New accounting rules push Apple’s revenue to $15.7B

Surprise, surprise: Apple has enjoyed another good quarter. For the three months ended December 26, 2009, the Mac maker recorded revenue of $15.7 billion and net income of $3.4 billion.

Those look like massive increases over past results at first glance, but Apple has actually started using "amended guidelines" from the Financial Accounting Standard Board. The new guidelines change how the firm accounts for sales of items with subscriptions, like iPhones and Apple TVs. Beforehand, Apple had to spread out revenue from those items "over their estimated economic lives" (something it made a point to mention in every financial statement). Now, that doesn’t seem to be a requirement.

Yesterday’s press release conveniently includes figures for the first quarter of Apple’s previous fiscal year computed using the new rules, so we can contrast and compare. There’s no such data for the fourth quarter. However, Apple did provide, for reference only, Q4FY09 numbers not compliant with the subscription accounting rule in its October 19 statement. We’ve included those numbers below followed by an asterisk.

  Q1FY09 Q4FY09 Q1FY10
Revenue $11.88 billion  $12.25 billion* $15.68 billion
Net profit $2.26 billion  $2.85 billion* $3.38 billion
Gross margin 37.9%  N/A 40.9%

Thankfully, Apple hasn’t changed how it accounts for products shipments—to our knowledge, at least. Mac and iPhone sales were particularly strong, but iPods shed some of their popularity:

  Q1FY09 Q4FY09 Q1FY10
Macs 2.52 million 3.05 million 3.36 million
iPods 22.7 million 10.2 million 21 million
iPhones 4.4 million 7.4 million 8.7 million

Looking forward to the second quarter of its 2010 fiscal year (which corresponds loosely to the first calendar quarter), Apple expects its revenue to dip to $11-11.4 billion.

The press release also includes another teaser for that January 27 press event, in the form of a statement from CEO Steve Jobs: "The new products we are planning to release this year are very strong, starting this week with a major new product that we’re really excited about." iSlate, anyone?

Comments closed
    • wira020
    • 10 years ago

    Apple TAX!.. where’s that guy who usually says that in apple news?…

    btw, i dont get it how apple fans can become so jolly when apple post enormous profit when these profit actually came out of their pocket… why?.. i’m not saying they shouldnt, but why at such level shown here…

    In my cheapskate principle… i buy things that does the job… i dont need the fruity logo to get laid nor will i need apps for me to taste happiness… heck, there is no such thing as mac user are cool guys or pc user are nerds… this pc vs mac stuffs is getting boring…

      • jdaven
      • 10 years ago

      He grew up! 🙂

    • thermistor
    • 10 years ago

    #8…Money-bags Daddy Warbucks liberal here. I’m totally in favor of everyone on the forum being able to afford “overpriced” Apple products. Pardon me while I light up this 5-pound Havana and suck down some Beluga caviar. Pass the scones, Mr. Jobs, if you please.

      • ludi
      • 10 years ago

      Say, don’t forget to wash your hands with a fifth of Armadale before reaching for the toast points. It would be a shame if that caviar got corrupted by vulgar skin oils you may have accidentally encountered while repressing the proletariat.

    • blastdoor
    • 10 years ago

    The mac numbers are just amazing. At the beginning of last year pundits were falling over themselves to insist that Apple HAD to release a netbook and/or slash Mac prices in order to keep Mac sales up. Clearly that was incorrect.

    • leor
    • 10 years ago

    the best stuff out there attracts the most haters.

    and we all know haters love to hate.

      • MadManOriginal
      • 10 years ago

      And fanboys love to fawn :shrug: The personal identification with a corporate entity whose sole purpose is to make a profit selling stuff is quite rediculous all around.

    • jdaven
    • 10 years ago

    Lol! Most of you guys will never get it. Microsoft is just groaning at the fact that their most loyal fans are just building cheap PCs in their mom’s basement using an OEM or pirated copy of Windows.

    Steve Jobs is freakin’ brilliant. I know you guys are going to flame me for that but I don’t care. In just a decade they went from making less than $5 billion per year to over $50 billion per year. That’s an order of magnitude increase.

    Call us iSheep, yell ‘apple tax’ and ‘reality distortion field’ at the top of your lungs all you want. It won’t change a thing. It won’t stop Apple from making more great products and raking in the cash. Right now is the internet boom for Apple and they created it all by themselves even during a recession for god’s sake. Just look at their stock over the last 10 years.

