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http://www.macnn.com/articles/11/02/24/may.be.trying.to.avoid.complicated.finances/

Apple blames FaceTime pricetag on accounting rules

updated 12:45 pm EST, Thu February 24, 2011

May be trying to avoid complicated finances

The unexpected 99-cent pricetag for FaceTime at the Mac App Store is a result of accounting regulations, Apple explains. US accounting rules sometimes require companies to charge for updates if they provide a significant feature left out of original products. An alternative solution can be to restate past earnings, something Apple would likely prefer to avoid.

Apple has sometimes been infamous for charging for updates typically expected for free. The most frequent example has been major iPod touch firmware upgrades, which cost a small fee up until iOS 4. In 2007, the company went so far as charging $2 to enable 802.11n Wi-Fi on some Macs.

by MacNN Staff

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TAGS :

software, digital imaging, Apple, FaceTime

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Comments

testudo
Forum Regular

Joined: Aug 2001

+5

02/24, 12:59pm | report spam | (1 reply) close Reply |
that's a boatload of c***

It only applies to an enhancement to the OS.

And how does Apple not have to charge for the MacAppStore, which is certainly more of an update to the Operating System, but they charge for FaceTime?

umijin
Fresh-Faced Recruit

Joined: Jun 2004

0

02/24, 01:17pm | report spam | (1 reply) close Reply |
Nonsense

If they just called it iChat HD or something like that, none of this would have been needed. Oh, wait we still have iChat - why??

Grendelmon
Forum Regular

Joined: Dec 2007

0

02/24, 01:17pm | report spam | close Reply |
PR Damage Control

*yawn*

facebook_Mike
Via Facebook

Joined: Feb 2011

-1

02/24, 01:54pm | report spam | (1 reply) close Reply |
DO NOT BUY FACETIME.. DO NOT BUY INTO APP SUBSCRIP

Apple is on track to nickel and dime for EVERYTHING they do. I LOVE Apple, But this is horsesh*t!. Wait till Lion, which will most certainly have FaceTime built into the OS.

Teq
Fresh-Faced Recruit

Joined: Mar 2010

+6

02/24, 02:34pm | report spam | close Reply |
They can keep it...

... and I'll stick to Skype, or MSN, or Fring, or half a dozen other FREE services

Fast iBook
Fresh-Faced Recruit

Joined: Mar 2003

+8

02/24, 03:36pm | report spam | close Reply |
Bitter...

You folks sound bitter. No offense, but facetime works directly with the contacts on my phone's address book. I've tried the beta, and i like it. 99 cents isn't that much, and if you don't want to pay for it, don't.

- A

apple4ever
Fresh-Faced Recruit

Joined: Jan 2001

0

02/24, 04:03pm | report spam | (1 reply) close Reply |
Sorry

But that doesn't make any sense. 10.6.6 added the App Store without any cost. And those accounting rules DON'T require it anywhere. Its stupid.

ilovestevejobs
Fresh-Faced Recruit

Joined: Feb 2007

-6

02/24, 04:04pm | report spam | (1 reply) close Reply |
It's another Apple tax.

Nothing new and the only people who will see through Apple BS are the uneducated isheep crowd

aross99
Fresh-Faced Recruit

Joined: Jan 2006

+4

02/24, 04:07pm | report spam | close Reply |
It's only $0.99!

Why all the complaints about $0.99?

It's obviously not a money grab, or they would have charged a lot more.

If you don't want it, then don't pay the $0.99. I already paid my $0.99 and I'm fine with it.

Yes, I paid the $2 for the 802.11n connectivity on my MBP back in 2006 also - and everyone complained about that too.

You would think they were charging $19.99 or something...

lamewing
Dedicated MacNNer

Joined: Aug 2004

-3

02/24, 04:42pm | report spam | (1 reply) close Reply |
@aross99

You miss the point. It is called nickel-and-diming the customers. $1 doesn't seem like much and people like you are will to fork it over without thinking making a boatload of $$$ for Apple.

The POINT is that there shouldn't be a fee for this. It is the PRINCIPLE of the matter. The App Store was a significant addition to the OS and there was no charge for that...so why facetime?

