News
Apple to add free iPhone, Apple TV features over time [updated]
By Jeremy Horwitz
Editor-in-Chief, iLounge
Published: Wednesday, April 25, 2007
News Category: iPhone, Apple TV
During Apple’s second-quarter 2007 financial results conference call, Apple CFO Peter Oppenheimer disclosed that Apple has adopted a new accounting policy in order to provide ongoing software feature and application updates for both Apple TV and the iPhone.
“We believe the iPhone is a revolutionary device that is years ahead of the competition,” said Oppenheimer. “We plan to build on this incredible foundation by continuing to develop new software features as well as entirely new applications, and incorporate them into the iPhone. And since iPhone customers will likely be our best advocates for the product, we want to get them many of these new additional features and applications at no additional charge as they become available.” Consequently, the company will account for each iPhone’s revenue over a subscription-style 24-month period rather than all at the time of sale. A similar statement was made regarding future Apple TV features.
Updated: In response to an analyst’s inquiry as to why Apple TV would be placed on a subscription accounting model, given that no subscription is required for the device, Apple stated again that it was looking at a number of new features for Apple TV, but did not specify what they would be. The analyst questioned whether this was a prelude to a subscription package for Apple TV content, and was not directly answered.
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1
I wish they would hurry up an announce some kind od Apple TV subscription service. I’m days away from being locked in to another two years with DirecTV.
Posted by Galley in Greenville, SC on April 25, 2007 at 2:44 PM (PDT)
2
I’m not particularly interested in subscriptions, but I would love to be able to rent movies through the iTMS. But, I’d really like Apple to try and do better than 3 or 4 bucks a rental, with Netflix and redbox out there, I think being able to rent a movie for say $1.99 for 24-hours, or something like that, would be a hit. I might even buy an AppleTV at that point. Right now I’ve bought movies off iTMS not b/c it’s such a great deal, but b/c sometimes I just feel like watching a movie right then, but don’t want to got to video store or find a redbox.
Posted by kaioslider on April 25, 2007 at 5:00 PM (PDT)
3
There is most certainly a correlation between this and the 802.11n updater, and clearly the thrust of the announcement is that Apple will provide as yet unspecified new Apple TV features, and for iPhone, also new applications. That much was mentioned in the original entry.
The point of the update was merely to note a non-denial of an interesting possibility that was raised by the analyst. Combined with Steve Jobs’ specific denial this week of Apple interest in a music subscription plan, and previous company comments noting differences between how people consume music and video content (listen repeatedly, watch once or twice), take the update for what it’s worth, or discount it if you prefer.
Posted by Jeremy Horwitz in East Amherst, NY, USA on April 28, 2007 at 7:00 AM (PDT)