDAQ | |
3.600% Notes due 2042 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 3.600% Notes due 2042 | |
No Trading Symbol Flag | true | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Net sales | $ 117,154 | $ 123,945 |
Cost of sales | 66,822 | 69,702 |
Gross margin | 50,332 | 54,243 |
Operating expenses: | ||
Research and development | 7,709 | 6,306 |
Selling, general and administrative | 6,607 | 6,449 |
Total operating expenses | 14,316 | 12,755 |
Operating income | 36,016 | 41,488 |
Other income/(expense), net | (393) | (247) |
Income before provision for income taxes | 35,623 | 41,241 |
Provision for income taxes | 5,625 | 6,611 |
Net income | $ 29,998 | $ 34,630 |
Earnings per share: | ||
Basic (in dollars per share) | $ 1.89 | $ 2.11 |
Diluted (in dollars per share) | $ 1.88 | $ 2.10 |
Shares used in computing earnings per share: | ||
Basic (in shares) | 15,892,723 | 16,391,724 |
Diluted (in shares) | 15,955,718 | 16,519,291 |
Products | ||
Net sales | $ 96,388 | $ 104,429 |
Cost of sales | 60,765 | 64,309 |
Services | ||
Net sales | 20,766 | 19,516 |
Cost of sales | $ 6,057 | $ 5,393 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 29,998 | $ 34,630 |
Other comprehensive income/(loss): | ||
Change in foreign currency translation, net of tax | (14) | (360) |
Change in unrealized gains/losses on derivative instruments, net of tax: | ||
Change in fair value of derivative instruments | (988) | 362 |
Adjustment for net (gains)/losses realized and included in net income | (1,766) | 93 |
Total change in unrealized gains/losses on derivative instruments | (2,754) | 455 |
Change in unrealized gains/losses on marketable debt securities, net of tax: | ||
Change in fair value of marketable debt securities | 900 | (1,176) |
Adjustment for net (gains)/losses realized and included in net income | 65 | (9) |
Total change in unrealized gains/losses on marketable debt securities | 965 | (1,185) |
Total other comprehensive income/(loss) | (1,803) | (1,090) |
Total comprehensive income | $ 28,195 | $ 33,540 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 24, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 20,535 | $ 23,646 |
Marketable securities | 30,820 | 24,658 |
Accounts receivable, net | 23,752 | 28,184 |
Inventories | 6,820 | 4,946 |
Vendor non-trade receivables | 30,428 | 32,748 |
Other current assets | 16,422 | 21,223 |
Total current assets | 128,777 | 135,405 |
Non-current assets: | ||
Marketable securities | 114,095 | 120,805 |
Property, plant and equipment, net | 42,951 | 42,117 |
Other non-current assets | 60,924 | 54,428 |
Total non-current assets | 217,970 | 217,350 |
Total assets | 346,747 | 352,755 |
Current liabilities: | ||
Accounts payable | 57,918 | 64,115 |
Other current liabilities | 59,893 | 60,845 |
Deferred revenue | 7,992 | 7,912 |
Commercial paper | 1,743 | 9,982 |
Term debt | 9,740 | 11,128 |
Total current liabilities | 137,286 | 153,982 |
Non-current liabilities: | ||
Term debt | 99,627 | 98,959 |
Other non-current liabilities | 53,107 | 49,142 |
Total non-current liabilities | 152,734 | 148,101 |
Total liabilities | 290,020 | 302,083 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,842,407 and 15,943,425 shares issued and outstanding, respectively | 66,399 | 64,849 |
Retained earnings/(Accumulated deficit) | 3,240 | (3,068) |
Accumulated other comprehensive income/(loss) | (12,912) | (11,109) |
Total shareholders’ equity | 56,727 | 50,672 |
Total liabilities and shareholders’ equity | $ 346,747 | $ 352,755 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2022 | Sep. 24, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 50,400,000,000 | 50,400,000,000 |
Common stock, shares issued (in shares) | 15,842,407,000 | 15,943,425,000 |
Common stock, shares outstanding (in shares) | 15,842,407,000 | 15,943,425,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions | Total | Common stock and additional paid-in capital | Retained earnings/(Accumulated deficit) | Accumulated other comprehensive income/(loss) |
Beginning balances at Sep. 25, 2021 | $ 63,090 | $ 57,365 | $ 5,562 | $ 163 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock withheld related to net share settlement of equity awards | (1,263) | (1,730) | ||
Share-based compensation | 2,322 | |||
Net income | 34,630 | 34,630 | ||
Dividends and dividend equivalents declared | (3,665) | |||
Common stock repurchased | (20,362) | |||
Other comprehensive income/(loss) | (1,090) | (1,090) | ||
Ending balances at Dec. 25, 2021 | $ 71,932 | 58,424 | 14,435 | (927) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU) | $ 0.22 | |||
Beginning balances at Sep. 24, 2022 | $ 50,672 | 64,849 | (3,068) | (11,109) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock withheld related to net share settlement of equity awards | (1,434) | (978) | ||
Share-based compensation | 2,984 | |||
Net income | 29,998 | 29,998 | ||
Dividends and dividend equivalents declared | (3,712) | |||
Common stock repurchased | (19,000) | (19,000) | ||
Other comprehensive income/(loss) | (1,803) | (1,803) | ||
Ending balances at Dec. 31, 2022 | $ 56,727 | $ 66,399 | $ 3,240 | $ (12,912) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Dividends and dividend equivalents declared per share or RSU (in dollars per share or RSU) | $ 0.23 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Statement of Cash Flows [Abstract] | ||
Cash, cash equivalents and restricted cash, beginning balances | $ 24,977 | $ 35,929 |
Operating activities: | ||
Net income | 29,998 | 34,630 |
Adjustments to reconcile net income to cash generated by operating activities: | ||
Depreciation and amortization | 2,916 | 2,697 |
Share-based compensation expense | 2,905 | 2,265 |
Other | (317) | 849 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 4,275 | (3,934) |
Inventories | (1,807) | 681 |
Vendor non-trade receivables | 2,320 | (9,812) |
Other current and non-current assets | (4,099) | (4,921) |
Accounts payable | (6,075) | 19,813 |
Deferred revenue | 131 | 462 |
Other current and non-current liabilities | 3,758 | 4,236 |
Cash generated by operating activities | 34,005 | 46,966 |
Investing activities: | ||
Purchases of marketable securities | (5,153) | (34,913) |
Proceeds from maturities of marketable securities | 7,127 | 11,309 |
Proceeds from sales of marketable securities | 509 | 10,675 |
Payments for acquisition of property, plant and equipment | (3,787) | (2,803) |
Other | (141) | (374) |
Cash used in investing activities | (1,445) | (16,106) |
Financing activities: | ||
Payments for taxes related to net share settlement of equity awards | (2,316) | (2,888) |
Payments for dividends and dividend equivalents | (3,768) | (3,732) |
Repurchases of common stock | (19,475) | (20,478) |
Repayments of term debt | (1,401) | 0 |
Repayments of commercial paper, net | (8,214) | (1,000) |
Other | (389) | (61) |
Cash used in financing activities | (35,563) | (28,159) |
Increase/(Decrease) in cash, cash equivalents and restricted cash | (3,003) | 2,701 |
