Pete D.

Apple: Are Investors Overlooking Cash Earnings?

This is a valid perspective. I've got a few knits on the details though. Margin estimates for iPhone may be high. Subsidy estimates are likely high. Unit forecasts are low. The assertion that FCF is a better proxy than EPS for value is open to debate. Generally FCF is the preferred metric by which to measure the success of a "growth" company. Apple fits that description. Here are some additional details on the accounting treatment. COGS for iPhone are amortized over same period as revenue recognition. However, cost of sales and development are realized up front.