How the iPhone and Poor Apple Management Have Contributed to the Downfall of Apple

In April of 2007, Apple CFO Peter Oppenheimer announced that Apple (AAPL) would be using what is commonly referred to as the “subscription method of accounting” for sales of the iPhone, where the sales revenue from the iPhone is deferred and recognized over a 24-month period instead of at the point of sale. That decision and the underlying reasons supporting it would go down as being some of the worst in Apple’s history.

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