Comments on: App Store price fluctuation angering some iPhone users

Developers switching the price of applications has begun cropping up as a problem on the iPhone applications store. What is Apple prepared to do about it?

[albertsoler]

Did I miss a post some where? Why haven't I seen complaints about the latest firmware update (2.0) for the iPod Touch being non-free??? Why should I pay $10 to update my firmware??

How long will it be before Apple tells me that I won't be able to do anything with my Touch until I pay for the update to 2.0???

I love my Touch. But I really hate Apple.

[albertsoler]

I'm just getting wind of the many issues people are having with 2.0! Crashes, lags, insanely long back-up times -- I guess Apple's greed was my salvation.

Thanks Apple for insisting that we pay for this firmware update! Had it been free, I would have been one of those unfortunate souls that have suffered through a severely hampered Touch experience.

[Swampthing777]

OH PAaaaLEASE!

charging for firmware updates is only being done bc Apple CAN charge for firmware. They CAN charge for such updates bc the fanboys WILL pay for the updates.

I seriously do not know of any other electronics manufacturer that charges for FIRMWARE updates! (Not that they dont exist, but Im fairly certain they are not the norm)

Over the course of my ownership of the PSP it has recieved numerous FREE firmware updates which have added immensely to the handheld's functionality.


Not to mention the Xbox 360's FREE firmware updates and of course the numerous other cellphone FREE firmware updates.

Seriously, to like a product for its virtues is fine. But to remain blindly loyal to a brand or product without acknowledging its weak points is silly.

Its...Hella lame!

[kevanio]

iPhone users pay monthly fees. iPod touch owners don't.

Therefore apple gain money that can be put towards firmware updates from iPhone users, so they don't charge.

iPod touch owners pay a one off fee, therefore have to pay for updates.

You can do whatever you want with your iPod touch. The update is not mandatory, if your not willing to pay then go you...don't pay for all the new features and being able to use the app store.

[anthonyyaco]

that is the dumbest thing i have ever heard. firmware updates have only been free. and ur argument that iphone users pay monthly fees. that is for at and t. while some of that money is probaly going to apple that is not the point. why is it any different than paying for access to a website and then them deciding to charge u more if u want it updated.

[kylebuttermore]

yeah but other mp3 players give out free updates with new features *cough* ZUNE *cough*

[thatchman1]

yeah but other mp3 player manufacturers are all trying to steal marketshare from *cough* apple *cough*

Apple says its the accounting department's revenue recognition principles that force it to charge for updates-- they even charged for a wifi upgrade for some of their computers due to this principle. Anyone trained in business accounting realizes someone can make this claim legitimately, but as you point out, it is rare that companies pull that trigger.

Revenue recognition principle would state that apple couldn't recognize the full profit of each ipod touch it sells until it has released every firmware update that will ever come for it. For example, if they add 10% new features 3 times over 5 years, they could only recognize the revenue of 70% of the sales in the first year, and 10% more each time a firmware update was released.

If firmware is only for bug fixes, no revenue has to be recognized because it is acting with the same intent of the product and ensuring its proper functionality. When new features are added, revenue would have to be recognized or a booked value loss would have to be accounted for on every touch already sold, receiving the firmware update, that didn't pay for that update.

It sounds silly, but in honesty, many of the rules that all companies abide by with regards to accounting are sort of silly. Apple is just being the normal militaristic enforcer that it usually is.

That' being said, I'm a big apple fan because their stuff just works, and its new, and if it takes my firwmare charge to ensure they continue to develop leaps and bounds beyond other companies, then I can deal with that.

[kylebuttermore]

the zune has more features than the ipod, i wouldnt call that stealing, i would call that being better! plus zunes don't scratch!

[BLipman72]

How would this affect applications that were downloaded for free and then go paid? My worry is that an application that i download can go paid and then charge me 9.99 for every update. I can understand developing a paid application after the fact which provides more features but I would keep the free application intact.

[troyallen]

What's going on with Apple these days? I think they are losing it. Where is the so-called Flash that the great Walt Mossberg claimed it will be out.?

[tekwiz4u]

@Blipman72

I'm wondering the same question myself. If there is an update, will I get prompted about the price? I'll be sure to keep my out for it.

On another note, I understand that time and effort in developing applications should be rewarded. But I really hate the "bait and switch" tactic some apps are employing. iPhone developers: If you're going to do this, write in the code a 30 day trial or DEMO when its first put out, but dont sucker consumers into an "upsell".

[JS82712]

I hate it when developers do that, like the other person mentioned before, you can put up "Free ofor a limited time" on the description. c'mon, consumers aren't stupid!

[IowaNinersFan]

Consumers aren't stupid?! There were plenty of people waiting in line just for a phone in July.

[Mondayma]

Hey guys,
When was the last time you developed an application for a brand new product for MILLIONS of people to use? Why are you complaining that rather than try to make you pay for an application or software before anyone in the public has ever SEEN it, let alone reviewed it, they offer if for FREE? I understand that some developers do have millions of extra dollars to spend on advertising, but most do not. So what better advertising than word of mouth? If something works well, let the users talk about it. Then when it picks up momentum ask to be reimbursed for your hard work. There is no free lunch..

[tekwiz4u]

@ Mondayma

I give you a PC for free. It got stolen within 30 days. You come back to me thinking I give you a new one, but now you have to pay me. What will be your next reaction? Will you bust out your credit card and happily hand it over to me? No. Your reaction will be, " I thought it was free?". You assumed it would be because I didn't post anything indicating otherwise. Now you have to PAY me for something that is no better than what you got for FREE.

So tell me the difference here? If you say its FREE, make it so. I understand there is no free lunch, but if I did the above scenerio to you, what would your thoughts be about me then?

[Mondayma]

@Tekwiz4u

Ok I'll go with you on your example, except I do not think it is fair to compare PCs to applications.. You are right I would probably say "I thought it was free". If you then proceeded to tell me that, now, in order to continue making PCs you must ask for 99 cents, I would gladly give you the 99 cents. Especially since I think Tekwiz4u makes some great PCs - well worth the money.

I agree the devs who are asking for a price now should have done a better job up front, help to set consumers expectations. Especially when some people won't understand the need to create revenue to cover costs without explicitly being told up front. Keep in mind though, just like Lowensohn said in his article, some of the apps that are no longer free offer more than they did before - completely justifying the increase in price.

[BlitzBoy1120]

Thats not right. It should have stayed the way it was.