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Apple really had no choice but to close up this loophole. It's an exception that undermines the rule.

A tip is exactly the same as an IAP, just with a different name. To treat it as anything else undermines the foundation of how Apple pays for the infrastructure that serves up apps: the datacenters, transaction processing, etc.

Makes total sense. If it leads to regulatory action against Apple, they are in no worse position than losing a huge portion of revenue to the loophole.
How is this like IAP? No snark. Genuine question.
 
Why would you think it would lead to a ban? Apple has probably looked at all the angles in China and has come to the conclusion that EITHER getting the cut OR simply dropping apps that tip from the App Store is better than continuing with things the way they currently are. Apple isn't a company that bluffs that often.
what exactly is apple losing from allowing tipping? it's just stirring the nest to maybe make 30 cents on the dollar
 
I'm sure that this will be an unpopular opinion with the loudest Mac Rumors users. However, as a developer of one of the most popular social apps in the App Store, I completely agree with Apple doing this. The apps asking for tips say that Apple does nothing, however, those same apps would be nothing without the App Store. Apple takes care of some marketing, distribution (including bandwidth and storage), moderation, oh, and, let's not forget, the frameworks and tools that make it so easy to develop for the Apple ecosystem.

Developers asking for tips through the app are purposefully bypassing the mechanisms meant for this type of thing, in an effort to stop paying Apple. This not only gives them a leg up on the competition, it also bypasses protections that Apple provides to the consumer.

This is the equivalent to an illegal worker taking cash under the table to hide income from the IRS, while still using all of the public services that our tax dollars provide (like public parks, roads, police, fire, etc.). Then, screaming that they shouldn't have to pay taxes because the government didn't do the work. Disclaimer: I'm all for small government, it was just the most relevant example.
 
What about apps like PayPal or Venmo? When I tell Venmo or PayPal to take $50 out of my bank account, and then transfer it to my buddy for pizza or to a seller on ebay, isn't that akin to an IAP too in the same way these tips are?

I think Apple needs to find a clearer line to draw, instead of doing this on an unpredictable case by case basis. Even if that line means a few more transactions occur without Apple getting a cut, so be it. Clarity and predictability should be top priorities for the ecosystem.
No, because you're not paying the app developer?
 
I'm sure that this will be an unpopular opinion with the loudest Mac Rumors users. However, as a developer of one of the most popular social apps in the App Store, I completely agree with Apple doing this. The apps asking for tips say that Apple does nothing, however, those same apps would be nothing without the App Store. Apple takes care of some marketing, distribution (including bandwidth and storage), moderation, oh, and, let's not forget, the frameworks and tools that make it so easy to develop for the Apple ecosystem.

Developers asking for tips through the app are purposefully bypassing the mechanisms meant for this type of thing, in an effort to stop paying Apple. This not only gives them a leg up on the competition, it also bypasses protections that Apple provides to the consumer.

This is the equivalent to an illegal worker taking cash under the table to hide income from the IRS, while still using all of the public services that our tax dollars provide (like public parks, roads, police, fire, etc.). Then, screaming that they shouldn't have to pay taxes because the government didn't do the work. Disclaimer: I'm all for small government, it was just the most relevant example.
user to user money transfers don't go to the wechat developers, so i don't think you quite follow
 
article said:
The move by Apple appears to be a way to eke out additional revenue from Chinese iPhone users as part of a broader effort to increase its market share in the country.
No. Apple wants their wallet to be exclusive on their ecosystem. They are not anti-tip. They are pro Applepay and pro Apple arranged micropayments. They all but invented the 99 cent app for goodness sake.
 
"A need is something that a person must have in order to thrive. Without it, that person will suffer either physically or mentally."

"A want is a choice. A desire which a person may or may not be able to get. Life will continue if a person doesn’t get what they want."

I am pretty sure it is "need" for me.
I suffer by losing either one of them, and it would be extremely inconvenient for me.

My need is to have all my desires met and be carried around on the backs of 12 beautiful new slave girls each day. If I don't get that, it will be extremely inconvenient for me and I will suffer. And since my "convenience" is an actual need of the utmost importance, it is up to the world to provide me with these things. Get on it, world.

Efficient food, clean air, clean water, and sleep. These are the things a human needs. People can and do live long and even happy lives with only those things and nothing else. The rest of everything else you can imagine, are wants, and the frivolous satisfying of these unnecessary desires, to pamper you and make life convenient, is a luxury. Convincing you they are your actual needs is how we make our millions and finance new fighter jets, but it is not reality. Familiarize yourself with actual suffering.
 
