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Oletros said:
2) Apple wasn't making money off the Kindle purchases thru that iOS app.

Perhaps, before telling the others they don't know nothing, you can get the facts betters. Amazon wasn't selling NOTHING through the Kindle app.


3) This is how all business is done. In ALL industries. If one party creates a new revenue stream for another party, the creator gets a cut. Read some business books. Ask some business people. Learn about it. It's very interesting.

Ack, Direct got me started!

So Apple pays a cut to Microsoft for any purchase made from iTunes on Windows, no?

Did you buy iTunes from the windows store? No. Come on people stop making a mockery of this.

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Chwisch87 said:
Your analogy is totally off base.

The analogy should be that Microsoft would take a cut of anything sold on their website. You can buy Amazon books from Safari just not through the app.

Amazon CAN have in app purchasing without issue but Apple should get a cut of that.

If Amazon sells something on their site even if its a third party seller they DO charge a fee. Its the same thing.

Amazon is NOT apples product?? the iPad is just the device that gets you there. So why does apple have ANY claim to their revenue? Should Ford get 30% of the revenue of the speakers I bought at best buy because it drove it there? Of course not. Should Apple get 30% of amazons revenue simply because I am using an iPad to get there? No.

No but best buy should get 30% for selling you the speakers. In this case apple is best buy not ford.

When you buy a dozen eggs at the store should the store keep a part of the sale?


Yes.

If you give an item to a consignment shop and agree to let them keep 30% of the sale price when they sell it should they be able to keep it?

Yes

If you sell your speakers through amazon and they keep 30% of the sale price and give you 70% should they be able to do so?

Yes

These are all real world comparable examples to amazon and the app store. Not ridiculous and inappropriate analogies about cars driving to the store or the ISP or ant other dumb analogies people have made up in this thread.

This is like 5th grade business stuff people need to catch on faster than this.

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Rodimus Prime said:
You do know that Android take 30% like Apple? A

It is not the 30% cut that people are upset about. It is the fact that you are required to use Apple distributions system for anything that collect money. If Apple allowed 3rd party App stores then this would be ok.
If Apple did not require you to have to collect money threw the App store then fine.
if Apple allowed you to link to outside the App like it was then it was OK.
It is the forced to go threw Apple system and pay the 30% cut that is the issue.

So people prefer the crappy android app store enviroment to the apple app store? I suspect most people would not agree with that. There is actual consumer value to the apple app store that google does not provide.

Plus I am sure googles app store is going to be in trouble for ant trust issued in Europe soon and closed down.
 
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Lennholm said:
A 30% cut on the sale is equivalent to a store buying a product at wholesale price and marking it up 30%.

Such a flawed analogy. The store you're talking about will have to cover expenses such as logistics, shelf space and in some cases even marketing. When it comes to in-app subscriptions, Apple does none of these things, all they do is process the payment.
Apple taking 30% is not equivalent to a real book store marking up 30%, it's equivalent to Visa or Mastercard demanding a 30% cut when you use your credit card to buy the book

You should open up your own app store since you think it costs apple zero dollars to run their app store.

Stop the ignorance
 
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You don't understand how amazon reselling works then. Amazon takes a significant cut from people simply for listing their product on amazons site and processing payment. These issues have been duscussed ad nausem here and are easy enough to research. It seems like some people here are being purposefully ignorant.

I know how Amazon works, I think you want to be purposefully ignorant on what Kindle app was doing and what Apple tried to force.
 
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You should open up your own app store since you think it costs apple zero dollars to run their app store.

Stop the ignorance

The datacenters that store the apps cost money, the R&D money that goes into improving the app store itself. But that is beside the point. Even if Apple had ZERO expense in running the app store, they are the landlord and can charge whatever RENT they want. Unless it's in San Francisco and you have RENT control. :D
 
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Rodimus Prime said:
How is Apple trying to kill the golden goose?

And honestly, do you believe that the Amazon/Kindle App has brought more users to Apple or Vice Versa?

