“The quick version: Apple blew past second quarter estimates, reporting earnings of $0.87 per diluted share, $0.89 per basic share. The official press release is here. But Peter Oppenheimer, CFO of Apple, provided some interesting details that aren’t in the release,” Carl Howe reports for Blackfriars’ Marketing.
“So here was the surprising news: Apple will continually develop new software features for the iPhone and Apple TV series, and Apple will upgrade the features free of charge. As a result, they’ll recognize deferred revenue for iPhone sales, accessories, and subscription revenue over 24 months. This accounting policy will have no impact on cash flow, but it will smooth out their lumpy results over two years,” Howe reports.
Howe reports, “Even more surprisingly, Apple TV features will also be updated over time free of charge, and therefore Apple will amortize that revenue over 24 months as well.”
Full article, with interesting tidbits about Apple Retails Store network and more, here.
[Thanks to MacDailyNews Reader “LinuxGuy and Mac Prodigal Son” for the heads up.]