Apple Inc (AAPL)

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10:42 AAPL AppleInsider discusses AmTech's note on Apple's earnings (99.60 +4.25) -Update-

AppleInsider reports Apple on Wednesday again showed its unparalleled ability to think and execute the unconventional, says American Technology Analyst Shaw Wu, who in a note to clients argued that EPS may no longer be the best way to value the consumer electronics maker.

Wu says there were "three notable surprises" in the co's March quarter report. Notably, its ability to capitalize in a favorable component pricing environment, strong Mac shipments despite evidence of a pause ahead of Leopard, and its grander plans with iPhone and Apple TV.

In his note to clients, the AmTech analyst argued that EPS may no longer be the right way to value the multi-directional electronics co. "In our view, Apple's move to subscription accounting in its new, high-growth business areas iPhone and Apple TV may signal that EPS is not the best way to value Apple shares," he wrote. "This is because EPS is amortized and understated on a quarterly basis while cash flow remains the same. Because of this, cash flow from operations may be a more appropriate way to value Apple shares."