Apple accounts for the iPhone I believe monthly and the 5 million customers they now signed up this quarter...many signed up in mid August...so they may only be active for half of the quarter...so a more realistic way to look at how the iPhones hit this earnings report is to divide the 5 million phones by 16 not 8. Again as most probably only payed between 1-2 months worth on their bills.

NO matter, Apple did make at least $300 a phone plus accessories...so going forward you could look at earnings as 1.5B off of these phones minus taxes...again this extra money that is being accounted for over 24 months can be seen in books...cash is growing fast, but there is another line item for deffered revenue and that number is going to be huge for this quarter...and that number will be doubly huge next quarter and so on until we fill 2 full years of the new iPhone 3G.

Apple to grow at 50-60% per year for the next 2 years! Then back down to 30% growth. It's amazing but it's true...all from the iPhones massive appeal. And of course trickling that down to more macs and iPod purchases.