Dow Jones Newswires reports that the Financial Accounting Standards Board (FASB) has given final approval to a change in accounting regulations that will allow Apple to recognize more of its iPhone and Apple TV revenue at the time of sale.
The change okayed by the Financial Accounting Standards Board helps companies that sell goods and services in bundles - like smart phones and other high-tech devices combining hardware and software, or home appliances that come with installation and service contracts.
Under current accounting rules, companies must often defer large portions of their revenue from such sales - recognizing them gradually over time, instead of immediately when the sale is made. The rule change would give companies more flexibility in crediting more of that revenue to their results upfront.
Apple has employed subscription-based accounting for its iPhone and Apple TV segments, which allows the company to provide free software updates over the two-year period considered to be the lifespan of the devices for such purposes. Apple does not use subscription-based accounting for its iPod line, a move which has required the company to charge users nominal fees for operating system updates on the iPod touch.
Apple Inc. (AAPL) is expected to be one of the major beneficiaries of the change, since it would dramatically change how the company reports revenues from its iPhone. Currently, Apple recognizes iPhone revenue over a two-year period, and said recently that overall revenues and earnings in its latest quarter would have been much higher if it didn't have to defer revenues for the iPhone and its Apple TV product. An Apple spokesman couldn't immediately be reached for comment.
While the change does not affect Apple's cash flow, it will allow the company to more accurately reflect its revenue in its quarterly financial statements. Preliminary approval of the accounting rule change had been given by a task force of the FASB early last week.
Wednesday February 19, 2025 8:02 am PST by Joe Rossignol
Apple today introduced the iPhone 16e, its newest entry-level smartphone. The device succeeds the third-generation iPhone SE, which has now been discontinued.
The iPhone 16e features a larger 6.1-inch OLED display, up from a 4.7-inch LCD on the iPhone SE. The display has a notch for Face ID, and this means that Apple no longer sells any iPhones with a Touch ID fingerprint button, marking the ...
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Over the years, Apple has switched from an aluminum frame to a stainless steel frame to a titanium frame for its highest-end iPhones. And now, it has been rumored that Apple will go back to using aluminum for three out of four iPhone 17 models.
In an investor note with research firm GF Securities, obtained by MacRumors this week, Apple supply chain analyst Jeff Pu said the iPhone 17, iPhone...
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Now that Apple has announced its new more affordable iPhone 16e, our thoughts turn to what else we are expecting from the company this spring.
There are three product categories that we are definitely expecting to get upgraded before spring has ended. Keep reading to learn what they are. If we're lucky, Apple might make a surprise announcement about a completely new product category.
M4...
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All three pages now state that new Apple Intelligence features and languages will launch in early April, an update from the more broader April timeframe that Apple provided before. The next major point updates will be iOS ...
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Apple finally released the first beta of iOS 18.4 to developers for testing purposes, and while the beta is lacking some of the Apple Intelligence features we were hoping for, there are some notable new additions.
Subscribe to the MacRumors YouTube channel for more videos.
Priority Notifications - Apple Intelligence
There is a new Priority Notifications feature that can show you your most...
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In iOS 18.4, there's a new Ambient Music option that can be added to Control Center. There are four different sound categories, including Sleep, Chill, Productivity, and Wellbeing.
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You can't choose what's playing from Control Center, but if...
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Thursday February 13, 2025 8:07 am PST by Joe Rossignol
In a social media post today, Apple CEO Tim Cook teased an upcoming "launch" of some kind scheduled for Wednesday, February 19.
"Get ready to meet the newest member of the family," he said, with an #AppleLaunch hashtag.
The post includes a short video with an animated Apple logo inside a circle.
Cook did not provide an exact time for the launch, or share any other specific details, so...