Cash, cash equivalents and restricted cash, ending balances | 21,974 | 38,630 |
Supplemental cash flow disclosure: | ||
Cash paid for income taxes, net | 828 | 5,235 |
Cash paid for interest | $ 703 | $ 531 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Preparation The condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended September 24, 2022. The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters, which occurred in the first fiscal quarter of 2023. The Company’s fiscal years 2023 and 2022 span 53 and 52 weeks, respectively. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. Earnings Per Share The following table shows the computation of basic and diluted earnings per share for the three months ended December 31, 2022 and December 25, 2021 (net income in millions and shares in thousands): Three Months Ended December 31, December 25, Numerator: Net income $ 29,998 $ 34,630 Denominator: Weighted-average basic shares outstanding 15,892,723 16,391,724 Effect of dilutive securities 62,995 127,567 Weighted-average diluted shares 15,955,718 16,519,291 Basic earnings per share $ 1.89 $ 2.11 Diluted earnings per share $ 1.88 $ 2.10 Approximately 89 million restricted stock units (“RSUs”) were excluded from the computation of diluted earnings per share for the three months ended December 31, 2022 because their effect would have been antidilutive. |
Revenue
Revenue | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Net sales disaggregated by significant products and services for the three months ended December 31, 2022 and December 25, 2021 were as follows (in millions): Three Months Ended December 31, December 25, iPhone ® (1) $ 65,775 $ 71,628 Mac ® (1) 7,735 10,852 iPad ® (1) 9,396 7,248 Wearables, Home and Accessories (1)(2) 13,482 14,701 Services (3) 20,766 19,516 Total net sales (4) $ 117,154 $ 123,945 (1) Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product. (2) Wearables, Home and Accessories net sales include sales of AirPods ® , Apple TV ® , Apple Watch ® , Beats ® products, HomePod mini ® and accessories. (3) Services net sales include sales from the Company’s advertising, AppleCare ® , cloud, digital content, payment and other services. Services net sales also include amortization of the deferred value of services bundled in the sales price of certain products. (4) Includes $3.4 billion of revenue recognized in the three months ended December 31, 2022 that was included in deferred revenue as of September 24, 2022 and $3.0 billion of revenue recognized in the three months ended December 25, 2021 that was included in deferred revenue as of September 25, 2021. The Company’s proportion of net sales by disaggregated revenue source was generally consistent for each reportable segment in Note 9, “Segment Information and Geographic Data” for the three months ended December 31, 2022 and December 25, 2021, except in Greater China, where iPhone revenue represented a moderately higher proportion of net sales. As of December 31, 2022 and September 24, 2022, the Company had total deferred revenue of $12.6 billion and $12.4 billion, respectively. As of December 31, 2022, the Company expects 63% of total deferred revenue to be realized in less than a year, 27% within one-to-two years, 8% within two-to-three years and 2% in greater than three years. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments Cash, Cash Equivalents and Marketable Securities The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of December 31, 2022 and September 24, 2022 (in millions): December 31, 2022 Adjusted Unrealized Unrealized Fair Cash and Current Non-Current Marketable Cash $ 17,908 $ — $ — $ 17,908 $ 17,908 $ — $ — Level 1 (1) : Money market funds 818 — — 818 818 — — Mutual funds 330 2 (40) 292 — 292 — Subtotal 1,148 2 (40) 1,110 818 292 — Level 2 (2) : U.S. Treasury securities 24,128 1 (1,576) 22,553 13 9,105 13,435 U.S. agency securities 5,743 — (643) 5,100 — 310 4,790 Non-U.S. government securities 17,778 14 (1,029) 16,763 — 9,907 6,856 Certificates of deposit and time deposits 2,025 — — 2,025 1,795 230 — Commercial paper 237 — — 237 — 237 — Corporate debt securities 85,895 14 (7,039) 78,870 1 10,377 68,492 Municipal securities 864 — (26) 838 — 278 560 Mortgage- and asset-backed securities 22,448 3 (2,405) 20,046 — 84 19,962 Subtotal 159,118 32 (12,718) 146,432 1,809 30,528 114,095 Total (3) $ 178,174 $ 34 $ (12,758) $ 165,450 $ 20,535 $ 30,820 $ 114,095 September 24, 2022 Adjusted Unrealized Unrealized Fair Cash and Current Non-Current Cash $ 18,546 $ — $ — $ 18,546 $ 18,546 $ — $ — Level 1 (1) : Money market funds 2,929 — — 2,929 2,929 — — Mutual funds 274 — (47) 227 — 227 — Subtotal 3,203 — (47) 3,156 2,929 227 — Level 2 (2) : U.S. Treasury securities 25,134 — (1,725) 23,409 338 5,091 17,980 U.S. agency securities 5,823 — (655) 5,168 — 240 4,928 Non-U.S. government securities 16,948 2 (1,201) 15,749 — 8,806 6,943 Certificates of deposit and time deposits 2,067 — — 2,067 1,805 262 — Commercial paper 718 — — 718 28 690 — Corporate debt securities 87,148 9 (7,707) 79,450 — 9,023 70,427 Municipal securities 921 — (35) 886 — 266 620 Mortgage- and asset-backed securities 22,553 — (2,593) 19,960 — 53 19,907 Subtotal 161,312 11 (13,916) 147,407 2,171 24,431 120,805 Total (3) $ 183,061 $ 11 $ (13,963) $ 169,109 $ 23,646 $ 24,658 $ 120,805 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. (2) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. (3) As of December 31, 2022 and September 24, 2022, total marketable securities included $13.6 billion and $12.7 billion, respectively, that were restricted from general use, related to the European Commission decision finding that Ireland granted state aid to the Company, and other agreements. The following table shows the fair value of the Company’s non-current marketable debt securities, by contractual maturity, as of December 31, 2022 (in millions): Due after 1 year through 5 years $ 82,497 Due after 5 years through 10 years 14,243 Due after 10 years 17,355 Total fair value $ 114,095 Derivative Instruments and Hedging The Company may use derivative instruments to partially offset its business exposure to foreign exchange and interest rate risk. However, the Company may choose not to hedge certain exposures for a variety of reasons, including accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange or interest rates. Foreign Exchange Risk To protect gross margins from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, option contracts or other instruments, and may designate these instruments as cash flow hedges. The Company generally hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases, typically for up to 12 months. To protect the Company’s foreign currency–denominated term debt or marketable securities from fluctuations in foreign currency exchange rates, the Company may enter into forward contracts, cross-currency swaps or other instruments. The Company designates these instruments