Originally Posted by Constable Odo
Yes, they're sitting on deferred revenue and Apple's share price will be the first to drop. Apple needs to cut out these twisted accounting methods and run their finances like every other company. Wall Street already has problems with understanding Apple's value. Why does Apple have to make it worse. Every financial trick Apple attempts backfires on them and shareholders always end up taking the brunt of share price decreases. Meanwhile, companies like Google and Amazon just play it straight and investors pour money into those companies. Apple's devious revenue tricks don't interest big investors at all. In fact, it probably scares them away because they think Apple is trying to pull a fast one on them to cover up some other losses. Big investors obviously have no interest in GAAP or Apple.
Depends on whether you believe companies exist for customers or shareholders.
Steve Jobs felt that Apple's success came from serving the former, even at the expense of the latter.
As a customer and not a practitioner of the religion of shareholder worship, I agree.