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Well, we do it in software where we charge higher monthly fees for uptime guarantees, more features, better performance, etc. And Xfinity does it with hardware
by awb 3y ago
Well, we do it in software where we charge higher monthly fees for uptime guarantees, more features, better performance, etc. And Xfinity does it with hardware where you pay extra per month for faster speeds over the same cable.
But in those scenarios, there is extra cost incurred by the company when you choose to upgrade.
In this scenario, when you upgrade there's no cost to the car manufacturer, so it feels wrong. In the most generous view, there will be slightly more wear and tear on the car at higher speeds and that they need to charge extra to cover the warranty on faster cars. In a more realistic view, it's a cash grab not only in terms of $720/y per customer, but also making it easier to up-sell future over-the-air subscriptions or purchases with your CC already on file.