Apple Reports Record Second Quarter Results

Revenue Up 43 Percent Year-Over-Year

CUPERTINO, California–April 23, 2008–Apple today announced financial
results for its fiscal 2008 second quarter ended March 29, 2008. The
Company posted revenue of $7.51 billion and net quarterly profit of $1.05
billion, or $1.16 per diluted share. These results compare to revenue of
$5.26 billion and net quarterly profit of $770 million, or $.87 per diluted
share, in the year-ago quarter. Gross margin was 32.9 percent, down from
35.1 percent in the year-ago quarter. International sales accounted for 44
percent of the quarter’s revenue.

Apple shipped 2,289,000 Macintosh computers during the quarter,
representing 51 percent unit growth and 54 percent revenue growth over the
year-ago quarter. The Company sold 10,644,000 iPods during the quarter,
representing one percent unit growth and eight percent revenue growth over
the year-ago quarter. Quarterly iPhone sales were 1,703,000.

“We’re delighted to report 43 percent revenue growth and the strongest
March quarter revenue and earnings in Apple’s history,” said Steve Jobs,
Apple’s CEO. “With over $17 billion in revenue for the first half of our
fiscal year, we have strong momentum to launch some terrific new products
in the coming quarters.”

“We’re thrilled to have generated $4 billion in cash flow from operations
in the first half of fiscal 2008, yielding an ending cash balance of $19.4
billion,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the third
quarter of fiscal 2008, we expect revenue of about $7.2 billion and
earnings per diluted share of about $1.00.”

Apple will provide live streaming of its Q2 2008 financial results
conference call utilizing QuickTime, Apple’s standards-based technology for
live and on-demand audio and video streaming. The live webcast will begin
at 2:00 p.m. PDT on Wednesday, April 23, 2008 at and will also be available for

This press release contains forward-looking statements about the Company’s
estimated revenue and earnings per share. These statements involve risks
and uncertainties, and actual results may differ. Risks and uncertainties
include potential litigation from the matters investigated by the special
committee of the board of directors and the restatement of the Company’s
consolidated financial statements; unfavorable results of other legal
proceedings; 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; war, terrorism, public
health issues, and other circumstances that could disrupt supply, delivery,
or demand of products; continued competitive pressures in the marketplace;
the Company’s reliance on sole service providers for iPhone in certain
countries; the continued availability on acceptable terms of certain
components and services essential to the Company’s business currently
obtained by the Company from sole or limited sources; 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 transitions, changes in product pricing or mix, and/or
increases in component costs could have on the Company’s gross margin; the
effect that product quality problems could have on the Company’s sales and
operating profits; the inventory risk associated with the Company’s need to
order or commit to order product components in advance of customer orders;
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; the Company’s
dependency on the performance of distributors and other resellers of the
Company’s products; the Company’s reliance on the availability of
third-party digital content; and the potential impact of a finding that the
Company has infringed on the intellectual property rights of others. More
information on potential factors that could affect the Company’s financial
results is included from time to time in the Company’s public reports filed
with the SEC, including the Company’s Form 10-K for the fiscal year ended
September 29, 2007, its Form 10-Q for the quarter ended December 29, 2007,
and its Form 10-Q for the quarter ended March 29, 2008 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 ignited the personal computer revolution in the 1970s with the Apple
II and reinvented the personal computer in the 1980s with the Macintosh.
Today, Apple continues to lead the industry in innovation with its
award-winning computers, OS X operating system and iLife and professional
applications. Apple is also spearheading the digital media revolution with
its iPod portable music and video players and iTunes online store, and has
entered the mobile phone market with its revolutionary iPhone.