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iPod Touch upgrade charge forced by iPhone agreement?

January 17, 2008 Leave a comment

Apple LogoRegarding the $20 charge for the iPod Touch software upgrade that gives it the same apps as the iPhone:¬†Am I the only one that thought Steve looked a little uncomfortable when he said the price, like it was something they’d had to put in but he wasn’t happy about it? Here’s my take – the real reason they’re charging for the upgrade is because it violates some terms of the agreement with AT&T for the iPhone. That’s why the iPod Touch didn’t get those features in the first place. AT&T put their foot down and told Apple that if they’re going to bring out an almost iPhone clone iPod that AT&T get no sniff of the profits from that it would have to be a “downgrade” from the iPhone to encourage consumers to get the iPhone instead. Obviously they didn’t consider the lack of the cellphone a big enough draw card to stop people forgetting about the iPhone and getting an iPod Touch instead. AT&T saw their profits from the iPhone being pilfered by Apple via the iPod Touch and made it clear they weren’t going to stand for it. But obviously Apple feels strongly enough about it to do it – so maybe the $20 goes straight into AT&T coffers to compensate them for their loss?

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Categories: Apple, Hardware, Thoughts Tags: , ,