spiderman123 said:What type of EPS caluclation are they using.....if i may ask?!
It changed how they account for sales of the iPhone and Apple TV. Obviously, the changes for the iPhone are the biggest as it's the company's biggest money maker.
Apple (AAPL) shares could benefit from a potential accounting change now being considered at the Financial Accounting Standards Board, BMO Capital analyst Keith Bachman noted in a report this morning.
The proposed change would effectively eliminate the need for Apples practice of recognizing iPhone revenue over a 24-month period. The impact would be for Apple to report higher EPS; Bachman thinks a change could be adopted as soon as the December quarter.
While nothing would change about the underlying business, the profitability of the iPhone would be more visible than it is now.
Bachmans view is that a change would be positive for Apple give that it would provide a higher quality of earnings and more transparency of demand/sales trends for the iPhone.