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Apple Disputes Goldman Sachs Analyst Report Claiming Free Year of Apple TV+ Will Impact Earnings
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There's a 0% chance the simple way you described will be how the accounting actually works.
Services (like cloud, Maps, iOS, etc) are already bundled within the price of an iPhone and have their own accounting rules. I can tell you working in finance that these things are literally too complicated for anyone except the team working on them (and even then it's hard) to fully understand.
I'm not attacking you either. I'm simply saying Apple has 100% thought this through and will not let this impact their hardware margins in any material way.
In fact, their own guidance suggests strong revenues and stable margins.
You’re right that I don’t know if he did or not, but given Apple’s statement that they don’t believe it will be impactful I assume that they’ve done the accounting and run it by E&Y without issue. If not they’d be fools to put out the statement that they did.
accounting rules. You offer someone an incentive, you essentially give them a 'gift card' for the retail value of the service you're now offering for free.
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No I agree with you. I think this is a stretch. I'm responding to OP's comment re: ecosystem.
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I agree with you. I think what he's saying is a stretch. I was responding to OP's comment re: ecosystem.
Yes, yes of course there is a value attached to it somewhere...but the methods you can use to "spread" it out, bundle it, and move other variables are literally endless.
If you ever think you understand accounting, go read one of GE's annual reports. The number of ways to report a number is shockingly huge. I don't even think GE understands what they did.
So are you only eligable for the free year if you buy a device after Apple TV + launches? Because I've bought a few apple devices this year including a MBA a month or two ago.
As awkward as Apple and Samsung? One side they're suing each other for $6Billion dollars and on the other, Apple is using their displays in their iPhones?
This is how you manipulate a stock price.
By the way, the 26% is rather peculiar and Goldman should be heavily sanctioned when that doesn't occur. The Op-Ed division should be fined billions for it. That ``specific %'' cost Apple billions in valuation today.
By the way, the 26% is rather peculiar and Goldman should be heavily sanctioned when that doesn't occur. The Op-Ed division should be fined billions for it. That ``specific %'' cost Apple billions in valuation today.
You haven’t even seen the content yet but you crap on it. How cute.
You have to spend $ to make $: something Apple is finally realizing they have to do without gouging existing and potential customers.
The footnote on Apple's TV+ marketing webpage says the following.
"... $4.99/month after free trial. One subscription per Family Sharing group. Offer good for 3 months after eligible device activation, starting November 1, 2019. Plan automatically renews until cancelled. Restrictions and other terms apply. ..."
https://www.apple.com/apple-tv-plus/
So have a 3 month window to activate after you buy. People who buy now should be covered by that windows. If Apple does the proper thing then they wouldn't start the 3 month window for folks now until Nov 2019. ( over a month where didn't have the option to use it if buy something today. )
But what the Analyst missed the boat completely on tis that after the 3 months the offer is gone. Apple won't be able to 'take' $60 for something they never provided.
It isn't entire clear. ( at least from what I've seen so far ).
"... $4.99/month after free trial. One subscription per Family Sharing group. Offer good for 3 months after eligible device activation, starting November 1, 2019. Plan automatically renews until cancelled. Restrictions and other terms apply. ..."
https://www.apple.com/apple-tv-plus/
Day the you claim the subscription. They won't automatically turn it in. if you don't claim it in 3 moths it disappears. ( this latter is a major goof by the analyst. That is going to make a difference. )
So one subscription per family group. That is a somewhat suggestive as can't claim multiple of these. ( or at least that person X can't get it if person Y on family group already has. )
Someone felt like shorting the stock below the $1 trillion mark. Then they'll make it up by going bullish and driving it back up above the 1 trillion mark. Up and down up and down. It's how they make money from Wall Street.
Don’t take what he said literally.
The content could be excellent, but if Apple’s library is small, a certain percentage of people won’t value the service as being worth the full subscription price for a full year.
Watch for a year for free, switch over to Netflix/Hulu/Prime for a while, then when your series you like has episodes, binge them on AppleTV+ for $5 that year.
This is how it works for all the streaming services. A certain percentage of customers are nomads, so you estimate/calculate the ‘real’ amount the population values your service.
Family Sharing might be the simple solution - add your parents to your family plan if you have one.
Maybe there are other ways - but I don't know. For apps, you can "gift" them, so maybe this can be gifted as well.
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Yeah I had the same sort of question - 2 iPhones and 1 Apple Watch means 3 years of Apple TV+ ?
I mean - it IS a $60 bonus value - but I would bet that they have some fine print that says "One Per Family, Per Year, Regardless of how many devices you bought"