as either cash flow or fair value hedges. As of December 31, 2022, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for term debt–related foreign currency transactions is 20 years. The Company may also enter into derivative instruments that are not designated as accounting hedges to protect gross margins from certain fluctuations in foreign currency exchange rates, as well as to offset a portion of the foreign currency exchange gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies. Interest Rate Risk To protect the Company’s term debt or marketable securities from fluctuations in interest rates, the Company may enter into interest rate swaps, options or other instruments. The Company designates these instruments as either cash flow or fair value hedges. The notional amounts of the Company’s outstanding derivative instruments as of December 31, 2022 and September 24, 2022 were as follows (in millions): December 31, September 24, Derivative instruments designated as accounting hedges: Foreign exchange contracts $ 66,054 $ 102,670 Interest rate contracts $ 20,125 $ 20,125 Derivative instruments not designated as accounting hedges: Foreign exchange contracts $ 134,971 $ 185,381 The gross fair values of the Company’s derivative assets and liabilities as of September 24, 2022 were as follows (in millions): September 24, 2022 Fair Value of Fair Value of Total Derivative assets (1) : Foreign exchange contracts $ 4,317 $ 2,819 $ 7,136 Derivative liabilities (2) : Foreign exchange contracts $ 2,205 $ 2,547 $ 4,752 Interest rate contracts $ 1,367 $ — $ 1,367 (1) Derivative assets are measured using Level 2 fair value inputs and are included in other current assets and other non-current assets in the Condensed Consolidated Balance Sheet. (2) Derivative liabilities are measured using Level 2 fair value inputs and are included in other current liabilities and other non-current liabilities in the Condensed Consolidated Balance Sheet. The derivative assets above represent the Company’s gross credit exposure if all counterparties failed to perform. To mitigate credit risk, the Company generally enters into collateral security arrangements that provide for collateral to be received or posted when the net fair values of certain derivatives fluctuate from contractually established thresholds. To further limit credit risk, the Company generally enters into master netting arrangements with the respective counterparties to the Company’s derivative contracts, under which the Company is allowed to settle transactions with a single net amount payable by one party to the other. As of September 24, 2022, the potential effects of these rights of set-off associated with the Company’s derivative contracts, including the effects of collateral, would be a reduction to both derivative assets and derivative liabilities of $7.8 billion, resulting in a net derivative asset of $412 million. The carrying amounts of the Company’s hedged items in fair value hedges as of December 31, 2022 and September 24, 2022 were as follows (in millions): December 31, September 24, Hedged assets/(liabilities): Current and non-current marketable securities $ 14,311 $ 13,378 Current and non-current term debt $ (18,731) $ (18,739) Accounts Receivable Trade Receivables The Company has considerable trade receivables outstanding with its third-party cellular network carriers, wholesalers, retailers, resellers, small and mid-sized businesses and education, enterprise and government customers. The Company generally does not require collateral from its customers; however, the Company will require collateral or third-party credit support in certain instances to limit credit risk. In addition, when possible, the Company attempts to limit credit risk on trade receivables with credit insurance for certain customers or by requiring third-party financing, loans or leases to support credit exposure. These credit-financing arrangements are directly between the third-party financing company and the end customer. As such, the Company generally does not assume any recourse or credit risk sharing related to any of these arrangements. As of both December 31, 2022 and September 24, 2022, the Company had one customer that represented 10% or more of total trade receivables, which accounted for 11% and 10%, respectively. The Company’s cellular network carriers accounted for 43% and 44% of total trade receivables as of December 31, 2022 and September 24, 2022, respectively. Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these vendors who manufacture subassemblies or assemble final products for the Company. The Company purchases these components directly from suppliers. As of December 31, 2022, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 54% and 16%. As of September 24, 2022, the Company had two vendors that individually represented 10% or more of total vendor non-trade receivables, which accounted for 54% and 13%. |
Condensed Consolidated Financia
Condensed Consolidated Financial Statement Details | 3 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statement Details | Condensed Consolidated Financial Statement Details The following tables show the Company’s condensed consolidated financial statement details as of December 31, 2022 and September 24, 2022 (in millions): Inventories December 31, September 24, Components $ 2,513 $ 1,637 Finished goods 4,307 3,309 Total inventories $ 6,820 $ 4,946 Property, Plant and Equipment, Net December 31, September 24, Gross property, plant and equipment $ 110,995 $ 114,457 Accumulated depreciation and amortization (68,044) (72,340) Total property, plant and equipment, net $ 42,951 $ 42,117 Other Income/(Expense), Net The following table shows the detail of other income/(expense), net for the three months ended December 31, 2022 and December 25, 2021 (in millions): Three Months Ended December 31, December 25, Interest and dividend income $ 868 $ 650 Interest expense (1,003) (694) Other expense, net (258) (203) Total other income/(expense), net $ (393) $ (247) |
Debt
