Charging for Already Existing Features

Discussion in 'Apple, Inc and Tech Industry' started by guzhogi, Oct 13, 2009.

  1. guzhogi macrumors 68030

    guzhogi

    Joined:
    Aug 31, 2003
    Location:
    Wherever my feet take me…
    #1
    Could someone explain in laymans terms why Apple has to charge for new features? Example, back in the Mac OS X 10.4 days when Apple first switched to Intel. I remember MacBooks had an 802.11n card, but marketed it as only a g card, and people had to pay extra to use the N functionality. Now, Apple has to charge iPod Touch users for upgrades when iPhone users get them for free (or at least pay through their monthly rates to AT&T). I remember hearing something about a Sarbanes & Oxley Act or something. Since I'm not a lwayer nor an accountant, can someone explain it to me so I can understand?
     
  2. belvdr macrumors 603

    Joined:
    Aug 15, 2005
    #2
    SOX has nothing to do with it. Apple works in a free market. The market is obviously willing to pay, so Apple charges.
     
  3. MisterMe macrumors G4

    MisterMe

    Joined:
    Jul 17, 2002
    Location:
    USA
    #3
    Whether it was SOX or some other law, the free market was not the only consideration that drove Apple's decision to charge for upgrading Airport Extreme from the draft standard for Wireless-N to the final standard. If you assert that Apple was not legally bound to charge for the upgrade, then it is incumbent upon you to offer evidence to support your position.
     
  4. aristobrat macrumors G4

    Joined:
    Oct 14, 2005
    #4
    The link below doesn't really explain the specific details of SOX, but it does explain how Apple has been using "subscription accounting" (which has to do with how they book the revenue from iPhone and AppleTV sales, nothing to do with how the word "subscription" is normally used), and how they recently appealed to The Financial Accounting Standards Board so they wouldn't have to use that accounting model anymore.

    http://www.theiphoneblog.com/2009/0...rules-benefit-apple-iphone-profit-statements/

    Just remember that they only use that model for AppleTV and iPhones, thus the free updates with major new features. Every other device they sold (Macs, iPods, etc), they used the traditional model, so no free updates that add major new features.
     

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