My mom originally purchased a Nook, but i talked her into an iPad. She's been using the Kindle App ever since. So not only did Apple give Amazon her business, their competition lost a customer as well.

Everyone has their own anecdote, but we have to look at the overall numbers. And as I said, if being in iOS wasn't profitable for Amazon they could have pulled the app without a second thought.

Catch is Apple is more or less demanding a 30% cut for being a payment processor that is it. Credit card companies on the HIGH end charge 5%. For amazon I would not be surprised in the least to see that number down to under 2% for even the worse cards (discover and AMEX)
Also on the book Amazon sells they only are getting a 30% cut so now they would have to hand all that over to Apple plus house everything.

Apple demand is high no way around that argument.
Also I would say Amazon has brought more people to Apple than the other way around in terms of money. 500 bucks per person is going to be pretty hard to catch that up to Amazon in terms of the kindle.

Add to it Apple marketing talked about how it could get apps like the kindle in the pass.

Amazon charges 30% for people to sell their books on amazon and all they do is process the payments. Amazon charge comparable fees to third party resellers and all they do is process the payment. There literally could not be a worse company for some of you to try and defend in this scenario.

Heck amazon pays people 10% plus just for linking to their website someone who buys something. It is pretty clear most of you who oddly upset by this non issue have no understanding of how amazon operates their own business or these wild assertions would stop.

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Lennholm said:
And the ability to purchase securely through an iTunes account is a bit more than being a credit card processor.

No it's not, it's pretty much the same thing as PayPal, and I'd much rather use my banks own secure payment system which uses an alternating security code which only I and my bank have access to than having my full cc details stored at Apples servers. There's no guarantee Apple's system will never get hacked liked PSN was.
Pretty much all e-commerce businesses support these proprietary secure payment methods in addition to regular cc payment so there's no reason why Apple could not.

Yes the shopping mall should be happy that the stores attract people. Lol. People are so naive and lack such fundamental understanding of business it us disheartening at times.


Um, yes, they ARE. Successful stores make the shopping mall attractive to other businesses¨which increases the value for the owner and opens the possibility for expansion. The shopping mall owner gets the agreed rent from the stores, not a cut from the sales.


That is not true. It is very common for retail leases to have variable rent based on store sales.

Come on
 
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You should open up your own app store since you think it costs apple zero dollars to run their app store.

Stop the ignorance

If I did, how would I be able to sell anything to ios users with my new app store?
 
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You should open up your own app store since you think it costs apple zero dollars to run their app store.

Stop the ignorance

I would open my own App Store... but Apple does not allow this. Do you really think Amazon needs or cares about Apple app store and servers? They would manage perfectly to sell their app and their books from their own web site (I suspect Apple is actually using Amazon services for content distribution anyways). However, Apple tells them where to sell, what to sell and how much to pay to Apple. Ridiculous. It's as if car manufacturers allowed car buyers/owners to buy tires only from them (because they came up with the "ecosystem") and pay the price they decided to charge. People like you (and probably you personally) argued hard that Apple would never change their original stupid policy of not allowing to sell the content for in-app consumption anywhere but in App Store. Apple had to back track on this stupidity. And they will be force to remove the current stupid policy too. Just a matter of time.
 
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Lennholm said:
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If Microsoft had anything to do with the delivery and installation of the iTunes app you might have a point.

The amount if critical logic failure in this thread is amazing.

So in other words, if a company has nothing to do with the delivery and presentation of content it wouldn't make sense that they should get a cut...

Correct, like in this case apple was directly responsible for the vetting, delivery and installation of the kindle app. In app purchases are part of that app.

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dmhirschfeld said:
A 30% cut on the sale is equivalent to a store buying a product at wholesale price and marking it up 30%.

