Apple customers tend to be more loyal than their PC-using counterparts, and Cupertino is using this to their advantage with the iPad. Just like the iPhone and its iPhone OS, the iPad will get periodic updates to its iPad OS throughout its lifetime. Some of those updates will be minor bug fixes, while others will be more significant, feature-laden updates. Turns out, Apple now plans to charge users for those major updates down the line!
This isn’t a new tactic for Apple. iPhone users have been enjoying free iPhone OS updates across the board, but iPod Touch users have been forced to pay to update their hardware (which uses the same iPhone OS as the iPhone). The updates come hard and fast, with each subsequent version pushing new features and plugging security holes. That gives Apple yet another revenue stream that they can take all the way to the bank. Now, it seems the iPad will help push OS update-revenue even higher.
The iPad firmware licensing agreement describes Apple’s plan to make customers pay for future iPad OS updates. To be fair, Apple is providing the first major update gratis, but will charge for any major updates. So, if you get your new Apple tablet with iPad OS 3.x already installed, you’ll be given a free update to iPad OS 4.x. But, if you want iPad OS 5.x, you’ll have to pay to play.
This is what the documentation says about the situation:
Apple will provide you any iPad OS software updates that it may release from time to time, up to and including the next major iPad OS software release following the version of iPad OS software that originally shipped from Apple on your iPad, for free. For example, if your iPad originally shipped with iPad 3.x software, Apple would provide you with any iPad OS software updates it might release up to and including the iPad 4.x software release. Such updates and releases may not necessarily include all of the new software features that Apple releases for newer iPad models.
iPhone OS upgrades for the iPod Touch run $10 a pop, so it’s likely Apple will continue with that pricing model for the iPad. Apple blames the need to charge for software updates on the fact that giving away freebies does bad things to its accounting books. With millions of iPod Touch units already in the wild, and iPad shipments expected to hit double-digit millions in 2010, we think Apple’s reasoning for charging for updates has more to do with potential revenue than any quirks with its accounting department.
What say you? Are the for-pay iPad OS updates going to stop you from buying an iPad this week? Have you already pre-ordered and now regretting pulling that trigger so early? Sound off in the comments below!
Find Apple’s iPad licensing agreement here.