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Apple's $0.99 FaceTime Charge Due to Accounting Requirements
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The restatement of financial statements is a VERY complicated process. Especially when there would be two different audit firms involved (KPMG and E&Y).
They would have to somehow determine the percentage of revenue to defer for every Macbook/Macbook Pro that can utilize the Facetime App, then amortize that revenue over a set life of the laptops, and restate all financial periods in between. It is not something any Company wants to do, restatements are not something to be taken lightly and can cause legal implications with shareholders.
It is much cleaner, and frankly, it makes more sense for them to say ok, Facetime costs a dollar, we'll recognize the revenue now based upon actual sales and won't have to go back potentially years to adjust and restate revenue.
I don't think you'll get any of us to disagree with that. Account for it differently on the front end and you don't have this issue.
Again though - refer to my earlier post regarding the fact that it was a "beta" that was free. Why do we expect them to give away an entirely new piece of software (ignore the new functionality piece)?
Did you miss the part of the explanation that they didn't have a choice? It was an accounting requirement and was well explained by several other accounting members?
They can't make that call. The definition of a "significant" feature is not up to them.
Learn a little big more about accounting and you'd see it's a very valid excuse.
So by 'excuse', you're accusing them of lying?
People really need to give this Apple tin-foil-hat thing a rest.
I'll wager that the administrative cost of this compliance requirement costs Apple more than .99
Yes, and it could have drastic effects on the AAPL stock price. Crying "restatement" among a lot of stockholders is like shouting "fire" in a crowded theater.
The choice may have been as simple as (A) Deal with a restatement, bad press, and loss of billions in market cap, or (B) charge $0.99 for this particular add-on.
And that is also all I said. That regardless of your "bs" detector, these people claiming that it's all lies and greed and what-not do not know enough to actually discredit the accounting reasoning that they're dismissing. Because as the qualified accountants have said, there are valid reasons that support Apple's position. That is, I'm not saying they had to charge for it, but the whiners are incapable of proving that they didn't.
If you cannot actually provide a justification to counteract Apple's claim or actively boost your own, then all you have is your own personal
And "bs" meters don't count.
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Meant to add that as well. Restatement = we really ****ed something up in the eyes of a shareholder.
Seriously Now
Is this whole site full of unemployed children? It's a freaking dollar people, the two minutes it'll take me to write this response I could have earned that from my job. Some of you are writing multiple paragraphs about the woes that come with paying .99 for an official Apple App (this isn't some ****** Dell App, this is legit), stop bitching when the computer that's required to play it costs literally somewhere between 1000-3000 times the cost of the app. It's a brand new app and it's Apples cheapest one yet, no one is forcing you to buy this, most of you will never use this anyways. Sure it's weasely, but when the programs I use like Photoshop cost $600 (one program) I can't see how people can complain unless, like stated earlier, they are unemployed and don't want to put fortht the effort of asking for mommy's credit card. Hey look, I could have made the $ for the app in the 2 minutes it took me to write this.
Is this whole site full of unemployed children? It's a freaking dollar people, the two minutes it'll take me to write this response I could have earned that from my job. Some of you are writing multiple paragraphs about the woes that come with paying .99 for an official Apple App (this isn't some ****** Dell App, this is legit), stop bitching when the computer that's required to play it costs literally somewhere between 1000-3000 times the cost of the app. It's a brand new app and it's Apples cheapest one yet, no one is forcing you to buy this, most of you will never use this anyways. Sure it's weasely, but when the programs I use like Photoshop cost $600 (one program) I can't see how people can complain unless, like stated earlier, they are unemployed and don't want to put fortht the effort of asking for mommy's credit card. Hey look, I could have made the $ for the app in the 2 minutes it took me to write this.
No... it's stupid and show's some people's level of business knowledge... but it is fun to see the comments. Getting the popcorn.
Why is it that Apple is limiting older Macs with the higher-res cameras to VGA resolution?
Most current Macs, besides the MBA, have camera resolutions of 1280x1024, which is higher than 720p. Why not enable those?
Most current Macs, besides the MBA, have camera resolutions of 1280x1024, which is higher than 720p. Why not enable those?
They can talk up the bulls--t all they want, the plan and simple of it is that they're charging for something that should be free. Come on Apple it's not like you're hurting for money or anything. I'd expect this nickel and dime'ing crap from EA or some game console manufacturer, but not from you. And to the people saying "it's only 99 cents what's the big deal", this is about the principle of the matter. No crap the charge is small, the fact that they're charging at all is what the big deal is all about.
I have to wonder if this will be included in Lion.
I have to wonder if this will be included in Lion.
I'm not going to keep typing the same things over and over, please go read the rest of the posts in this thread.
I'm honestly not trying to be argumentative - but I'm genuinely curious about why you feel this should be free?
Wasn't the first release of FaceTime a beta? You didn't pay for the beta, did you? Why would you expect a new piece of software, that extends the capabilities of our computer, to be free? If a 3rd party developed FaceTime would you expect them to give it away for free?
I'm not sure if anyone has posted this yet. I'm not an accountant, but hopefully this should explain things better for everyone else!
http://www.appleinsider.com/article...s_iphone_subscription_accounting_changes.html
http://www.appleinsider.com/article...s_iphone_subscription_accounting_changes.html
WOW 10+ pages!!! Not that .99 will break my bank but i find this app fairly useless as it can only be used between apple hardware and for me thats just too limited, and with little apps like this apple always takes their sweet time updating and improving so i really dont see a point just like with iMovie for iphone, there are still knows bugs and reasonably needed small features but they pretty much never update it so im just waiting until its worth it. And Im not really complaining just not spending my money. Perhaps the whole accounting reason for asking .99 is a good one, but i really dont care, even if it was free i wouldn't use it as is just like i didnt use beta version.
Exactly. For those that have a problem with it or won't ever use it, just simply don't buy it then.
It's known as the "Free-Tard" movement. This is the crowd that thinks everything should be free... the hardware, the software, the music, the videos. No one should have to pay for anything.
Haha! Word.