I have noticed that people have continued to talk about the price, of the iPhone. My question is this, is this the first PDA phone most of you have ever bought? I regularly pay between 600.00 and 700.00 for the latest PDA Phones, Sprint offers. I don't wait until upgrade time to purchase. I buy when the latest, hottest devices come out (like I did with the iPhone and my addition of At&t service to get it). I thereforee, have to pay full price. If you want it (and can afford it), you buy it, if you don't, then don't buy it, but Please, Please, Please, people, STOP TALKING/CRYING ABOUT THE PRICE (it is so crass to continue to mention the price), it's nothing new for PDA Phones! If you couldn't afford it, you should have left it at the store! MSince Apple is reportedly getting both a $200 sale, and ~$120 two year royalty, that BUYERS normally get as subsidies, they should make updates for "free".
They're doing a lot of hand waving, and smoke & mirrors, to keep iPhone customers from thinking about how much more they paid, than for other phones. The initial buyers might not mind, but later ones will.
From the horse's mouth, during Apple's Q2 financial call (emphasis added):hmmmm... i think people are reading too much into the statement. here is a more pragmatic read:
- Apple is accounting for the revenue as subcription services. This means it is ratably recognized over the commitment period of 2 years.
- It does not mean we will get everything developed for free over the next 2 years. Likewise it also doesn't mean we won't get upgrades/bug fixes for free after the two year period.
- More than likely we will get updates/bug fixes for free, but that has nothing to do with the statements made by the CFO. It has to do with keeping customers (especially loyal cult like customers) very happy.
Bottom line don't confuse revenue recognition with free software, updates and bug fixes.
Uh, "no charge" is different than "free," how?The actual words used by the CFO were:
"..by including new features and applications into the iPhone at no charge to the customers.."
The 'tuaw' quote was by a person listening to the call and using their own words to describe what was said.
Got it. I thought perhaps you were trying to say that updates weren't going to be free (i.e., none of them). Thanks for the clarification.Mike...I was focusing on the word "many" in the tuaw quote. I interpreted the CFO words to mean "all". It's no big deal either way. I hope that they add lots of stuff!
Thanks for all your helpful posts.
I don't see anything posted here, regarding what Apple said, that implies all updates will be free.Well, RingTones may come in an update, and I doubt they'll be free -- so it wouldn't at all surprise me for Steve and Company to make sure their statements don't suggest ALL updates will be free. It may be semantics, but it's an important distinction.
I think you're reading something that wasn't said. Or maybe I amI have noticed that people have continued to talk about the price, of the iPhone. My question is this, is this the first PDA phone most of you have ever bought?
Of course you're not, but no one is going to tell you to steal music to use as ringtones, including Apple. Even if they give you the ability to use your own MP3s it will be implied that you got them from ripping your own purchased CDs. Steve & Company won't be saying "yeah, go to limewire and steal a bunch of music to use as ringtones for free!"I don't see anything posted here, regarding what Apple said, that implies all updates will be free.
As far as ringtones, if they are done via iTunes purchases it wouldn't surprise me one bit if they weren't free. But it wouldn't surprise me if they allowed bringing in your own either. After-all, we aren't locked into just purchased music when it comes to iTunes/iPhone.
I thought that Apple gets about the same as what independent dealers are paid when they sell a new phone with a new line of service (they get continuing commissions too). Those dealer commissions don't affect subsidies, and you get nothing from those dealers down the road. AFAIK, dealers were not allowed to sell the iPhone (no room to pay that middle-man).I think you're reading something that wasn't said.
For myself, I wasn't commenting on the non-subsidized price, which is reasonable. And if you feel like paying full price, more power to you.
I WAS commenting that, if Apple really is getting a large bounty plus monthly royalties, then those usually are the monies that are given back to users as a subsidy to get a cheaper phone price.
If Apple were a struggling startup company, then I can see how fans would be happy to give them free money. Been there, done that. But they're not a startup, and they're not poor... unlike a heckuva lot of iPhone buyers who gave up other things just to get one.
Huh? They don't tell you to steal MP3s now, I don't see why that would be any different if they allowed user-generated ringtones.Of course you're not, but no one is going to tell you to steal music to use as ringtones, including Apple. Even if they give you the ability to use your own MP3s it will be implied that you got them from ripping your own purchased CDs. Steve & Company won't be saying "yeah, go to limewire and steal a bunch of music to use as ringtones for free!"