Debt | 3 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Commercial Paper The Company issues unsecured short-term promissory notes (“Commercial Paper”) pursuant to a commercial paper program. The Company uses net proceeds from the commercial paper program for general corporate purposes, including dividends and share repurchases. As of December 31, 2022 and September 24, 2022, the Company had $1.7 billion and $10.0 billion of Commercial Paper outstanding, respectively. The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the three months ended December 31, 2022 and December 25, 2021 (in millions): Three Months Ended December 31, December 25, Maturities 90 days or less: Proceeds from/(Repayments of) commercial paper, net $ (5,569) $ 1,339 Maturities greater than 90 days: Proceeds from commercial paper — 1,191 Repayments of commercial paper (2,645) (3,530) Repayments of commercial paper, net (2,645) (2,339) Total repayments of commercial paper, net $ (8,214) $ (1,000) Term Debt As of December 31, 2022 and September 24, 2022, the Company had outstanding fixed-rate notes with varying maturities for an aggregate carrying amount of $109.4 billion and $110.1 billion, respectively (collectively the “Notes”). As of December 31, 2022 and September 24, 2022, the fair value of the Company’s Notes, based on Level 2 inputs, was $98.0 billion and $98.8 billion, respectively. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchase Program During the three months ended December 31, 2022, the Company repurchased 133 million shares of its common stock for $19.0 billion under a share repurchase program authorized by the Board of Directors (the “Program”). The Program does not obligate the Company to acquire a minimum amount of shares. Under the Program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Benefit Plans | Benefit Plans Restricted Stock Units A summary of the Company’s RSU activity and related information for the three months ended December 31, 2022 is as follows: Number of RSUs (in thousands) Weighted-Average Aggregate Fair Value (in millions) Balance as of September 24, 2022 201,501 $ 109.48 RSUs granted 82,123 $ 149.85 RSUs vested (47,298) $ 84.46 RSUs canceled (2,958) $ 120.26 Balance as of December 31, 2022 233,368 $ 128.62 $ 30,322 The fair value as of the respective vesting dates of RSUs was $6.8 billion and $8.5 billion for the three months ended December 31, 2022 and December 25, 2021, respectively. Share-Based Compensation The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three months ended December 31, 2022 and December 25, 2021 (in millions): Three Months Ended December 31, December 25, Share-based compensation expense $ 2,905 $ 2,265 Income tax benefit related to share-based compensation expense $ (1,178) $ (1,536) As of December 31, 2022, the total unrecognized compensation cost related to outstanding RSUs and stock options was $25.5 billion, which the Company expects to recognize over a weighted-average period of 3.0 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Contingencies Unconditional Purchase Obligations The Company has entered into certain off–balance sheet commitments that require the future purchase of goods or services (“unconditional purchase obligations”). The Company’s unconditional purchase obligations primarily consist of supplier arrangements, licensed content and distribution rights. Future payments under noncancelable unconditional purchase obligations with a remaining term in excess of one year as of December 31, 2022, are as follows (in millions): 2023 (remaining nine months) $ 2,899 2024 2,897 2025 1,584 2026 6,554 2027 348 Thereafter 444 Total $ 14,726 Contingencies The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully resolved. The outcome of litigation is inherently uncertain. In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other claims. |
Segment Information and Geograp
Segment Information and Geographic Data | 3 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Data | Segment Information and Geographic Data The following table shows information by reportable segment for the three months ended December 31, 2022 and December 25, 2021 (in millions): Three Months Ended December 31, December 25, Americas: Net sales $ 49,278 $ 51,496 Operating income $ 17,864 $ 19,585 Europe: Net sales $ 27,681 $ 29,749 Operating income $ 10,017 $ 11,545 Greater China: Net sales $ 23,905 $ 25,783 Operating income $ 10,437 $ 11,183 Japan: Net sales $ 6,755 $ 7,107 Operating income $ 3,236 $ 3,349 Rest of Asia Pacific: Net sales $ 9,535 $ 9,810 Operating income $ 3,851 $ 3,995 A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three months ended December 31, 2022 and December 25, 2021 is as follows (in millions): Three Months Ended December 31, December 25, Segment operating income $ 45,405 $ 49,657 Research and development expense (7,709) (6,306) Other corporate expenses, net (1,680) (1,863) Total operating income $ 36,016 $ 41,488 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Preparation | Basis of Presentation and Preparation The condensed consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively “Apple” or the “Company”). Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended September 24, 2022. |
Fiscal Period | The Company’s fiscal year is the 52- or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter every five or six years to realign the Company’s fiscal quarters with calendar quarters, which occurred in the first fiscal quarter of 2023. The Company’s fiscal years 2023 and 2022 span 53 and 52 weeks, respectively. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. |
Fair Value Measurements | Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities.Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share for the three months ended December 31, 2022 and December 25, 2021 (net income in millions and shares in thousands): Three Months Ended December 31, December 25, Numerator: Net income $ 29,998 $ 34,630 Denominator: Weighted-average basic shares outstanding 15,892,723 16,391,724 Effect of dilutive securities 62,995 127,567 Weighted-average diluted shares 15,955,718 16,519,291 Basic earnings per share $ 1.89 $ 2.11 Diluted earnings per share $ 1.88 $ 2.10 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales Disaggregated by Significant Products and Services | Net sales disaggregated by significant products and services for the three months ended December 31, 2022 and December 25, 2021 were as follows (in millions): Three Months Ended December 31, December 25, iPhone ® (1) $ 65,775 $ 71,628 Mac ® (1) 7,735 10,852 iPad ® (1) 9,396 7,248 Wearables, Home and Accessories (1)(2) 13,482 14,701 Services (3) 20,766 19,516 Total net sales (4) $ 117,154 $ 123,945 (1) Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product. (2) Wearables, Home and Accessories net sales include sales of AirPods ® , Apple TV ® , Apple Watch ® , Beats ® products, HomePod mini ® and accessories. (3) Services net sales include sales from the Company’s advertising, AppleCare ® , cloud, digital content, payment and other services. Services net sales also include amortization of the deferred value of services bundled in the sales price of certain products. (4) Includes $3.4 billion of revenue recognized in the three months ended December 31, 2022 that was included in deferred revenue as of September 24, 2022 and $3.0 billion of revenue recognized in the three months ended December 25, 2021 that was included in deferred revenue as of September 25, 2021. