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Apple now sitting on $10B in deferred revenue, more than Samsung or Google earned last quarter - Page 3

post #81 of 84
Quote:
Originally Posted by anantksundaram View Post

...

Keep changing your argument and I'll eventually tire of responding. Particularly when you evade everything I respond to and shift to a new thrust lubricated with abstract insults.
post #82 of 84
Wolves only consider the weak sheep and how they can eat them.

Stock predators only consider the last quarter and how they can exploit it.

They would not care at all if making $50 / share ran a company out of business.

They "make" money while apple makes "things". Who contributes more to society?
Ask me about.... The 80's!
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Ask me about.... The 80's!
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post #83 of 84
Quote:
Originally Posted by Constable Odo View Post

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.
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Ask me about.... The 80's!
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post #84 of 84
Yeah this article needs a healthy addendum. By GAAP principles, you can't recognize revenue until the product or service is delivered. It's not an option and it's not at the discretion of Apple, Microsoft or anyone else. Now, the accountants can certainly push the envelope of how they interpret the accounting rules, but it's not an infinite envelope.

A lot of Apple's deferred revenue comes from things like... service contracts, iTunes gift cards, or any variety of other things you pay for in advance and receive later. Johnny's aunt buys him a $50 iTunes gift card for Christmas... but that ain't revenue for the December quarter. It's deferred revenue. When Johnny downloads a $1.99 app then Apple gets to deduct $1.99 from deferred revenue and add $1.99 to current revenue along with the associated cost.

Which comes to point #2. Revenue and earnings are quite different things. I don't get the comparison between Apple's revenue and Google's earnings.
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