iPod touch Why 4.0 for the iPod touch will be FREE

[lewis82]

I may be wrong on this, but I think there are legal reasons that Apple must give iPhone owners free updates. But since it is so new, iPad owners will probably get 4.0 for free. It is plain unjust to completely rework a device only a month old, and make users pay for the update.

That's because Apple gets revenue from AT&T each month. As such, they do not declare all the revenue coming from a single iPhone at the same quarter: it is distributed over the period of the contract. This allows them to offer the updates for free, as payment is not done entirely.

 

[BaldiMac]

That's because Apple gets revenue from AT&T each month. As such, they do not declare all the revenue coming from a single iPhone at the same quarter: it is distributed over the period of the contract. This allows them to offer the updates for free, as payment is not done entirely.

There is no indication that Apple receives any monthly revenue from AT&T.

 

[ouimetnick]

That's because Apple gets revenue from AT&T each month. As such, they do not declare all the revenue coming from a single iPhone at the same quarter: it is distributed over the period of the contract. This allows them to offer the updates for free, as payment is not done entirely.

The revenue sharing has ended ever since the iPhone 3G launched in July 2008.

 

[BaldiMac]

The revenue sharing has ended ever since the iPhone 3ZG launched in July 2008.

I don't think there was any evidence of revenue sharing with the iPhone 2G either. I could be wrong, it was a while ago.

 

[lewis82]

Why would they have offered exclusivity then?

They could as well have made it available to all carriers, in order to sell more phones.

Revenue sharing seems logical: some people are going to leave their carrier for AT&T in order to get the iPhone.

 

[ouimetnick]

I don't think there was any evidence of revenue sharing with the iPhone 2G either. I could be wrong, it was a while ago.

http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25791

New Agreement With Apple Reflects Significant Growth Opportunity
The new agreement between Apple and AT&T eliminates the revenue-sharing model under which AT&T shared a portion of monthly service revenue with Apple. Under the revised agreement, which is consistent with traditional equipment manufacturer-carrier arrangements, there is no revenue sharing and both
iPhone 3G models will be offered at attractive prices to broaden the market potential and accelerate subscriber volumes. The phones will be offered with a two-year contract and attractive data plans that are similar to those offered for other smartphones and PDAs. AT&T anticipates that these offers will drive increased sales volumes and revenues among high-quality, data-centric customers. Currently, less than 20 percent of AT&T's postpaid subscribers have integrated devices capable of voice, Web and data applications. Based on the company's experience, average monthly revenues per iPhone subscriber are nearly double the average of the company's overall subscriber base.

It happened. Just doesn't exist anymore.

 

[OGDaniel]

None of this matters. I don't think a lot of people are buying apps based on what some ******** said in a rating, but rather what they've seen in the Lite app or watched in reviews.
In any case, the rating system isn't going to sway Apple into not getting a couple million dollars on big OS upgrades like this. Regardless, people will pay for update anyway.

 

[mustnotsleep]

thanks to spirit, upgrading is unnecessary. even if you upgrade to 4.0, you wont have all the features possible with jb. jobs can continue building his closed monopoly if he wants to, but i refuse to be a part of it.

 

[mags631]

thanks to spirit, upgrading is unnecessary. even if you upgrade to 4.0, you wont have all the features possible with jb. jobs can continue building his closed monopoly if he wants to, but i refuse to be a part of it.

Closed monopoly? Is there an open monopoly? And monopoly of what? iPhones? Yes, Apple has a monopoly on iPhones -- but that means nothing.

And if you have an iPhone, you are "a part of it" -- you funded it. And I'm sure you realize that JB on the current version will not provide you any new features provided by the later versions...

 

[The General]

Unlike iPhone users, iPod touch users have to pay for software update( ex. 3.0 was 9.99 then dropped to 4.99) but I have reason to believe 4.0 will be free, if you noticed that in the 4.0 demo jobs mentioned that in 4.0 there will be no more rate upon deleting, if this is not a free update user who still keep the older updates will still be asked to rate upon deleting therefore still messing up the rating system.
If 4.0 is a free update, this will fix the rating system, and will kill the old method of deleting and then rating the app.

What do you guys think?

how does the price of the update have anything to do with the way app ratings work?

 

[mustnotsleep]

Closed monopoly? Is there an open monopoly? And monopoly of what? iPhones? Yes, Apple has a monopoly on iPhones -- but that means nothing.

