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- So how did they come up with $1.99?
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The problem is you can't prove what some things are worth until you sell them. What's the value of a software upgrade to 802.11n on the open market? Apple isn't going to let any other company sell software that would upgrade a piece of its hardware, making it almost impossible to establish a market value for that software.
Companies establish values all the time, and, in fact, they must (Apple somehow managed to come up with $1.99 despite its being "almost impossible"). How does an auto company account for all the engines, dashboards, and seats that they have manufactured in advance of the introduction of a new model of car when it's time to do their quarterly balance sheet? They've never sold the car, and they certainly don't have any reference for the "open market" value of the dashboard for that car. Yet these items are assets that are part of the inventory that must be accounted for.
Bottom line is that Apple could have deferred the $1.99 revenue on the new Macs and allowed for a free download. $1.99 is no big deal 802.11n (I would be happy to pay it), but do "accounting regulations" now become an excuse for charging for any driver upgrade that allows new capabilities for the hardware? What about software? This is a very slippery slope. - Posted by: Rodney Davis Posted on: 01/21/07 You are currently: a Guest | Members login | Terms of Use
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