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Cash, Cash Equivalents and Marketable Securities by Significant Investment Category | The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of December 31, 2022 and September 24, 2022 (in millions): December 31, 2022 Adjusted Unrealized Unrealized Fair Cash and Current Non-Current Marketable Cash $ 17,908 $ — $ — $ 17,908 $ 17,908 $ — $ — Level 1 (1) : Money market funds 818 — — 818 818 — — Mutual funds 330 2 (40) 292 — 292 — Subtotal 1,148 2 (40) 1,110 818 292 — Level 2 (2) : U.S. Treasury securities 24,128 1 (1,576) 22,553 13 9,105 13,435 U.S. agency securities 5,743 — (643) 5,100 — 310 4,790 Non-U.S. government securities 17,778 14 (1,029) 16,763 — 9,907 6,856 Certificates of deposit and time deposits 2,025 — — 2,025 1,795 230 — Commercial paper 237 — — 237 — 237 — Corporate debt securities 85,895 14 (7,039) 78,870 1 10,377 68,492 Municipal securities 864 — (26) 838 — 278 560 Mortgage- and asset-backed securities 22,448 3 (2,405) 20,046 — 84 19,962 Subtotal 159,118 32 (12,718) 146,432 1,809 30,528 114,095 Total (3) $ 178,174 $ 34 $ (12,758) $ 165,450 $ 20,535 $ 30,820 $ 114,095 September 24, 2022 Adjusted Unrealized Unrealized Fair Cash and Current Non-Current Cash $ 18,546 $ — $ — $ 18,546 $ 18,546 $ — $ — Level 1 (1) : Money market funds 2,929 — — 2,929 2,929 — — Mutual funds 274 — (47) 227 — 227 — Subtotal 3,203 — (47) 3,156 2,929 227 — Level 2 (2) : U.S. Treasury securities 25,134 — (1,725) 23,409 338 5,091 17,980 U.S. agency securities 5,823 — (655) 5,168 — 240 4,928 Non-U.S. government securities 16,948 2 (1,201) 15,749 — 8,806 6,943 Certificates of deposit and time deposits 2,067 — — 2,067 1,805 262 — Commercial paper 718 — — 718 28 690 — Corporate debt securities 87,148 9 (7,707) 79,450 — 9,023 70,427 Municipal securities 921 — (35) 886 — 266 620 Mortgage- and asset-backed securities 22,553 — (2,593) 19,960 — 53 19,907 Subtotal 161,312 11 (13,916) 147,407 2,171 24,431 120,805 Total (3) $ 183,061 $ 11 $ (13,963) $ 169,109 $ 23,646 $ 24,658 $ 120,805 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. (2) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. (3) As of December 31, 2022 and September 24, 2022, total marketable securities included $13.6 billion and $12.7 billion, respectively, that were restricted from general use, related to the European Commission decision finding that Ireland granted state aid to the Company, and other agreements. |
Non-Current Marketable Debt Securities by Contractual Maturity | The following table shows the fair value of the Company’s non-current marketable debt securities, by contractual maturity, as of December 31, 2022 (in millions): Due after 1 year through 5 years $ 82,497 Due after 5 years through 10 years 14,243 Due after 10 years 17,355 Total fair value $ 114,095 |
Notional Amounts of Outstanding Derivative Instruments | The notional amounts of the Company’s outstanding derivative instruments as of December 31, 2022 and September 24, 2022 were as follows (in millions): December 31, September 24, Derivative instruments designated as accounting hedges: Foreign exchange contracts $ 66,054 $ 102,670 Interest rate contracts $ 20,125 $ 20,125 Derivative instruments not designated as accounting hedges: Foreign exchange contracts $ 134,971 $ 185,381 |
Gross Fair Values of Derivative Assets and Liabilities | The gross fair values of the Company’s derivative assets and liabilities as of September 24, 2022 were as follows (in millions): September 24, 2022 Fair Value of Fair Value of Total Derivative assets (1) : Foreign exchange contracts $ 4,317 $ 2,819 $ 7,136 Derivative liabilities (2) : Foreign exchange contracts $ 2,205 $ 2,547 $ 4,752 Interest rate contracts $ 1,367 $ — $ 1,367 (1) Derivative assets are measured using Level 2 fair value inputs and are included in other current assets and other non-current assets in the Condensed Consolidated Balance Sheet. (2) Derivative liabilities are measured using Level 2 fair value inputs and are included in other current liabilities and other non-current liabilities in the Condensed Consolidated Balance Sheet. |
Carrying Amounts of Hedged Items in Fair Value Hedges | The carrying amounts of the Company’s hedged items in fair value hedges as of December 31, 2022 and September 24, 2022 were as follows (in millions): December 31, September 24, Hedged assets/(liabilities): Current and non-current marketable securities $ 14,311 $ 13,378 Current and non-current term debt $ (18,731) $ (18,739) |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statement Details (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories | Inventories December 31, September 24, Components $ 2,513 $ 1,637 Finished goods 4,307 3,309 Total inventories $ 6,820 $ 4,946 |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net December 31, September 24, Gross property, plant and equipment $ 110,995 $ 114,457 Accumulated depreciation and amortization (68,044) (72,340) Total property, plant and equipment, net $ 42,951 $ 42,117 |
Other Income/(Expense), Net | Other Income/(Expense), Net The following table shows the detail of other income/(expense), net for the three months ended December 31, 2022 and December 25, 2021 (in millions): Three Months Ended December 31, December 25, Interest and dividend income $ 868 $ 650 Interest expense (1,003) (694) Other expense, net (258) (203) Total other income/(expense), net $ (393) $ (247) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Cash Flows Associated with the Issuance and Maturities of Commercial Paper | The following table provides a summary of cash flows associated with the issuance and maturities of Commercial Paper for the three months ended December 31, 2022 and December 25, 2021 (in millions): Three Months Ended December 31, December 25, Maturities 90 days or less: Proceeds from/(Repayments of) commercial paper, net $ (5,569) $ 1,339 Maturities greater than 90 days: Proceeds from commercial paper — 1,191 Repayments of commercial paper (2,645) (3,530) Repayments of commercial paper, net (2,645) (2,339) Total repayments of commercial paper, net $ (8,214) $ (1,000) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Restricted Stock Unit Activity | A summary of the Company’s RSU activity and related information for the three months ended December 31, 2022 is as follows: Number of RSUs (in thousands) Weighted-Average Aggregate Fair Value (in millions) Balance as of September 24, 2022 201,501 $ 109.48 RSUs granted 82,123 $ 149.85 RSUs vested (47,298) $ 84.46 RSUs canceled (2,958) $ 120.26 Balance as of December 31, 2022 233,368 $ 128.62 $ 30,322 |
Summary of Share-Based Compensation Expense and the Related Income Tax Benefit | The following table shows share-based compensation expense and the related income tax benefit included in the Condensed Consolidated Statements of Operations for the three months ended December 31, 2022 and December 25, 2021 (in millions): Three Months Ended December 31, December 25, Share-based compensation expense $ 2,905 $ 2,265 Income tax benefit related to share-based compensation expense $ (1,178) $ (1,536) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Payments Under Unconditional Purchase Obligations | Future payments under noncancelable unconditional purchase obligations with a remaining term in excess of one year as of December 31, 2022, are as follows (in millions): 2023 (remaining nine months) $ 2,899 2024 2,897 2025 1,584 2026 6,554 2027 348 Thereafter 444 Total $ 14,726 |
