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Old 01-16-2008, 12:11 PM   #12
Jeff
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But this is different than consoles getting price drops and bundles. Software and firmware updates should be free. These apps have been on the iPhone from the start. They're sending the message that you shouldn't buy Apple products early.

Also From Apple's Q-10 filing...
In March 2007, the Company began shipping Apple TV and expects to begin shipping the iPhone in late June 2007. For Apple TV and the iPhone, the Company plans to provide future unspecified features and additional software products free of charge to customers. Accordingly, the sale of the Apple TV and the iPhone handset are accounted for under subscription accounting in accordance with Statement of Position ("SOP") No. 97-2. As such, the Company defers the associated revenue and cost of goods sold at the time of sale, which will then be recognized on a straight-line basis over the currently estimated 24 month economic life of these products. Costs incurred by the Company for engineering, sales, and marketing will continue to be expensed as incurred.


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