[Macworld]

Post your comments for Accounting rules behind iPod touch update charge here

[isenurink]

The Apple TV update was free. What am I missing?

[ndelc]

Does anyone remember the name of this rule? I want to say it's the xxx-Baines act or something like that?

[haim_vital]

Wonder...will Leopard updates cost now.
i.e. 10.5.2, etc.

[insanewriters]

I don't accept that reasoning. So what about the Apple TV? That's not on a subscription service and that is getting a free upgrade. And if Apple had to charge for the upgrade because they were FORCED to, why $20?

[MikeNTosh]

This seems to bring up more questions than it answers. According to this article, Apple has to charge for an upgrade for a non-subscription based device.
Why then is the Apple TV upgrade not charge for? Isn't that free?
What about this analogy at the end of the article, "iLife is free when you buy a new Mac, but if you already own a Mac, you have to pay for an upgrade."
Well, what about when a new version of iLife comes out as it has each year, however since I already bought iLife I still have to pay for the full release version. I don't get an upgrade price now do I? Nor does someone who purchased a new Mac and iLife came with it. Do they get an upgrade price? No, they too have to pay full retail as if they never had iLife before.

[akira34]

That's BS...

[railrider]

Whatever. I didn't have a problem paying for the apps. What I didn't like is the fact that some other features were not enabled unless you paid (as noted in the story). With the impending release of the SDK and more apps, I assume Apple will have to provide the capability to rearrange the home screen for free in a later update.

[Philip Michaels]

insanewriters said:

I don't accept that reasoning. So what about the Apple TV? That's not on a subscription service and that is getting a free upgrade.

From Apple's most recent SEC filing:

"For both Apple TV and iPhone, the Company indicated it may from time-to-time provide future unspecified features and additional software products free of charge to customers. Therefore, sales of Apple TV and iPhone handsets are recognized under subscription accounting in accordance with SOP No. 97-2. The Company recognizes the associated revenue and cost of goods sold on a straight-line basis over the currently estimated 24-month economic lives of these products with any loss recognized at the time of sale. Costs incurred by the Company for engineering, sales, marketing and warranty are expensed as incurred."

So, for accounting purposes, Apple does recognize Apple TV revenues on a subscription basis.

>And if Apple had to charge for the upgrade because they were FORCED to, why $20?

That's a very good question, and one I hope Apple eventually answers for us.

[railrider]

Also, I believe that Apple TV is accounted for like the iPhone, hence the reason for no charge for the soon to be released update.

[zensunni]

"Ita??s an accounting requirement that if you upgrade a device thata??s not on a subscription, you have to charge"
Yawn.
While I'm sure plenty of Macolytes will, as usual, pick and choose when to jeer and when to cheer an analyst based on whether the something in contrary to or in support of an Apple decision and, thus, cheer this analyst, he should be jeered for spewing an interpretation as fact.
The fact is, I've download and applied plenty of firmware upgrades, include those from Apple (other than the wireless N iMac upgrade which they likewise chose to charge for) with nary a fee in sight. Apple still has other firmware upgrades available for free from their site, as do plenty of other device manufacturers.
Imagine the outrage if nVidia or ATI charged for every update to their graphics charges. But for some reason, people aren't up in arms about this nickle-and-diming from Apple.

[zensunni]

And I hate that there's no longer an Edit button so I can fix my inevitable poor grammar.

[palane]

This seems a little convoluted. Isn't an iTunes upgrade (or revision of OSX) an upgrade on equipment already purchased? It is sophistry to argue that one adds capabilities and the other doesn't.
Mind you, it's not an unreasonable to charge for new capabilities. The price of Touches already in the system dropped by a corresponding amount, so it's not a bad deal.
BB

[Wondercow]

zensunni:
Those free firmware updates rarely, if ever, give new applications and functionality; they simply update the existing code for bug fixes, flaws, quirks, etc.
As for editing your post, you can do it, but you need to actually go into the forums.