ScottNY71

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ScottNY71
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  • Apple disputes allegations that Apple TV+ trial will drive down stock price

    ScottNY71 said:
    Doesn’t anyone else see what’s really happening here? Apple isn’t worried about a free trial cost, nor are they worried about what analysts will think of the free trial cost. That’s brilliant marketing and tying together of a product that needs as much attention as it can get to be successful In an ever growing but already crowded market.

    What they’re worried about is how they plan on accounting for that on their quarterly financials. They think it’ll be confusing and that most of the analysts and media will get it wrong or will misunderstand it and that it’ll look bad on their hardware numbers to the people who don’t get it. It’s similar to what they did with the original iPhone, recognizing revenues over a 2 year period because of the value of (and probably internal cost of) ongoing free software updates. Analysts didn’t get it and it was only when Apple changed it mostly back to normal years later that people saw the true value of the iPhone to the company. So there’s a precedent.

    So what did they do today? They had their Apple Card partner make a powerful statement about this and get a lot of attention, even having the analyst focus on the very specific details and providing an extremely specific example, and then Apple publicly acknowledged and refuted that statement, something they only very rarely do.

    They bought themselves free pre-publicity about this to soften the potential blow when they announce their next earnings in about 6 weeks. This gets people thinking about this now, with the analysts and media seeing the accounting method in action via a detailed explanation and example from another analyst who not just gets it, but gets it so much that he can cite the ins and outs at that level of detail. And then Apple says it won’t have any material effect. So there will be some kind of impact at some level, just not one that matters or will change anything. Unless someone misunderstands what it means, of course. Someone who publicly tells other people what to think of it. 

    Then look at what they wrote: "we do not expect the introduction of Apple TV+, including the accounting treatment for the service, to have a material impact on our financial results."

    That callout could be taken as an admission that the accounting treatment will be something that’s not exactly normal, giving credence to and making analysts pay more attention to what the Goldman analyst said, which will make them understand it more before they’re forced to digest it and come out with an opinion on it within a day or two when Apple announces. And the media have even less time because they have to report on it immediately.

    What Goldman did, which I think was in partnership with Apple, was a brilliant PR maneuver.
    Lol..... NO.
    First of all: shouldn’t those allegations of HIGHLY ILLEGAL stock manipulation across two companies be reported to the SEC, so both companies could be HEAVILY fined??
    Oh yeah- they’d laugh in your face... because your accusations are idiotic, have no proof whatsoever, and are the mere ramblings of a lunatic.
    Get real.

    It’s not stock manipulation. It’s PR. The stock didn’t have to drop on the news. The original analyst comment clearly said that it would all be based on a misunderstanding and Apple responded quickly to essentially deny it. Anyone with half a brain and any knowledge of how the stock market works would have given equal shot of the stock going down, going up or going sideways on this “news” and the near immediate response. Especially with 20 other possible things that could have come out on the day they launched their latest flagship product that would have moved the stock much more than a few dollars a share.

    I’ve been in Marketing and PR and this kind of thing happens all the time. It’s not criminal unless you’re purposely trying to move the stock or manipulate the market. They were just trying to bring clarity and attention to something confusing that’s going to come to light very soon anyway.
    FileMakerFellerwatto_cobra
  • Apple disputes allegations that Apple TV+ trial will drive down stock price

    Doesn’t anyone else see what’s really happening here? Apple isn’t worried about a free trial cost, nor are they worried about what analysts will think of the free trial cost. That’s brilliant marketing and tying together of a product that needs as much attention as it can get to be successful In an ever growing but already crowded market.

    What they’re worried about is how they plan on accounting for that on their quarterly financials. They think it’ll be confusing and that most of the analysts and media will get it wrong or will misunderstand it and that it’ll look bad on their hardware numbers to the people who don’t get it. It’s similar to what they did with the original iPhone, recognizing revenues over a 2 year period because of the value of (and probably internal cost of) ongoing free software updates. Analysts didn’t get it and it was only when Apple changed it mostly back to normal years later that people saw the true value of the iPhone to the company. So there’s a precedent.

    So what did they do today? They had their Apple Card partner make a powerful statement about this and get a lot of attention, even having the analyst focus on the very specific details and providing an extremely specific example, and then Apple publicly acknowledged and refuted that statement, something they only very rarely do.

    They bought themselves free pre-publicity about this to soften the potential blow when they announce their next earnings in about 6 weeks. This gets people thinking about this now, with the analysts and media seeing the accounting method in action via a detailed explanation and example from another analyst who not just gets it, but gets it so much that he can cite the ins and outs at that level of detail. And then Apple says it won’t have any material effect. So there will be some kind of impact at some level, just not one that matters or will change anything. Unless someone misunderstands what it means, of course. Someone who publicly tells other people what to think of it. 

    Then look at what they wrote: "we do not expect the introduction of Apple TV+, including the accounting treatment for the service, to have a material impact on our financial results."

    That callout could be taken as an admission that the accounting treatment will be something that’s not exactly normal, giving credence to and making analysts pay more attention to what the Goldman analyst said, which will make them understand it more before they’re forced to digest it and come out with an opinion on it within a day or two when Apple announces. And the media have even less time because they have to report on it immediately.

    What Goldman did, which I think was in partnership with Apple, was a brilliant PR maneuver.
    FileMakerFeller