KenC

Awaiting Apple Earnings and Guidance

Apple should just drop deferred revenue accounting for the iPhone and Touch, and just charge users $5 every time they add a new feature. That way, analysts wouldn't be so darn confused on how to factor iPhone sales in properly, and Apple could drop the bombshell that's been sitting in their back pocket. 5M iPhones sold could add 43 cents eps if they didn't defer 7/8ths of the revenue.

I'm fine with deferred revs, if analysts were building it into their models but they aren't. After 8 quarters, we should have the full effect of iPhone sales in earnings, but you don't see analysts making that adjustment at all.