General Question

bluemukaki's avatar

Why do you think Apple is forcing iPod Touch customers to pay up again?

Asked by bluemukaki (4332points) March 7th, 2008

With the SDK announcement they said that iPod Touch users will have to buy another software update to use 3rd Party Apps and some of the iPhone 2.0 features. Why?

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10 Answers

kevbo's avatar

iPhone is a contract deal (as in 2 yr cell contract) and iPod Touch is not. Due to this, the accounting is different and Apple “has to” charge extra for the iPod Touch updates. That’s the official explanation from Apple, which Jobs references in the SDK announcement video stream.

jrpowell's avatar

They don’t have to charge for updates. They have to charge for adding features that weren’t originally planned for. For example: if they provide a security update or bug fix they don’t have to charge for that. And they don’t charge for that.

The relevant law is the Sarbanes-Oxley Act. The validity of this applying to the iPod Touch is under dispute.

bluemukaki's avatar

What about in countries that don’t follow this law?

soundedfury's avatar

Doesn’t matter, Sarabanes applies to the company that distributes the app, not the consumer itself.

blunckhouse's avatar

johnpowell, I would like to give you 5 “great answer” points for this. You explained it better than I did in another thread.

Theotherkid's avatar

I know! iPod touch users having to pay 4 stuff kind of stinks.

Spargett's avatar

Stupid tax laws. From what I understand, iPhone users will have to pay as well when the 2.0 update comes out.

jrpowell's avatar


iPhone users don’t have to pay. If they want apps that cost they will have to pay. They won’t have to pay for the ability to add apps like Touch owners will need too.

bluemukaki's avatar

So how does the iPhone differ? This law is so confusing!

soundedfury's avatar

It’s an accounting issue. The iPhone is subscription-based, so they are accounted over a 24-month period. The iPod, however, is not. Under Sarbanes-Oxley, Apple would have to restate old earnings if they added new features to the iPod, but do not have to restate earnings for products that are accounted on a subscription basis.

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