Apple confirms 802.11n unlock fee, but it's just $2

Ok Apple, you hassle us with those incessant advertisements, you exude smug hipsterocity, and this iPhone hype has really gotten out of hand, but we're going to let you pass on this 802.11n thing. Sounds like you're really trying to do the right thing here, but you just didn't want to get busted on some sort of accounting snafu -- it's alright, we understand. Next time you might try not being so sneaksy with those hidden features and stuff, but we're still kind of glad to have the functionality all the same. That's why we're going to skip over that episode of "Johnny and the Sprites" we were hoping to download from that iTunes Store of yours, snap up this little download for its $2 "distribution fee" (last time we heard it was $5, but Apple is saying $2, so all the better) when you make it available, and only complain about it six or seven times to our close friends and / or mom. We care that much.

Your friends,
Engadget

[Thanks, Matt]

[Kamal @ Jan 18th 2007 11:18PM]

Matt, that's offensive to Muslims. You shouldn't be stereotyping like that. My father and my relatives on his side of the family are all Muslims and they do not rant or riot (I am Catholic like my mother), but I still take offense. You are insulting a group of over 1 billion people to throw an insult at Apple users. There are much better insults if you really want to do that. Like "Macz Suxxorz!11!!!1!"

[js @ Jan 18th 2007 10:24PM]

Dirt cheap? If it is so dirt cheap, why don't Apple offer it for free? Think about it: $2 x 3 000 000 macbooks = $6 000 000 --- that's pathetic when compared to Apple's quarterly earnings.

[John DunB @ Jan 18th 2007 10:34PM]

Matt, mac users are just passionate about their machines. Most windows users don't understand being that happy with a computer.

Also, you're an idiot for comparing Apple to radical Islam. Like really really stupid. (oh and i'm on a windows box)

[fgdfgdfgdfgdfg @ Jan 19th 2007 4:53AM]

Matt, I think you really should not make that comparison. It's really unfair towards most muslims.

[Muzzies Suck @ Jan 19th 2007 4:28PM]

Hahah! Matt is a comedian! I love this quote and its so true! Fucken Muzzies

[Matt @ Jan 18th 2007 9:14PM]

[off topic]Yay engadget finaly posted something I submited. :) [/off topic]


[on topic]I still dont think they should charge anything... i mean i love apple in all but they are kinda money hungry... [/on topic]

[netposer @ Jan 18th 2007 9:22PM]

I wonder what the outrage would be if MS attempted to charge for a WiFi upgrade like this?

[CTG @ Jan 18th 2007 9:29PM]

You'll be wondering a mighty long time since Microsoft would've just left their customers assed out with 802.11g in the first place.

[thuff @ Jan 18th 2007 10:25PM]

well, if microsoft made pc's....

now if massively overpriced xbox360 wifi adapter secretly had draft-n, i'm sure we'd be ponying up some live points for an unlock patch.

[Eric B @ Jan 18th 2007 9:27PM]

They have to charge something to comply with GAAP? If that's the only reason they're doing it, then why not charge $0.01?

Apple is lying through their teeth. More than likely this has to do with some licensing deal for the 802.11n hardware/software. It clearly has nothing to do with accounting practices. Otherwise, how are all these hardware manufacturers and software developers magically able to release driver updates without charging people?

I mean, I don't recall ATI Or NVIDIA charging for their last 400 video driver updates. But I know, it's Apple, so once again they get a free pass even though they're sticking it to their customers. If Dell/IBM/HP were to do this people would be rioting.

[Matt @ Jan 18th 2007 9:30PM]

Ohhh btw im sure it will be up on the net for "free" download after the first day its up

[Mark @ Jan 18th 2007 9:32PM]

I agree - they really are taking the biscuit on this. What will be next, Microsoft charging for fixes to Windows Vista - I don't think anyone will have pockets deep enough :-)

_________________________________________________
What do YOU think about the iPhone http://www.apple-iphone-reviews.com

[Javaflash @ Jan 18th 2007 9:38PM]

Engadget, let's refresh everyone's memory about the "HEADLINE" you put out on the same topic via rumors...

"APPLE HOLDS 802.11n CAPABILITIES HOSTAGE"

$2? Nintendo Wii has a perfect good DVD movie player in the system. I'm pretty sure that company wants 10 to 15 times that for a future firmware upgrade.

[Don Davis @ Jan 18th 2007 9:48PM]

I have dealt with issues of deferred revenue, and the argument is legitimate. If additional features are added without charging a fair market value, it is possible that the company could be charged with improperly reporting revenue from the original sale, and/or forced to defer revenue from future sales. The rules for revenue recognition were changed to prevent companies from selling products which promised future features and recognizing the revenue before these were delivered. It does not seem to make sense at first (or maybe even later), but it is a real issue and it affects many companies, not just Apple. Best, Don.

