The unlock figures merely illustrate the fact that the deal between Apple and at&t, while good for the bottom line, makes no sense for the consumer. Apple needs to speed the day of severance with at&t to get more iPhones in more hands.
The only thing the 250,000 phones that weren't registered on AT&T's network means is that there's 250,000 iPhones that aren't on AT&T's network.
It's equally possible the phones are in locations where the iPhone hasn't been released yet, bought by folks trying to fill the void and make a quick buck by reselling them. When Apple sells the iPhone in the EU and the Asian-Pacific countries where it's not presently available, THEN those numbers begin to mean what you claim, but not before.
No information means no information, not whatever you want it to mean.
Wow, that many iphones unlocked! No wonder Apple killed those phones with the update. That is a lotta unrealized revenue for Apple to collect (from AT&T).
Wow, that many iphones unlocked! No wonder Apple killed those phones with the update. That is a lotta unrealized revenue for Apple to collect (from AT&T).
Funny you should say 'unrealized revenue'. Accounting defines that as Revenue earned in the current accounting period, but which will be collected in a subsequent period. I wouldnt say Apple earned or recognized any revenue other than the actual iphone upon ending the business transaction.
In fact, if Apple did recognize the AT&T contract revenue at the time of the iphone sale, their revenue figures would be way off and they would potentially accused of 'cooking the books'.
When AT&T or Comcast New York Times gets a subscriber, they do not recognize revenue. I think they would instead recognize a short-term revenue-generating asset and an offsetting liability. Lets call that asset 'subscribers', and the liability 'newspaper deliveries'. Subscribers would, on a monthly basis, pay their subscription. At that time, the revenue is recorded (subscriber payment). An expense is recorded later as newspapers are constructed and delivered) and the short term asset and liability reduce accordingly.
Apple's accounting treatment for this is probably very different! I imagine they set up a joint venture agreement with AT&T, and the revenues come in as affiliate or equity income - a very clean setup from an accounting point of view, and very safe from an auditing point of view. No need to recognize any revenue, assets or liabilities until it actually hits the books. Otherwise, they are just getting a monthly check through a revenue-sharing agreement - also very safe, but not as clean because it creates some tax issues. Sorry to put you all to sleep!
That is a lotta unrealized revenue for Apple to collect (from AT&T).
I doubt most of those phones stayed in the US. Its more likely the majority of those phones were unlocked and sold over seas in places where the iPhone was not available. So that revenue was never available to ATT or Apple.
Being from the Phoenix area I can only comment on the local going ons.
I agree Circuit City seems to be going out of business as anytime I go into one they are extremely slow with more employees than customers. Have yet to speak to any employees that seem happy to be there.
Apple stores when they first opened were a great place to hang as they had a steady flow of customers and plenty of employees to help out. Now they seem to be even busier which is great for Apple but the employees seem harried and overwhelmed at times. They just don't seem to have the time to talk to customers as much.
I am most familiar with Best Buy as I have worked with them for some time. The Apple displays are welcome in most cases although direction from Apple has been nearly non existent. We have a great Apple website to learn more but no one to call if we have questions etc. With Leopard coming out Friday I have no idea how this upgrade will work thru our stores. We sell plenty of them as customers come in daily looking for them and each day someone says that they did not know that Best Buy carried them.
The market has spoken, it want the iPhone bad and wants it on more networks. Apple needs to listen up here, if 17% are going to other networks, Apple better figure out how to play. 17% is a HUGE HUGE number if you think about it.
Comments
The unlock figures merely illustrate the fact that the deal between Apple and at&t, while good for the bottom line, makes no sense for the consumer. Apple needs to speed the day of severance with at&t to get more iPhones in more hands.
The only thing the 250,000 phones that weren't registered on AT&T's network means is that there's 250,000 iPhones that aren't on AT&T's network.
It's equally possible the phones are in locations where the iPhone hasn't been released yet, bought by folks trying to fill the void and make a quick buck by reselling them. When Apple sells the iPhone in the EU and the Asian-Pacific countries where it's not presently available, THEN those numbers begin to mean what you claim, but not before.
No information means no information, not whatever you want it to mean.
Wow, that many iphones unlocked! No wonder Apple killed those phones with the update. That is a lotta unrealized revenue for Apple to collect (from AT&T).
Funny you should say 'unrealized revenue'. Accounting defines that as Revenue earned in the current accounting period, but which will be collected in a subsequent period. I wouldnt say Apple earned or recognized any revenue other than the actual iphone upon ending the business transaction.
In fact, if Apple did recognize the AT&T contract revenue at the time of the iphone sale, their revenue figures would be way off and they would potentially accused of 'cooking the books'.
When AT&T or Comcast New York Times gets a subscriber, they do not recognize revenue. I think they would instead recognize a short-term revenue-generating asset and an offsetting liability. Lets call that asset 'subscribers', and the liability 'newspaper deliveries'. Subscribers would, on a monthly basis, pay their subscription. At that time, the revenue is recorded (subscriber payment). An expense is recorded later as newspapers are constructed and delivered) and the short term asset and liability reduce accordingly.
Apple's accounting treatment for this is probably very different! I imagine they set up a joint venture agreement with AT&T, and the revenues come in as affiliate or equity income - a very clean setup from an accounting point of view, and very safe from an auditing point of view. No need to recognize any revenue, assets or liabilities until it actually hits the books. Otherwise, they are just getting a monthly check through a revenue-sharing agreement - also very safe, but not as clean because it creates some tax issues. Sorry to put you all to sleep!
That is a lotta unrealized revenue for Apple to collect (from AT&T).
I doubt most of those phones stayed in the US. Its more likely the majority of those phones were unlocked and sold over seas in places where the iPhone was not available. So that revenue was never available to ATT or Apple.
I agree Circuit City seems to be going out of business as anytime I go into one they are extremely slow with more employees than customers. Have yet to speak to any employees that seem happy to be there.
Apple stores when they first opened were a great place to hang as they had a steady flow of customers and plenty of employees to help out. Now they seem to be even busier which is great for Apple but the employees seem harried and overwhelmed at times. They just don't seem to have the time to talk to customers as much.
I am most familiar with Best Buy as I have worked with them for some time. The Apple displays are welcome in most cases although direction from Apple has been nearly non existent. We have a great Apple website to learn more but no one to call if we have questions etc. With Leopard coming out Friday I have no idea how this upgrade will work thru our stores. We sell plenty of them as customers come in daily looking for them and each day someone says that they did not know that Best Buy carried them.
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klime
iPhone / MacBook / Shuffle (2nd gen)