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
    Healthy Skeptic, 17 Jan 2007 @ 6:17am

    SOX, Lies and Deception

    Jobs & crew manage to once again fleece the faithful sheep & get to place the blame elsewhere. Steve apparently paid attention in economics class when they described the two types of monopolies- horizontal & vertical. Horizontal monopolies get antitrust action- vertical monopolies get to abuse their customers. If MS & Dollar Bill tried this approach, the DOJ would haul them into court pronto. The Apple line on this is a bunch of hooey. Using this reasoning you couldn't make any changes to an operating system that provided any new functionality once it shipped.

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