Segment Information and Geogr_2
Segment Information and Geographic Data (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Information by Reportable Segment | The following table shows information by reportable segment for the three months ended December 31, 2022 and December 25, 2021 (in millions): Three Months Ended December 31, December 25, Americas: Net sales $ 49,278 $ 51,496 Operating income $ 17,864 $ 19,585 Europe: Net sales $ 27,681 $ 29,749 Operating income $ 10,017 $ 11,545 Greater China: Net sales $ 23,905 $ 25,783 Operating income $ 10,437 $ 11,183 Japan: Net sales $ 6,755 $ 7,107 Operating income $ 3,236 $ 3,349 Rest of Asia Pacific: Net sales $ 9,535 $ 9,810 Operating income $ 3,851 $ 3,995 |
Reconciliation of Segment Operating Income to the Condensed Consolidated Statements of Operations | A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three months ended December 31, 2022 and December 25, 2021 is as follows (in millions): Three Months Ended December 31, December 25, Segment operating income $ 45,405 $ 49,657 Research and development expense (7,709) (6,306) Other corporate expenses, net (1,680) (1,863) Total operating income $ 36,016 $ 41,488 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Numerator: | ||
Net income | $ 29,998 | $ 34,630 |
Denominator: | ||
Weighted-average basic shares outstanding (in shares) | 15,892,723 | 16,391,724 |
Effect of dilutive securities (in shares) | 62,995 | 127,567 |
Weighted-average diluted shares (in shares) | 15,955,718 | 16,519,291 |
Basic earnings per share (in dollars per share) | $ 1.89 | $ 2.11 |
Diluted earnings per share (in dollars per share) | $ 1.88 | $ 2.10 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) shares in Millions | 3 Months Ended |
Dec. 31, 2022 shares | |
Restricted stock units | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Restricted stock units excluded from the computation of diluted earnings per share because their effect would have been antidilutive (in shares) | 89 |
Revenue - Net Sales Disaggregat
Revenue - Net Sales Disaggregated by Significant Products and Services (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 117,154 | $ 123,945 |
Revenue recognized that was included in deferred revenue at the beginning of the period | 3,400 | 3,000 |
iPhone | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 65,775 | 71,628 |
Mac | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 7,735 | 10,852 |
iPad | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 9,396 | 7,248 |
Wearables, Home and Accessories | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 13,482 | 14,701 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 20,766 | $ 19,516 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Billions | Dec. 31, 2022 | Sep. 24, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Total deferred revenue | $ 12.6 | $ 12.4 |
Revenue - Deferred Revenue, Exp
Revenue - Deferred Revenue, Expected Timing of Realization (Details) | Dec. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of realization, percentage | 63% |
Deferred revenue, expected timing of realization, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of realization, percentage | 27% |
Deferred revenue, expected timing of realization, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of realization, percentage | 8% |
Deferred revenue, expected timing of realization, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of realization, percentage | 2% |
Deferred revenue, expected timing of realization, period |
Financial Instruments - Cash, C
Financial Instruments - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 24, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Cash, Cash Equivalents and Marketable Securities, Adjusted Cost | $ 178,174 | $ 183,061 |
Cash Equivalents and Marketable Securities, Unrealized Gains | 34 | 11 |
Cash Equivalents and Marketable Securities, Unrealized Losses | (12,758) | (13,963) |
Cash, Cash Equivalents and Marketable Securities, Fair Value | 165,450 | 169,109 |
Cash and Cash Equivalents | 20,535 | 23,646 |
Current Marketable Securities | 30,820 | 24,658 |
Non-Current Marketable Securities | 114,095 | 120,805 |
Total marketable securities that were restricted from general use | 13,600 | 12,700 |
Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable Securities, Equity, Adjusted Cost | 1,148 | 3,203 |
Marketable Securities, Equity, Unrealized Gains | 2 | 0 |
Marketable Securities, Equity, Unrealized Losses | (40) | (47) |
Marketable Securities, Equity, Fair Value | 1,110 | 3,156 |
Cash and Cash Equivalents | 818 | 2,929 |
Current Marketable Securities | 292 | 227 |
Non-Current Marketable Securities | 0 | 0 |
Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable Securities, Debt, Adjusted Cost | 159,118 | 161,312 |
Marketable Securities, Debt, Unrealized Gains | 32 | 11 |
Marketable Securities, Debt, Unrealized Losses | (12,718) | (13,916) |
Marketable Securities, Debt, Fair Value | 146,432 | 147,407 |
Cash and Cash Equivalents | 1,809 | 2,171 |
Current Marketable Securities | 30,528 | 24,431 |
Non-Current Marketable Securities | 114,095 | 120,805 |
Cash | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash | 17,908 | 18,546 |
Cash and Cash Equivalents | 17,908 | 18,546 |
Current Marketable Securities | 0 | 0 |
Non-Current Marketable Securities | 0 | 0 |
Money market funds | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable Securities, Equity, Adjusted Cost | 818 | 2,929 |
Marketable Securities, Equity, Unrealized Gains | 0 | 0 |
Marketable Securities, Equity, Unrealized Losses | 0 | 0 |
Marketable Securities, Equity, Fair Value | 818 | 2,929 |
Cash and Cash Equivalents | 818 | 2,929 |
Current Marketable Securities | 0 | 0 |
Non-Current Marketable Securities | 0 | 0 |
Mutual funds | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable Securities, Equity, Adjusted Cost | 330 | 274 |
Marketable Securities, Equity, Unrealized Gains | 2 | 0 |
Marketable Securities, Equity, Unrealized Losses | (40) | (47) |
Marketable Securities, Equity, Fair Value | 292 | 227 |
Cash and Cash Equivalents | 0 | 0 |
Current Marketable Securities | 292 | 227 |
Non-Current Marketable Securities | 0 | 0 |
U.S. Treasury securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable Securities, Debt, Adjusted Cost | 24,128 | 25,134 |
Marketable Securities, Debt, Unrealized Gains | 1 | 0 |
Marketable Securities, Debt, Unrealized Losses | (1,576) | (1,725) |
Marketable Securities, Debt, Fair Value | 22,553 | 23,409 |
Cash and Cash Equivalents | 13 | 338 |
Current Marketable Securities | 9,105 | 5,091 |
Non-Current Marketable Securities | 13,435 | 17,980 |
U.S. agency securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable Securities, Debt, Adjusted Cost | 5,743 | 5,823 |
Marketable Securities, Debt, Unrealized Gains | 0 | 0 |
