Apple Takes Risk By Telling Chinese Chat Apps to Disable 'Tip' Functions

[hudson1]

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.

So this begs the question... do developers always take 0% of the tip that's intended for third-party content creators? If the answer is "no" then they are complaining about Apple doing something which they themselves are also doing.

 

[AppleFan91]

Doesn't seem like a good PR move to make and how much money would Apple be truly missing' I get the want to apply the rules to everyone, but it's risky. I'm not quite sure how this is any different than if I use the Chase app to send money to family.

 

[ArtOfWarfare]

• 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.

The first 3 things you listed have no relevance to apps in the app store. Apple would have to pay for them whether they had an app store or not. It costs about the same amount with or without. They're funded by people buying iPhones (remember, they cost nearly $1000, and very little of that is related to manufacturing.)

I already mentioned the 4th thing you listed costs them pennies per year. There's no way they need to charge 30% to cover it. They could probably charge 1% and still be profitable.

 

[ArneK]

So this begs the question... do developers always take 0% of the tip that's intended for third-party content creators? If the answer is "no" then they are complaining about Apple doing something which they themselves are also doing.

If you read the article you will see that WeChat is doing exactly that. They don't take any cut from the money...

 

[zed1291]

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

By "nothing" do they mean spend years on R&D and multiple millions (of course I don't have the exact number here) on creating a first of its kind digital store for developers to easily distribute their apps to millions upon millions of users? Since Apple created App Store, Apple alone should get to define it.

 

[macTW]

On the one hand, this seems cheap of Apple.

On the other, they're not wrong...
[doublepost=1495127294][/doublepost]

This could turn out really badly for Apple is they go through with it. It might be just posturing but they aren't going to be viewed favourably in the eyes of the Chinese consumers with this move. User-to-user money transfer isn't in-app purchase and shouldn't be charged a cent by Apple. It's just that simple.

You're right. Except this isn't user to user transfer. This is payment, in how the app handles it and how the users take it. "This is a nice photo. Here's some dollars for showing it." That's payment.

 

[apolloa]

So... Apple has decided that to reverse its collapsing market share in China, it is going to charge app developers and potentially alienate them, which includes big companies, and go against Chinese culture?
It reads that these companies and their apps have plenty of platforms to choose from and probably use, Apple having a tiny percentage won't worry them, especially if it's declining, they'll just drop iOS support.. the Chinese customers will then just vote with their wallets.

First class bunch of dumb idiots on Apples leadership team in that case.

Then again I've been told several times by people on here market share doesn't mean anything when it comes to Apple

 

[strayts]

"This is a bad idea. This is a bad idea." —Saul Goodman

 

[Reason077]

Chinese culture does not allow taking a 30% cut of voluntary tips, because China. This is a deeply insensitive move from Apple.

 

[apolloa]

What's next, taking 30 percent from money transfers in bank apps?

Where does the greed end?

I thought Apple did that already?

 

[oneMadRssn]

So this begs the question... do developers always take 0% of the tip that's intended for third-party content creators? If the answer is "no" then they are complaining about Apple doing something which they themselves are also doing.

Does Apple take a cut of the fees charged by PayPal of Square when a buyer pays a seller using the app?

 

[Rogifan]

I thought Apple did that already?

Um, no Apple doesn't get a cut of p2p transfers you do via a banking app.

 

[apolloa]

• 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.

It does not cost billions a year, because that's how much Apple makes from its App Store, and those billions are just increasing year on year:

https://www.macrumors.com/2016/01/06/app-store-1-1-billion-record-holiday-sales/

https://www.macrumors.com/2017/01/05/apple-busiest-day-app-store-imessage/

https://www.macrumors.com/2017/05/02/app-store-revenue-up-40-percent/

 

[amegicfox]

instead of competing fairly and writing an App people wants to use
Apple wants money, money more money

think if Android would ask for a percentage of an App tip feature ?

 

[UL2RA]

I honestly hope it backfires on them.

 

[true god]

Incredible/amazing/magical level of greed. Over $200B and still not enough cash in the bank? Next ask for 30% paycheck cut of all Apple users. #fuglyaapl

 

[macduke]

This could be really bad for Apple. A lot of Americans (myself included until recently) don't understand how WeChat is so deeply integrated into Chinese culture. In China, iOS and Android aren't really platforms—WeChat is the platform. This is a big problem for Apple, because Apple's whole model has always been predicated on running the software and hardware side of things and integrating them in a smooth, easy to use way which enables them to charger higher prices. In China, you can get WeChat on iOS or Android, and that's what people use most of the time. Just like the Nintendo Switch is essentially a Zelda machine at this point, smartphones are WeChat machines. This is why Android is having an easier time over there with a lower average selling price. The only reason to buy an iPhone is status because of the design, but even then the latest Samsung devices are becoming strong contenders in that regard.

 

[lazard]

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.

WeChat would be nothing without the app store? you have no idea what you're talking about.

 

[69Mustang]

china has nothing native and original to offer.

This literally has nothing to do with the topic. It's wrong as well.

 

[apolloa]

What if Foxcon takes offence to this? That'll create a pleasant business relationship.

 

[Number-Six]

I thought Apple did that already?

Not yet

 

[apolloa]

Not yet

It'll come, they get paid when you use Apple Pay, they wouldn't do it for free.

 

[python0704]

As much as I intend to stick with apple ecosystem for several more years, I really do hope this backfires them and eventually laid off Cook. Since he took over, Apple has turned from an innovative company to a greedy cooperate. Device upgrades are underwhelming while Apple Stores open everywhere. It this goes through and Wechat got ejected from App store, Apple's market share will shrink significantly.

 

[caoxiang]

The way I see why apple has to add this tax is: If they don't, all in app purchase will become a tip, nobody will pay the 30% ever.

"Want to unlock a level in a game? Send the game developer $5 via paypal and we will unlock it immediately."

 

[alphaod]

It'd be like telling PayPal or Amazon to disable their "purchase" or "send-money" functions. Good luck with that!