This is standard stuff in normal business. I don't track stocks, but why are people amazed?

I wont be until after the 1Q09 that iphone will exceed ipod or desk tops in revenue (gaap basis) that analyst will all of a sudden get religion on the iphone. Right now they can just ignor the fact that cash from iphone will swell Apples coffers to over $45billion by 4Q09. At which time they'll all get religion again acting as though they were surprized.

Another thing, as the mature ipod geographies move from ipods to iphones, the cash flow and earnings will only accellerate possibly even beyond my predictions.

Thirdly, Apple will in 2009 release a microprocessor for the mobile platforms that will drastically reduce power consumption, integration cost and boost GM for the ipod and iphone. I expect to see a subsidized iphone at below $100 with power managment equivalent or better than ipods today. I conclude that with this platform and the content distribution of itunes, Apple will sell 130 million iphones annually which will cause cash generation rates to jump to over $8 billion per quarter making Apple the most successful technology company on the plant earth.

Finally, given my optimistic predictions, let me go further and say that this is a good time to buy Sandisk. If Apple were to triple its iphone sells, this would mean that nand consumption will sky rock as other handset makers will be forced to keep up. The current pathetic 1GB of nand releaed by the latest iphone competition is laughable. Apple median memory capacity for the iphone is 12GB and the competition is at a pethatic 1GB. These idiots are either arrogant or stupid.

And then one day, the masses woke up. Stunned by their own ignorance.

“we sold the good with the bad”

“we panicked when we should have analyzed”

“in the spirit of margin call, we sold all”

But realizing that people still wanted to eat, travel, communicate, and compute, life went on.

People were reallocated from inefficient businesses and industries to those with greater efficiencies.

Well managed companies emerged stronger than before.

And owners of the well managed businesses were rewarded for their foresight and equity.

As they said during the French revolution, “when everyone around you is losing their head, it’s a good time to keep yours”.

(and if they are selling their spare head for an attractive price, perhaps you should buy it…for two heads are better than one…especially when they are undervalued)

That's not quite correct. What Apple is 'worth' is some multiple of earnings (even in today's depressed environment, they're trading at 18.3 times earnings). AND, that's annual earnings, not quarterly. So if Apple's real earnings are $1 per quarter higher than estimates, that's $4 per year – meaning that their stock is undervalued by $73 per share.

"Analysts consistently underestimate Apple’s revenue, these investors insist, because they fail to fully account for iPhone sales" – THAT's the essence of the entire Apple story now. Focus more on factual data than the "reality distortion field" rumor mongering perpetuated by most of the web blogs (Eric, Scott Moritz, Cramer and, occasionally, here) Apple is in the midst of a major redesign of the computer – and possibly corporate – landscape. Look beyond the numbers and see the cultural phenomenon happening.

Since seeing the numbers on Tuesday I have been waiting for the explosion of news about the non-Gaap number.

A $20bn revenue company releases a new product that becomes 39% of its business in little more than one year is something every business person, journalist, analyst and business school should be pretty darn focussed on.

So why aren't they???? That is the question.