Apple at the mercy of the Accountants

Macworld has an interesting story detailing the reason behind Apple charging $19.99 to iPod touch users who want to upgrade their ipod with new features.  It turns out that there is an accounting requirement that obligates Apple to charge consumers for feature upgrades on products that aren’t accounted for on a subscription basis.

This helps to explain why Apple has chosen to account for iPhone sales on a subscription basis, choosing to amortize the phones over a 24 month period.  In doing so, Apple can provide iPhone users with new features without having to charge them.

Yoni is a business / tax attorney from the windy city. Yoni is also a gadget enthusiast who enjoys writing in the third person.
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