Why do you think Apple introduced the iPhone Upgrade Program?

Attached please find the case.

Please read the case and answer the following questions:

1) Why do you think Apple introduced the iPhone Upgrade Program? What value might Apple be adding from a customer’s perspective?

2) How do you think the Upgrade Program will affect how revenue is recognized at Apple compared to iPhones sold outside of this program? How would the change affect the income statement and balance sheet? In answering this question, focus on case Exhibits 3, 5, and 6.

The writeup should be 1000 words.

attachment
Accountingfortheiphoneupgradeprogramcase.pdf

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