The comparison isn't analogous because every retail store can determine what price they can sell their product for, creating competition in the market. Apple's market is selling iPads and selling Apps. This policy doesn't establish their price for selling a book; it cripples book sellers from being able to sell books on their iPad. If Apple had published this policy many years ago when iOS first came out, book sellers could have done whatever they wanted, deciding if it was worth giving up 30% to distribute through Apple devices, allowing the market to determine the natural outcome of Apple's book store. However, Apple waits until they have a strangle hold on the market, and waits until booksellers spend millions on their own apps, and Apple allows the market to do this and sell through external links to ensure booksellers develop survival on the business they developed leveraging iOS devices (which happens to help Apple sell even more devices). After all that, apple changes their policy, forcing bookseller to pay their ridiculous fee, effectively skimming 30% off the electronic book industry. You can say this is fair and reasonable all day long, but you cannot make a cogent argument to support it.

Amazon is a book reseller not s publisher. Apple forced amazon to change the way they resold books because the book sellers (publishers) did not like Amazons model.

You are arguing that I should be able ti buy a tv at Wal mart ANC then sell it at target and have to make them give me a profit on it.

It doesn't make any sense. Businesses who are resellers are always in a poor position when they compete directly with their own suppliers in a retail channel.

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alhedges said:
Hi Chwishch87. I hate to say this but clearly you're another person who doesn't understand business. It's ok, you're not alone.

Perhaps someday you will graduate from school, read your old posts, and discover that you are an idiot.

Anyone who understands business would understand what a "profit margin" is. (It's okay to Google it.) Anyone who looked at Amazon's annual reports (you can google them, too) would discover that books are a high-volume, low margin product. Amazon's profit margin is just shy of 5% - which allows them to make a decent profit overall because their volume is so great.

Which is why anyone who knows anything about business would have realized right away that no bookseller would pay 30% to Amazon - that would result in a 25% loss on every book they sold. Or else they would raise prices 30%, which would simply result in very few books being sold...death in a high volume business.

So Apple was *never* going to make any money from Amazon (or Kobo, or Sony, or B&N) with this plan; the only predictable result was that the functionality of the apps would be somewhat reduced with no corresponding benefit to anyone.

So, yeah, anyone who knows anything about business knows that they like to maximize profits. And anyone who knows only slightly more about business would realize that this plan would never and could never have that effect. The only effect it could have would be to make the product less convenient to use, annoy some customers, but not bring in one additional cent of profit.

I suppose it might open the door for competing tablets to showcase how much better their e-book integration works as a selling point, too. Which probably won't have a major effect, but which isn't ideal, either.

Amazon used to regularly sell ebooks 30% below their cost. Guess it is back to business school for you.

Apples job is not to make their reseller business model work. Apple prefer that the book publishers sell the content directly. That is apples desire with content creators in all mediums. This is not new or a surprise. If amazons position as a reseller does not match up with apples very content producer friendly model so be it. Amazon won't make any additional sales on Apples back. The other option is to let amazon do it for free and encourage all developers to try and circumvent the system. You might learn about that in business 301.
 
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Apple has every right to do what it wants with its platform; it seems perfectly reasonable to me for them to want to get in on the action from apps that are taking advantage of the platform's userbase (meaning, apps like Kindle that direct the user to the Kindle Store, in which case Apple gets nothing, despite providing Amazon with the customer in the first place via the iOS device).

Am I missing something here? This sounds like maybe Toyota ought to get a percentage of everything I spend whenever I go shopping since they created my truck that I drive when I go to the store. Apple never provided Amazon with me as a customer. I had my Kindle long before I had an iPhone. They weren't even out yet (I bought a Kindle through the very first offer), for heavens' sakes. In fact, I may just decide not to bother with Apple's store any more over this mess. I bought the phone and I pay for my monthly fees for service... do I have to keep paying Apple every month? I'm glad Dell isn't making me do that for my other computer, too. Or my ex for building the other ones I have. Geez. How ridiculous is that argument above?
 
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Correct, like in this case apple was directly responsible for the vetting, delivery and installation of the kindle app. In app purchases are part of that app.

No, Apple is nor delivering nor vetting not installing the content to Kindle app or Nook app.

You can say what you want and call other ignorants but you're wrong on this.

These are all real world comparable examples to amazon and the app store. Not ridiculous and inappropriate analogies about cars driving to the store or the ISP or ant other dumb analogies people have made up in this thread.


