Category: Strategy

…why big corporations just HAVE TO release something years ahead of its time?

On the one hand, it creates suspense, but on another hand, it prevents us a consumers from buying other products since we’re waiting for that particular product.

For example, Apple starts marketing the iPad half a year before it is actually released, and thus we as loyal consumers will wait for the iPad and refrain ourselves from buying other products.

I don’t really see how applicable this is in the movie industry though….you release a movie 4 months before it’s released, but that’s not really going to stop me from watching other movies. I am speculating that with one-time products, the aim really IS to build up suspense rather than to prevent competitors from profiting.

Which reminds me….

it DOES look pretty good

Everyone knows Apple make a couple billion of dollars every year, but how many is ‘couple’ exactly?

Do you recognize this?:

Analysts have predicted Apple’s 2010 revenue to be around 11 billion, but methods inconsistent with GAAP have raised it to a startling 15.6 billion. FASB say that the new computation method has given Apple over 3.5 billion dollars of a boost.

It is somewhat amazing that these accounting methods have given Apple such a huge boost. We see in our Financial Accounting Class what a deferred revenue is, but to see its significance in the work-force is a stroke of insight for me. Revenue generated from the iPhone is up by a startling 90%!

In my opinion, these accounting changes for Apple are quite fair. It provides a much more accurate picture as to why Apple’s cash stock is so high. It is pleasing to see this change.