Impact of iPhone Upgrade Program on Revenue Recognition and Investor Decision-making for Apple Inc

ACCOUNTING
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Apple introduced iPhone upgrade program.................................................................................3
Impact of upgrade program over revenue recognition................................................................5
Impact of upgrade program over investor decision-making........................................................7
Apple's financial going forward to assess the success of the upgrade program..........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business expansion is demonstrated as enhancement of the business operations entertain
by the business venture. The project is based on the case study of the Apple Inc in context to
launching its new product. The organisation is established in the year 1976. Headquarter of the
company is located in California, United States. Company is currently serving at a global level
with holding approximately 514 retail stores at different geographical landmarks across the
world. The aim of the study is to provide a conceptual detail in respect to practice adopted by
business entity for achieving success against the product launch. Henceforth, report will
emphasis over the new iPhone upgrade program launched by the Apple Company. The core
values new extension will allocate to the company will further be demonstrated under this
project. Details about the revenue recognition will also provide. Furthermore, financial aspects
related to the new program will also come under observation in this report.
MAIN BODY
Apple introduced iPhone upgrade program
Apple Inc Company has launched a new iPhone upgrade program to attract more number
of customers at a global level to buy products of company. This program is allow the customers
to purchase the iPhone in a whole new or modified way. In the year 2015 company has launched
iPhone 6 and iPhone 6s models and at the same time the organisation has also launched to the
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new program. This program made payment more convenient by allowing the suer a 24 months
loan facility to repay the value of the product with the alliance of Citizens Bank in America ( Lee
and Mohammad, 2020, PP 125). This program allowed customers top switch towards the
wireless carriers based on the contract terms. Extended warranty and support service also
allocated to customers under the scheme. In this scheme post one-year tenure customers also get
to switch to a new iPhone with against a feasible payment options of 2 years’ payment
obligation. This program was launched by aiming one is to improve the feasibility of the iPhone
brand in term of payment accessibility and also to improve the service area of the organization.
This program facilitated customers take easy payment with the use of easy monthly instalment
facilitates. The brand categorizes into the luxury brand category that allow the organisation to
keep the prices high in comparison to other competitors in the respective target market. The price
structure of product target to upper class economic background and the upper middle class
category of customer base. The new policies of the organisation could further support the
business venture to attract more number of customers in the market. This program supported the
Apple Inc Company to also approach to the lower middle class economic background as well.
Instalment payment system create a less financial burden over finances of the customers (Lv,
Wan and Wu, 2017, PP 12 - 22). UBS Analyst also quoted that the “Upgrade program is a smart
move by the company. This could make the product more like an annuity business for the
company. It has supported the company to reduce the financial burden by making a single
payment rather customers get to pay in 24 instalments. This allows extra time to arrange
resources for making the payment done.
The launch of the Upgrade program has supported the customer value as well. Earlier the
product is accessible for the limited customer but due to this program now the product become
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