Ridiculous and dumb is the defense you're doing with incorrect facts. Apple is not selling a fracking book in behalf of Amazon. They stored, distributed, sold and publicited by Amazon, not by Apple.
 
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Did you buy iTunes from the windows store? No. Come on people stop making a mockery of this.

The core issue is that Apple allows no choice: either you are in iOS under their rule or you are out. iTunes in Windows has the chance to be installed from third party sources and basically it can do whatever it wants, which cannot happen in iOS unless you jailbreak.

Apple has the right to do so, it's their platform, but the end result is that competition and choice in iOS suffers. Currently iOS users have an inferior experience in the apps affected by this rule and most likely users of apps which embraced IAP have higher prices overall due to the costs of Apple's cut.
 
Since there have been over 200 million iOS devices sold, Amazon (and others) have the potential to reach a far greater audience. This is all possible because of the platform that Apple built. Why then, should Amazon be allowed to profit on this platform without paying "rent"?

I wonder why this nonsense argument keeps popping up all the time. Do you think AT&T is entitled to 30% of all the profits that are being made with business phone calls? Should UPS get a 30% share on all the items that they ship daily? Should your government get 30% on all goods that are being transported on public roads? Maybe farmers should also get 30% revenue on all french fries sold by McDonald's?

Now why should Apple be entitled to 30% on items that they do NOTHING for? Apple already received money for their product - selling the iOS device was Apple's business, and they received their end. If they want money for storing the Kindle app in the iTunes store, they should charge Amazon for that service. But since Apple also wins by having the free Kindle app in the iTunes store, they are smart enough to not charge for free apps. Whatever is done with or through that app is NONE of Apple's business and they also do not have any costs when people use the Kindle app - after all, the content comes from Amazon's servers through the Internet, not from Apple's servers and not from a connection provided by Apple.

So where does that completely wrong sense of entitlement come from?
 
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You should open up your own app store since you think it costs apple zero dollars to run their app store.

Stop the ignorance

The automated payment process is hardly a big cost of the app store and would easily be covered by a 5% cut.
Maintaining the SDK, the approval process (which Apple chose to impose themselves), hosting and delivery of APPS (not IAP or IAS) is an expense for the app store, and this is covered by the developers fee and the 30% cut of the price of the app. I have no problem with Apple getting 30% from app purchases.

Just so you know, I'm ignoring all your lame attempts at belittling the rest of us, ofcourse you THINK you know better than us, doesn't make it so. Stop the self-deception.

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Amazon charges 30% for people to sell their books on amazon and all they do is process the payments. Amazon charge comparable fees to third party resellers and all they do is process the payment. There literally could not be a worse company for some of you to try and defend in this scenario.

Heck amazon pays people 10% plus just for linking to their website someone who buys something. It is pretty clear most of you who oddly upset by this non issue have no understanding of how amazon operates their own business or these wild assertions would stop.

If you're suggesting that Amazon doesn't host and deliver the books then you're wrong. Amazon is not only a payment processor.
 
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Apples job is not to make their reseller business model work. Apple prefer that the book publishers sell the content directly. That is apples desire with content creators in all mediums. This is not new or a surprise. If amazons position as a reseller does not match up with apples very content producer friendly model so be it. Amazon won't make any additional sales on Apples back. The other option is to let amazon do it for free and encourage all developers to try and circumvent the system. You might learn about that in business 301.

Neither is Amazon's job to make Apple's IAP service successful. If you have to force your service down the throat of third parties maybe your service is not that great or your pricing is not that interesting.

The other option is to actually allow true competition in iOS, which would improve many things IAP included. Currently Apple's IAP is competing against not having the service at all, and it's actually still failing... if there were competing services allowed Apple's IAP would need to have a far lower pricing to make sense. That would mean developers could choose the service offering they find more interesting (or implement their own) and end-users could potentially get lower prices.

Despite companies in general (and Apple here in particular) don't like it, competition usually is a good thing in business. You might learn about that in business 101.
 
