Apple Computer Inc head Gil Amelio is moving the company from a Japanese model where software has traditionally been free, to an American model, where software has a price. Having traditionally given away the upgrades to its operating system to existing customers, users will now have to pay for the modular upgrades to System 7.5 that are planned for January and June next year. Other software that has been free will become separately charged, opening up what could prove a major new revenue stream for the company. Software could account for as much as half of total revenues in about five years, Amelio suggested to Reuter.
