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  • August 2016 (Revised January 2017)
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Accounting for the iPhone Upgrade Program (A)

By: Jonas Heese, Krishna G. Palepu, H. David Sherman and Monica Baraldi
  • Format:Print
  • | Language:English
  • | Pages:22
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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?

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.)
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About The Authors

Jonas Heese

Accounting and Management
→More Publications

Krishna G. Palepu

Accounting and Management
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Related Work

    • December 2016 (Revised January 2017)
    • Faculty Research

    Accounting for the iPhone Upgrade Program (B)

    By: Jonas Heese, Krishna G. Palepu, H. David Sherman and Monica Baraldi
    • December 2016
    • Faculty Research

    Accounting for the iPhone Upgrade Program (A) and (B)

    By: Jonas Heese, Krishna G. Palepu and H. David Sherman
    • August 2016 (Revised January 2017)
    • Faculty Research

    Accounting for the iPhone Upgrade Program (A)

    By: Jonas Heese, Krishna G. Palepu, H. David Sherman and Monica Baraldi
Related Work
  • Accounting for the iPhone Upgrade Program (B) By: Jonas Heese, Krishna G. Palepu, H. David Sherman and Monica Baraldi
  • Accounting for the iPhone Upgrade Program (A) and (B) By: Jonas Heese, Krishna G. Palepu and H. David Sherman
  • Accounting for the iPhone Upgrade Program (A) By: Jonas Heese, Krishna G. Palepu, H. David Sherman and Monica Baraldi
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