macnn
06/26/2008, 5:00pm, EDT
Thursday, June 26th
Apple sets date for third-quarter earnings call
A time has been set for Apple's third-quarter earnings conference call, the company has announced. The call is currently scheduled for July 21, 2008, at 2PM Pacific time; Apple says it will eventually link the appropriate webcast relay in advance of the event. Figures announced in the report could prove critical to Apple, but would not incorporate sales from the iPhone 3G, which launches on July 11st; investors should not expect detailed figures however, as Apple has elected to amortize iPhone revenue, delaying full reporting until 2009.
Apple has also undergone dramatic shifts in stock value during the past quarter, having once approached the $190 mark, while presently sitting at approximately $168 (as of June 26th). Analysts are generally said to be optimistic, but concerns have been raised that Apple will lose out in the long-term by not collecting subscription revenue from iPhone carriers.
Filed under: iPhone, Investor, Apple
Other story tags: iPhone 3G
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No 3G rev in this report
Apple's fiscal 3rd quarter is not the calendar year 3rd quarter. It ends on June 30th so there will be no 3G revenue in it.
Subscription Revenues
Again, what the analysts are missing is that Apple makes up for the subscription revenue:
- by having carriers subsidize the phone from the start (one lump sum initial payment)
- replacing subscription payments by revenues generated by the App store-- which could eventually eclipse anything they would have made from it.
The morons will argue that Apple could have had subscription revenue AND App store revenue, but would be missing that in order to generate App store revenue, it is necessary to have as many iPhones as possible in people's hands - which is what the subsidized price does,
By the way, I would love to hear what Ballmer has to say about iPhone, now.
Re: subscription revenues
Again, what the analysts are missing is that Apple makes up for the subscription revenue:
What analysts? And who says they're missing anything? MacNN?
It always amazes me how all the people on MacNN don't dump their jobs and become analysts, since they always seem to know so much more.
- by having carriers subsidize the phone from the start (one lump sum initial payment)
Which is great short-term, but not long-term. So you'll see large revenue influx the first couple of quarters, but then it nosedives once sales level off. Subscription revenue has the opposite effect (bear in mind Apple will still be collecting subscription revenue from those iPhone v1 owners who don't shell out $200 to upgrade).
Plus, you're missing out the fact that, if they got their subsidy on a percentage of the service, it could generate more money over time, as service costs go up, or new features/capabilities added to people's plans.
But since I don't think Apple ever really said how much revenue it made/earned in subscription subsidies, and most likely won't tell anyone how much they're making on sale subsidies, only Apple knows how much better or worse they are off now than before.
- replacing subscription payments by revenues generated by the App store-- which could eventually eclipse anything they would have made from it.
But this will take a load of time to become profitable. And Apple says that their 30% kick-back/fee is for upkeep, not a profit center. Are you saying Steve's lying?