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Elon Musk Says Apple's 30% App Store Fee is 'Literally 10 Times Higher Than It Should Be'
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I currently pay 15% and think it is great value for money. If Apple could just stop manipulating App Store search results then it would be perfect.
If Android can have multiple app stores, there's no reason Apple's iOS couldn't as well. Apple has simply chosen to restrict app store competition on iOS.
Darth Tulhu
macrumors 68020
Yes, but unfortunately for Tesla, they only exist the way they do today due to them having previously qualified for the $7,500 tax credit (for their customers, giving those customers an incentive to buy) and being the only game in town really selling a reasonable lineup of electric cars which enabled huge profit margins. Those margins are about to get squeezed… hard, by all the 2023 model electric cars coming from all the major auto makers. Makers who will be selling at all price levels, whose customers are still entitled to the $7,500 tax credit, and who can be profitable on 1/3rd the margin Tesla is currently enjoying. Tesla is in for some tough times.
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If, for no other reason, Apple should be accepting a far-lower fee since the App Store is hot garbage. You can’t even find what’s new. The interface is terrible and was outdated 5 years ago.
Don’t start - Apple charges $400 for a stand for a $1500 monitor. “No thanks, Apple, I’ll just hold it while using it…”
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If Android can have multiple app store and only a small percentage of people choose to use them, then how can the tradeoffs possibly be worth it for Apple?
3% Musk doesn't know what he's talking about: credit card companies charge up to 4%, and Apple must add a commission on top of that: customer support, refunds, fraud, infrastructure (servers). Just like any brick-and-mortar store making a 50% commission- oh wait, store good: Apple bad.
Fees in Europe are lower (3% max), oh wait: US = good for business.
Fees in Europe are lower (3% max), oh wait: US = good for business.
The upside for Apple is that it would give critics and/or governments (claiming Apple is extra greedy, monopolistic, etc.) one less thing to be able to complain about and if usage of other app stores would truly be insignificant, it wouldn't hurt Apple's bottom line too much in the process and may even bring more customers to Apple.
I think critics would have much less of an issue with what Apple charges if they operated the App Store in more of an open market instead of restricting app store competition.
“Good for business” but that can depend on which side of the business you are on, the type of business, etc.
Sounds like a stupid and inconsequential reason to force a company to change their business model.
Except by critics, you primarily mean large corporations that want a piece of Apple's pie. There isn't any sort of large consumer backlash to Apple's model. The app market on the iPhone is large, diverse, and low-priced.
There’s a big reason there isn’t multiple App Stores don’t exist for iOS. Apple doesn’t want them.
From a guy who manufactures cars that are unaffordable to most motorists and totally aimed at the luxury sector. Of course he is right about this but I’d rather hear it from someone credible lol.
Multiple App Stores is not much of an issue to Apple. Like if some other company is ready to take on App Store hard earned customers … crazy. The reality is that although in Android there are multiple, apart from Google Play the others aren’t really that successful. The potential hard competition is not really from there at all.
What is really at stake is if digital services (non App Stores) should have or not the legal right to directly enter into commerce with their customer, in their apps. This irrespective if they are device manufacturers or not. In other words , having the legal right to represent themselves from all angles in their Apps which are their property and only optionally by an agent.
This is what the App Store like world takes from digital services and people, their clients. It’s a new phenomena.
The very idea being marketed over and over by Tim Apple that such rights are a security risk to people and digital services is in itself a spreading constitutional abortion across the population as far as democracies go. Judging of course by the market share stats.
That is all there is to it nothing else.
Representation by device agency is a security risk at many levels.
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Please don't give him anymore ideas. He's in 'God-mode' right now and it's pretty scary! 😆
Not sure what you mean. No reason why you can't "love" him for what he's doing with Twitter and at the same time not be a fan of his take on the App Store. It's not like you have to make a choice to either 100% support everything he says/does or support 0% of it, lol!
Which is exactly how it should be.
Device manufacturers should have little to no say in how developers and customers are engaging with each other.
Apple has built a very robust and secure platform and the "App Store" part of it adds very little to any security.
The security comes from the platform design.
The App Store is a business layer that favors Apple specific interests above everything else.
Oh boo-hoo. That will put such a dent in your $700,000+ yearly App Store revenue (after Apple's 30% cut)
Sorry. But, Tesla charges me $10 a month for crappy services. And, the car just have constant bugs. What does he know about about running services. Many times accessing my car remotely is super slow and times out. Maybe he should charge more so that my car works.
That's silly. The platform developer has to actually create the APIs and UI that connect developers and consumers.
That's just baseless speculation.
Seriously. 6 months and still waiting for a replacement wheel that I can only source from Tesla.
Oh wait, I can't install CarPlay or iTunes Music on my car. This guy thinks he knows everything. I like Elon in many cases. But, he's wrong on this. He might be thinking back to PayPal days. Cost a lot more to run things today.
So, he'll take more and more shots at Apple the closer Apple gets to a car. Which who knows if that will happen.
I'm talking about the business relationship between dev/consumer
The tool/API building is part of their platform build out, which benefits their customers and developers and Apple -- to sell very high margin hardware and foster an ecosystem.
Apple needs to get out of the business of skimming off the transactions between Devs/Consumers
Charge more for developer access to the platform if they want, but get out of the direct revenue skimming
I appreciate the platform precisely because Apple simplifies that business relationship.
So? I certainly don't see the legal or moral case against making money on hardware and software.
Why? As a consumer, the App Store is already diverse and low priced.
That would discourage app development. I certainly don't want that.