If you are willing to pay these extra fees, here and there, you are a fool...and just the sort of customer that Apple wants.

ilovestevejobs
Fresh-Faced Recruit

Joined: Feb 2007

-6

02/24, 05:20pm | report spam | close Reply |
@aross99

Please see my post re: isheep

vinnieA2
Fresh-Faced Recruit

Joined: Mar 2005

-2

02/24, 08:56pm | report spam | close Reply |
you can do it

Just coast your car down your driveway or a small hill...with the money you save on gas, you can afford this app. lol

If you like Skype better, don't buy this. It may be "nickel and diming" in some people's eyes, but keep in mind that it sounds very likely that you will soon get MobileMe for free. heh -- that's like $70 bucks...for free. See? Apple loves you....

cartoonspin
Fresh-Faced Recruit

Joined: Sep 2003

-2

02/24, 09:22pm | report spam | close Reply |
The principal of the thing...

You are killing me....hahaha

SunSeeker
Mac Enthusiast

Joined: Apr 2001

0

02/25, 04:52am | report spam | close Reply |
Seriously?

When I purchased Snow Leopard and (among other things) gained back 20% of the hard drive on my laptop for a third the price of the usual OS update I saved about $100, not to mention the value of the time I have saved using Apple for 24 years - I think I can spare a dollar

MilMascaras
Fresh-Faced Recruit

Joined: Aug 2007

+3

02/25, 11:49am | report spam | (1 reply) close Reply |
MacNN: Explain The Accounting Rule?

Hey MacNN: Do a follow up story, and explain the accounting rule so that we understand it, put it in perspective (ie: why App Store is Free, but FaceTime is 0.99, etc.), and educate us so that we either understand it, or have better grounds for airing our gripe about nickel and dimeing.
** I too agree that this should've been rolled into iChat **

testudo
Forum Regular

Joined: Aug 2001

+1

02/25, 02:44pm | report spam | close Reply |
Hey

I thought the GAAP rules changed, and Apple changed as well. For example, they no longer subscribe the cost of the iPhone (which they initially did). Since they don't do that, how do they even get away releasing iOS 4.0 for free?

Sandman619
Fresh-Faced Recruit

Joined: Jul 2006

0

02/27, 09:31pm | report spam | close Reply |
Accounting rules

“ According to a reading of certain accounting rules relating to the Sarbanes-Oxley Act, items that gain significant new functionality after the sale—due to a firmware update, for instance—can’t have the revenue recorded at the time of sale. The revenue is reported over a certain period of time, called subscription accounting ” *

While the iPhone is subject to subscription accounting, Apple would probably prefer not to treat all of it’s sales of iPods & Macs, spreading out their revenue over several years. This is why they charge a token amount for enabling newer WiFi functionality or for new software enhancements. Whereas the Mac App Store, Apple is essentially charging for this functionality through their 30% revenue share on the sale of software

Resource:
* Eric Schwarz, “ Thoughts from CICS… "
http://cics.bsu.edu/cicsworld/ericschwarz/2010/03/31/accounting-rules-paid-software-updates/

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Apple blames FaceTime pricetag on accounting rules

updated 12:45 pm EST, Thu February 24, 2011

May be trying to avoid complicated finances

that's a boatload of c***

Nonsense

PR Damage Control

DO NOT BUY FACETIME.. DO NOT BUY INTO APP SUBSCRIP

They can keep it...

Bitter...

Sorry

It's another Apple tax.

It's only $0.99!

@aross99

@aross99

you can do it

The principal of the thing...

Seriously?

MacNN: Explain The Accounting Rule?

Hey

Accounting rules

Login Here

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Apple blames FaceTime pricetag on accounting rules

updated 12:45 pm EST, Thu February 24, 2011

May be trying to avoid complicated finances

Related Articles

Recent Articles

that's a boatload of c***

Nonsense

PR Damage Control

DO NOT BUY FACETIME.. DO NOT BUY INTO APP SUBSCRIP

They can keep it...

Bitter...

Sorry

It's another Apple tax.

It's only $0.99!

@aross99

@aross99

you can do it

The principal of the thing...

Seriously?

MacNN: Explain The Accounting Rule?

Hey

Accounting rules

Login Here

Register for our weekly email newsletter:

Connect tools:

Subscribe

to our RSS

Follow us

on Twitter

Most Read

10 Most Discussed

MacNN Marketplace