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> the goal was always to get to free. Remember all the stuff from a few years ago, when the iPhone first came out, and Apple used “subscription-based accountin

> the goal was always to get to free. Remember all the stuff from a few years ago, when the iPhone first came out, and Apple used “subscription-based accounting” for iPhone sales, because it was the only way it saw to comply with U.S. accounting regulations and also provide free software updates? > Apple’s not trying to milk money from those customers ineligible for the free versions of these apps (although, of course, they will happily keep the money). It’s simply the fallout from Apple’s accounting guidelines that they cannot simply offer these apps free of charge to everyone. Can anyone who knows more about accounting than myself confirm this? I find it very hard to believe that accountants dictate your pricing strategy. Accountants are there to manage your money and keep the books straight. They might advise you that offering free updates foregoes a large source of revenue, but there is no way that the way they define your products ties your hands, and stops you from legally giving away certain products. But, I only say this because I know nothing about accounting.

marcus 13y ago
In a private company you would be mostly correct. In a public one changes like these might require that you go back and fix your previous quarterly fillings -> not something that is done lightly.
Samuel_Michon 13y ago
It has to do with Generally Accepted Accounting Principles (GAAP) financial measures. Because the way Apple was reporting its revenues, it was forced to charge for iPod touch software upgrades while it didn’t have to do so for iPhones software upgrades. That situation has since changed[1][2] and apparently, Apple has now found a way to make OS X upgrades free while adhering to accountancy rules. [1] http://tech.fortune.cnn.com/2009/09/14/accounting-rule-change-in-apples-favor/ http://tech.fortune.cnn.com/2009/09/14/accounting-rule-chang... [2] http://www.zdnet.com/blog/btl/apple-earnings-a-heads-up-on-accounting-change-would-have-been-nice/29947 http://www.zdnet.com/blog/btl/apple-earnings-a-heads-up-on-a...

marcus 13y ago

In a private company you would be mostly correct. In a public one changes like these might require that you go back and fix your previous quarterly fillings -> not something that is done lightly.

Samuel_Michon 13y ago

It has to do with Generally Accepted Accounting Principles (GAAP) financial measures. Because the way Apple was reporting its revenues, it was forced to charge for iPod touch software upgrades while it didn’t have to do so for iPhones software upgrades. That situation has since changed[1][2] and apparently, Apple has now found a way to make OS X upgrades free while adhering to accountancy rules. [1] http://tech.fortune.cnn.com/2009/09/14/accounting-rule-change-in-apples-favor/ http://tech.fortune.cnn.com/2009/09/14/accounting-rule-chang... [2] http://www.zdnet.com/blog/btl/apple-earnings-a-heads-up-on-accounting-change-would-have-been-nice/29947 http://www.zdnet.com/blog/btl/apple-earnings-a-heads-up-on-a...