Apple (AAPL) shareholders can look forward to another strong holiday season after the company revamped almost all its leading product lines heading into the busiest shopping time of the year.
The final quarter comes after a mediocre fiscal fourth quarter (or what the rest of us call the third calendar quarter) for Apple. On Monday after market close, Apple reported its sales rose 4% to $37.5 billion and earnings per share slipped 5% to $8.26. But there were some important details revealed by Apple executives during their call with analysts after the report.
Free isn’t free for shareholders
Apple’s customers will be glad to get software updates and other apps free but shareholders will take a hit. Under U.S. accounting rules, giving away software with device purchases means Apple cannot report all the revenue from those sales immediately. For the final quarter of 2013, for example, the new freebies mean Apple must defer about $900 million of revenue to future quarters. That’s revenueRead More »from Free Isn’t Free for Apple Investors, and Other Lessons From This Quarter’s Results