Apple joins the 802.11n revolution

Upgrade your Apple Wi-Fi for $1.99.

(Credit: Apple)

We saw this news over on Crunchgear this morning, and sure enough, the Apple Store has a download enabling 802.11n wireless networking on the majority of its current desktops and laptops. It'll cost you $1.99 (nickel and dime much, Apple?) but for that affordable price you can upgrade an Airport Extreme-equipped Mac Pro and every Core 2 Duo-based MacBook, MacBook Pro, and iMac (minus the 17-inch, 1.83GHz model). We're disappointed the MacMini didn't make the cut, but then it still uses Core Duo (note the missing "2"). Perhaps when/if the little guy gets an upgrade, it too will become eligible for wider-bandwidth Wi-Fi.

[PCCRomeo]

Isn't Apple LEADING it?

Like always...?

[DarkHawke]

Just NOW supporting N makes Apple a leader?

Maybe of the official standard, but draft-N equipment has been available for, what, 'bout a year now? And charging this little in-your-face fee to use hardware that you already bought? Sounds like follower behaviour to me.

[wzone]

You have to pay to enable a feature ?

Wireless n is not a software spec its a hardware spec. Which means you already have it in your machine. Now Apple wants you to pay for something you already own. Hmm .....

To reply to the earlier comment. I have had wireless n on my desktop, notebook and a wireless n router for a year so Apple is far behind.

[b_baggins]

Apple has already stated why they are charging

It's because of the Sarbanes-Oakely act that requires companies to show actual
revenue for aftermarket add-ons. Most accountants say Apple is probably erring
on the side of caution, but considering how they're already being beat up for the
currently legal practice of back-dating options, can you blame them?

[enerjazz]

Get 802.11g working properly first

The new Core 2 duo models are not working with several existing 802.11g wireless routers. Apple is blaming the routers, but there's something in the OS X or the hardware that is not right. They should fix that before they start charging to turn on hidden features.

[jcr0911]

I cant be a SOX issue... Its FAS86 GAAP

Apple to charge $1.99 for a draft-n upgrade of existing "sold" units... In no manner, does GAAP and SOX do not REQUIRE a "charge" for the upgrade. Just because you sold a computer for $1000, when you should have sold it for $1002. Mis-pricing an item is being "marketing stupid", not "mis-representing" the general ledger.

What's happening here is Apple has a heavy investment in WIFI draft-N which has been capitalized on the balance sheet for development(its been a few years, but it used to be FAS86, and probably still is closely related)...

They are now at the point of releasing the software and realizing they will have to write-off a significant balance sheet item, because the future unit sales dont support the complete amortization of their costs. I'm going to guess that the value is near to 30 or 75 percent of number of draft-N "compatible" units they have already sold. To publish the potential charge means it is "significant" and threatens to tarnish the current year's earnings expectations.

The revenue generated from the $1.99 charge will allow them to leave the capitalized charge on the balance sheet. It and along with the reduced future margin (-$1.99) per unit or the increased price ($1.99) of future units will "bring them to a net capitalization of development charges after amortization to zero", at then end of the product's life. (the future charge is unlikely due to market forces)...

The "rationalization" a plan for a "future" $1.99 charge immediately eliminates the need to recognize a loss based on the current balance sheet, if approved by the external auditors... and that's GAAP NOT SOX! The loss will just come in future years when it can be "peanut buttered" by furture earnings.

Its just an educated opinion...