You may think that customers love to pay in the App Store ... yet, the reality is a bit different. Has I’ve exposed before, the most revenue generating Apps/Businesses aren’t not even in the the top 100 most sold apps. Which basically indicates that once given other clear alternatives of payment customers opt for other forms of payment such as direct payment. Now, some companies simply don’t have enough brand awareness to pass other options of payment and promotions out side their apps.
If you look at the top 15 apps, with the exception of a few games they are either social media or streaming apps; which pint to the user base's use patterns, not whether they mind paying for Apps. For the streaming ones, no doubt some pay via Apple and others via external payments.
I'm not surprised business apps are not near the top simply because the % of use of iPhones for business that requires apps beyond those already included is small. The only apps I have for my business beyond Apple's are a scanner, time, and expense apps.
If you want to understand my stance ... it very simple:
Given their device market share I fundamentally object their policies that basically state, no App Store fees, no digital business through Apps for 50% of the population.
That's fine. However, Apple's success is not a reason to force them to change. Developers actually have a much better deal with the current system than under the old way of distributing apps. I think it will hurt small developers and users in the long run. Apple will probably raise the costs of things needed to develop an app, and can sandbox apps that are not signed or allow side loading but require an app to have a valid Apple issued certificate, for a fee of course, for example.
I further object their pricing scheme where they use the volume of business the digital business generates to establish their licencing and service price. It should be value based on usage not revenue.
Except that is an accepted standard for pricing - a product that generates more revenue brings in more money for the same margin.
Considering that 50% of the population uses iOS devices and demand digital services to be wherever they are in they devices of choice I believe that Apple does not follow FRAND principles in any shape or form regarding its approach to licensing their tech to third party digital services and software developers. The company believes that it generates 30% of the value any digital services deliver to their customers.
In FRAND terms, coining this practice as a Store is nothing but a smoke screen. Apple thinks precisely the same way I do when it comes to their suppliers. For digital services or software developer, Apple is nothing but a supplier. A supplier with a dominant position in the market. Do not confuse with monopoly. You don’t need to be a monopoly to have a dominant position.
You are misapplying FRAND. FRAND is intended to ensure access to intellectual property, such as patents, in exchange for incorporating it into industry standard. The App Store is a store, not an industry standard like USB for example. No one has to use it too bring a phone or app to market in order to be compatible with a standard. As a store, it sets what margin it wants from products it sells. Developers are the suppliers who need to decide if they want access to Apple's user base. If so, 30 or 15% is the cost, and one that is actually quite reasonable in exchange for Apple to handle all the distribution, hosting, payment, advertising costs they would have to cover under the old model of distribution.
I get that people think 30% is too high; but if you look at the historical costs of getting an app to market, which often left developers with 30% if they were lucky and had to cover all their costs with that, it's a bargain. You had to negotiate with a distributer, or place ads in magazines such Byte, Creative Computing, Nibble and hope people would buy your app. Piracy was a big concern. Look at Android, where piracy is much more prevalent and apps exist to facilitate it; much like the old bit copiers in the days of the Apple ][.
Have fun.
Will do. You too.