The Mystery of Apple, Inc.'s One-Time Services Boost
Apple (NASDAQ: AAPL) reported fiscal fourth quarter earnings last week, and it was a blockbuster release both in terms of the September quarter as well as guidance for the December quarter. However, there was one big question mark buried within the release: a one-time positive adjustment of $640 million that was booked in the services segment.
Total services revenue jumped 34% to hit a new quarterly record of $8.5 billion, and $640 million is nothing to sneeze at, representing 7.5% of services revenue in the quarter. Apple's explanation was incredibly vague, merely stating: "Services revenue in the fourth quarter of 2017 included a favorable one-time adjustment of $640 million due to a change in estimate based on the availability of additional supporting information."
Image source: Apple.
Source: Fool.com
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