Michael Johnston
April 27th, 2007, 11:17 PM
On Wednesday, Apple Inc. stated during it's Q2 conference call that iPhone and AppleTV users will enjoy regular software updates free of charge.
During the call, Apple CFO Peter Oppenheimer stated that:
"We plan to build on this incredible foundation by continuing to develop new software features as well as entirely new applications and incorporate them into the iPhone and since iPhone customers will likely be our best advocate for the product we want to get them many of these new features and applications at no additional charge as they become available. Since we will be periodically providing new software features to iPhone customers free of charge, we will use subscription accounting and recognize the revenue and product cost of goods sold associated with iPhone handset sales on a straight-line basis over twenty-four months."
[...]
"Apples proven capability to create innovative software gives us a tremendous competitive advantage in the consumer electronics industry. We are taking this bold step to leverage what we do best. We hope the result will be to surprise and delight our iPhone customers, which will result in happier customers and more customers as we enter this billion unit per year mobile phone market."
This surely is great news to all of us iPhone fanatics that plan to buy one the second they become available. One of the greatest concerns I've had about getting one of the first units was that Apple would simply roll out new models shortly after with vastly improved software. This certainly comes as a relief and makes me even happier to be a future 1st gen iPhone owner. Now if only they would surprise us by doubling the memory sizes on both models, I would be the happiest man alive. :)
During the call, Apple CFO Peter Oppenheimer stated that:
"We plan to build on this incredible foundation by continuing to develop new software features as well as entirely new applications and incorporate them into the iPhone and since iPhone customers will likely be our best advocate for the product we want to get them many of these new features and applications at no additional charge as they become available. Since we will be periodically providing new software features to iPhone customers free of charge, we will use subscription accounting and recognize the revenue and product cost of goods sold associated with iPhone handset sales on a straight-line basis over twenty-four months."
[...]
"Apples proven capability to create innovative software gives us a tremendous competitive advantage in the consumer electronics industry. We are taking this bold step to leverage what we do best. We hope the result will be to surprise and delight our iPhone customers, which will result in happier customers and more customers as we enter this billion unit per year mobile phone market."
This surely is great news to all of us iPhone fanatics that plan to buy one the second they become available. One of the greatest concerns I've had about getting one of the first units was that Apple would simply roll out new models shortly after with vastly improved software. This certainly comes as a relief and makes me even happier to be a future 1st gen iPhone owner. Now if only they would surprise us by doubling the memory sizes on both models, I would be the happiest man alive. :)