selected Macintosh notebook and desktop computers that it had been selling since the prior
September. However, in order to activate this new built-in “N” standard, Apple required
customers to pay $1.99 for software to turn on the feature.
This previously unannounced upgrade fee created heated discussion on the Internet. Most
bloggers and forum participants were negative about charging for something already inside the
computer. Apple blamed the nominal charge on accounting standards, and reporters discussed
Apple’s accounting conundrum (Exhibit 4).
“Apple said it is required under generally accepted accounting principles to charge customers
for the software upgrade. "The nominal distribution fee for the 802.11n software is required
in order for Apple to comply with generally accepted accounting principles for revenue
recognition, which generally require that we charge for significant feature enhancements,
such as 802.11n, when added to previously purchased products."” Source: CNET News.com
January 18, 2007.
“Apple is blaming the Generally Accepted Accounting Principles (GAAP), a set of standards,
conventions and rules that accountants follow. Apple claims that those rules require the firm
to charge for significant product updates – such as providing next generation wireless
networking. Leave it to the accountants to spoil a good thing. In the heads of the bean
counters, shipping a feature in disabled mode without telling the buyer and then enabling it at
a later point amounts to shipping them a free 802.11n wireless networking card.” Source:
SiliconValleySleuth.com.