    Freakin’ amazing. You won’t see any other IT company have those kind of gains in the last 5 years except for Google (which became public 5 years ago).

    And now they are going to release a tablet that will make them even more money and mind/market share. Guys you really need to look past the old marketing wars of the 90’s. The PC vs. Mac war is over because there never was such a thing. It was sold to you by accountants in tall skyscrapers while watching their stocks go up half a tick.

    Okay I’m done. Start the flaming.

      • PainIs4ThaWeak
      • 10 years ago

      l[<"Right now is the internet boom for Apple..."<]l You mean the sound the MacBooks make as their owners toss them to the floor with frustration when they can't get a WiFi signal at Starbucks??

        • StashTheVampede
        • 10 years ago

        Why wouldn’t they be able to connect via Wifi?

          • jdaven
          • 10 years ago

          He’s making fun of the fact that the Aluminum shell of Macbooks can weaken Wifi signals. It’s not as bad as he or I make it sound. You can connect just fine at Starbucks with a Macbook.

      • provoko
      • 10 years ago

      Uh, this is why people hate apple fan boys.

      A product and its corporation should be completely separated when it comes to your opinions and decisions about that product.

      You wouldn’t say the things you were saying if Apple didn’t convince you otherwise.

      I would say that Steve jobs is brilliant because he can consistantly induce applegasims. While Bill Gates only did it.. what, once, for Windows 95. But Microsoft is a good example of a company that doesn’t need to induce orgasms to make money.

      But no one should give a big fat ShT any company as long as they pick products with good customer service.

        • jdaven
        • 10 years ago

        Lol! Yeah I’m being a little fanboish but Apple is doing a good job. And no, it wasn’t just Windows 95 that MS fanbois go all crazy for. Every single windows release prompts about 50% of the shortbread stories here at TR to be about that release. Every shortbread of every day is dominate by MS news in the software section.

        It’s funny how a fanboi of something else can’t see that they are a fanboi of that something. I freely admit I am a little too crazy about Apple but I see it. Thinking that there was only frenzy for the release of Windows 95 is the ultimate example of denial I can think of.

        Just off the top of my head in the last year, people at this site have gone crazy over Windows 7, Zune and the Xbox 360. But hey it’s okay. Just don’t get too carried away and I’ll try to restrain myself too. 😉

          • Kurotetsu
          • 10 years ago

          l[

          • provoko
          • 10 years ago

          I don’t have any denial. I’m saying apple generates more excitement over their products than microsoft does. WinME and bluescreens were the end of that excitement in my opinion. Of course that damn spinning rainbow on macs gives me more anger than a bluescreen, but to each his own.

        • poulpy
        • 10 years ago

        q[

          • EsotericLord
          • 10 years ago

          l[

    • dpaus
    • 10 years ago

    From the headline, I thought that the IRS had passed new guidelines allowing the use of Reality Distortion Fields in accounting statements….

      • smilingcrow
      • 10 years ago

      “From the headline, I thought that the IRS had passed new guidelines allowing the use of Reality Distortion Fields in accounting statements”

      LOL. Unfortunately the financial markets as a whole have been living under their own reality distortion fields that have screwed us all over.

        • designerfx
        • 10 years ago

        yup. It’s quite easy for any company to record their worst year ever as a profit, and likewise it’s easy for any company to make their profits look amazing when they’re barely breaking even.

    • nonegatives
    • 10 years ago

    When is Obama going to put limits on what Apple can do? 40% profit should be considered too much by the liberals, and Steve Jobs should only make $100,000/year.

      • End User
      • 10 years ago

      Steve’s salary is $1.

        • derFunkenstein
        • 10 years ago

        + stock options

          • Nitrodist
          • 10 years ago

          Still, $1!

          • TurtlePerson2
          • 10 years ago

          Sounds like a bonus!!!

    • derFunkenstein
    • 10 years ago

    I guess this goes to show that humans value buying products that have some sort of tangible benefit over the rest, even during a recession.

      • BoBzeBuilder
      • 10 years ago

      Shiny white plastic = tangible benefit.

        • Hattig
        • 10 years ago

        Apart from the econoMacBook, what Apple devices use white plastic?

        Apple is a money making behemoth.

          • derFunkenstein
          • 10 years ago

          The mini has a bit of plastic on the top and bottom. 😉

    • Vasilyfav
    • 10 years ago

    I guess this goes to show that humans value buying overpriced shiney crap even during a recession.