[Mike @ Jan 19th 2007 11:36AM]

Yes, it has to do with the SOX rules, but Apples obsessive secrecy is also to blame. If they weren't such freaks about tipping the hat of new products...especially new products that are so mundane as to not merit mention in the Keynote, and are rather obvious eventual upgrades...then they could have just shipped the machines with the 802.11n capabilities enabled.

So yah, their argument half holds water. The other part is burning users with obsessive secrecy BS.

[[e-mail] @ Jan 18th 2007 9:53PM]

Off topic here, but can someone please filter this Bombaclott tool? Having a plug for his crappy website in every single engadget comments section (in order to better his google pagerank, no doubt) is a little bit over the top don't you think?

[asher @ Jan 19th 2007 9:54AM]

I agree, it'd be nice for engadget to filter

[Paul @ Jan 18th 2007 10:03PM]

"$2? Nintendo Wii has a perfect good DVD movie player in the system. I'm pretty sure that company wants 10 to 15 times that for a future firmware upgrade."

It is a little more than just that, they also have to develop the dvd playing software whereas apple doesn't have to develop anything for this change.

[potato @ Jan 18th 2007 10:10PM]

I was pretty pissed about the driver update, but at $2 I think Apple is legitimately trying to do the right thing. They screwed up by failing to defer some revenue to account for this addition.

To the guy bringing up the $0.01 point: you have any idea how much it costs to process a credit card transaction? The additional accounting, transaction costs, etc etc, probably works out to $1-2. This is perfectly legitimate. A bit short-sighted on Apple's part to have not foreseen this, but otherwise forgivable.

[Chris Merchant @ Jan 18th 2007 10:13PM]

Our OS doesn't suck Matt.

I like how Engadget uses that same 802.11 b/n comparison image for every Mac 802.11n related post.

Chris

[David S @ Jan 18th 2007 10:22PM]

So is apple going to charge for the next version iTunes also? If it was licensing, that would at be legit, but Sarb-Ox? That's some bull.

[peshue @ Jan 18th 2007 10:30PM]

I don't recall EVER paying for drivers before. The whole thing seems pretty fishy.

[Vince @ Jan 18th 2007 10:36PM]

Not deferring income related to this, and then being put in the position to have to charge customers for the upgrade was a bit of a bad-faith act on the part of Apple. It seems to me that they got into this situation because they didn't want to announce their Core 2 duo machines as having draft-n capable WiFi, and thereby pre-announce that the Apple TV would be draft-n capable as well.

Bad Apple!

Uhh...but I will also pony up my $2 for the upgrade...any word on how they'll handle this outside of the US?

[2Perfect @ Jan 18th 2007 10:38PM]

That's... kinda sad. If they're only charging $2, why didn't they just make it unlocked in the first place? If they really wanted those $2 per person, they could just sell it for $2 more. Besides, we already know (from a previous Engadget article) that the iPhones are overpriced by like 200% of the manufacturing cost.

[SonyknowURAASS @ Jan 18th 2007 10:42PM]

OMG, this is the ridiculou thing i have ever heard. Apple should be ashame of themselve. I can't believe their doing this to their buyers. I was thinking of buying the iPhone but NOT ANYMORE. I am sick and tried of Apple SCREWING ME when ever they had the chance too. As if the $600 for a second rate PSP wasn't bad it enought now Apple want to charge ME $2 to unlock with Wifi so I can download...

That's BULLS**T and we all know it. APPLE try to be like Sony, ALL The firmware for the PSP update are FREE of Charge, even Microsoft are lot than APPLE now, Service pack 2 update was FREE of charge.

Apple now low can you go, YOU JUST JOIN THE HALL OF SHAME IN MY BOOK.

[BobbyDigital @ Jan 19th 2007 12:22AM]

wow.

[pvilleSE @ Jan 18th 2007 11:14PM]

Sorry I didn't read what everyone said. But I can sort of see where they are coming from(not that I agree they should do this). According to certain tax laws you are required to report costs after release(software, not sure for hardware) as maintenance costs, and I don't know if this applies here but they could just be trying to lower there numbers for maintenance costs and if they charge for the release then maybe they can make it look like this is simply a new release or something of the sort. Just a thought.

On the person's comment about the Wii playing DVD's they announced before the release that sometime this year they will release a Wii that plays DVD's but it will cost more, so they didn't include it at release because they wanted to keep the $250 price tag, and the rights to playing the DVD format isn't all that cheap even if the software and hardware is.

[WedgeTalon @ Jan 18th 2007 11:22PM]

re: Wii dvd play

The largest difference between Nintendo's hypothetical "firmware upgrade" you mention and what Apple is doing is that Nintendo has to implement DRM... and pay someone for the "privilege" of including those defects.