I wonder why this nonsense argument keeps popping up all the time. Do you think AT&T is entitled to 30% of all the profits that are being made with business phone calls? Should UPS get a 30% share on all the items that they ship daily? Should your government get 30% on all goods that are being transported on public roads? Maybe farmers should also get 30% revenue on all french fries sold by McDonald's?

Now why should Apple be entitled to 30% on items that they do NOTHING for? Apple already received money for their product - selling the iOS device was Apple's business, and they received their end. If they want money for storing the Kindle app in the iTunes store, they should charge Amazon for that service. But since Apple also wins by having the free Kindle app in the iTunes store, they are smart enough to not charge for free apps. Whatever is done with or through that app is NONE of Apple's business and they also do not have any costs when people use the Kindle app - after all, the content comes from Amazon's servers through the Internet, not from Apple's servers and not from a connection provided by Apple.

So where does that completely wrong sense of entitlement come from?

Yawwwwn.... you're right... this argument is getting old. Apple's policies are clear... but it seems you're not.

All they have said is, if you're going to offer external links to sell product, you must also offer a "in-app" option for purchase that Apple get's it's 30%. It's a connivence thing for the end user who prefer to use their iTune accounts to purchase.

The only BIG issue was pricing in the past. Apple before said that the iTunes price had to be the same or lower. But they changed that in June. So any developer can charge more for the in-app purchase and make up the 30% that Apple wants for this sale. So problem solved for the 3rd parties and let the consumer make their choice.

So, given this, it's NOT THE 30% that is the issue. Get it????

It's the customer data they loose if the customer buys through iTunes.

Yeah... I underlined it so maybe you'll read it twice... think about it some and realize what the real issue is. Just put the 30% aside... and think about it if your Amazon. If you're selling books to the single largest manufacture of tablets and phones and they are getting 20% to 40% of your sales through their store... that means that Amazon does not have access to these customers. They bought from Amazon through iTunes, but they are Apple's customers.

In business today, knowing your customers and being able to communicate to them is a valuable part of your business. And this is what they are upset about. Not the 30%. That is workable.
 
All they have said is, if you're going to offer external links to sell product, you must also offer a "in-app" option for purchase that Apple get's it's 30%. It's a connivence thing for the end user who prefer to use their iTune accounts to purchase.


No, even if you have IAP you CAN'T provide a link to purchase outside the app


Yeah... I underlined it so maybe you'll read it twice... think about it some and realize what the real issue is. Just put the 30% aside... and think about it if your Amazon. If you're selling books to the single largest manufacture of tablets and phones and they are getting 20% to 40% of your sales through their store... that means that Amazon does not have access to these customers. They bought from Amazon through iTunes, but they are Apple's customers.

In business today, knowing your customers and being able to communicate to them is a valuable part of your business. And this is what they are upset about. Not the 30%. That is workable.

So. you're saying that Kindle books purchased through iTunes can only be read on Apple devices?

And not talking that current IAP item limits makes impossible to Amazon to provide IAP
 
Neither is Amazon's job to make Apple's IAP service successful. If you have to force your service down the throat of third parties maybe your service is not that great or your pricing is not that interesting.

What are you talking about? Amazon can't do it because their business model does not allow for it. For real content producers the 30% is a steal. It is a great bargain. Look at the success of the App store if you do not believe me.

I have a lot of business experience, and I know how much it costs to market products from beginning to end. I also know how most of the cross-commission and affiliate programs work on the internet and how Amazon does most of their business.

Amazon will be back at some point. They can not afford not to be.

The other option is to actually allow true competition in iOS, which would improve many things IAP included.

What are you talking about again?


Currently Apple's IAP is competing against not having the service at all, and it's actually still failing...

Failing at what? Amazon is the one who is losing business not Apple. In fact Apple is probably making more as people just go buy the same products on iBooks. Hundreds of millions of people have iOS devices and millions of people have Kindles.

if there were competing services allowed Apple's IAP would need to have a far lower pricing to make sense. That would mean developers could choose the service offering they find more interesting (or implement their own) and end-users could potentially get lower prices.

