Apple has been allowing users to download upgraded software to
its old phones for some time, even as it releases new hardware that have features like a front-facing camera so users can make video phone calls. That's smart marketing, Darlin believes: "While
Apple's existing customers were locked into contracts, they didn't need to spend the duration seething with envy and resentment."
TiVo has done something similar by including Netflix streaming and the Pandora music service to its five-year-old Series 3 digital video recorder even though TiVo sells newer products -- the TiVo Premier and Premier XL. "Certainly people value it," says TiVo vp for product marketing Jim Denney. "When we don't update it, we hear about it. They pay attention to the fact that service gets better."
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