In the last few days I have seen a lot of articles on the web about how ridiculous it is that all iPod touch owners have to pay $20 to get the update that adds new apps that have been default on the iPhone from day 1 and if one were to buy an iPod touch now it would come with it.

HOW CRAZY!!!!!!! BOYCOT APPLE!!!!

At least most people think that, especially when the other software updates that were announced on Tuesday are free.
The iPhone’s software was updated and all iPhone owners can install the updates free of charge. The Apple TV software was also updated and it is free as well. So why does one update for one product cost $20 and for the other products they’re free? It’s an extremely simple answer really and not many people seem to get it.

The iPhone software is free because Apple is making money from every iPhone owner. With the exception of a few “adventurer’s”, all the iPhones in the US are connected on the AT&T network. As a result Apple is making money off of them on a monthly basis.

Okay so what about the Apple TV owners then? Why do they get a brand new interface and added features for free, when they clearly aren’t paying Apple a monthly fee? Well…it’s simple really. The moment all the Apple TV owners update their software, the majority of them are going to rent a movie from Apple’s new movie rental service. So Apple will make money from that upgrade.

The features that the iPod Touch update adds do not create an additional revenue stream for Apple. So it’s obvious that in order to make money from this feature add they are going to just flat out charge you for it. As for the reason as to why it’s free for anybody that buys an iPod touch now, well that’s a common occurrence in the gadget industry. A company either has to drop the price or add more value to the product.

Now let’s say that there was a way where Apple could easily turn the Apple TV in a Tivo type device that would allow you to record TV and even sync the recordings to your iPod and/or laptop. Apple would not just give this feature away to the current Apple TV owners. They would either charge them for the update or they’d add that feature in a newer version and everybody would have to buy a new device if they wanted it. Why? Well, a feature like this doesn’t create an money for them any other way.

This is called Business. Why would Apple work for free? Would you work at your job for free? I doubt it. If you want the features buy them. It’s pretty cheap, considering that a good mail application for Windows Mobile easily costs $50. If $20 doesn’t seem like a good deal to you, well then don’t buy it. Simple as that.

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