And if you have an iPhone, you are "a part of it" -- you funded it. And I'm sure you realize that JB on the current version will not provide you any new features provided by the later versions...

until that version gets jailbroken obviously, which it always will. its a neverending cycle that jobs wants to pursue forever. i had to wait about 4 months to jb my touch which is simply outrageous, however. they have a monopoly on everything. from carriers to apps to music to everything. the feds are just now taking a look into antitrust issues on the iphone, which is long overdue. the US cell phone system is archaic compared to Asia and Europe. and while i do support the iphone/ipods because they are great products, i just hate how jobs dictates how you must use it. its fine for people who dont want much hassle, but it falls way too short for users who care about getting max value/performance.

i dont know why you are arguing jobs' side though, competition is always good. it was jobs' entire argument back when msft was undisputed king.

 

[OGDaniel]

how does the price of the update have anything to do with the way app ratings work?

Lol it doesn't, I really don't understand the point that this guy is trying to make with this thread.

 

[Winni]

I may be wrong on this, but I think there are legal reasons that Apple must give iPhone owners free updates. But since it is so new, iPad owners will probably get 4.0 for free. It is plain unjust to completely rework a device only a month old, and make users pay for the update.

I completely agree. But when I bought my 1st gen iPod Touch, I had to pay for the first software update that was released only a week after my purchase. Plain unjust for a device that was only a week old, but that was the reality.

I'm glad that I no longer own an iPhone OS-based device.

 

[BaldiMac]

It's called "The Walled Garden" by anti-fanboys and I feel it's a deserving title to describe the never-ending vending machine known as iTunes; having to put your nickles and dimes into it to use its media... ONLY iTunes.

If this were any other company doing that, fanboys would be s**tting themselves belly-aching about the "my way or the highway" way of doing it.

The PP has a point.

Yep. Only iTunes. If you ignore all the alternative ways to obtain and organize your media, of course. It's hard to have a good rant if you acknowledge that the other options exist.

 

[Liam8]

we'll be paying for sure

 

[BaldiMac]

we'll be paying for sure

What makes you think so?

 

[Beric]

iAd is something to consider. Apple makes money off every iAd, and Apple can't start making money off ads if people don't upgrade. Multitasking is the only thing I'm interested in 4.0, and I already have that with my Jailbreak (and have for a while), so I have absolutely no reason to upgrade until my favorite apps start requiring 4.0.

 

[goosnarrggh]

I may be wrong on this, but I think there are legal reasons that Apple must give iPhone owners free updates. But since it is so new, iPad owners will probably get 4.0 for free. It is plain unjust to completely rework a device only a month old, and make users pay for the update.

It's not so much the case that Apple must give iPhone owners upgrades for free (in all probability, they would be permitted to charge for some iPhone upgrades if they wanted to and they thought enough customers would accept it to make it worthwhile).

Rather, Apple's interpretation of current law and accepted accounting practices, taken in conjunction with the previous decisions they'd already made regarding accounting for iPod touch sales, leads them to believe that they must not give away iPod touch upgrades for free.

Then again, with the potential income from iAd placements, it's possible that they might be able to divert some of that money towards a subscription revenue model, which might satisfy their fears about delivering free upgrades. It's highly unlikely in my opinion, but possible.

 

[a104375]

hehe sucks for 2 pages worth of people to be wrong, very good prediction OP, Free iOS 4 for iPod Touch People

 

[appleguy123]

Nice job OP.

 

[sportsfrk214]

Don't think the OP had the correct reason as to why it would be free, but he was nonetheless right =) Good work, fun to see an OP nailing a prediction thread that countless others rejected as not possible.

 

[J&JPolangin]

...now if only it would support my 1st gen iPod Touch

 

[Jimmy James]

Unlike iPhone users, iPod touch users have to pay for software update( ex. 3.0 was 9.99 then dropped to 4.99) but I have reason to believe 4.0 will be free, if you noticed that in the 4.0 demo jobs mentioned that in 4.0 there will be no more rate upon deleting, if this is not a free update user who still keep the older updates will still be asked to rate upon deleting therefore still messing up the rating system.
If 4.0 is a free update, this will fix the rating system, and will kill the old method of deleting and then rating the app.

What do you guys think?

In hindsight, you are a genius.