Hi, I'm Michael Mistretta, a student passionate about technology, photography, and design. Welcome to my online home where I write about technology, reviews, and my thoughts and opinions on technology-related matters. 
Undoubtedly, the most debatable announcement at Macworld yesterday was the iPod Touch upgrade. Apple released free major updates to the iPhone and the AppleTV, but when it came to updating the iPod Touch, users were asked to pay $20. The upgrade for the iPod Touch would make it more like the iPhone. It would add the Maps, Mail, Weather, Stocks, and Notes applications to the iPod Touch, which originally didn’t ship with the device. However, all new iPod Touches come with the new apps pre-installed. The question is, why didn’t Apple include these apps in the iPod Touch from the beginning?
I don’t think that Apple is perfect, and I believe they made a mistake about the vision of this device from the beginning. They first envisioned the iPhone as a “phone” and the iPod Touch as an “iPod”. The iPhone was meant to include and iPod, a phone, and an Internet communicator, while the iPod Touch was meant to focus music, photos, and videos like most traditional iPods had. However, when the iPhone and the iPod Touch were hacked, there was a clear message sent to Apple saying, “We want third-party apps”. I think Apple woke up and realized that these devices were not just a phone and an iPod. They were the beginnings of an entirely new computing platform.
Photo from Gizmodo
Finally, Apple caught on. Instead of working to differentiate their product lines, they should work to build them into a platform. They announced that they were working on an SDK (software development kit) that would allow developers to take advantage of the features of the iPhone and iPod Touch, and build third-party apps for them. They decided to give current iPod Touch users the ability to upgrade, and have all the apps that the iPhone has - for a price.
Why?
It’s the law. Unfortunately, there is a horrible little law called Sarbanes-Oxley, that legally doesn’t allow you to add features to products that you have already been paid for. Apple couldn’t add features for free. They had to charge something for them. Apple has gotten around this for the iPhone and AppleTV, by accounting for their payments over the course of 24 months. This means that they can keep adding new features to your iPhone or AppleTV for free for up to two years. They didn’t use this accounting method for the iPod Touch however. This means that legally, they can’t just add apps to the iPod Touch for free. Why charge $20 then? Why not just charge $1? The $20 for 5 apps comes out to about $4 per app. This is most likely the price that Apple will be selling third-party apps at, and wanted to keep their prices consistent.
I also believe that Apple chose to use this as a test of their system for purchasing and installing apps through iTunes. This could be a giant test, to see how a part of their SDK system works in the real world. I am sure that they are furiously working in Cupertino right now finalizing the SDK to get it out to developers as soon as possible.
But in the end, it really comes down to what you bought in the device. You bought the device for $300 or $400, and knew what it would do. Apple has now given you the option of upgrading your device to do a lot more, for only $20. You don’t have to do it. You can just stay with what you originally bought. I don’t own an iPod Touch, but I know that if I did, I would be grateful that they gave me the option, instead of doing nothing.
I find it fair, but I don’t think it’s great for the hackers. They’d rather have it for free. And really, if it’s $4 for every app, I would have loved it if they gave us the option to only buy one or two, because I only bought it for Mail, but hey, $20 for an amazing Mail application isn’t too bad.
I’m really looking forward to the SDK in february to get some more apps, and I hope Apple releases a few more apps between now and the SDK launch, available on the iTunes Store.
Digg it
Comment by Chris Thomson — January 16, 2008 @ 11:36 pm
Well, I’m glad to hear that at least one other person on this Earth understands why Apple had to charge for the upgrade. I just wished more people knew the reason so they would stop blaming Apple. It’s not ideal, but this is the way it is.
Comment by David — January 16, 2008 @ 11:53 pm
I’m not really fussed about them charging for the new features, but I do think that you are misunderstanding the Sarbanes-Oxley law a little. They couldn’t have charged more at the purchase of the product for those features that didn’t exist. This came out with the 802.11n upgrade for the MacBooks. However, there is nothing in the Sarbanes-Oxley law that doesn’t allow them to add features to products for free.
Comment by Billy — January 17, 2008 @ 12:24 am
I bought them as soon as I could the only feature I really like is the email but over in the UK we paid $4 more than you because it cost us £12. I know get some of the reasoning behind the pricing but still think it is silly.
