Apple’s $20 iPod Touch upgrade

by Charles Lindauer on February 12, 2008

in Apple News, iPhone, iPod, Software Updates

Does it seem fair that iPhone users get the new functionality, but iPod Touch’ers have to pay? No, it doesn’t, but there is a good reason for the charge.

Apple must charge for substantial enhancements that that don’t have revenue recognized on a subscription basis, or it has to restate prior earnings. The iPod Touch does not have revenue recognized on a subscription basis, but the iPhone and iTV do. That’s the reason for the free updates for the iPhone and iTV.It’s an accounting issue, more complex than I want to understand, frankly, but the expense of restating prior income is not to be considered, trust me.Perhaps Apple could have planned better. Perhaps not. It’s a moot point.

If you think the new features aren’t worth $20, don’t buy the upgrade.

I sure think it is…

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