‘Seeking Alpha’: Apple has huge stream of deferred revenues
Posted by Dennis Sellers 
Jan 24, 2008 at 1:51pm
Apple’s earnings at first glance look great, a 57 percent rise over last year’s quarter. However, if you look more closely, the numbers get even more impressive as the company (AAPL) has a huge stream of revenues that it doesn’t add into the quarter’s numbers, according to Seeking Alpha.
“These are its deferred revenues. Deferred revenues represent money actually received but not officially booked, because more services may be required by the company to the customer,” the article adds. “APPL has recently decided to make a large amount of its sales—iPhones, iTV [I think Seeking Alpha means the Apple TV], AppleCare—go to deferred revenues. So when AAPL sells its iPhones, iTVs and Apple care, it only books a small portion of the revenues in the quarter sold. The company reasons that customers may require other services on these products such as free software upgrades. AAPL sets a two year period over which these products are incrementally added to its balance sheet. Remember the costs of iPhones and iTVs have already been largely incurred.”
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Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
