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New Apple iPhone Apps and Apple TV Updates to Come

Apple made some interesting comments today during their Q2 Financial Results regarding their plans with the iPhone and Apple TV in the coming months.

The webcast was opened with a prepared statement, where Apple describes how they are planning to use subscription based accounting to document the income from the iPhone as well as the Apple TV. This means that income from these devices will be spread over a 24 month period from an accounting perspective.

Their reasoning behind the shift was due to plans to continue to develop new software features and "entirely new applications" and incorporate them into the iPhone. "We want to provide many of these new features and applications at no additional charge to users."

Similarly, they stated that periodic updates and enhancements will be provided at no charge to Apple TV customers.

Again, this has no effect on customer prices or purchasing and simply reflects a shift in internal accounting at Apple, but the plan for future updates and "new applications" for the iPhone to be delivered as free updates was somewhat revealing.

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63 months ago
People need to realize this is a big deal. Apple got burned with the wireless N upgrade because of the accounting issues related to issuing new functionality on products whose revenue had already been fully realized. With this subscription model, it allows Apple to add new functionality without needing to charge for them. These will be "material" updates to iPhone. New Applications and new features over the life of the phone.

The other really cool part about all of this has to do with my solid belief that Apple has decided to keep the iPhone extremely tight. If you buy an iPhone at launch that phone will continue to be updated and will last more than 2 years since they are accounting for it over a 24 month period. This means you will not be screwed by buying an iPhone in the begining. The iPhone hardware is advanced enough to handle the new software apple will want to ship, and when 3G and more memory is added in new models the form factor will remain the same, and as new features are added the entire line will see the benefits. Unlike the iPod where 3g iPods cannot play the games or some of the other new iPod OS features.
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63 months ago
Glad to hear they're planning on a lot of free updates to the iPhone service and the :apple: TV hardware.
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63 months ago

Glad to hear they're planning on a lot of free updates to the iPhone service and the :apple: TV hardware.


Nah, you're gonna hear a lot people whine about getting a beta-release of hardware....
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63 months ago
This reinforces the argument that you can't judge the iPhone simply based on the available information. Apple is always conservative and undersells new products. It is quite possible, and today there was confirmation, that new features will be added in the near future. It may even be possible to adopt third party apps. We'll just have to wait and see. Recall that in January's keynote Steve pointedly remarked that fixed button sets don't allow you to add new features while a touch screen allows you to add new features.
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63 months ago
Ah Yes..... BIGANDTASTY :apple: Updates... This is a Good Thing!
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63 months ago

This means you will not be screwed by buying an iPhone in the begining. The iPhone hardware is advanced enough to handle the new software apple will want to ship, and when 3G and more memory is added in new models the form factor will remain the same, and as new features are added the entire line will see the benefits. Unlike the iPod where 3g iPods cannot play the games or some of the other new iPod OS features.


So this means I get free updates to my iPhone and my aTV? If they did the accounting the other way they'd have to charge for it? How does this differ from free Mac OS X updates (like 10.4.x)? Sorry, I don't get it. I wasn't an accounting major in college. :D Debits and credits anyone? :eek:
Rating: 0 Positives / 0 Negatives
63 months ago

This reinforces the argument that you can't judge the iPhone simply based on the available information. Apple is always conservative and undersells new products. It is quite possible, and today there was confirmation, that new features will be added in the near future. It may even be possible to adopt third party apps. We'll just have to wait and see. Recall that in January's keynote Steve pointedly remarked that fixed button sets don't allow you to add new features while a touch screen allows you to add new features.


Yep. Apple wants the iPhone hardware to be a simple slab that does not need updating as often as iPods do.

So this means I get free updates to my iPhone and my aTV? If they did the accounting the other way they'd have to charge for it? How does this differ from free Mac OS X updates (like 10.4.x)? Sorry, I don't get it. I wasn't an accounting major in college. :D Debits and credits anyone? :eek:


Yes, without the change they would have to charge for the updates, just like new versions of iLife or OSX. The software updates improve the existing codebase, it does not materially change the functionality of the software, it simply updates code without adding new major features.
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63 months ago
Did they say anything about computer hardware? :confused:
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63 months ago

iPhone as well as the Apple TV. This means that income from these devices will be spread over a 24 month period from an accounting perspective.


Interesting. So with todays earnings report only 1/24th of all :apple: TV's sold to date were included in the report. (The next report would have 3/24 - it was only out for 1 month in the current report.)
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63 months ago

So this means I get free updates to my iPhone and my aTV? If they did the accounting the other way they'd have to charge for it? How does this differ from free Mac OS X updates (like 10.4.x)? Sorry, I don't get it. I wasn't an accounting major in college. :D Debits and credits anyone? :eek:


I think it has something to do with more of a firmware update or something that improves the functionality of the hardware. Anyways thats my understanding. I'm sure someone will come along who's more knowledgeable on the matter.
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