“Since my post yesterday about the $20 iPod touch software update several readers have contacted me to explain how Apple had to charge for this update because of generally accepted accounting principles (GAAP). This issue, so I’m told, is much the same as the way Apple had to charge $1.99 the 802.11n enabler for the Intel-based MacBooks and MacBook Pros. Personally, I don’t buy this,” Adrian Kingsley-Hughes writes for ZDNet.
“According to experts it is important to note that there’s nothing in the GAAP requirements that forces Apple to charge its customers for a software upgrade. The only requirement imposed by GAAP is that Apple must account for the separate value that the software brings,” Kingsley-Hughes writes.
Here are the new apps that have been added to the iPod touch:
• Mail
• Stocks
• Maps
• Weather
• Notes
Kingsley-Hughes writes, “To try to justify that any of this offers a $20 value is hard, especially when you consider the overall value that MacBooks and MacBook Pro customers got from the 802.11n switch on. Over the life of a MacBook that has to represent more than $1.99 worth of value if I’m paying $20 for a few apps, does it not?”
Kingsley-Hughes writes, “And finally, can someone please tell me what the difference is between the iPod touch upgrade which costs money and the Apple TV upgrade with is free and transforms an existing Apple TV device into what PC World is calling a substantially different product?”
More in the full article here.
One could say that those who purchased iPod touch knew what the device did and thought the price was right for what they were getting. If iPod touch users want to add more functionality for $19.99, then can. If they don’t, they don’t.
However, with Apple TV getting a massive upgrade for free and iPhone also getting significantly upgraded for no charge, it’s almost impossible to explain to consumers why Apple’s charging for one, but not the others. (We say “almost impossible to explain” because iPhone and Apple TV are amortized over 24-months, iPod touch is not; therein lies the rub) The better question: Is the update worth $19.99?
For consistency’s sake at the very least, Apple should either charge for all upgrades of this type or for none or do a better job of explaining upfront that, unlike iPods and other products, iPhone and Apple TV are special cases that are subject to free upgrades over a certain period.
[UPDATE: 11:58am EST: Fixed incorrect link code that was affecting display of the full MDN Take.]
Just ignore the updates. Or else buy them if they are worth 20 $.
It’s that simple.
Here’s the solution:
1. Google “Sarbanes-Oxley”.
2. Shut up.
Remember the fiasco with the price reduction on the iPhone? Enough users complained and were rewarded!
If enough of you complain and loudly enough SJ will probably give you a credit of $10-20 to use on future purchases at apple.com.
Buying software for a computing device is a no brainer. If you want the enhanced functionality that the software gives you, buy it. If you don’t, don’t buy it.
If you want the software but you don’t want to pay for it, steal it. But remember, if you do the crime …..
If you can’t live with this rationality, STFU.
$20 too much for a software upgrade that people will use day by day, but $20 for a lap dance that lasts 3 minutes is A-OK.
iPhone users are being charged for each upgrade. It’s build into the AT&T;subscription.
I don’t agree with forcing iPod touch users to pay $20 for upgrades though.
Funny thing is, as of yesterday, the iPod touch is 20 euros cheaper here in Holland. So the difference is now about 38 euros. That’s too much to justify for what are basically 3 iphone apps and 2 dashboard widgets. They’re all useful, but come on!
Why not throw early adapters a bone here and make the upgrade a symbolic 0.99 or 1.99
The Mail & Maps apps alone are worth $20 to me.
I did try to update my iPod Touch, but through some “glitch” yesterday, Apple ended up double-billing me for $42.18 and the update never downloaded.
I contacted Apple by email and by phone yesterday. I was told it would be taken care of today, but so far I haven’t heard anything back from them.
Trying to be patient, but starting to get a little frustrated.
1. The Touches should continue to be sold with the apps they originally were shipped with.
2. Apple should have released these 5 apps as an “Expansion Pack” or “Plus Pack” or whatever so it appears to be more equitable across the board.
I downloaded the software package yesterday, and felt like I got a new iPod! Having the mail program alone was worth the $20, just Google Maps is worth the $20! Add the stock tracker and weather info, and that’s just more frosting on the cake!
I look at it this way. iPod Touch users have a choice to pugrade their device, if they want, to add features that us iPhone users already paid for.
iPhone users didn’t get their upgrade for “free” by a long shot, especially those that paid $599 for one last June only to see it drop to $399 a mere 60 days later.
We pay AT&T;$60+ per month every month to simply use our iPhones, while no iPod touch user ever has to pay a dime after the original purchase to use their product. So I’m not exactly sympathetic to the whiners out there over this trivial $19.99 fee for a major upgrade.
“I don’t agree with forcing iPod touch users to pay $20 for upgrades though”
Show me where people are being ‘forced’ to buy this. I’ll wait.
@ ChrissyOne
Well put.
just jailbreak it you ninnies
Personally, I’m glad Apple even offered it.. Usually, if they come out with new features, you have to give up a perfectly good product to buy a whole new one just to get some extra features.. I’d much rather have the option to pay for new features than be locked out of having them at all. Sure, it’s a bit pricey for the upgrade, especially knowing it was already developed, but I’m happy to have it.
Could it be that those who are bitching the most are switchers who come from a world where everything was free, if you know what I mean?
Or those who don’t even own a Touch and are just haters and would like to make everyone else feel just as miserable as they feel?
The next round of bitching will be when these same people begin whining that the battery in the Airbook can’t be swapped out. Yup, that’s right, and they will never own one…
“Comment from: deepdish
good god, you pay over 40% of your income to taxes (state, fed, sales, property, fica, ect ect ect combined)
you don’t complain about that.”
You need to check out Ron Paul… abolish the IRS and income tax. After that we will all have more money in our pockets and hopefully some of the bitching will stop.
The Dude abides.
I think that the GAAP was exactly why they charged for it! I would suggest to you all that If you want Apple to keep it’s nose clean put up the $20 and shut up or don’t update to it! No body is forcing you to update your touch to keep it functional, just to add the new features you probably thought would never come to your touch.
They should have just made the new apps available for varying prices through iTunes.. a la carte.. Want Mail? $4.99.. weather widgets? $3.99. Just like software you buy for your mac, or Games you buy for the iPod.
Never buy the first of anything!
anyone know if the ipod update is available for pirating yet?
torrent anyone?
A better question is why is the screen resolution on the Touch inferior to the screen resolution on the phone?
Arrogant Steve’s answer: if you want the good screen resolution, buy the phone.
That, my friends, is an outrage.
Got it. Paid $20
Worth every penny.
Love it.
Thank you.
Should it have been there in the first place or have been a free upgrade? Well, that would have been nice. But so is free beer.
@ Wallace the Man
“Never buy the first of anything!”
For once I agree. Even if I really like the MacBook Air, I’m going to wait for storage to go up and the cost to come down a bit on SSD drives. 128GB would be the sweet spot for me.