In this case it isn't too bad... Hence why SK is taking action. Virtual store or not, Apple still running it's store in Korea and they can't do what they want.
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Apple's Korea Offices Raided by Antitrust Regulators Over Allegations It Charges Developers 33% Commission
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Yeah, totally, this was this year:
South Korea to pardon Samsung’s Lee, other corporate giants
The pardon underscores Samsung’s huge influence over a country that relies on its technology exports.
www.nbcnews.com
Pretty funny, Koreans will do everything to put up a show and than protect Korean oligarchs known as Chaebol.Yeah, totally, this was this year:
South Korea to pardon Samsung’s Lee, other corporate giants
The pardon underscores Samsung’s huge influence over a country that relies on its technology exports.
it is 30%.
the other 3% is tax on purchase. nothing to do with Apple. just like any other taxed item you buy.
they are forced to add it on and collect it.
with or without the tax, arent the app devs getting paid the same? the user pays more when there's tax added.
Apple passes on the GST or sales tax component.
the other 3% is tax on purchase. nothing to do with Apple. just like any other taxed item you buy.
they are forced to add it on and collect it.
with or without the tax, arent the app devs getting paid the same? the user pays more when there's tax added.
Apple passes on the GST or sales tax component.
The reason retail stores can purchase merchandise at a 50% cut from what they are going to charge their customers is because they are making bulk purchases from the manufacturer/publisher/wholesaler of 1000s of units at a time. That means the retailer then takes the risk of getting stuck with unsold stock.
you do realise brick and mortar joints make way more than that usually on software?
hence the app stores are better for selling... lower commision, no boxes to send out, returns of out of date items, latest updates available to users without charge to those who purchased, refunds handled by Apple, charges handled by Apple... 30% (or 15%) seems quite reasonable suddenly.
Isn't all this spelled out in the agreements developers signed off for the App Store? Did Apple put a gun to their head and force them to agree to use their services over the competition?
If you are in a Korean grocery store and buy some Korean stuff, is the price on the label the before tax price or the after tax price. If people in Kshop see the after price, there may be an argument that what Apple did is bad. If Kstors list the price, then you put the tax on top, not so much.
not always... supermarkets here often charge for shelf space and a premium for eye level shelves.
and some sections send their own staff in to load shelves (bread).
i distributed a US made product years ago.
Some companies bought product off us and some took it on spec until sold or returned.
the whole software online download is so much less wasteful for everyone.
It’s amazing (and frankly quite depressing) how many people think that defending Apple automatically means carrying water for them. Like Apple is somehow always wrong and the competition is always right?
I don’t think of Apple as my friend, and I don’t care that a company doesn’t see me as one either. Right is right and wrong is wrong. That’s really all there is to it.
I do not know what the law specifies for the VAT, but if it is similar to other taxes the receipts from that just get passed to the governments. So if that is true, Apple does not get to keep any of it
“Typically, rack jobbers own the merchandise and buy at 40 percent to 45 percent of retail. They raise their purchase price 50 percent to 75 percent, and then the stores mark the product up an additional 50 percent, according to Mr. Checkout Distributors, a national organization of direct store delivery wagon-jobbers, distributors, retail merchandisers and wholesale-to-distributor warehouses servicing convenience and grocery stores.”
The store marks up the price again over the jobbers markup but they don’t cut into the jobbers markup.
Also with supermarket items in general, i.e. not items maintained by a jobber, profit margins are customarily very thin and the store makes up for it by the turnover factor of the DuPont equation.
In Germany, for example, Apple sells for 1.19 euros. Of this, 19% goes to the tax office.
So the net amount would be 1 Euro.
Of this 70% goes to the developer and 30% to Apple.
Consequently:
19 cent to the tax office
30 cent to Apple
70 cent to the developer.
So Apple gets 30% of the net and with tax also 30% of the gross.
So where is the error in Korea?
So the net amount would be 1 Euro.
Of this 70% goes to the developer and 30% to Apple.
Consequently:
19 cent to the tax office
30 cent to Apple
70 cent to the developer.
So Apple gets 30% of the net and with tax also 30% of the gross.
So where is the error in Korea?
When I log to Apple website as developer it says:
for 0,99 € gross sales price I get 0,71 €.
0.99 € without 19% VAT is 0.83 €. And from that 15% off for Apple is 0,71 €.
Seems to be correct for Germany.
15% because of the regulation for developers under 1 million turnover.
Therefore, what is different in Korea?
For South Korea it says 927 W net for 1200 W gross. And with 10% VAT this fits exactly.
1200 / 1,1 * 0,85 = 927
for 0,99 € gross sales price I get 0,71 €.
0.99 € without 19% VAT is 0.83 €. And from that 15% off for Apple is 0,71 €.
Seems to be correct for Germany.
15% because of the regulation for developers under 1 million turnover.
Therefore, what is different in Korea?
For South Korea it says 927 W net for 1200 W gross. And with 10% VAT this fits exactly.
1200 / 1,1 * 0,85 = 927
Isn't the extra 10% VAT, which would go to the government?
No. In countries with VAT (tax is included in the advertised price) Apple is charging the user 100% of the tax, then they are charging the developer an additional 30% of the tax and keeping it as profit.
To keep it simple let’s say an app costs a dollar and tax is $10%.
In a country where tax is not shown in the advertised price, the user will see $1.00 and pay $1.10 after tax is added. Apple will pay the developer $0.70 after taking their 30% cut of $1.00 ($0.30).
Based on this article, in a country where tax is included in the advertised price, the user would see $1.10 and pay $1.10. Apple would take 30% of $1.10 ($0.33) and pay the developer $0.67.
In both examples the user pays the same amount ($1.10) and Apple pays the government the same amount of tax ($0.10). Yet Apple pays the developer less in the second example ($0.67 vs $0.70).
Edited for clarity.
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I think Samsung is in charge of that government even if they don’t say so. Down with the competition lol
No, Apple would send 10 cent sales tax to the tax office, 70 cent to developer and 30 cent to themselves.
I still think the people who ordered the raided, didn't understand how sales tax works!?
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Didn't south korea's president just pardon the heir to the Samsung fortune after he was convicted of extreme corruption and bribery because the company is "too important to south korea?" Frankly, I don't want to hear ANY complaints from that country. They can't get those dev tools for free, and if that's how they hold Apple's biggest competitor accountable, they are not worth any favors.
That’s what Apple should be doing. That’s not what they are alleged to be doing.
What does maybe mean? Are you unsure of your own statement?