Apples decision to charge $20 US (£13 here in the UK) for the recently announced updates to the iPod Touch has caused outrage among certain users, but there are underlying reasons to charge for new features in a product, primarily the fact that they are a business.
The Unofficial Apple Weblog is currently running a story about an online petition to have Apple release the new applications for the iPod Touch free of charge. The issue for these users stems from three individual things:
1. Free on a new iPod Touch
All users who buy an iPod Touch today get the new features free of charge, pre-installed. I took the opportunity to visit the Regent Street Apple Store here in London today and witnessed the sale of an 'old' iPod Touch. If a user purchases a new iPod Touch which does not have these features they are being discounted the £13 on the sale as to offset the cost of buying the features. Why are current owners complaining? Well, honestly no one is sure. Mac users have long bought Mac's only to find out they have a new version of iLife or even a new version of OS X issued a few weeks later. These users have never professed entitlement to the new features - they have stumped up cash to get them. What makes the new applications, yes, full blown applications, for the iPod Touch software any different from Mac software from this business perspective? Nada, nothing.
So we have successfully debunked this. People got what they paid for and are happy until a new version comes out...
2. iPhone Users got it for Free
Sorry folks. We didn't. Various sources all agree that Apple is making at least some money from a revenue sharing agreement with AT&T current estimates average around $10/month US per iPhone contract and while figures are unavailable for the UK considering Apple's general regard for pricing in the UK market I'd wager around £7/month per iPhone contract from O2. So each iPhone owners have paid for, and are still paying for each and every upgrade. Tell me again why iPod Touch owners should receive the fruits of my hard earned cash for free?
3. But the Apple TV got [er, will get] a Free Update
First up, this is a totally different product and so a bad example to give, but we'll role with the argument. For the most part the huge re-engineering of the Apple TV software is all to add one feature: Rentals. Rentals provide revenue, long term, consistent revenue. Allowing an iPod Touch owner to access their Gmail account does not. While Apple has decided to include additional features such as Flickr photo viewing this is primarily to improve sales, and sales mean more rentals and more revenue.
What Apple users, myself included, sometimes forget is that Apple is a business. You get what you pay for and users shouldn't expect something for nothing.
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2 comments:
You're right to point out that Apple is a business, but in that respect, it needs to learn about customer loyalty. In this respect it's let users down.
The whole 'charge for upgrades' ethos, which applies to OSX, is questionable. They charge because they can get away with it.
The iPod Touch is popular with non-Apple users; that is, people who are used to MS charging (XP->Vista), or the Linux crowd. They (myself included) are simply not familiar with charges for increases in functionality and bug fixes. Bug fixes in particular should never be charged for. Bug fixes happen when something is shown as not fit for purpose - trades description an' all that.
Hopefully Apple will learn that what they're doing isn't just 'not cricket', but may succeed in turning new-found friends hostile once again.
The point here is that Apple isn't offering a bug fix. There is nothing wrong with your iPod Touch, it does everything they promised it would do when you were sold it.
What Apple is offering are new applications. If you want a Exchange capability for your PC, you go and buy Outlook. If you want email on your iPod, you pay for the applications.
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