Greedy miser CEO. Really good way to tick people off.

Yes of course because this is bound to be Tim Cook's personal decision despite everyone else at Apple begging him not to do it.

Sheesh, why all the hate on Tim Cook in every single MacRumors post? He's doing a great job and is arguably the most successful CEO in history. Apple are on track to become the worlds first trillion dollar company and still people post daily about how bad he is. I wish I was 1% as successful as Tim Cook, I'd be a millionaire if I was.

I think this is one of those moves by Apple that they have to do not want to do. They are stuck between a rock and a hard place as they have to be seen to be treating everyone the same and rules are rules.
 
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Apple's 30% is why I stopped developing for their platforms.

They literally do nothing and ask you for 30% of whatever you make. They host your app. That costs fractions of a penny per year. I'd happily host the app myself, but they won't let me (at least not for users that haven't jailbroken their devices).
 
A tip is exactly the same as an IAP, just with a different name. To treat it as anything else undermines the foundation of how Apple pays for the infrastructure that serves up apps: the datacenters, transaction processing, etc.

I don't agree with that. A tip is a gratuity. In-App purchases are usually in exchange for something in addition to what a user already has — stickers, features, virtual power, etc.

While I don't agree with this:

"We don't charge anything as the platform, but Apple gets 30 percent for doing nothing," one of the executives reportedly fumed.

because iOS would not even exist without Apple investing millions of dollars each year, I also don't agree that Apple should feel entitled to 30% of a gratuity.
 
Apple's 30% is why I stopped developing for their platforms.

They literally do nothing and ask you for 30% of whatever you make. They host your app. That costs fractions of a penny per year. I'd happily host the app myself, but they won't let me (at least not for users that haven't jailbroken their devices).
  • iCloud data centres
  • iOS updates
  • Ongoing Security audits and updates
  • bandwidth *
Clearly you don't realize how much money it actually costs to run Apple and keep iPhones working as well as they do today.

I agree that 30% for _every_ IAP feels greedy, but I also think Apple is entitled to _something_. I wish they would be a bit more flexible.

I stopped using apps like Viber when they increased the sticker prices. Just felt too expensive for something like that, and that struck me as Viber being greedy.
 
Probably not, because you're not paying someone that is directly connected to content use within an app.

No, because you're not paying the app developer?

The tipping feature which is the subject of the article is not always paying the app developer, but rather paying content creators. It's akin to tipping people on Snapchat or Facebook for posting good pictures. Sure, the app developer processes the payment and acts as the middle man between the content creator and the tipper, but that is not so different from Venmo or PayPal which process the payments and act as the middleman between the payer and payee.
 
It sounds like many of you misunderstand the article. This isn't the tip system for tipping waitstaff or sending money to friends, the devolpers are using this as a way to get paid for their apps without having to share revenue, as they would if they charged say, $0.99.

So it's akin to wanting to use Apple's App Store to sell your app, without paying anything to Apple to do so.
 
  • iCloud data centres
  • iOS updates
  • Ongoing Security audits and updates
  • bandwidth *
Clearly you don't realize how much money it actually costs to run Apple and keep iPhones working as well as they do today.

What about the $650+ for every iPhone sold? What about the fact they charge for iCloud storage (above market prices, by the way)?

I understand that Apple's business model has evolved, and they make money from both hardware sales and transactions in their ecosystem. That is the benefit of being almost entirely vertically integrated, and it's great.

However, they need to more clearly define what qualifies for the 30% cut and what doesn't. Currently, I see in the real world there is some anxiety about this. At small business and entrepreneurship conferences I go to, I hear it often. Folks have an idea, but aren't sure whether Apple will take a 30% cut, and that uncertaintly holds them back. The ecosystem needs clarity.

For example: If I make an app to sell books, Apple does not take a 30% cut. If I make an app to sell services where people pay hourly to have someone read them a book, Apple does not take a 30% cut. If I make an app selling digital downloads of audio books, Apple takes a 30% cut. If I make an app selling stickers themed on popular books, Apple takes a 30% cut. What if I make an app that sells physical books, but each purchase also comes with the digital audio book download. Does Apple take a 30% cut?
 
The tip functions in Chinese messaging platforms are free to use and allow people to send authors and other content creators monetary tips through transfers to mobile wallet accounts. However, according to The Wall Street Journal, Apple has decided that tips are equivalent to in-app purchases - similar to buying games, music, and videos - therefore Apple is entitled to a 30 percent cut of every transaction.

So if I promise payment to someone through iMessage / SMS / Chat / Phone, technically Apple is entitled to a cut of the payment? Ha Ha.
 
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