[TommyGun @ Jan 18th 2007 11:26PM]

FWIW, I am now a Mac user since June '06. Prior to that I was a hardcore PC user(since like 1982). I am a software developer now turned engineering V.P.
I agree that Mac's are nice, the hardware is nice/cool and the OS is better, nicer than XP. BUT....it ain't THAT great.
I feel like my Mac is like a movie that was over-hyped by my friends. They tell you SOOO many times how great the movie is that it can never live up to the hype.
That's the Mac. Somewhat better than a PC....does not walk on water...DOES crash/lock up, does have stupid little annoyances in the OS, DOES have bugs etc.

[robertosucco15 @ Jan 18th 2007 11:31PM]

cool, made my apple stocks rise again, though it had already risen a lot for the apple conf http://www.trendio.com/word.php?wordid=1371&language=en

[Pc_Madness @ Jan 19th 2007 12:43AM]

Its kinda funny people bitching about paying $2. How tight can you get? Apple has explained why they can't offer it for free, and I'm sure if they realise their mistake, they'll be alittle lax in stopping people from sharing it.

[dave @ Jan 19th 2007 12:53AM]

"Next time you might try not being so sneaksy with those hidden features and stuff"

Yeah, we legitimately paid for g wifi, and you go and sneak in a card that's 5 times faster. YOU APPLE BASTARDS!

Are you people all morons?

Do you honestly believe it costs Apple nothing (server capacity, etc) to allow their entire installed user base of Core 2 Duo purchasers, to download this firmware?

When has ANY company allowed their customers this kind of an upgrade, let alone for 2 bucks?! You don't get a firmware update to turn a Core Duo into a Core 2 Duo. You don't get a firmware update to turn your 512 mb ram stick into a 1 gig stick.

You did NOT buy a draft-n card- go look on your computer box- so stop pretending you did! Stop acting like Apple has gypped you in some way.

And yet, Apple is turning your g into draft-n, for the princely sum of $2!

Engadget ungrateful morons.

It's a freakin gift! Get over it!

[footieshop @ Jan 19th 2007 2:06AM]

If this was Sony or Microsoft Engadget would be slagging them off, how far up Apples bum is your nose Engadget??????

[BAMF @ Jan 19th 2007 3:37AM]

Regardless of Apple's motivations for charging, why is everyone complaining? You can lay out $2k for a notebook with 802.11g, but then complain about having to pay $2 IF you want it upgraded to 802.11n? No one is holding a gun to your head and Apple never promised you a WiFi N card when you bought the notebook. No one is demanding ransom or crippling a feature you paid for. And for anyone that compares this to ATi charging for a driver update or MS charging for bug fixes, you're wrong. If ATi had a $2 driver upgrade that turned your Radeon 9600 into a X1950 would you bitch about it? If MS wanted $2 to upgrade your copy of Win XP to Vista would anyone cry foul?

/rant

Besides, you know there will be a hacked driver freely available in the shadier corners of the internet within a week of Apple's release.

[Rock Stone @ Jan 19th 2007 4:20AM]

You bought 802.11G
You bought 802.11G
You bought 802.11G
You bought 802.11G
------------------
You want 802.11N???

$2 please. Thank you.
------------------

What is the problem? That deal rocks.

[Adam @ Jan 19th 2007 4:50AM]

I don't have an apple yet, but I am purchasing a macbook pro 2.16 Ghz Core 2 Duo with my student discount for around 1800 and some with tax. Whoops. Make that 1802 and some with tax. Out of curiosity I did a comparison b/t apple's pricing and the big three (Dell, Sony and HP) PC Notebook makers. I listed the macbook pro features and went hunting. The average price for something with similar features but without the added benefits of only being an inch thick or having (Oh God not that!) a stable OS, was anywhere from 2500 - 3000+ dollars. Also other than like one company (I forget which one exactly) no one had a processor speed past 2.0 Ghz in the form of a core 2 duo. Imagine if apple went into the business of making laptops that are not as rich in features (maybe a macbook lite in the future? hint hint, Steve. Now that would be truly competing with the microsoft companies) That being said, Microsoft would most likely charge 5 to 10 dollars for the 802.11N upgrade.



Challenge to those reading this:
Find a PC Notebook for under 1200 that contains an Intel Core 2 Duo.

Also lets start writing letters to Steve telling him that a MacBook lite like something with a centrino duo (remember those?)in it or something. Let's bring macs to the majority of the PC demographic. The MacMini is a start but average consumers aren't fond of having to purchase their own keyboard, mouse and moniter.

[TIMMAH! @ Jan 19th 2007 1:28PM]

Adam sez:
"Challenge to those reading this:
Find a PC Notebook for under 1200 that contains an Intel Core 2 Duo."

On www.hp.com. Customized Compaq V3000T with 2Ghz Core 2 Duo processor: $794.

