Reader Comments (Page 1 of 1)

Recently S.J. blamed accounting rules for the need to charge these micro costs ($2 for n). Lynn Turner (big accounting guy) tried to shift the blame back to Apple...but didn't do a very good job of it.

As an accountant, it's guys like me who really cramp Apple's style when it comes to adding functionality.

Here's the set-up: Revenue can only be recognized when it is earned and reasonably collectible. So if Apple promises to give owners upgrades on a laptop they just bought, has Apple really EARNED that revenue? Owners expect Apple to give them more right? and continue giving them more.

If Apple started giving upgrades away for free then it would set a precedent that might not allow Apple to recognize revenue for quite some time after they actually sell the original product. And what about all those prior sales? Apple would have to go back and restate (not pleasant) a couple of years worth of financials because the revenue # might be "wrong".

The solution is one of three choices:
- don't provide the upgrades (no one likes that)
- change the accounting rules (in process...kinda)
- sell the upgrades separately for something reasonably close to the value that users would otherwise attribute to them had it not been bundled with the product in the first place


So sadly, the $29 for Boot Camp actually makes some sense here. But that's just my opinion.

If you really want to get lost in all this look up the term "multiple element revenue recognition", understanding that the rules for software are slightly different than those for hardware.