Apple Announces MacBook Air
Apple made four announcements at MacWorld Expo: the new MacBook Air, new features for the iPhone and iPod Touch, and movie rentals via iTunes from a TV without a computer involved. The new portable gets most of the attention. It is 0.76" thick at the thickest part, tapering to 0.16". It weighs 3 pounds and has a 13.3" screen and full-size, backlit keyboard. Its Intel chip is the diameter of a dime and the thickness of a nickel. The MacBook Air will cost $1799 and up. Its storage is either 80 GB disk or 64 GB solid-state drive. 2 GB of memory. It has no optical drive (an external one is available for $99) and features a way to wirelessly use the optical drive of any nearby Mac or PC with the proper software installed.
Blame our good friends at the IRS and FASB for the required $20 upgrade for iPod Touch users.
The issue here is good old revenue recognition.
For the iPhone, Apple has an ongoing revenue stream (the monthly fee they get) against which they can charge the cost of this upgrade.
For new iPod Touches, it is built into the price.
But for old iPod Touches, Apple doesn't have a revenue stream against which they can charge the cost of the upgrade. Therefore, they had two choices: 1) do not recognize all of the revenue from an iPod Touch sale and use it to match the cost of the upgrade, or 2) charge for the upgrade.
Revenue recognition around upgrades (vs. bug fix releases) is a major issue for software companies. The complexity of trying to set aside a chunk of revenue and match that against expenses is nasty. It is just easier - unless you have a revenue stream - to charge a nominal amount for the upgrade.
I imagine the gentleman is looking to buy stuff, not sell it. Not a proper Apple fanboi, in other words.
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