Question

If you are an investor in Apple, what impact to you think the Upgrade Program will have on your ability to assess Apple’s

financial performance as of 09/24/2016?

Answer 1

Apple products are known to have great life, in comparison to their peers like Samsung. Phone ages very slowly, gets update for 4-5 years and are costly as anything. A common man, when purchases a phone has a time period of 2-3 years in mind while spending $ 1000 in a phone. Upgrade programs allow customers to upgrade to the new model buy exchanging their current Apple phone. This not only gives Apple a chance to second their used phones from customers to the lower income group community but also cater to the middle and high class community by providing them with option to buy phone at cheap rates. In my view, as an investor this gives a boost to increase sales and also the customer loyalty. Programs like this gives a positive impact on assessment of financial performance as it can help in increasing revenues from not only higher sales in units but also from services like Apple music when more number of Apple phones are in market.