3 Hidden Metrics For Apple Earnings

1. Greater China Revenue With Retail

• How to find it: Usually given on the conference call.

• Apple’s reported Greater China segment does not include retail operations.

• As Apple expands retail stores in China in the coming years, this total figure will become increasingly important.

1. Greater China Revenue With Retail

2. iTunes Billings• How to find it: Always given on the

conference call.• iTunes billings continue to rise to new records

each quarter, in turn leading to records in recognized iTunes revenue.

• Strong billings indicate a healthy and vibrant ecosystem, reinforcing device sales.

2. iTunes Billings

3. iPhone ASP• How to find it: Manually divide iPhone revenue by

iPhone units.• iPhone ASP illustrates Apple’s ability to maintain pricing

power.• Declining ASP could be considered negative, but recent

declines are actually positive because they are driven by strong iPhone 4s sales in emerging markets.

• Investors have been wanting Apple to grow in emerging markets, and falling ASP is a natural consequence.

3. iPhone ASP

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