http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/ Engadget Comments for Apple pushes to change subscription accounting rules http://www.engadget.com/media/feedlogo.gif http://www.engadget.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 7:01PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
Ball's in your field.]]>Sep 14th 2009 7:06PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 7:10PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/]]>Sep 14th 2009 7:40PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
So to summarize this article, Apple has decided:
1) iPhone updates will be free
2) iPod Touch updates will not be free.

So nothing really has changed lol. What's new?

]]>Sep 14th 2009 10:34PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 11:50PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 15th 2009 12:45AMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 7:08PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 7:09PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
Apple's fame is that they do NOT do this with the iPod Touch, hence the upgrade fees.

The reason for reporting all your income upfront is to give your stock a short-term boost. Professional and institutional investors won't get caught by this since they understand the nuances of accounting, but a lot of individual investors will see a spike in profitability and buy in, even though that's only a phantom increase. Watch for a lot of stock sales from the executive team at Apple after the next earnings report.]]>Sep 14th 2009 9:47PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/-K]]>Sep 15th 2009 1:19AMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 7:11PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 9:46PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 11:59PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 7:11PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 7:13PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
Zune gets feature updates for free as do pretty much every other mobile device out there. ]]>Sep 14th 2009 7:15PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 8:08PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
http://www.appleinsider.com/articles/09/09/14/from_oled_to_tegra_five_myths_of_the_zune_hd.html]]>Sep 14th 2009 9:55PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 10:02PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
Anyone who defends Apple's position as anything other than trying to make an extra buck (which isn't totally evil for a corporation) has got to have a mental problem. Show me the law that says a company can't offer free services. You better tell them about all these internet companies like google and stuff.]]>Sep 15th 2009 12:46AMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 15th 2009 9:08PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/ Good deal all around -- except for iPod touch owners, who will still have to pay $9.95 and not get a camera.

Not true to the first part. iPod touch Software Update is now $4.95 (http://www.apple.com/ipodtouch/software-update.html).]]>Sep 14th 2009 7:16PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 7:38PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
I don't recall ever *expecting* my walkman to suddenly get new features, unless I bought a new walkman for > $50. I think it's pretty cool that we even have the ability to get software upgrades, at $5 to boot.

Such a sense of entitlement nowadays... does the hard work and effort by the engineers at Apple mean nothing? Did you really expect to get the new 3.0 firmware for free, having bought a 2G iPod Touch RIGHT AFTER they charged $10 for 2.0?

Get over it, crybaby.]]>Sep 14th 2009 8:55PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
Actually, he's right. Most companies issue upgrades to firmware for free. Just look at Sandisk. They are second to Apple in the mp3 player market (yes, it's a distant second) and they actively update firmware for all their players adding new features, new codec support, and more, responding directly to the demands of the Sansa community. And they do so absolutely free of charge. How can a company with no where near the financial resources of Apple provide free firmware updates, giving people the features and compatibility they ask for, while Apple refuses to?

(Oh, and great example with the walkman! Let's compare firmware updates with something that didn't even have software!)]]>Sep 14th 2009 11:59PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
Keep up Engadget - the upgrade cost is 4.95 for iPod Touch owners.]]>Sep 14th 2009 7:17PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
What a worthless service. One time downloads.

Over hyped, over marketed bullshit!]]>Sep 14th 2009 7:17PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 7:17PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Or maybe everybody's still a little sore after losing last week's Engadget podcast :(]]>Sep 14th 2009 7:18PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 7:19PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
Very misleading post. Apple isn't "bending" the rules. They are following GAAP when filing their revenue over a two year period. They're not the only company affected. Nor are they the only company pushing for changes to the rules.

Might want to read the original article.]]>Sep 14th 2009 7:22PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 7:35PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 7:44PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 8:02PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
Erm, except for 3.1... that update has f*cked my 3G, unless playing dead is a new feature...

It seems I am not alone with this neat new trick either...

http://discussions.apple.com/thread.jspa?threadID=2151766&tstart=0
http://forums.macrumors.com/showthread.php?t=783122

Thanks for recognising this f*ck up Apple and moving so quickly to remedy the sit..... oh wait you have done nothing. ]]>Sep 14th 2009 7:43PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
Erm, except for 3.1... that update has f*cked my 3G, unless playing
dead is a new feature...

It seems I am not alone with this neat new trick either...

http://discussions.apple.com/thread.jspa?threadID=2151766&tstart=0
http://forums.macrumors.com/showthread.php?t=783122

Thanks for recognising this f*ck up Apple and moving so quickly to
remedy the sit..... oh wait you have done nothing.]]>Sep 14th 2009 7:53PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 8:14PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 8:31PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 8:29PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
its all accounting smoke and mirrors..

Somewhere in MS financials there are likely to be charges for zunesoftware/zune firmware development that are billed to the overall arm of MS that is responsible for the Zune..

AT apple.. they are charging say 500$ retail for a product, and reserving a portion of that revenue.. and instead of charging the iphone division for the entire team that works on upgrades to the iphone OS seperately .. they reserve say 100$ from each sold device (revenue) and use that to fund ongoing development of the platform (very very basic version of how subscription accounting works vs regular accounting)

In short they are funding development of the 3 year old devices.. off the sales of new devices.. and likely they are also using an internal EOL mandate that states at what point its acceptable for new features to not be backward compatible.. (some point after the initial subscription accounting is over for those devices..)

Also keep in mind that the funds for Iphone 1.0 continue to roll in until the last device is sold NOT 2 years after the first one is sold.. So if apple sells iphone 1.0 for 3.5 years.. that is a 5.5 year window of "updates/upgrades" for that specific model under teh subscription accounting they are using..

AGAIN this is all accoutning smoke and mirrors]]>Sep 14th 2009 8:43PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 11:19PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
In general, I don't advocate giving away software, especially software that your engineers have spent many hours on. However, when this software enables your customers to spend more money on your product, you have to consider giving it away. For instance: see Microsoft upgrading the Xbox for Netflix and movie downloads.]]>Sep 14th 2009 8:38PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 8:47PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 8:49PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
Oh, wait… I'm an iPod chump - twice over…

I made myself cry.]]>Sep 14th 2009 9:24PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/
And next quarters official revenue will be $1.40 billion, while the unofficial number was $0.
Who cares except the accountants?]]>Sep 14th 2009 9:28PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 9:36PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 9:40PMhttp://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/http://www.engadget.com/2009/09/14/apple-pushes-to-change-subscription-accounting-rules/Sep 14th 2009 9:40PM