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Apple to charge for future iPad OS updates

The Golden Master version of the iPhone OS 3.2 SDK has begun making its way to developers -- it's the shipping version of the software that these devs must use to create their killer iPad apps. At the same time Apple made the GM version of the SDK available, they also posted two other new files including an iPad firmware restore file (useless without an iPad) and the end-user licensing agreement (EULA) for iPad.

What's unique about the file containing the EULA is that it shows that future OS updates for iPad may not be free. Paraphrasing the statement, it says that Apple will provide free iPad OS updates from time to time, up to and including the next major iPad OS release following the version that the iPad shipped with. The example notes that if the iPad shipped with iPad 3.x software, Apple would provide free updates up to and including 4.0.

The common interpretation is that the next major OS update (iPad 4.0) will be available to iPad owners for free, but that Apple reserves the right to charge for iPad 5.0 and beyond.

This is the case with the iPod touch as well -- iPhone owners have received OS updates for free, while iPod touch owners have had to pay US$9.95 for major OS updates. This policy has to do with Apple's interpretation of the ever-popular GAAP (Generally Accepted Accounting Principles) requirements that are usually talked about during the quarter earnings calls.

[via MacRumors]

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The Golden Master version of the iPhone OS 3.2 SDK has begun making its way to developers -- it's the shipping version of the software that...
 

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St3phen

Gee, TUAW offers its new iPad-free feed at http://www.tuaw.com/not/ipad. What's (currently) the third item in the feed? "Apple to charge for future iPad OS updates"

O.o

Even though it's "Filed under: iPad" I guess it's not working because they forgot to *tag* the post with "iPad." *sigh*

March 31 2010 at 6:15 PM Report abuse rate up rate down Reply
SIP

Explanation copied from elsewhere and edited to fit here:

This has something to do with GAAP, Generally Accepted Accounting Principles, and the Sarbanes-Oxley Act. According to GAAP Apple, or any other hardware company, would have to defer booking revenue on products with unimplemented features if those features are implemented via software after release.

To do otherwise would put them in violation of SOX. Since Apple, rightly, wants to book revenue at time of sale AND not have its executives go to jail, it stipulates in the EULA that only some software updates are free

 (I think what this means is that it is now individuals within the company and not the company itself which can be prosecuted).

Apple caught a lot of flack for not making this disclosure clear previously. Now they're simply putting it in the EULA.

March 31 2010 at 1:31 PM Report abuse rate up rate down Reply
kobioshi

The defining factor for the Touch / iPhone is the phone part, right? So it seems they should offer them for free for the cellular data enabled versions and charge for the wifi only versions. I think it should all be free!

March 31 2010 at 9:19 AM Report abuse rate up rate down Reply
SIP

I had automatically assumed that the upgrades would be treated in the same way as the iPod Touch, i.e. there would be a nominal charge for .0 updates.

I don't know about US accounting practices, but read a good explanation as to why Apple has to charge for the iPod Touch updates and not the iPhone one.

I think that this article should have had a brief statement in bold explaining this otherwise people just make themselves look stupid by making comments like "another reason not to buy the iPad" or "Apple sucks".

I remember having to pay for the update to the WiFi card (from "g" to "n") for my Macbook, and again the explanation was that Apple was obliged to charge for this because of accounting laws.

We all know that the law is an ass -- sometimes it forces you to do something you don't want to do -- you just have to live with it. Spending $/£9.99 on a major software update every year is no big deal -- just walk around your house and you'll see stuff you bought (on impulse) for loads more which only ever got used once or twice and then either ignored it or put it in the attic so it doesn't remind you of your own lust and stupidity. Why is eBay so successful? It caters for all those original stupid purchases we made!!

I intend to buy the 64GB 3G+WiFi iPad, but when I wake up every morning, there's this little voice in my head which tells me that for the price of this gadget, I could feed two starving orphans for a whole year (I'm trying to ignore that voice by telling myself that I really really NEED the iPad).

Just get over it, get on with life and be grateful for what you have and can acquire instead of whinging about a fistful of coins.

March 31 2010 at 7:10 AM Report abuse rate up rate down Reply
Stealth43

Not to quibble Steve, but it's "capice?" not "capiche?"

But you rock anyway :)

March 31 2010 at 2:00 AM Report abuse rate up rate down Reply
balls

The title is misleading.

Fail TUAW is fail.

Really it's not any different than the iTouch, which requires you to pay for major OS updates.

The only thing that sucks is that they won't include security updates in older versions of the OS.

March 30 2010 at 9:41 PM Report abuse rate up rate down Reply
taoprophet420

This is just a flame article. The wording used by Apple is some features might not be available on future ipads. Same as what they have done on different versions of the iphone. Apple has stated they only charged for touch updates for accounting and have stopped since they have changed the way they do revenue sharing.

March 30 2010 at 8:28 PM Report abuse rate up rate down Reply
Yuusharo

Shouldn't the article be titled "Apple [*MAY*] charge for future iPad OS updates?" I mean come on, its not like this practice is new - iPod Touch users have had to deal with paid updates every year since it came out.

True, I'm not sure I buy Apple's "accounting" reason for charging updates, but its unlikely that Apple will charge for a 4.0 update just a few months after the iPad is released. From what I understand, it's an annual accounting problem, so you're good for at least a year.

Not that big of a deal. I promise that most iPad users will spend more than the $10 Apple would be likely to charge on 3rd party apps... kinda have to to make the iPad useful. /zing =)

March 30 2010 at 8:06 PM Report abuse rate up rate down Reply
Jake Tise

What do we have here:
http://www.felixbruns.de/iPod/firmware/

March 30 2010 at 8:04 PM Report abuse rate up rate down Reply
Ian

Wow, sticking it to the iPad users the same way as with iPod Touch buyers? I imagine the consumer upset will be enough to make them reconsider the whole practice.

March 30 2010 at 7:54 PM Report abuse rate up rate down Reply
1 reply to Ian's comment
Jon

Haha, these are Apple fanboys.. They'll just buy a new iPad when OS 5.0 comes out!

March 30 2010 at 11:38 PM Report abuse rate up rate down Reply
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