      • poulpy
      • 10 years ago

      Sadly you forgot to mention “Apple Tax” to complete the Standard Apple Bashing(TM).

      • KoolAidMan
      • 10 years ago

      Nope, just that people that can afford Apple products haven’t been hit as hard as the demographic that has flocked to netbooks.

      Thanks the lord its been that way too, my new 27″ iMac is frigging amazing. I’ll be replacing the 24″ display on my PC as soon as NEC releases their 27″ that uses the same IPS panel as the iMac, whenever that is.

        • Kulith
        • 10 years ago

        l[

          • KoolAidMan
          • 10 years ago

          If we’re talking about iMacs (especially because of their IPS displays) and Macbook Pros, absolutely, those are premium products and priced accordingly.

          That said, if we’re talking about iPhones and iPods then its a different story. The Zune MSRP is about the same as the iPod Classic and Nano, and the $100-$300 pricetag of the iPhone is in the same range as Blackberry, Palm, or Android smartphones. From that POV they are still in the range of the majority of consumers, even those hit hard by this crummy economy.

            • grantmeaname
            • 10 years ago

            the majority of consumers cannot afford smartphones at all.

            • KoolAidMan
            • 10 years ago

            And there are clearly enough to keep it a profitable business. RIMM and AAPL are making money hand over fist with smartphones. People who can’t afford them simply don’t matter.

          • derFunkenstein
          • 10 years ago

          Especially since I think alot of them are the same people. An iMac and a cheap netbook to take to Panera.

      • End User
      • 10 years ago

      I’d hardly call their products “crap”.

        • PainIs4ThaWeak
        • 10 years ago

        l[

          • End User
          • 10 years ago

          I think you live in your own reality distortion field.

            • PainIs4ThaWeak
            • 10 years ago

            Perfect, now your iSticks and iStones can’t hurt me 🙂

            • End User
            • 10 years ago

            I rest my case.

      • StashTheVampede
      • 10 years ago

      Humans value buying things they like, no matter what time. You consider it overpriced, others clearly do not.

        • provoko
        • 10 years ago

        Definition of overpriced = Priced higher than what it is really worth.

        Well what is a mac really worth? We can start by just looking at a pc that has the same hardware as a mac and you’ll find a tremendous difference in price. Ok, lets say you can’t look past pcs being comparable to macs; well I ask you to look at the price of all the parts in a mac, the retail price of the OS, and a standard warranty VS the actual price Apple sells it for and you’ll find a horrible difference. I’m not talking about profit or the cost of someone else building it for, no, there’s a big difference. Take a Dell, HP, or Toshiba computer, price the parts vs what they actually sell it for and you’ll be pleasantly surprised. Not with Apple.

        I guess cool costs a lot, that’s why people buy Jordans.

          • StashTheVampede
          • 10 years ago

          It’s all subjective, right?

          Ferrari’s are overpriced, right? Corvettes break better than Ferrari’s and yet aren’t as priced nearly as high. You can’t put a price on happy. If you are happy to spend on Apple, why get bashed? You walk out with a smile on your face and go on.

          Bashing Apple or Windows gets no where. Everyone Mac user I know has Windows either in a VM or bootcamping. In the end, I hate aspects of PC and Macs — they truly aren’t perfect machines.

            • provoko
            • 10 years ago

            Ferraris are overpriced cars, so are BMWs and Lexus. They’re companies that are telling you that if you want want POWER and COOL you’ll buy their cars.

            I agree with your perspective, if it makes you happy go and buy them. Also, both aren’t perfect and I wish there was a better OS (not talking about linux here). But when you take all the factors, why not just go with the lowest priced computer? I can’t stand people that own a Ferrari and drive it 1 mile on sunday then they hop into their Hyundai the rest of the week or people who keep their engagement ring in a safe deposit box and take it out for special occasions. Isn’t there something wrong here?

            The people with the macbooks that have all the foam in between them and underneath that are so scared by scratching it know they bought something that costs way too much money; you might as well put it in a safe deposit box and stop worrying, hahaha.

            • ludi
            • 10 years ago

            “Corvettes break better than Ferrari’s”

            I know what you meant, but that is still funny.

          • tay
          • 10 years ago

          Please find a 27″ IPS, LED backlit display all in one PC with i5.

            • KoolAidMan
            • 10 years ago

            The 27″ IPS in the iMac makes up most of its cost. Its a tremendous value from that point of view. If you don’t value good displays and are happy with a cheap TN from Fry’s then clearly its a different story.

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