Air quality hitting Apple overall gross margin?

[aristobrat]

I think you are just cursed.

Or perhaps karma read some of his prior posts here...

After his diatribe about how much better Rev B was going to be and how people should just wait, I was simply amazed when I read he bought another Air.

 

[kockgunner]

So I'm wondering where does the cost of all the returns go? My accounting class is 15 years ago so I am very rusty on my T-accounts.

Let's say you've been through 3 MBA's and kept one (you all know who you are). Parts were purchased for 3 and labor was expended for 3 but revenue can only be counted for one.

I suppose the MBA could be put back into an inventory account because it will be sold later but is the expense of building it also put back into an cost of inventory account? I guess cost of goods would be appropriately reduced? Yes or no? Do we have an accountant on the board?

Also, what about the extra shipping and other costs that Apple has to eat?

Later they will have to take in the cost of refurbishment but I don't think that would have appeared on this statement yet.

I'm not sure about the shipping thing but the returned airs just go to the refurb store i believe. that is what the restocking fee is for too. Apple can sell the air for a lower price at the refurb store but they dont really lose anything since they took the restocking fee from the previous owner.

 

[Scott6666]

I'm not sure about the shipping thing but the returned airs just go to the refurb store i believe. that is what the restocking fee is for too. Apple can sell the air for a lower price at the refurb store but they dont really lose anything since they took the restocking fee from the previous owner.

That's a good point. I had forgotten about that!

Except that may only hold for units that are not defective. If they are defective they seem to be taking them back without the restocking fee.

Most people on the boards seem to indicate they are not getting hit with the restocking fee.