[Billy Ash @ Jan 19th 2007 6:21AM]

Matt

RE: The Muslim analogy

That was a crap comment based on an ignorant, media driven, stereotype of 1 Billion people on this planet.

My advice: Switch off Fox News, get out and actually meet some Muslims before you spout you hatred.

[Shade @ Jan 19th 2007 6:44AM]

Matt, that muslim comment just shows how fucking stupid you are

[Perley @ Jan 19th 2007 7:31AM]

So first we find out about Jobs. Then we see a 50% profit on sales. So now we charge a distribution fee for a download. So why do people buy from Apple? Guess we know why Bill Gates bailed them out before....they make MS look good.

[Notung @ Jan 19th 2007 8:16AM]

Let`s summarize:

1. This story is getting kinda boring
2. There are no effective accounting reasons that FORCE Aplle to do this
3. Whoever want's to pay for this is invited to do so
4. Muslims that are not radical are like any other people.. that is not radical
5. Religion and consumer electronics shall not be ralated
6. There is a "remote"(?) chance everybody could get this for free next day.. oh, my God everybody knows that!!!
7. There are "big brand" laptops similar to Apple's, cheaper with the same features, whether some like or not
8. Apple is cool
9. Other brands are cool also, and their owners should be happy with teir stuff
10. Apple keeps on doing smaller updates to products months after releasing a previous version (look to the iPod latest generations), just to make fashion buyers happier than ever, and modest ones mad as hell
11. Msft is NO evil. Guys, you are smarter than that

[netposer @ Jan 19th 2007 8:38AM]

This reminds me of the early 80's movie with John Cusak "Better off Dead" where the little kid keeps harassing JC's character for $2 and constantly shows up in scenes saying "I want my two dollars!"

[MagusDF @ Jan 19th 2007 9:03AM]

This strikes a similarity between something that happened a long time ago. Cant remember the co but i think it was either 3com or US robotics released a bunch of 28 modems with firmware upgrade to 56 later. They didnt have to charge anything. I would call bs on the fee.

[Qweltol @ Jan 19th 2007 10:16AM]

Apple said the fee is due to the Sarbanes-Oxley Act that passed in
2002. So if you just upgraded to a 56k modem in 2002 or later, I feel
for ya.

[Joe V @ Jan 19th 2007 9:44AM]

"this iPhone hype has really gotten out of hand"

I agree! It's like, everytime I turn around, Apple is talking about iPHONES. I mean, really Apple, you need to stop all this iPHONE hype. Why won't you stop talking about iPHONE? Or posting blog entries about iPHONE? Sure, it's one thing to announce the iPHONE at a conference all about your company and products, but then you keep going on and on about the iPHONE! We're really getting sick of hearing you drone on about the iPHONE, so please stop it already! It's not like anyone wants to hear anymore about the iPHONE, or that this website generates its revenue from articles about the iPHONE. All this iPHONE stuff is so played out now, and it's all your fault, Apple.

...

...

(iphone iphone iphone)

[fd @ Jan 19th 2007 10:34AM]

I see no requirement for this fee.
Charging for an updated driver is a bad precedent.
Yes, it is only $2 but that is not the point. You paid enough for your system and the included driver should've been draft-N to begin with. Apple intentionally used a crippled driver to keep the wraps on the fact that they moved on to faster wireless chips ... and probably cover up that their updated airport extreme was not ready yet (which lacks gigabit ports, another mistake)

As MagusDF points out, with modems it was not uncommon to get drivers which allowed your modem to use better protocols.

[tekdroid @ Jan 19th 2007 11:29AM]

the money is an RIAA tax that will be used to subsidise unnamed 'artists' for 'lost revenue' from wi-fi sharing, I heard.

(either that or to feed Bono & Oprah's future children, I'm not sure)

[stussybear @ Jan 19th 2007 12:54PM]

I wonder if upgrading to the "n" firmware will solve the problems I and countless others have been having with the iMac core 2 duo's airport network throughput, packet- and connectivity-loss issues. THAT'S what galls me about having to pay $2: it doesn't work properly NOW.

[EL_RIEL @ Jan 19th 2007 2:10PM]

mmhhh

nVidia PureVideo anyone? in the end are just drivers that cost you like 30 usd.
ATI encoding drivers? another few bucks!

So $2 for 802.11n its not the worst case..

[ryanrit @ Jan 19th 2007 4:11PM]

I just don't understand. Where is the line here? How is this different than a software upgrade that would make the system "snappier"? Plus, if everyone who bought the computers at the time felt they were getting 802.11g instead of pre-n, then I think the argument is moot. As I understand it, this law would be more likely to apply if Apple had said "and in the future, this computer will also have 802.11N" when introducing the hardware. Should Comcast be charging us more whenever they magically give us more bandwidth to comply with this law?(Yikes, I hope no one from comcast sees this.)