Apple: OS X operating system will always be free to update

by anonymous on 2013-11-16 17:30:19

At the Q4 earnings call held yesterday, Apple not only announced its outstanding performance for the quarter but also revealed several major announcements. Among these, CFO Peter Oppenheimer confirmed that Apple has decided to continue offering iWork, iLife, and OS X for free to users in the future.

Last week, OS X Mavericks was released alongside the new MacBook Pro. The updated operating system includes a host of new features, and Apple stated it would be the first OS X version available for free update to users. Previously, Apple had already announced that buyers of new Mac or iOS devices could obtain iWork and iLife suites for free, and Apple will continue to offer these software products for free in the future.

"We want all our customers to use the latest software so they can access the best features, and we hope this becomes part of the experience," said Apple.

According to Apple's estimates, offering Mac OS X and applications like iWork and iLife for free is expected to generate $900 million in deferred revenue for Apple by December, significantly boosting the company's projected profit margins.

In fact, providing the latest OS X Mavericks for free to Mac users isn't a new strategy. Long before, Apple's OS X was always free until the release of Mac OS 8 in 1997 when Apple stopped doing so. Now, after 16 years, Apple has embraced this approach again for a simple reason: it wants all its Mac users to use the latest operating system. This way, users can focus their spending on content and applications, with iTunes serving as a massive content distribution platform. Additionally, offering OS X for free can encourage new users to purchase Apple devices.