As long as Apple keeps actively developing iWork and iLife this is a good thing. iWork sure has some ground to regain.
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iLife, iWork and OS X Updates Will Continue to Be Free in the Future
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It means that Apple has $900 million is revenue that it has not yet earned. You see, in accounting, you can only add revenue to the income statement once it has been earned and realized. It means that Apple has $900 million in orders that it has received but not yet delivered. Hope this helps.
3 updates in 5 years?
So you buy your computers about a year before the OS refresh, right? Oh, and this isn't really apples to apples, because you can be two versions behind and you'll still get patch tuesday every month. Microsoft supports their OS with 5 years mainstream and 5 more years security fixes. A person generally needs to be within a version number to reliably get updates.
10.7.5 came out a year ago, for example.
Look, I will be one of the firsts to say that a MBA is worth every penny, but let's not lie about why it is.
That's what I have, but the MAS still wants to charge me for the updates. No workarounds that I can find make any difference.
Microsoft has already stated that they are moving to a yearly model. And by all accounts, every other year will be a paid upgrade. Or at least that's what the plan appeared to be until Mavericks came out....now, I think all bets are off.3 updates in 5 years?
So you buy your computers about a year before the OS refresh, right? Oh, and this isn't really apples to apples, because you can be two versions behind and you'll still get patch tuesday every month. Microsoft supports their OS with 5 years mainstream and 5 more years security fixes. A person generally needs to be within a version number to reliably get updates.
10.7.5 came out a year ago, for example.
Look, I will be one of the firsts to say that a MBA is worth every penny, but let's not lie about why it is.
I am an accountant so let me try and explain.
This is an accounting rule that states that if your price covers more than one product, such as hardware and software, then you have to bifurcate and allocate the revenue generated between the products.
But there is another rule whereby you need to recognize revenue as either current revenue or future revenue. This is determined by when you earn that revenue by delivering the good that is apart of the price paid.
So in this case, Apple would get the cash for the product sold immediately, but could only recognize part of it for the current hardware and software. They need to then estimate the value of their expected future updates and "defer" that revenue until they perform the work to earn it and thus recognize it.
Basically, they are holding a liability that is an Unearned Revenue account that gets relieved into Revenue as they perform to earn that revenue, the principle for this is because there will be expenses incurred to earn that revenue which they must match with the deferred revenue to recognize it.
This is not really an obscure accounting rule at all to a profressional accountant. I was really quite shocked when I saw Apple had to charge for past updates, I actually used it as an example in my accounting seminar courses at school.
A good example of this principle is magazine subscriptions. The magazine gets the money all upfront for the year, but it is considered a liability called Unearned Revenue, and gets turned into Revenue as they deliver magazines. This is intuitive because the company has an obligation to deliver those magazines once they collect the subscription or they would owe the cash back and is the reason they cannot recognize it immediately.
Sorry for the long explanation, but it felt good to finally get to contribute something from my profession!
Good post. Thanks!
'Free' Doesn't Necessarily = Good
I really do not like the 'Free' model ... if 'Free' means an inferior product.
I would gladly pay $40, $50, $75, or $100 for an iWork that was more than just a glorified iOS version.
I am afraid that Apple is going to kill off or run off 'pro' users of their software.
I really do not like the 'Free' model ... if 'Free' means an inferior product.
I would gladly pay $40, $50, $75, or $100 for an iWork that was more than just a glorified iOS version.
I am afraid that Apple is going to kill off or run off 'pro' users of their software.
I love Mavericks but seeing this positivity lately with Apple I am quite looking forward to a major revamp in OS11. When you think about it. The new generation love stuff but the older geezers are all stubborn and "Back in the days when things worked!". quick example.
Yesterday my dad was having trouble with his email. It usually is set to remember login but since I clean installed it with Mavericks he had to enter his username and password again and doesn't know to click the 'remember' box. I explained it to him but he is so damn ****** stubborn that he said I wish paper letters were still the norm it would be so much easier. I instantly replied. Are you kidding me??? Letters lost in mail, delivery times, postage stamp costs over time, also sending attachments and not to mention saving paper! Just because he is too stubborn to learn what the freaking checkbox does.
