Green iPhone Bumper

Since the antenna debacle is kind of calming down, I thought I would revive it by throwing some big numbers at you.

During today’s Q3 earnings conference call, Apple revealed that it predicts that the free iPhone 4 cases and bumpers will result in $175 million in deferred revenue. It hits Apple’s books as a liability — essentially a debt or a negative balance on the bottom line. Apple says that it will expense the cost of the cases, which will help mitigate the overall cost on the bottom line.

In other words, Apple is accounting for $175 million in lost revenue on its Q4 balance sheet, all due to free bumpers and cases.

It sure sounds like a lot of money but when you think about it, it’s actually not much compared to what the antenna issue could have really cost Apple if they had kept being silent about it.

[Mashable]

  • Eric

    oh wtf it does not cost apple that much to make those bumpers and for them to give cases of their choice out. Apple makes BILLIONS of dollars…suck it up apple its the least you can do in this situation.

  • SpideyRules

    It’s funny, because the cost of producing these is probably about 30 cents each, so it’s not THAT big of a loss, but they have to take the amount of lost revenue out of their projections.

    • And also take into account that they will not only give away Bumpers. They will also give third-party cases. These don’t cost Apple $0.30…

  • Vihn87unleaded

    Cost Apple $3 bucks for every bumper. But they write it off as full price. Win win for Apple. I4 user, we been screw.

  • Kevin

    I heard from a former Apple employee that the bumpers actually cost only $3 each to produce. The numbers they’re announcing is taking into account the enormous profit they make from the sale of the bumpers, or in this case, the profit they’re losing out on.

  • SoCoMagNuM

    its business model. gotta take a loss to make a gain.

  • All things considered, $175 million is nothing considering the huge profit margin on iPhone 4.

  • Boldziga

    Lol it’s probably true that it only costs $3 to make an iPhone case, but way about shipping and all that other stuff, plus apple can’t make enough bumpers for like 4 million ppl lol

  • Wow that´s a lot of money!

  • Eventhough 175$ may sounds like a lot of money, it is nothing compared to the sales from the iPhone 4 and soon the iPhone 5!

  • 175 usd is a lot of money but apple have the money..;)

  • Maybe you think it’s alot of money, but if it’s in Apples perspective, it’s like one dollar or something.. 🙂

  • Maybe the prize seems high, but then imagine the amount of covers!

  • nice apple have solved the problem whit iphone 4s

  • now whit the iphone 4s apple have solved the problem. i love my iphone 4s.