Paid updates for 1G iPhones coming?

Discussion in 'iPhone' started by Carniphage, Jun 1, 2009.

  1. Carniphage macrumors 68000

    Carniphage

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    #1
    The way Apple accounts for iPhone revenue involves progressively recognising the sale revenue over a period of two years.

    For Apple, iPhone cash trickles in slowly. For consumers, this "subscription model" means they are entitled to free updates, even when these updates enable new features like MMS.

    Presumably after two years the subscription is over, these free updates will cease. Original model iPhone owners may have to pay for feature updates.

    C.
     
  2. patrickdunn macrumors 6502a

    patrickdunn

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    #3
    Does anybody actually understand the GAAP rules that Apple always cites when charging for iPod Touch updates. That may shed some light on wether they may charge the 1st gen owners for updates.
     
  3. Tallest Skil macrumors P6

    Tallest Skil

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    #4
    What subscription? Apple has nothing to do with the cell carrier. You'll never have to pay for an iPhone update.
     
  4. SilentPanda Moderator emeritus

    SilentPanda

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    #5
    He's referring to the way the money for iPhone sales is accounted. Even though you paid $X when you bought your iPhone it shows up in the books once a month as $X/24. Point being that if you bought an iPhone at launch time you will have finally paid for your iPhone (according to the books) really soon. It then drops the 1st gen iPhones into the same category as an iPod Touch for accounting purposes.

    Hence the reasoning the OP is wondering if updates might start being pay for.
     
  5. 01jamcon macrumors 6502a

    01jamcon

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    #6
    Apple had that deal with the cell carriers for the 1st gen to get a certain percentage of the monthly earnings. I think they didn't repeat that with the 3g so that the carrier's could offer a subsidized price.
     
  6. Drumjim85 macrumors 68030

    Drumjim85

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    #7
    If they do it will be after 3.0 Which will have already dropped features for the 1st gen phone. I don't see them asking for money, i just see them not allowing the new stuff on old hardware, making you want to upgrade.
     
  7. jav6454 macrumors P6

    jav6454

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    #8
    Subscription? Hardly. Apple will never make you pay an iPhone update. Read: iTunes Store and App Store accounting.
     
  8. Tallest Skil macrumors P6

    Tallest Skil

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    #9
    For the British and French carriers as well?

    Again, they won't make people pay.
     
  9. jav6454 macrumors P6

    jav6454

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    #10
    Hardly a reason why people will pay for 2G iPhone updates. Again, search for why they charge iPod Touch but not the iPhone, pretty much Steve said why in a Q&A.
     
  10. Carniphage thread starter macrumors 68000

    Carniphage

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    #11
    Nothing to do with the cell carrier.
    When you buy an iPhone - Apple recognises the revenue as 24 monthly payments. (or 720 daily payments)

    When you buy a touch - Apple get the revenue immediately. This is why touch owners have to pay for feature updates, and iPhone owners don't.

    Question is, what happens after all the revenue has been recognized?

    C.
     
  11. Tallest Skil macrumors P6

    Tallest Skil

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    #12
    Having had my iPhone since Day One 2007 and never having an account with AT&T and having never had to pay for updates, I'm going to say that, no, we won't have to pay.
     
  12. Carniphage thread starter macrumors 68000

    Carniphage

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    #13
    On June 29 2009, your iPhone will mark it's second birthday.

    Apple will see the 24th and final instalment from the cash you paid when you bought it.

    At that point, Apple will no longer be able to pretend that you are paying a monthly subscription.

    And it is seems likely that after that point, software upgrades that add features (not a bug-fixes) will have to be paid for.

    C.
     
  13. Drumjim85 macrumors 68030

    Drumjim85

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    #14
    are you saying we are going to have to pay for 3.0? (even when apple said different?)
     
  14. jav6454 macrumors P6

    jav6454

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    #15
    Yes he is. It seems he knows Apple more than Apple knows itself.
     
  15. Tallest Skil macrumors P6

    Tallest Skil

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    #16
    Except that I didn't buy it.

    Rather, the account to which it is tied did not pay for an iPhone at any point ever. I won it on launch day.

    Keep up your little facade that we'll have to pay. Go ahead. It's funny.
     
  16. jav6454 macrumors P6

    jav6454

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    #17
    Nice win.
     
  17. Darth.Titan macrumors 68030

    Darth.Titan

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    #18
    No, really... We all understand with what you are saying. We get it.

    We just don't agree. No need to state your position again, but Apple won't charge for iPhone software updates.

    I believe it more likely that future updates just will be less and less compatible with the oldest hardware. Naturally obsoleting the older models and making updates unnecessary.
     
  18. patrickdunn macrumors 6502a

    patrickdunn

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    #19
    Unless they are getting payments from the provider (AT&T, O2, etc.) per phone. Then they can account that as the subscription.
     
  19. Small White Car macrumors G4

    Small White Car

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    #20
    It's funny how you keep arguing even though it's still painfully clear you don't understand the O.P.

    Every post you've made is an argument against a made-up point that no one made.
     
  20. Tallest Skil macrumors P6

    Tallest Skil

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    #21
    I just stated the exact opposite of what he said they did.

    My account is not counting for an iPhone in any way. I did not spend money on this iPhone. I was not ever charged for this iPhone. I cannot, therefore, be charged "monthly" for this iPhone. Having never spent money, I still have free software upgrades, proving his point incorrect.
     
  21. themoonisdown09 macrumors 601

    themoonisdown09

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    #22
    At the March 2009 iPhone event, they said that the 3.0 software update is free for all iPhone owners (includes 1st generation and 3G versions). They also had a picture of both iPhones on the slide.

    Maybe you need to watch the Apple event again: http://www.apple.com/quicktime/qtv/preview-iphone-os/
     
  22. jav6454 macrumors P6

    jav6454

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    #23
    And thus updates are free...
     
  23. tobefirst macrumors 68040

    tobefirst

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    #24
    That, however, does not mean that the iPhone was not accounted for by Apple's accounting department. It had to be. And, it is just as likely to be accounted for in the same method as all other iPhones as it would be to be a 1-time debit.

    For the record, I am not saying, in any way, shape, or form, that Apple WILL charge for 3.0...just that by the way they are accounting for the iPhones, it seems they might be able/obliged to.
     
  24. Tallest Skil macrumors P6

    Tallest Skil

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    #25
    All right, I see his point.

    And this proves him wrong.
     

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