That doesn't make sense in the context of the Apple ecosystem. If you want a horrible mishmash of multiple vendor app stores, go buy an android device. If you want a professionally run and managed app store for your mobile device where they actually try to vet software and create the best user experience, then get an iOS device. I don't want the crappy experience Android presents. Either do most people who have iOS devices. That is where some of you go astray.

I don't want another App Store so developers can make 5 more cents on the dollar. The current system works great for developers and consumers. It works way better than the Android model does, for everyone involved. Developers, Consumers and Apple make out better than the related parties in the Android dynamic.


Despite companies in general (and Apple here in particular) don't like it, competition usually is a good thing in business. You might learn about that in business 101.

There is competition. For people who want a crappy ecosystem they can buy an android device. Why should Apple allow second-tier app stores into the iOS environment? How would that benefit me as the consumer? Would I be able to put porn on my phone? Oh boy.

You are taking a model that is miles more successful than anything comparable and saying it needs competition to be better. Yet the greatly inferior models that do allow competition are just that, greatly inferior.

Plus you may want to sign up for remedial business school. No business wants competition. They deal with it, they manage it. If you tell them it does not have to be there, nobody is going to complain. Where did you learn about business?

If you're suggesting that Amazon doesn't host and deliver the books then you're wrong. Amazon is not only a payment processor.

Amazon has tens of thousands of resellers who sell products that Amazon does nothing but process the payment and forward the order.

Also on the e-books they just let people download a file. How is that different than someone downloading the Kindle App from the App store. It is the exact same thing.


The core issue is that Apple allows no choice: either you are in iOS under their rule or you are out. iTunes in Windows has the chance to be installed from third party sources and basically it can do whatever it wants, which cannot happen in iOS unless you jailbreak.

Apple has the right to do so, it's their platform, but the end result is that competition and choice in iOS suffers. Currently iOS users have an inferior experience in the apps affected by this rule and most likely users of apps which embraced IAP have higher prices overall due to the costs of Apple's cut.

Yes the thousands of developers who have built entire businesses on the back of the Apple App Store and the hundreds of millions of iOS users all feel so very cheated by the iOS APP Store ecossystem.

The closed ecosystem is part of the benefit of iOS for the majority of people. It is simple and it can be relied upon.


The automated payment process is hardly a big cost of the app store and would easily be covered by a 5% cut.
Maintaining the SDK, the approval process (which Apple chose to impose themselves), hosting and delivery of APPS (not IAP or IAS) is an expense for the app store, and this is covered by the developers fee and the 30% cut of the price of the app. I have no problem with Apple getting 30% from app purchases.

Just so you know, I'm ignoring all your lame attempts at belittling the rest of us, ofcourse you THINK you know better than us, doesn't make it so. Stop the self-deception.

Like I said you should open up your own app store. Go do it for Android if all your costs are simply the processing fees. With the volumes I am sure you could generate you would be under 1.5% and you could charge like 10% for your services and you will be filthy rich.

You don't need any employees to design and maintain the app store itself or market the store or related products. You do not need any servers or back ups or network costs to provide access to those servers and to keep them up. You don't need to market or advertise your business in any way shape or form. You don't need any database engineers to manage anything. You don't need anyone to deal with charge backs, stolen credit cards, or billing errors. You do not need anyone to handle customer support when people have problems getting the card to charge or when they have a problem actually downloading the app and getting it to work. You do not need people to actually develop IOS and the SDK that allows the developer applications to work. You do not need to continually update and patch that framework so new applications can be developed. You do not need any staff to review the thousands of application submissions you get on a daily basis to make sure they meet your rules and guidelines and are not going to damage your customers devices. You don't need someone to actually make those rules and guidelines. You do not need any support or administrative staff for all the previous people you obviously do not need. You do not need to pay them benefits either, and you certainly do not need to give them a place to work. Finally you don't need to worry about the millions of "Free" apps that are downloaded that generate zero revenue and still do not require all the above mentioned support staff and services and functions to actually exist.

