znosko

Apple Analysts Reality Check: Bear Rally Is Over

"The fact is that most Apple analysts are ego-driven sycophants. They live for the power they wield, as their words can sway markets ..."

If this is true, then what does this make you?

By the way, if you were trying to support your shorts, tough break. Apple is well over two dollars higher as I write this. A lesson, perhaps, that your own words are true ... best not to put too much stock in aftermarket moves.

Apple's 'Real' Earnings: Up Almost 125%

As I understand it, the deferred revenue doesn't involve the selling of manufactured products. It involves continuing income committed after a product is sold, such as subscription revenue. Here, ATT has to pay Apple a monthly cut of the subscription dues it collects from plans entered into by iPhone customers. When it sells an iphone, Apple gets a profit from the item itself (or ATT provides it because it subsidized the price). The, it sits and waits for the monthly check ATT sends to Apple which is that portion of the iPhone subscriber's dues that ATT agreed to pay Apple for the privilege of attaching its services to the iPhone.

Thus, deferred revenue is an actual, contractual revenue commitment, not a hope and a prayer that a manufactured item willa ctually sell.

Apple's 'Real' Earnings: Up Almost 125%

I also wondered the same thing. I can't believe an item indicating that when including deferred income, the profit is well over TWICE of what was reported can be treated as mere footnote. It would seem that as this revenue comes trickling (flooding?) in, it will more than make up for even the most conservative estimates regarding sales drops during the recession. All this cash gives Apple a HUGE advantage to innovate and grow (purchase Adobe, e.g.?) and eventually shoot through the roof once people start spending again.

I can understand investors fleeing even an excellent company in a bear market, but why is it that more analysts aren't trumpeting these same qualities that Mr. Zaky notes? These factors were whispered about occasionally before this earnings report, but now Apple is providing actual numbers and positioned them prominently in their call. They're doing it for a reason, people! Pay attention!