So yeh bring on the next OS for Mac even if it is more iOS like. We will still be able to use professional software (obviously) and with all the criticism Apple is receiving over iOS how can they go wrong? It is a trial and error market and Apple is evolving into the greatness once again (point in case with Mavericks).
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I think you will find that offering free stuff is a way of increasing sales so in a different view they are getting money from it vs before when people were pirating it. Apple is larger than MS and Google together I think they can afford these dividends to their users if it means increasing their overall profits by luring people to the mac eco system. If you are afraid that Apple is going to lower the quality by offering for free you have other paid alternatives like MS office. Guess what, pro users are not limited to Apple software.
Yesterday my dad was having trouble with his email. It usually is set to remember login but since I clean installed it with Mavericks he had to enter his username and password again and doesn't know to click the 'remember' box. I explained it to him but he is so damn ****** stubborn that he said I wish paper letters were still the norm it would be so much easier. I instantly replied. Are you kidding me??? Letters lost in mail, delivery times, postage stamp costs over time, also sending attachments and not to mention saving paper! Just because he is too stubborn to learn what the freaking checkbox does.
So yeh bring on the next OS for Mac even if it is more iOS like. We will still be able to use professional software (obviously) and with all the criticism Apple is receiving over iOS how can they go wrong? It is a trial and error market and Apple is evolving into the greatness once again (point in case with Mavericks).
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I think you will find that offering free stuff is a way of increasing sales so in a different view they are getting money from it vs before when people were pirating it. Apple is larger than MS and Google together I think they can afford these dividends to their users if it means increasing their overall profits by luring people to the mac eco system. If you are afraid that Apple is going to lower the quality by offering for free you have other paid alternatives like MS office. Guess what, pro users are not limited to Apple software.
So... you know Microsoft's plan because? I'm sure you have key, expert, knowledge. No way you'd be making things up.
Source for that dubious assertion?
My experience in PC sales was that customers upgraded Windows every 6-7 years.
If you're having trouble getting upgrades, the "guest account" fix works very well. It worked for me.
So it's free if you "upgrade" to the current version but not free if you just buy it outright as a new user? That's daft. Why not just make it free for everyone.
I won't even use a free program from Apple if they continue to dumb down their software and take away pro features that originally made their software great.
Exactly. For the just discontinued 15" MBP Apple charged $200.00 for a 1TB 5400 RPM hard drive option. That is, to install an $85.00 drive in the place of the $50.00 one the bill was a mere $200.00.
Apple options are full of hideously over-priced items. Now that things are glued, soldered and sealed the upgrade profits are huge. Some basic software can be given away for free without much financial stress.
Most people never upgrade their version of Windows until they replace their PC. Also I doubt home users will use Office 365 (although I agree that MS would like people to do both).
Wow, if you are that upset over a possible 10.10, how do you feel about Java 1.7 being called "Java 7"???
Not for me it didn't. I've tried everything anyone suggested short of calling up Apple and demanding to know what the hell is going on over there.
It means Apple will not record $900m of actual revenue from hardware & s/w sales until future quarters to balance the expense of updates. It's a way around accounting regulations to allow Apple be able to provide free s/w & updates.
No. Apple did not raise Mac or iDevice prices to cover the cost of the s/w. If the program boost h/w sales then it's good for stock price but the cost of the s/w is being borne by Apple. There is no so-called s/w tax being paid by all buyers of new h/w to support s/w development.
I know.....
deep down that Apple must get something practical from the free upgrades. I agree, tough, nothing beats free.....
Me being a bit cynical here.....
deep down that Apple must get something practical from the free upgrades. I agree, tough, nothing beats free.....
Me being a bit cynical here.....
yep, I got stung for Pages, but numbers and keynote were free
Ased Apple why and could I get my money back, they wanted to see the receipt for iWok'09 from my boxed set I bought 4 years ago or there about.
Given the missing features I asked them to reauthorise and give me my money back, I'll use it to buy education version of MS Office
something I thought I would never do