So all being said, yep, you got it right.. It costs Apple virtually nothing. Should be a breeze for you. By that in that short paragraph above, I probably left of 50 more relevant expenses that would need to be included when doing an actual analysis of the related costs for the App Store.

But your $99 developer fee, credit card processing charge and a bit of SDK development almost cover it.
 
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this is a crappy move by apple even if it makes good business sense for them.

Taking kindle specifically, first apple force an agency model to neutralise the competition for ibooks and prevent flexible retailer pricing, then they require in-app purchases to fork over 30% of retail price? So there is no way kindle or other ebook stores on ios can compete on a level playing field with ibooks - its unfair competitive restrictions by Apple.

(which of course is good for apple but ultimately is bad for consumers as we have less choice)

The kindle store button in the ios app was nicely implemented. Yes, technically it was just a web link, but it went to your kindle store page, and returned neatly to the app afterwards. Not completely in-app purchasing smooth, but a damn sight smoother than leaving the app, launching safari, going to a bookmark, quitting safari and relaunching kindle.
 
Here's an idea; if you want a Kindle, buy a Kindle. Reading eBooks on anything but e-ink is utter rubbish, and this is where e-ink excels. If you don't get it, you don't get it - carry on as you were, with your "Kindle app" and iBooks...

:rolleyes::D

PS: "iBooks" will fall flat on its' face, sooner or later - just another "me too" idea, without the proper technology to allow eye strain-free reading.
 
Also on the e-books they just let people download a file. How is that different than someone downloading the Kindle App from the App store. It is the exact same thing.
Like I said you should open up your own app store. Go do it for Android if all your costs are simply the processing fees. With the volumes I am sure you could generate you would be under 1.5% and you could charge like 10% for your services and you will be filthy rich.

You don't need any employees to design and maintain the app store itself or market the store or related products. You do not need any servers or back ups or network costs to provide access to those servers and to keep them up. You don't need to market or advertise your business in any way shape or form. You don't need any database engineers to manage anything. You don't need anyone to deal with charge backs, stolen credit cards, or billing errors. You do not need anyone to handle customer support when people have problems getting the card to charge or when they have a problem actually downloading the app and getting it to work. You do not need people to actually develop IOS and the SDK that allows the developer applications to work. You do not need to continually update and patch that framework so new applications can be developed. You do not need any staff to review the thousands of application submissions you get on a daily basis to make sure they meet your rules and guidelines and are not going to damage your customers devices. You don't need someone to actually make those rules and guidelines. You do not need any support or administrative staff for all the previous people you obviously do not need. You do not need to pay them benefits either, and you certainly do not need to give them a place to work. Finally you don't need to worry about the millions of "Free" apps that are downloaded that generate zero revenue and still do not require all the above mentioned support staff and services and functions to actually exist.

So all being said, yep, you got it right.. It costs Apple virtually nothing. Should be a breeze for you. By that in that short paragraph above, I probably left of 50 more relevant expenses that would need to be included when doing an actual analysis of the related costs for the App Store.

But your $99 developer fee, credit card processing charge and a bit of SDK development almost cover it.

What is wrong with you, why do you keep responding to me as if I'm talking about more than in-app subscriptions? I'm not. I'm talking specifically about IAP and IAS and the only expenses Apple has for these functions are payment processing. PayPal doesn't need 30% to offer that service, neither does Apple.
You're insinuating that the developers fee and 30% from app purchases doesn't cover the expenses the app store has associated to this, so I have two questions for you:
1. Does Apple actually lose money on free apps that have no IAS or IAP? Then what value are these apps to Apple?
2. Was the app store constantly losing money for Apple before IAS and IAP was introduced to save the whole catastrophe?

It doesn't even matter what expenses Apple has, they can't charge more than content providers are willing to pay. If content providers aren't prepared to pay Apples fee they will opt out and Apple gets nothing, and this is exactly what we're seeing.
And your notion about people just buying the same books from iBooks instead is ridiculous
 
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