Apple changes planned pricing of 802.11n enablers
Despite an Apple document available exclusively to service providers pegging the fee for 802.11n enablers (which will enable 802.11n functionality on various Core 2 Duo and Xeon-based Macs) at US$4.99, Apple has apparently changed its mind and will offer the enablers at the price of US$1.99.
Apple is providing official statements to the media explicating the new pricing.
A News.com report states:
"It will cost $1.99, and will be available on Apple's Web site, said Lynn Fox, an Apple spokeswoman. [...] Apple said it is required under generally accepted accounting principles to charge customers for the software upgrade. "The nominal distribution fee for the 802.11n software is required in order for Apple to comply with generally accepted accounting principles for revenue recognition, which generally require that we charge for significant feature enhancements, such as 802.11n, when added to previously purchased products,' Fox said in a statement.
The following Macs have 802.11n hardware built-in, and will gain 802.11n connectivity with the enabler:
- iMac with Intel Core 2 Duo (except 17-inch, 1.83GHz iMac)
- MacBook with Intel Core 2 Duo
- MacBook Pro with Intel Core 2 Duo
- Mac Pro with AirPort Extreme card option
As previously reported, Apple will also offer the enablers bundled with the second-generation, 802.11n-capable AirPort Extreme Base station.
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I would like to point out that the draft 802.11n spec calls for <A HREF="http://en.wikipedia.org/wiki/Multiple-input_multiple-output">Multiple-input multiple-output</A>. I am definitely not an expert on RF communication, but my reading of this technology gives me the <b>strong</B> impression that MIMO technology requires a certain hardware to achieve.
Basically, your machine is going to have to have the correct hardware (which it seems is shipping with all Core 2 Duo machines) in order for this firmware updater to work.
If your machine does not have the correct wireless hardware, there is nothing Apple can do. In addition, I am not sure anyone with a Core Duo machine is exactly in a position to complain - it is not like they bought the machine with Apple promising 802.11n ability down the road. Apple advertised 802.11b/g and nothing else.
By way of background, I taught accounting at the university level for 3 years, worked for 2 international CPA firms, and hold a CPA certificate and a masters in accountancy.
Your understanding of accounting for PUBLIC COMPANIES seems to be very limited.
PUBLIC COMPANIES, especially since Sarbanes-Oxley, have very specific requirements for booking sales. I suggest a course in public company compliance.
And I can't believe the idiocy of complaining about a couple bucks, nor can I believe all those who buy one copy of OSX and install it on multiple machines. As I understand Leopard is finally going to close this OS loophole, with much tighter registration requirements for installation and Microsloth-like disabling of the updater process.
I agree with the previous post. Apple is apparently required to charge something, no matter how ridiculously small, to add functionality. It's a bizarre consequence of Sarbanes-Oxley. Don't try to make too much sense of it.
Just be glad Apple is charging $2. Think how people would howl if they charged only $0.05. People would moan that it messes up their credit card statement, or they'd whine about the cost of mailing a check. I'm sure $2 doesn't even cover Apple's accounting costs or credit card kickbacks.
Sad as I am to see Apple cracking down on illegal installations -- because of license checking headaches -- hasn't there always been a 5 license Mac OS X Family Pack for $199? That's what I'll be buying.
"I have never heard of any requirement under GAAP for "charging" for anything. Accounting is for gathering information for making business decisions, not for this! What a crock of a reason for charging a fee.
By way of background, I taught accounting at the university level for 3 years, worked for 2 international CPA firms, and hold a CPA certificate and a masters in accountancy."
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No, accounting is not about gathering information for making business decisions. At least NOT exclusively and not these days. Due to all of the creative accounting by some companies and their top execs, the SEC, FASB, IRS and GAAP all reflect some new, mind boggling rules, regs, conventions and requirements to prevent such happenings in the future. The Big Four accounting firms are geting rich dealing with this all, companies are paying several times more for their accounting work and small companies can no longer afford the work that is mandated by the regulators. On top of it all, I doubt, knowing what little I do about about human nature, if these regs will prevent a determined exec from stealing a few tens of $millions in the future. But it will make it easier for the prosecution if they get caught.
In addition to being used for making management decisions, accounting is also used by investors to try to understand what is happening in a company. That is part of the rationale behind this admittedly absurd situation. I was on a company board recently and it was incredible what crazy requirements were placed on our pricing policies for our software products. Made no sense whatsoever. But we followed the rules, as interpreted by the auditors, or the auditors wouldn't sign off on the 10-Ks. Unaudited 10Ks aren't worth much to anyone and it wasn't worth the fight.
I seriously doubt if Apple is making any money selling the upgrade for $1.99. It probably costs them this much or more just to administer the program and collect the pittance they are charging. But they are now in compliance with another crazy requirement in our world.
I have no idea whether and what you have taught or practiced recently. Please keep in mind that having encyclopedic knowledge of accounting is not going to help anyone understand today what is going on or to appreciate the absurdity of it all if their knowledge is more that a few months to a dozen months old. It's all changing that fast and that radically. Even extremely recent knowledge and expertise can become instantly obsolete and misleading.
I have payed more than 5.000 $ on 2 mac's core 2 duo,1 imac G5 24' C2D AND 1 macbook pro C2D top version...wasn't enough for Apple? now they are asking for 1,or 2 dollars?!!
incredible!,just incredible!
fabian
france
And if they are giving it away (the n-update) with their routers/base stations then it really is non-sense since you could feasibly update 51 computers (you and fifty of your friends) with the included update. AT that point it would be a $102 value... making the router an affordable $50 or so.
Now if the statement was that we had to charge for those not-upgrading with a router in order to "support" the update and have both Apple and Consumer legal recourse in case something goes wrong that's a different story, but it's not the one we've been hearing.
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The only intuitive interface is the nipple. After that it's all learned. -Bruce Ediger
What about new buyers? Sure, you might make the argument that they have to charge "something" because it adding 'significant' functionality (although I don't think its that significant - if they added wireless capabilities that wasn't there, that's significant, but just increasing the speed, not quite). But what of someone who buys a MacBook today? To them, the value of the product is known, since they know it CAN do 802.11n. So should they be forced to pay $2 to get functionality they know should work?
Then again, if the above is true, don't expect any free software updates for the iPod, iPhone, or your mac, to add functionality. There's a precedent now.
Finally, why would/should software be treated differently? Will Apple be "forced" into charging everyone who owns iWork 06 if they come up with Word 2007 converters for the product? It adds functionality that wasn't there, nor promised, and theoretically fits into the whole "they need to charge for it" concept.
- by ipbrjt-3 February 2, 2007 10:20 AM PST
- Reading all these posts, I was hoping to find some USEFUL information
- Like this Reply to this comment
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(11 Comments)related to the original article...but found a bunch of venting posts that really dont help anyone.
Since when is one entitled to have well designed software for free?
Ground-breaking notion: Apple is a COMPANY,
and, yes, they charge money for their SERVICES and products.
They are not perfect.
I dont work for them, but I use their stuff a lot.
Since I do my homework and maintain my equipment and software,
It works beautifully most of the time.
I'm happy when Apple improves things that my stuff can do.
<p>---<br>Istvan Peter B'Racz<br />
composer, performer, <br />
Loop243 and goorilla<br />
BRACZsound sound design