Free bumpers sting Apple for $175 million
Apple was keen to highlight just how well it had been doing with regards to sales during its Q3 earnings conference call, but it also revealed the true cost of antennagate - $175 million (or £114 million of the Queen's money).
Apple's CFO Peter Oppenheimer said that this was how much giving away free bumpers would cost the company.
"We will be deferring revenue corresponding to the value of the cases that have yet to be ordered by or delivered to eligible customers under this offer as of the end of the September quarter", he said.
“We expect the cost to be $175 million and we expect the September quarter deferral to be recorded as revenue in the December quarter”.
$175 million may sound a big figure, but in context it is peanuts. After all, analysts predicted that a mass recall of the troublesome iPhone 4 would cost the company $1.5 billion.
Still, it's $175 million that Apple won't be happy to lose. No new turtle-necks for Jobs for a while then.