Dow Jones Newswires reports that the Financial Accounting Standards Board (FASB) has given final approval to a change in accounting regulations that will allow Apple to recognize more of its iPhone and Apple TV revenue at the time of sale.
The change okayed by the Financial Accounting Standards Board helps companies that sell goods and services in bundles - like smart phones and other high-tech devices combining hardware and software, or home appliances that come with installation and service contracts.
Under current accounting rules, companies must often defer large portions of their revenue from such sales - recognizing them gradually over time, instead of immediately when the sale is made. The rule change would give companies more flexibility in crediting more of that revenue to their results upfront.
Apple has employed subscription-based accounting for its iPhone and Apple TV segments, which allows the company to provide free software updates over the two-year period considered to be the lifespan of the devices for such purposes. Apple does not use subscription-based accounting for its iPod line, a move which has required the company to charge users nominal fees for operating system updates on the iPod touch.
Apple Inc. (AAPL) is expected to be one of the major beneficiaries of the change, since it would dramatically change how the company reports revenues from its iPhone. Currently, Apple recognizes iPhone revenue over a two-year period, and said recently that overall revenues and earnings in its latest quarter would have been much higher if it didn't have to defer revenues for the iPhone and its Apple TV product. An Apple spokesman couldn't immediately be reached for comment.
While the change does not affect Apple's cash flow, it will allow the company to more accurately reflect its revenue in its quarterly financial statements. Preliminary approval of the accounting rule change had been given by a task force of the FASB early last week.
Saturday February 7, 2026 9:26 am PST by Joe Rossignol
Apple today shared an ad that shows how the upgraded Center Stage front camera on the latest iPhones improves the process of taking a group selfie.
"Watch how the new front facing camera on iPhone 17 Pro takes group selfies that automatically expand and rotate as more people come into frame," says Apple. While the ad is focused on the iPhone 17 Pro and iPhone 17 Pro Max, the regular iPhone...
Friday February 6, 2026 3:06 pm PST by Juli Clover
In the iOS 26.4 update that's coming this spring, Apple will introduce a new version of Siri that's going to overhaul how we interact with the personal assistant and what it's able to do.
The iOS 26.4 version of Siri won't work like ChatGPT or Claude, but it will rely on large language models (LLMs) and has been updated from the ground up.
Upgraded Architecture
The next-generation...
Thursday February 5, 2026 12:22 pm PST by Joe Rossignol
Apple plans to announce the iPhone 17e on Thursday, February 19, according to Macwelt, the German equivalent of Macworld.
The report, citing industry sources, is available in English on Macworld.
Apple announced the iPhone 16e on Wednesday, February 19 last year, so the iPhone 17e would be unveiled exactly one year later if this rumor is accurate. It is quite uncommon for Apple to unveil...
Monday February 9, 2026 6:24 am PST by Joe Rossignol
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps.
The feature is currently available in 13 U.S. states and Puerto Rico, and it is expected to launch in at least seven more in the future.
To set up the...
New MacBook Pro models with the M5 Pro and M5 Max chips could arrive as soon as Monday, March 2, according to Bloomberg's Mark Gurman.
In today's "Power On" newsletter, Gurman said that the release of new MacBook Pro models is tied to the release of macOS Tahoe 26.3. The launch is said to be slated for as early as the week of March 2. He added that the M4 Pro and M4 Max models on sale today...
