tag:blogger.com,1999:blog-2991101600248617596.post3368811557860677443..comments2023-11-14T02:15:06.159-06:00Comments on Financial Alchemist: Warranty Expense Crimps Apple's Margins in 4Q10Turley Mullerhttp://www.blogger.com/profile/01407515956935491747noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2991101600248617596.post-26211060286207075042010-10-30T15:59:53.303-05:002010-10-30T15:59:53.303-05:00The antenna issue was covered with giving away fre...The antenna issue was covered with giving away free cases wouldn't be included in warranty expense nTurley Mullerhttps://www.blogger.com/profile/01407515956935491747noreply@blogger.comtag:blogger.com,1999:blog-2991101600248617596.post-23616626733428296062010-10-30T15:54:09.277-05:002010-10-30T15:54:09.277-05:00Any idea why Q4 cost of claims were so high, possi...Any idea why Q4 cost of claims were so high, possibly the antennae fix/refund? Hopefully not IPad. I would assume AAPL is looking to carry a higher reserve going forward and that they expect a big number next quarter also.Unknownhttps://www.blogger.com/profile/18372146516796433565noreply@blogger.comtag:blogger.com,1999:blog-2991101600248617596.post-11631931097580714332010-10-29T08:47:34.022-05:002010-10-29T08:47:34.022-05:00Superb work as always Turley! This is real insight...Superb work as always Turley! This is real insight that makes a significant impact to the body of knowledge.<br /><br />Did we see similar trends during the introductions of other devices? Or, does the sheer scale and number of new products help differentiate what we are seeing today?Ted Cranmorenoreply@blogger.comtag:blogger.com,1999:blog-2991101600248617596.post-63217045637184153932010-10-28T23:50:13.744-05:002010-10-28T23:50:13.744-05:00Turley,
Excellent find. But I think we cant be su...Turley,<br /><br />Excellent find. But I think we cant be sure if the charges to the reserve will bounce back to normal levels. The last qtr is ~85% more than the previous qtr which itself was the highest charge in the last 7 qtrs. So it could be the beginning of a trend. Not sure if it has got to do with the iphone4 teething issues or the ipad.Senith @ finance tutorhttp://www.graduatetutor.com/finance-tutor.phpnoreply@blogger.comtag:blogger.com,1999:blog-2991101600248617596.post-70244970980475175922010-10-28T13:42:14.831-05:002010-10-28T13:42:14.831-05:00I expect we will. I don't think the cost of cl...I expect we will. I don't think the cost of claims, (charges to the reserve) will catch up, thus Apple will have more that sufficient reserves allowing them to book lower warranty expense to earnings in the periods ahead.Turley Mullerhttps://www.blogger.com/profile/01407515956935491747noreply@blogger.comtag:blogger.com,1999:blog-2991101600248617596.post-85319627366382649892010-10-28T13:39:18.129-05:002010-10-28T13:39:18.129-05:00Nice catch!
I posted: http://www.asymco.com/2010/...Nice catch! <br />I posted: http://www.asymco.com/2010/10/28/turley-muller-warranty-expense-crimps-apples-margins-in-4q10/<br /><br />I wonder what the chances are that we might see a surprise on the upside in margins this Q.Horace Dediuhttp://www.asymco.comnoreply@blogger.com