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Technology Stocks : Apple Inc.
AAPL 272.99-0.3%Dec 30 3:59 PM EST

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To: NAG1 who wrote (63620)4/26/2007 5:46:35 AM
From: Cogito  Read Replies (2) of 213177
 
Neal -

I just did listen to the CC, and read along with a transcript as I did so.

The rationale they gave about deferring revenue from the Apple TV is that they are going to be providing new features via software updates, and they will not charge for them. This means that they will be incurring ongoing costs that will not be offset by revenues. Hence a desire to flatten out the revenue so that it will balance out the ongoing expenses.

That's the same rationale they gave for the iPhone revenue recognition plan as well. They also said that they will recognize payments from Cinglar AT&T as the receive them.

- Allen
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