Publications
Publications
- August 2016 (Revised January 2017)
- HBS Case Collection
Accounting for the iPhone Upgrade Program (A)
By: Jonas Heese, Krishna G. Palepu, H. David Sherman and Monica Baraldi
Abstract
On September 9, 2015, Apple Inc. announced the “iPhone Upgrade Program,” a new way to purchase iPhone models 6s and 6s Plus in Apple’s retail stores throughout the U.S. Next to the strategic implications of the Upgrade Program, financial analysts tried to understand the accounting implications, especially the recognition of revenue, which the Upgrade Program could have on Apple’s financials.
Analysts’ reactions to the disclosure were mixed. Was Apple’s accounting system “right” for the iPhone Upgrade Program introduced in 2015?
Analysts’ reactions to the disclosure were mixed. Was Apple’s accounting system “right” for the iPhone Upgrade Program introduced in 2015?
Keywords
Accounting; Apple Inc.; iPhone 6s; International Accounting; Electronics Industry; California; United States
Citation
Heese, Jonas, Krishna G. Palepu, H. David Sherman, and Monica Baraldi. "Accounting for the iPhone Upgrade Program (A)." Harvard Business School Case 117-020, August 2016. (Revised January 2017.)