What's It Going to Cost Me?

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Continuing on a theme, Appleinsider estimates that "nearly half of all iPhone users ... jumped at the opportunity to enhance the functionality of their handsets by installing the free iPhone Software 3.0 update" within the first week of the software update's release. However, the very same software update that iPod Touch users can also apply has seen extremely limited adoption.

According to Appleinsider's sources, within four days of the software lease, 44% of iPhone users applied the 3.0 software update while only 1% of iPod Touch downloaded and installed the very same software update.

The difference? Apple uses different accounting methods for the iPhone and iPod lines. As a result, since the initial release of the iPod Touch, Apple has charged a nominal $10 price tag on software updates.

Considering that I rationalized that consumers, much like a business, preform a rough cost-benefit analysis when considering if they should preform a software upgrade or not, this bit of evidence presents something different, that consumers will consider adopting a software upgrade when there is no direct cost associated with the update.

Apply this bit of information to the Windows world and well, it shouldn't shock anyone that Microsoft recently announced that the upcoming Windows 7 release, set for this fall, for consumer versions will be less expensive than similar Vista upgrades.

Microsoft will also eschew the traditional limitation that to qualify for the upgrade pricing a user must be upgrading from the immediately preceding software version. That is Windows XP users and Vista users will qualify for the upgrade price, whereas traditionally only Vista owners would qualify.

And if that wasn't enough, for a limited time Microsoft has cut the price by 50% for those who pre-order their upgrade before July 11th.

Now the question is, will consumers bite?

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If only 1% of 13 million (13,000) of your users are willing to incur a $10 surcharge within the first week after the release of a significant software upgrade, one has to wonder, how does one make money in the... Read More

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About the Author

Paul is a technologist and all around nice guy for technology oriented organizations and parties. Besides maintaining this blog and website you can follow Paul's particular pontifications on the Life Universe and Everything on Twitter.


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