Originally Posted by shady104
ok so then what subscription service are they attatched to?
It's nothing to do with a subscription service.
When you buy an iPhone - Apple does not recognize the $399 on that day. Instead it sees a revenue stream of 22 dollars per month for the next 18 months. For that period, Apple is then free (in law) to update and add value to support its "subscribers".
Same thing with AppleTV
Not the same with iPods. All the revenue is recognized on day one. Customers are entitled to bug-fixes for free, but not upgrades. Not unless you pay a "reasonable" amount.
Is this fair for iPod touch owners?
Well kinda. Your iPod touch was probably cheaper as a result of iPhone development. And if Apple chose to use the subscription mechanism for the iPod Touch - it would probably have to charge you more at retail to compensate.