What a great day (week / month / year / etc.) to be an Apple Shareholder.
I had a feeling that Apple would post huge numbers and a resulting Google-like euphoria would result. Looks like all the hype surrounding the iPhone proved to be true, even after slashing its price. Love them or hate them, you have to admit that Apple does a great job of selling its products. They either know what you want and make it, or they make it and tell you that you want/need it. The fact that their Directors have experience in selling everything from vacations to movies to jeans should tell you something http://www.newsvisual.com/newsvi...-apple-
pul.html . With the holidays just around the corner it will be a merry Q4 for Apple.
Current deferred revenue is that portion of deferred revenue that will be recorded as revenue in the next 12 months (next 4 quarters). Non-current is that portion recorded as revenue after those 12 months, in Apple's case, the following 12 months.
All AppleCare revenue is current deferred revenue.
For iPhone and AppleTV, you basically take all of the 4th quarter's revenue for those two products, divide it into 8 equal portions (8 quarters over 2 years), then take a portion from the last (8th) quarter and move in into this quarter (prorated, as sales began on the 1st day of the quarter and went through the last day of the quarter).
From the earnings report, can someone figure out the fee paid by AT&T to apple each month? My rough calculations appear to show it is significantly greater than the widely-speculated $10/phone/month. By the way, my guess is that the deferred revenue-current is the revenue from the iphone booked in this quarter. Deferred revenue-noncurrent is iphone revenue that will be booked in subsequent quarters (from iphones sold this quarter). Again, this is my interpretation only.
Oops, I should've said that all ProCare revenue is current deferred revenue. Obviously, a 3-year AppleCare contract needs to be spread over 3 years.
Question on my mind: Does Apple intend to reach its projected revenue (which incredibly, is north of analyst consensus) with its current product lineup, or is something else coming? Like new MacBook, Mac Pro, AppleTV, video rentals?
By my speculative calculations using the deferred revenue numbers, $48m of the $118m iPhone revenue is from iPhone sales (this quarter and deferred from last quarter). So $70m is from accessories and AT&T fees. Don't know how to split this, but I doubt accessories is more than 50%.
Apple believes about 250k of the 1.119m iPhones are in unlocker hands, so then 869k likely have AT&T plans.
If 50/50 split, and if all 869k had signed up on June 30th, then Apple is getting over $13 per month per subscriber. So clearly Apple is getting more than that, likely more than $20 per. And if split is less than 50% accessories, then the fee is even more.
Nice to see the Apple share price rising closer to the reality of a company with a 6.1% share of the US PC market. Then again, Apple is expanding into the much larger "consumer electronics" market which means it is still a good buy at 185, IMHO.
Commenting by HaloScan
