Apple's Q1 2009 Earnings Predictions

Apple will release their earnings for the first quarter of the 2009 fiscal year Wednesday afternoon. A number of reports circulating over the past couple of days lend some insight into what we might be able to expect.

AppleInsider discusses a report from Piper Jaffray analyst Gene Munster, who predicts based on data from research firm NPD that Apple sold between 2.45 million and 2.55 million Macs in the quarter for a gain of 6-10% over the year-ago quarter. Munster specifically points to an approximately 4% gain in year-over-year Mac sales for the month of December, rebounding from flat or slightly negative growth during November, as a positive sign. Munster also predicts iPod sales in the range of 19 million to 20 million units, above Wall Street's expectations of approximately 18.6 million units.

Fortune, on the other hand, contrasts Munster's view with that of Bernstein Research analyst Toni Sacconaghi, who views much of the NPD data negatively. The major difference between Munster and Sacconaghi's predictions, however, appears in their iPhone numbers, for which NPD does not provide data. Munster predicts quarterly iPhone sales of 6.4 million, while Sacconaghi predicts sales in the range of 3.5 million to 4 million.

The wild card that may be missed by many investors, as thoroughly described by Andy Zaky at Bullish Cross, is Apple's use of subscription-based accounting for iPhone revenue. The practice, which results in Apple recognizing revenue from a particular iPhone sale over the two-year term of the service contract, resulted in significantly lower revenue numbers for last quarter than would have otherwise been seen.

As Zaky points out (and Fortune summarizes), this discrepancy has resulted in Apple releasing two sets of earnings number, one "official" one calculated according to Generally Accepted Accounting Principles (GAAP) using subscription-based accounting of iPhone sales and one calculated using non-GAAP revenue recognizing each iPhone purchase entirely within the quarter in which the sale was made. Because most analysts base their reports on GAAP numbers, many are ignoring the impact of fractional revenue being carried over from sales made in earlier quarters. Consequently, while Q1 2009 most likely saw a decline in iPhone sales from the previous quarter, the impact of this decline on Apple's revenue numbers should be mitigated by this subscription-based accounting.

Top Stories

iPhone 12 Pro in Graphite and iPhone 12 in Blue Shown Off in Unboxing Videos

Monday October 19, 2020 8:20 am PDT by
While the iPhone 12 Pro does not launch until Friday, we now have an early unboxing video of the device courtesy of Twitter account DuanRui, providing a closer look at the shiny new flat-edge design and sleek Graphite color option. Ben Geskin re-uploaded the unboxing video to YouTube, which we've embedded below: Geskin has also uploaded an unboxing video of the iPhone 12 in Blue: ...

Kuo: iPhone 12 Pro Demand Higher Than Expected

Sunday October 18, 2020 10:39 pm PDT by
TF International Securities analyst Ming-Chi Kuo released a research note this morning detailing what he's seen with the volume of iPhone 12 and iPhone 12 Pro pre-orders in the first weekend of sales. Kuo had previously indicated that Apple's estimated shipment allocations for the new iPhone models placed the iPhone 12 at the top with 40-45% of inventory allocation (up from 15-20%). However, ...

Apple's New MagSafe Charger and Cases Begin Arriving to Customers

Saturday October 17, 2020 10:10 am PDT by
Apple's new MagSafe charger and cases have begun arriving to some customers earlier than expected, and images of the accessories have started to surface on Twitter. The photos provide a first look at the products in real-world use. As of writing, some MagSafe cases are also available for pickup at select Apple Stores in countries like the United States, Canada, and Germany. Filip...

HomePod Mini Cable is Non-Detachable, Ends With USB-C Connector for Use With Included 20W Power Adapter

Friday October 16, 2020 12:45 pm PDT by
While not detailed in the tech specs, MacRumors can confirm that Apple's new HomePod mini features a non-detachable power cable that ends with a USB-C connector for use with the 20W power adapter included in the box. With the switch to USB-C, the HomePod mini could potentially be powered by a wider range of devices and peripherals, ranging from MacBooks to USB-C battery packs with enough...

Samsung Mocks Apple for Ditching Power Adapters With iPhone 12 Lineup

Thursday October 15, 2020 11:51 am PDT by
Samsung on its social channels is mocking Apple for removing the power adapter from the iPhone 12 lineup and other iPhone models, pointing out the fact that the Samsung Galaxy smartphones continue to ship with a power adapter. "Included with your Galaxy," reads a Samsung Facebook post that features a picture of a power adapter. Apple notably is no longer providing power adapters or...

New Google App Feature Lets You Hum a Song to Search for It

Saturday October 17, 2020 4:05 am PDT by
Google has added a new feature to its Search app that allows you to hum a song that's stuck in your head, and then use the company's machine learning algorithm to try and identify it. In the Google app or using the Google Search widget, tap the mic icon and say "what's this song?" or click the "Search a song" button. Then start humming the tune for 10-15 seconds. When you're done, the...

Brazilian Certifications Suggest iPhone 12 Mini Features 2,227mAh Battery and iPhone 12 Has 2,815mAh Battery

Friday October 16, 2020 1:08 pm PDT by
Apple's iPhone mini has the shortest battery life out of all the iPhones in the iPhone 12 lineup due to its small size, but Apple has not provided public information about the battery's capacity. A regulatory filing from Brazil, however, suggests the iPhone 12 mini has a battery capacity of 2,227mAh. The same regulatory information says the iPhone 12 features a 2,815mAh battery, which is...

iPhone 12 Pro Pre-Orders Already Selling Out With Delivery Times Pushing Into November

Friday October 16, 2020 6:35 am PDT by
Apple today opened pre-orders for the 6.1-inch models of the iPhone 12 and iPhone 12 Pro through its website and the Apple Store app, and estimated delivery times are already slipping into November for select configurations in the United States. Customers ordering a SIM-free/Pacific Blue/128GB version of the iPhone 12 Pro, for example, are already facing an estimated delivery window of...

Hands-On With Apple's MagSafe Charger for iPhone 12

Monday October 19, 2020 11:54 am PDT by
Alongside the new iPhone 12 models, Apple introduced a MagSafe charger that attaches to the back of the iPhones using magnets embedded both in the charger and in the iPhone. It allows for speedier charging and paves the way for a portless iPhone in the future. MagSafe chargers are shipping out and are in some Apple retail locations now, and we picked one up to check it out. Subscribe to the ...

Apple Offering Free AirPods With iPhone 11 Purchase in India as Part of Diwali Celebration

Friday October 16, 2020 12:35 pm PDT by
Apple today launched a new Diwali promotion in India that will see the company providing customers with a set of AirPods with the purchase of any iPhone 11 model. The new iPhone 12 models are not part of the promotion. Apple is offering the standard AirPods With Charging Case free with purchase, but customers can choose to upgrade to the AirPods with Wireless Charging Case or the AirPods Pro....