Apple iPod Touch OS 3.1 is USD 4.95 for users still on OS 2.X
iPod touch users on OS 2.X can now upgrade their software to the latest version i.e. version 3.1–by paying just $4.95.
Apple lowered the price of the software update without any fanfare. Similar moves are not new to Apple, we have seen others in the past. Those who purchased the original iPod in 2007 were expected to pay $19.95 in January 2008 to update from their software. Subsequently, Apple lowered the price from $19.95 to $9.95 with the release of OS 2.0 and 3.0.
Apple has not provided any explanation behind its move to lower the price. However, it can be speculated that Apple is reacting to statistics from AdMob which indicate that only 1 % of iPod Touch users are accessing its network using OS 3.0. Though this is not a conclusive indication, it does indicate that fewer users are actually updating their iPod Touch to the latest software version.
If you are currently using version 3.0, you can upgrade to version 3.1 for free.