yet another steve

Apple's Deferred Revenues Revisited: This Was a Blow-Out Quarter

This is a little optimistic. Presumably deferring revenues also means deferring the cost of goods associated with those revenues. So it doesn't all fall to the bottom line.

What does make sense, however, is to add iPhone revenues and units to the iPod numbers since it is really an extension of the same business.

Also missed, however, is that each of these phones that isn't unlocked generates cost-free revenue to Apple every month in revenue sharing.

Frankly Apple is at a major transition point as its ipod business goes from toy to serious platform. The street is clueless.. so clueless that we should just let 'em sell and get short. It's just like 2 years ago. Except 2 years ago, you had to have faith to see the continued growth. Now, to those of us who have noticed that iPhone/iPod touch are both iPods and OSX platforms, the source of that growth is obvious.

The Street is clueless, and given Apple's seasonality it may take until September until Apple generates such revenues, earnings, and cash flow that they'll have to come out of denial.

So, what the hell, let 'em drive the stock down to $90. Selling at $250 is a lot more profitable if you bought at $90 vs. $190.

Let every clueless doubter have his day.

Pay no attention to that $21/share in CASH... go short old men!