Comment by Rupert Maspero — January 17, 2008 @ 2:41 am
With the Jailbreaking & hacking of these devices being concentrated upon by young minds, I wonder how long will it be before Apple’s OSX becomes as attacked as Windows (insert version here) is? Wanting to maintain my on-board security, I have been waiting for this upgrade and I don’t mind paying for the peace of mind.
Comment by meinrosebud — January 17, 2008 @ 6:09 am
@Rupert Trust me, I know how it feels. Canada gets some pretty ridiculous charges from Apple.
Comment by Michael Mistretta — January 17, 2008 @ 7:57 am
Actually, reading into it, there isn’t anything in the Sarbanes-Oxley act that says that Apple has to charge for upgrades…
http://en.wikipedia.org/wiki/Sarbanes-Oxley_Act
Comment by Greg — January 17, 2008 @ 9:19 am
In the UK we have to pay more for the upgrade. Thats really unfair.
Comment by Jase — January 17, 2008 @ 10:11 am
Sarbanes-Oxley is not very clear, but it does cause problems for companies adding new features to devices that were already sold or accounted for. I think Apple wanted to be cautious due to them being under SEC investigation earlier this year.
Comment by Michael Mistretta — January 17, 2008 @ 11:10 am
Apple added the calendar add event feature for iPod touches, in a free software upgrade… I’m not sure I understand why they have to charge for new features…
Comment by Leo — January 17, 2008 @ 6:32 pm
Leo,
The difference is that the add event was an added feature in a pre-existing application. This is adding 5 completely new (to the iPod) applications.
Comment by Davdi — January 18, 2008 @ 2:10 pm
I understand, as a business person, that if you give your product away for free it will have no perceived value. I also understand that giving away the iPhone Apps might set a president that wouldn’t be too pleasing for 3rd Party Developers who will want to, understandably, charge for their Apps.
As a user I am disappointed I had to pay $20 for the updates. I did it and I am fine with it, but it did leave a bad taste in my mouth. Of course I bought the Touch thinking it would be an ipod/pda (or whatever you want to call that line of functionality). So my expectations where wrong. I think sometimes in business like it or not you have to play to your customers expectations. I look to the iPhone refund as an example.
Anyway that being said I paid the $20 I am happy with the applications and I am ready for more 3rd party apps, but if Apple decides to give me $20 credit I will take it.
Comment by jeremy — January 18, 2008 @ 3:41 pm
The only thing I’m disappointed in, is that Apple didn’t get the hint entirely by making the iPod Touch more of a PDA. It’s what everyone is truly trying to do…especially the hackers and those who want it unlocked. They want games, music, data, pictures, documents, email etc and want to get them from 3rd parties. They dont want 5 apps that Apple deems good enough for their bricks! That is called a PDA (personal digital assistant) Perhaps Apple will get the hint before we all end up online at eBay to buy up those Palm Lifedrives that are still floating around!
As for the cost, I have no problem with it at all. The reason is, when the iPod Touch and iPhone came out, you could easily read the box and figure out which item was best suited for you. Getting upGRADES for free has never been a policy of ANY company that I know of. UpDATES on the other hand are a completely different situation. Be careful what you consider an upGRADE versus an upDATE. Buying Quicktime Pro 6.0 and then upGRADING it to 7.0, a completely different version is called upGRADING! This costs you money. Also if you buy a computer with standard edition software such as Microsoft Office and then you realize later you wanted the full Professional version, guess what? You’re gonna pay for it
Remember, upDATING is only adding new features to current software through a service pack like Quicktime Pro 7.0 to 7.04 and is FREE.
UpGRADING is changing the entire version of a software such as Quicktime Pro 6.0 to 7.0 and this is NEVER free…neither is getting additional apps!
Comment by Tim — January 18, 2008 @ 7:17 pm
I got my ipod touch for a broadband plan spreading over a period of 24 months, so Apple can allow ipod touch users like me to upgrade for free! (similar to iphone / apple tv users)
Comment by Samy — January 22, 2008 @ 8:54 am
I completely agree. The new upgrade is awesome and worth every penny!
Comment by gabe — January 22, 2008 @ 5:16 pm
Very well said, this is quite possibly the most well written and mature article that I have read about the ipod touch upgrades. Rather than simply starting a flame war like engadget or some of the other sites, you constructed a logical argument which wholly and accurately details both sides of the story. Great article and keep up the good work.
