| HBS Case Collection
(Revised from original 2010 version)
Accounting for the iPhone at Apple Inc.
Apple initially recognized revenue associated with its iPhone product using subscription accounting. However, in 2008, the company started providing non-GAAP supplemental numbers where substantially all of the revenue was recognized upfront. Market participants' reactions to the disclosure were mixed. Was Apple "right" in arguing that subscription accounting was inadequate for the iPhone?
Keywords: Corporate Disclosure;
Brochet, Francois, Krishna G. Palepu, and Lauren Barley. "Accounting for the iPhone at Apple Inc." Harvard Business School Case 111-003, February 2011. (Revised from original September 2010 version.)