Kind of found my own answer from Macworld.com's transcript.2:43 PT - DM: Piper Jaffray: And were back to the iPhone revenue recognition delay.
2:43 PT - DM: Opp: Delay recognition of revenue and product cost of iPhone, but will continue to expense operating expenses on advertising, engineering, period costs, etc.
2:43 PT - DM: PJ: Charging for iPhone 2.0 for those who bought before March 6th?
2:44 PT - DM: Opp says its free.
2:44 PT - DM: PJ: Why deferring after March...