Apple has it wrong - iPod Touch Paid Software Update

Apple has had a pretty good track record of introducing innovative and well designed products at their annual MacWorld Expo over the past 4 to 5 years. However, this year's MacWorld keynote by Steve Jobs has gotten it all wrong. This is part two of a four part article detailing what I think went wrong.

Before I begin, let me first say that I will not be discussing the iPhone updates mainly because the iPhone will probably not be available in Singapore before 2009 (or late 2008 if a miracle happens).

Part Two: iPod Touch Paid Software Upgrade
Before today, I have always said that Apple's strategy with the iPod Touch was perfect. Apple had positioned the iPod Touch as a premium/future version of the iPod both in the US and abroad. More importantly, the iPod Touch is perfectly positioned for people who want the iPhone now but cannot legally purchase the lickable phone in their country (such is the case in Singapore).

I am completely baffled as to why Apple has decided to "punish" first-mover customers who have bought an iPod Touch with a US$20 software upgrade cost. This is especially bad when Steve Jobs also announced that new iPod Touch customers get the exact same software update for free. Note that iPhone customers also received a largely similar software update for free too.

This is bound to leave a sour taste for existing international customers, such as those in Singapore, who have bought the iPod Touch. Unless Apple does something fast, I believe this will quickly turn into a public relations nightmare for both Apple's iPod and iPhone product lines.