[sipefree]

There's a reason for that. U.S. accounting law requires that non-subscription devices that are upgraded have a fee associated with the upgrade under Apple and many analysts’ interpretation of the law.

This is why iPod Touch owners have to pay for upgrades while iPhone users do not.

I think Apple may have relaxed that recently though, and I wouldn't be surprised if they release Mountain Lion for free.

[wmf]

Either the law was changed or Apple changed their interpretation a few years ago.

[mitchellhislop]

If I recall, this is also why FaceTime, when it left beta, cost $.99.

[neilparikh]

iPod Touch updates have been free for a while now, I think.