Well, first of all, it's not worth talking about a $99 development member fee when applied to a business.
Well that is the closest value one has to a software development license. One simply does not know what’s the cost of an iOS license for software development purposes.
The average professional developer makes six figures a year, and 30% of the gross price to the customer is not unusual for advertising, independent review for security, and error checking, as well as delivery and payment.
1) I don’t understand how a developer that has a business $100K, supposedly his salary is not concerned with $30k a year for a development license for commercial purposes, app hosting services and transaction fees.
2) If you have a business, say a 2.000.000 a year, 600K just for that is really a high price if you consider the market of app hosting and software development licenses … its a faction of that. That is 6 developers that could be hired to create more value for their customers.
Maintaining the App Store, employing and training personnel to check for flaws and verification of compliance do not come free.
Yes. But how much does that cost.
No one is preventing Google, Amazon, or any other company from competing with Apple's offering at a lower price.
Albeit true its meaningless to digital services. They don’t make their options based on how much a software development license costs, but where their customers are (the phenomena). Their customers use both Android and iOS that is where they need to be to compete. Apple its simply leveraging on the fact that they own the OS that powers the customers devices to than charge business margins over third parties businesses.
Some developers choose to offer additional add-ons like additional weapons, additional armor, elixers for an additional fee. For some developers, presumably, these add-ons contribute to the longevity of the game by keeping it fresh.
Yes. But what is the connection between the value delivered by the App Store and the value of these digital assets? I honestly don’t get it. For me its total fabrication / speculation. It’s like attributing 30% of Tim’s market value to water.
Let’s say we have a clean sheet policy.
From the point of view of a business I get the value of the App Store as a device that developers can use to distribute their apps regardless of the purpose. Quite similar to Web Site hosting. In fact itif you measure the data you download from a site when visiting it, you may be surprised with how similar it is to some app that are on the App Store, it just that happens every time you visit it, not once to download and install. Go and check the prices of these services.
I also get the value of payment and billing services as provided by the App Store. It is useful … but go and check the prices of similar services.
You will find that is way way beyond the prices used by similar services. Now, how can Apple manage to pump these prices to such a degree? Well, its compulsory + the phenomena mentioned above. These combination allowed Apple to charge for value that do not deliver, such as dating services.
One would reasonably think that the economies of scale would be used to empower the market by lowering the fees and foster better apps… but hey. What its happening is that its being used empower greater and greater profits for Apple and help them build competing services against third party devs. So it’s looks a bit like having third parties betting against themselves in the long run.
My opinion of course.
Cheers.