Is Sarbanes-Oxley Forcing Apple To Charge You To Upgrade Your WiFi?

from the say-what-now? dept

Well, here's a weird one. It's no secret that Sarbanes-Oxley is a law with lots of problems. It's become a huge pain for businesses, forcing all sorts of useless, but expensive, procedures to be put in place that have little (if anything) to do with protecting investors from being taken in by unscrupulous companies. It's been a huge net loss to the economy, and has scared away plenty of companies from the public markets. While that may have held some "bubble euphoria" in check by keeping investment opportunities away from the public, the net result is bad for the overall economy. Last week, there was lots of talk about Jim Clark's decision to quit Shutterfly while blaming Sarbanes-Oxley for limiting what he could do at the company. Now comes the latest odd SOX complaint. Apparently Apple is forcing Mac owners to pay an extra $5 to unlock next generation features of WiFi that were bundled with recent machines. In order to unlock the pre-standard 802.11n features, you have to pay $5, with Apple saying that they cannot be seen as "giving away an unadvertised new feature of an already sold product without enduring some onerous accounting measures." The thinking, basically is that they would be unfairly recognizing the revenue early, since they hadn't completely delivered the product. The alternative would be to not recognize all the revenue ahead of time, but that presents other problems, and could even be more costly. Thus, consumers get the fun of having to pay extra to upgrade. Yet another fun unexpected consequence from excessive meddling from politicians.

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  1. identicon
    MyNameIsMatt, 16 Jan 2007 @ 12:22pm

    I'm with Misanthropic

    SOX is very good legislation that has a few problems, but in total it's a gain for us. What people are complaining about who work in IT, and I've experienced this too, is the extra overhead one has to do because of how a company perceives the SOX rules. However, it's the company's fault for that extra layer of crap because so many companies are overreacting and frankly scared of breaking the newish law that they don't fully understand.

    Then, the big high paid executives bitch and moan that, "OMG," they have to sign the financial statements and are directly accountable now for what they sign, and they're being hindered in their job. God forbid we have some accountability in business. There are things that could be reworked and improved, but it's silly to blame the pains of new procedures that companies have put in place as an overreact to SOX on SOX because most companies are doing it to themselves.

    Oh, and Apple is full of shit on this $5 thing.

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