Comment by Jake — January 22, 2008 @ 5:25 pm
Personally speaking, I am outraged that Apple is charging early buyers of the iPod Touch $20 for a system update that ought to be free.
While I understand Apple’s decision to charge money for the new applications (especially because they might run afoul of the SOx Law) the new $20 “application pack” also includes a SYSTEM UPDATE in the form of the home page editing, web clips, and lyrics features. All of these are updates to the currently existing iPod Touch software and NOT new applications, which means that they ought to be free to all users of the iPod Touch.
Adding insult to injury these applications are all hidden in the 1.1.3 system update, a whopping 104.4mb file that all users must download if they want to fix bugs in the system. These applications can only be used when you pay Apple $20 to “unlock” them, but even if you decide not to buy them they stay on your iPod taking up precious space that could be used for songs, videos, or photos.
Apple is normally wonderful when it comes to providing system support and updates, but having them shaft early adopters and loyal fans like this is offensive and shows that Apple has absolutely no regard for the iPod Touch community.
You can leave Apple direct feedback here:
http://www.apple.com/feedback/ipodtouch.html
You can also sign this petition:
http://www.petitiononline.com/freeappi/petition.html
Comment by danny — February 22, 2008 @ 6:01 pm
hey watsz upp well juzt wanted tu no about the ipod ….unm well can you licen tu music on the ipod touch trough the internet like flashplayer?
Comment by kestner linares — May 30, 2008 @ 8:32 am
You can’t listen through flash player, as there is not Flash on the iPhone or iPod Touch. But, if you have a link to the direct MP3 or AAC file on the Internet, Safari — the web browser on the iPod Touch and iPhone — will play it through QuickTime.
Comment by Michael Mistretta — May 30, 2008 @ 8:36 am
I love my new ipod. wish it was bigger than 16gb though.
Comment by Jackie — July 3, 2008 @ 9:01 am
I wish the ipod touch would be able to conect with Nike system, is not fair that you have to have tour ipod touch and ipod nano also if you want to use it…
Comment by Ron — July 3, 2008 @ 2:37 pm
Quoting the ‘horrible little law called Sarbanes-Oxley, that legally doesn’t allow you to add features to products that you have already been paid for’ as an excuse for the obvious cash-in by Apple on this is a little hard to swallow.
If this really was the reason then can someone please explain how Apple managed their other iPod touch firmware upgrades?
If this horrible little law did apply then can someone care to explain to me why Sony, Nintendo and Microsoft and many others been breaking the law by giving us all free firmware updates for our various devices. PSP, Wii, PS3, Xbox, Xbox360, etc etc.
I would hate to think I was complicit in breaking the law by accepting these updates without paying for them. Shudder the thought.
Comment by Vin — July 29, 2008 @ 6:34 pm
Vin: Most of the other iPod Touch updates contained bug fixes and no new significant features. The 1.1.3 upgrade announced at Macworld cost $20 for iPod Touch owners. Apple significantly reduced the cost of the iPhone 2.0 upgrade to only $10.
Up until recently, Apple was under investigation by the SEC, and wanted to be as careful as possible with their accounting.
Comment by Michael Mistretta — July 29, 2008 @ 6:50 pm
Sorry Michael,
I am just not buying it. For example Sony and MS will both be introducing huge upgrades to their respective gaming platforms (PS3 and Xbox360) in the coming months. These are not just cosmetic changes they are complete revamps of the entire systems (and this is not the first time they have done it either) yet neither will be charging for it. The two cited examples are Xbox Experience and Playstation Home.
I do realise it’s a case of cover your ass for Apple but if they really did have their hands tied by Sarbanes-Oxley (which I don’t believe to be the case) they could have done it at a nominal cost to the consumer. I think it’s a cynical attempt to justify milking unwary customers for cash.
My recommendation for everybody is to give Apple the finger and download the widely available restore.
Comment by Vin — August 1, 2008 @ 3:14 pm
@Vin
Sony, Nintendo and others aren’t American firms so the law does not apply.
and Microsoft rarely adds “functionality” to its products, so they can skirt the new law.
all these updates are free on torrents so it’s really not a big issue once you know that.
Comment by OS11 — August 20, 2008 @ 9:29 am