During the Q&A session, Apple CEO Steve Jobs was asked why Apple has been charging iPod touch users to receive exactly the same software updates than for its smartphone, while iPhone users get it free!

"The way we account for the iPhone is with subscription accounting. So we actually take the revenue over 2 years... the way we account for our iPod is more normal accounting and we take the revenue when its sold. And so, because of the way we account for, we do have to charge a nominal fee for updates of the iPod touch and I don't see that changing... We don't look at this as a profit opportunity", answered Jobs.

I'm just not convinced. I'm no accountant but I think that if Apple wants to give out the software updates for free, it can do so, subscription accounting or not. Just like Apple is charging for MacOS software updates, whereas Microsoft is giving away for free Windows and Windows Mobile intermediary updates and just charging for major new releases. Perhaps I'm missing something so tell us what you think.