Marketable Securities, Debt, Unrealized Losses | (643) | (655) |
Marketable Securities, Debt, Fair Value | 5,100 | 5,168 |
Cash and Cash Equivalents | 0 | 0 |
Current Marketable Securities | 310 | 240 |
Non-Current Marketable Securities | 4,790 | 4,928 |
Non-U.S. government securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable Securities, Debt, Adjusted Cost | 17,778 | 16,948 |
Marketable Securities, Debt, Unrealized Gains | 14 | 2 |
Marketable Securities, Debt, Unrealized Losses | (1,029) | (1,201) |
Marketable Securities, Debt, Fair Value | 16,763 | 15,749 |
Cash and Cash Equivalents | 0 | 0 |
Current Marketable Securities | 9,907 | 8,806 |
Non-Current Marketable Securities | 6,856 | 6,943 |
Certificates of deposit and time deposits | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable Securities, Debt, Adjusted Cost | 2,025 | 2,067 |
Marketable Securities, Debt, Unrealized Gains | 0 | 0 |
Marketable Securities, Debt, Unrealized Losses | 0 | 0 |
Marketable Securities, Debt, Fair Value | 2,025 | 2,067 |
Cash and Cash Equivalents | 1,795 | 1,805 |
Current Marketable Securities | 230 | 262 |
Non-Current Marketable Securities | 0 | 0 |
Commercial paper | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable Securities, Debt, Adjusted Cost | 237 | 718 |
Marketable Securities, Debt, Unrealized Gains | 0 | 0 |
Marketable Securities, Debt, Unrealized Losses | 0 | 0 |
Marketable Securities, Debt, Fair Value | 237 | 718 |
Cash and Cash Equivalents | 0 | 28 |
Current Marketable Securities | 237 | 690 |
Non-Current Marketable Securities | 0 | 0 |
Corporate debt securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable Securities, Debt, Adjusted Cost | 85,895 | 87,148 |
Marketable Securities, Debt, Unrealized Gains | 14 | 9 |
Marketable Securities, Debt, Unrealized Losses | (7,039) | (7,707) |
Marketable Securities, Debt, Fair Value | 78,870 | 79,450 |
Cash and Cash Equivalents | 1 | 0 |
Current Marketable Securities | 10,377 | 9,023 |
Non-Current Marketable Securities | 68,492 | 70,427 |
Municipal securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable Securities, Debt, Adjusted Cost | 864 | 921 |
Marketable Securities, Debt, Unrealized Gains | 0 | 0 |
Marketable Securities, Debt, Unrealized Losses | (26) | (35) |
Marketable Securities, Debt, Fair Value | 838 | 886 |
Cash and Cash Equivalents | 0 | 0 |
Current Marketable Securities | 278 | 266 |
Non-Current Marketable Securities | 560 | 620 |
Mortgage- and asset-backed securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable Securities, Debt, Adjusted Cost | 22,448 | 22,553 |
Marketable Securities, Debt, Unrealized Gains | 3 | 0 |
Marketable Securities, Debt, Unrealized Losses | (2,405) | (2,593) |
Marketable Securities, Debt, Fair Value | 20,046 | 19,960 |
Cash and Cash Equivalents | 0 | 0 |
Current Marketable Securities | 84 | 53 |
Non-Current Marketable Securities | $ 19,962 | $ 19,907 |
Financial Instruments - Non-Cur
Financial Instruments - Non-Current Marketable Debt Securities by Contractual Maturity (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Fair value of non-current marketable debt securities by contractual maturity | |
Due after 1 year through 5 years | $ 82,497 |
Due after 5 years through 10 years | 14,243 |
Due after 10 years | 17,355 |
Total fair value | $ 114,095 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2022 Vendor Customer | Sep. 24, 2022 USD ($) Vendor Customer | |
Financial Instruments [Line Items] | ||
Potential reduction to derivative assets resulting from rights of set-off under master netting arrangements, including the effects of collateral | $ 7,800 | |
Potential reduction to derivative liabilities resulting from rights of set-off under master netting arrangements, including the effects of collateral | 7,800 | |
Net derivative assets/(liabilities) after potential reductions under master netting arrangements | 412 | |
Credit concentration risk | ||
Financial Instruments [Line Items] | ||
Derivative, credit risk amount | $ 7,136 | |
Trade receivables | Credit concentration risk | ||
Financial Instruments [Line Items] | ||
Number of customers that individually represented 10% or more of total trade receivables | Customer | 1 | 1 |
Trade receivables | Credit concentration risk | Customer One | ||
Financial Instruments [Line Items] | ||
Concentration risk, percentage | 11% | 10% |
Trade receivables | Credit concentration risk | Cellular network carriers | ||
Financial Instruments [Line Items] | ||
Concentration risk, percentage | 43% | 44% |
Non-trade receivables | Credit concentration risk | ||
Financial Instruments [Line Items] | ||
Number of vendors that individually represented 10% or more of total vendor non-trade receivables | Vendor | 2 | 2 |
Non-trade receivables | Credit concentration risk | Vendor one | ||
Financial Instruments [Line Items] | ||
Concentration risk, percentage | 54% | 54% |
Non-trade receivables | Credit concentration risk | Vendor two | ||
Financial Instruments [Line Items] | ||
Concentration risk, percentage | 16% | 13% |
Hedges of foreign currency exposure associated with revenue and inventory purchases | ||
Financial Instruments [Line Items] | ||
Maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for foreign currency transactions | 12 months | |
Hedges of foreign currency exposure associated with term debt and marketable securities | ||
Financial Instruments [Line Items] | ||
Maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for foreign currency transactions | 20 years |
Financial Instruments - Notiona
Financial Instruments - Notional Amounts of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 24, 2022 |
Derivatives designated as accounting hedges | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives, notional amount | $ 66,054 | $ 102,670 |
Derivatives designated as accounting hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives, notional amount | 20,125 | 20,125 |
Derivatives not designated as accounting hedges | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives, notional amount | $ 134,971 | $ 185,381 |
Financial Instruments - Gross F
Financial Instruments - Gross Fair Values of Derivative Assets and Liabilities (Details) - Level 2 $ in Millions | Sep. 24, 2022 USD ($) |
Other current assets and other non-current assets | Foreign exchange contracts | |
Derivative assets: | |
Fair value of derivative assets | $ 7,136 |
Other current assets and other non-current assets | Foreign exchange contracts | Derivatives designated as accounting hedges | |
Derivative assets: | |
Fair value of derivative assets | 4,317 |
Other current assets and other non-current assets | Foreign exchange contracts | Derivatives not designated as accounting hedges | |
Derivative assets: | |
Fair value of derivative assets | 2,819 |
Other current liabilities and other non-current liabilities | Foreign exchange contracts | |
Derivative liabilities: | |
Fair value of derivative liabilities | 4,752 |
Other current liabilities and other non-current liabilities | Foreign exchange contracts | Derivatives designated as accounting hedges | |
Derivative liabilities: | |
Fair value of derivative liabilities | 2,205 |
Other current liabilities and other non-current liabilities | Foreign exchange contracts | Derivatives not designated as accounting hedges | |
Derivative liabilities: | |
Fair value of derivative liabilities | 2,547 |
Other current liabilities and other non-current liabilities | Interest rate contracts | |
Derivative liabilities: | |
Fair value of derivative liabilities | 1,367 |
Other current liabilities and other non-current liabilities | Interest rate contracts | Derivatives designated as accounting hedges | |
Derivative liabilities: | |
Fair value of derivative liabilities | 1,367 |
Other current liabilities and other non-current liabilities | Interest rate contracts | Derivatives not designated as accounting hedges | |
Derivative liabilities: | |
Fair value of derivative liabilities | $ 0 |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments Designated as Fair Value Hedges and Related Hedged Items (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 24, 2022 |
Current and non-current marketable securities | ||
Derivatives, Fair Value [Line Items] | ||
Carrying amount of hedged marketable securities | $ 14,311 | $ 13,378 |
Current and non-current term debt | ||
Derivatives, Fair Value [Line Items] | ||
Carrying amount of hedged term debt | $ (18,731) | $ (18,739) |
Condensed Consolidated Financ_3
Condensed Consolidated Financial Statement Details - Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 24, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Components | $ 2,513 | $ 1,637 |
Finished goods | 4,307 | 3,309 |
Total inventories | $ 6,820 | $ 4,946 |
Condensed Consolidated Financ_4
Condensed Consolidated Financial Statement Details - Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 24, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Gross property, plant and equipment | $ 110,995 | $ 114,457 |
Accumulated depreciation and amortization | (68,044) | (72,340) |
Total property, plant and equipment, net | $ 42,951 | $ 42,117 |
Condensed Consolidated Financ_5
Condensed Consolidated Financial Statement Details - Other Income/(Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest and dividend income | $ 868 | $ 650 |
Interest expense | (1,003) | (694) |
Other expense, net | (258) | (203) |
Total other income/(expense), net | $ (393) | $ (247) |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 24, 2022 |
Debt Instrument [Line Items] | ||
Commercial paper | $ 1,743 | $ 9,982 |
Fixed-rate notes, aggregate carrying amount | 109,400 | 110,100 |
Commercial paper | ||
Debt Instrument [Line Items] | ||
Commercial paper | 1,700 | 10,000 |
Level 2 | ||
Debt Instrument [Line Items] | ||
Fixed-rate notes, aggregate fair value | $ 98,000 | $ 98,800 |
Debt - Summary of Cash Flows As
Debt - Summary of Cash Flows Associated with Commercial Paper (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Maturities 90 days or less: | ||
Proceeds from/(Repayments of) commercial paper, net | $ (5,569) | $ 1,339 |
Maturities greater than 90 days: | ||
Proceeds from commercial paper | 0 | 1,191 |
Repayments of commercial paper | (2,645) | (3,530) |
Repayments of commercial paper, net | (2,645) | (2,339) |
Total repayments of commercial paper, net | $ (8,214) | $ (1,000) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) shares in Millions, $ in Billions | 3 Months Ended |
Dec. 31, 2022 USD ($) shares | |
Share Repurchase Program [Line Items] | |
Number of shares repurchased (in shares) | shares | 133 |
Amount of share repurchases | $ | $ 19 |
Benefit Plans - Restricted Stoc
Benefit Plans - Restricted Stock Units Activity and Related Information (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Number of Restricted Stock Units | |
Beginning balance (in shares) | shares | 201,501 |
RSUs granted (in shares) | shares | 82,123 |
RSUs vested (in shares) | shares | (47,298) |
RSUs canceled (in shares) | shares | (2,958) |
Ending balance (in shares) | shares | 233,368 |
Weighted-Average Grant Date Fair Value Per RSU | |
Beginning balance (in dollars per share) | $ / shares | $ 109.48 |
RSUs granted (in dollars per share) | $ / shares | 149.85 |
RSUs vested (in dollars per share) | $ / shares | 84.46 |
RSUs canceled (in dollars per share) | $ / shares | 120.26 |
Ending balance (in dollars per share) | $ / shares | $ 128.62 |
Aggregate Fair Value | |
Aggregate fair value of RSUs | $ | $ 30,322 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) - USD ($) $ in Billions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation cost related to RSUs and stock options | $ 25.5 | |
Total unrecognized compensation cost related to RSUs and stock options, weighted-average recognition period | 3 years | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of RSUs as of the respective vesting dates | $ 6.8 | $ 8.5 |
Benefit Plans - Summary of Shar
Benefit Plans - Summary of Share-Based Compensation Expense and the Related Income Tax Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Share-based compensation expense | $ 2,905 | $ 2,265 |
Income tax benefit related to share-based compensation expense | $ (1,178) | $ (1,536) |
Commitments and Contingencies -
Commitments and Contingencies - Future Payments Under Unconditional Purchase Obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2023 (remaining nine months) | $ 2,899 |
2024 | 2,897 |
2025 | 1,584 |
2026 | 6,554 |
2027 | 348 |
Thereafter | 444 |
Total | $ 14,726 |
Segment Information and Geogr_3
Segment Information and Geographic Data - Information by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 117,154 | $ 123,945 |
Operating income | 36,016 | 41,488 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Net sales | 49,278 | 51,496 |
Operating income | 17,864 | 19,585 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Net sales | 27,681 | 29,749 |
Operating income | 10,017 | 11,545 |
Greater China | ||
Segment Reporting Information [Line Items] | ||
Net sales | 23,905 | 25,783 |
Operating income | 10,437 | 11,183 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Net sales | 6,755 | 7,107 |
Operating income | 3,236 | 3,349 |
Rest of Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Net sales | 9,535 | 9,810 |
Operating income | $ 3,851 | $ 3,995 |
Segment Information and Geogr_4
Segment Information and Geographic Data - Reconciliation of Segment Operating Income to the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income | $ 36,016 | $ 41,488 |
Research and development expense | (7,709) | (6,306) |
Operating segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income | 45,405 | 49,657 |
Segment reconciling items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Research and development expense | (7,709) | (6,306) |
Corporate non-segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Other corporate expenses, net | $ (1,680) | $ (1,863) |