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Elon Musk Says Apple's 30% App Store Fee is 'Literally 10 Times Higher Than It Should Be'

Stick to Apple, Elon! By the way, still on the waiting list for the Roadster. The 5-year wait has been a piece of cake. Definitely worth the $70,000 deposit. Apparently, there was a bulletin about not using the Model 3 in winter. I completely didn't read what you didn't publish.
 
Elon, really, maybe he should deduct the advertisement cost the products he sells
from his buyers, I mean how many would he sell if no one knew about Tesla, similar to App Store process??
 
Well, according to Tim it costs Apple that much to process payments. If that’s the case they should probably outsource it to any one of a zillion vendors that do it for 3% or less.
 
Some credit cards have fees over 3%, not to mention the insane bandwidth bill and manual approval process. 10% is probably closer to break even.
 
Oh makes you wonder money is nothing to Elon Musk and he might buy Apple one day ?
 
dontwalkhand said:
Lmao! Says the one who won't let us use Apple Music in a Tesla, or adopt CarPlay because of some childish silly feud with Apple.

Bluetooth is not the answer, and I am not sure if this is an Apple issue or a Tesla Issue, but if you resume playback from BT, and you just happened to be watching a youTube video before getting in the car, congratulations, you will now hear the YouTube video through the car's speakers rather than your Apple Music! Now you gotta fiddle with the phone while driving....so SAFE!, and go through that whole spiel of disabling "Do not disturb while driving"....once again, so safe!
Click to expand...

I'm not so sure I agree with you there.

I drive a 7 year old French car without even CarPlay and just a BT receiver and the whole in car entertainment system works better than anyone I know with CarPlay or a Tesla, the first 10 minutes of every car journey which appear to turn into debugging sessions. For me, BT is absolutely entirely flawless.

I just get in it and with no interaction on my part at all whatsoever, can just drive off and say "hey siri, shuffle my music" and sorted. Works every time, no futzing at all of any sort. Navigation works, it reads messages to me, I reply to messages with voice, the media/radio stalk works with it, calls work fine. I get in the car and drive off and the call transfers from my airpods to the car. I get out and it transfers to voice flawlessly.

Edit: Oh and at no point does the car get spooked by something it sees like a friend of mine's Telsa which keeps slamming the brakes on when it rains...
 
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Funny he should say that. I think his cars, many of which malfunction and sometimes even explode in fiery crashes upon impact, should be priced 10x lower than they are. I guess he wants Apple to provide servers, billing, and the interface of the app store for free?
 
This past quarter Apple reported $97B in revenues and $25B in profit and yet some here act as though if Apple’s rent seeking 30% fee is cut the company will go out of business or something. This fee long since stopped being about what it costs to maintain the App Store. It’s all pure profit now. If you want to defend it, fine. But don’t make it sound like Apple will be on the rocks if that 30% is reduced or goes away.
 
Rogifan said:
This past quarter Apple reported $97B in revenues and $25B in profit and yet some here act as though if Apple’s rent seeking 30% fee is cut the company will go out of business or something. This fee long since stopped being about what it costs to maintain the App Store. It’s all pure profit now. If you want to defend it, fine. But don’t make it sound like Apple will be on the rocks if that 30% is reduced or goes away.
Click to expand...
There's nothing wrong with profit or being cash rich as a company. For example how do you know they are not going to build their own semiconductor fab line to isolate them from the rest of the market which has a massive capital cost?
 
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TheYayAreaLiving 🎗 said:
What's Elon really has to do with the App store? Does it really matter?

No idea why Elon is even getting involve. What does he really know about the App store? What's he going to do? Buy App store from Apple?
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He gets involved because he thinks he’s brilliant, thinks he’s entitled to stick his nose and fingers in everything, and has the money to “prove” it to himself (and his followers). It’s a common problem with the filthy rich; see Bill Gates…
 
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The richest guy in the world suddenly has an issue with a company making good margins? lol. Well, ok.
 
He is an assclown. While one might think 30% is high when one considers the infrastructure, staffing, and maintenance of the app store, it isn't really. People want to scream at Apple when a bad app gets deployed without thinking about what it takes to identify a bad app. There isn't any magic here. If you want a high-quality store, it takes resources. Resources cost money. Ergo, 30%. Oh yeah, btw, Apple is a business. Businesses work on a for-profit model.
 
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alex2792 said:
Well, according to Tim it costs Apple that much to process payments. If that’s the case they should probably outsource it to any one of a zillion vendors that do it for 3% or less.
Click to expand...

The original cut was set to 30% because at the time for a $1 transaction, the cut from the payment processors was 30 cents (so 30%) and most App Store apps were diving head-long towards a $1 price because that was where the market pressure was pushing them (as in if you charged more than $1 for an app, you generally would not sell compared to a competitor who was charging $1).

IMO, Apple should just follow the gaming industry and charge 30% for In-App purchases for games because that is where the significant bulk of the money is being generated and it's more than enough to cover the costs of providing free App hosting and support services to everything else. Or keep 30% for games and knock everything else down to 5-10%.
 
ddauerbach said:
Not to mention his proprietary charging stations
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Actually they are open to all EVs in Europe and UK now. Think what will be the case in USA soon.

The idea is that the profit is to open up more stalls and Stations - They are empty a great deal of the time outside commuting hours.

But he is often wrong on a lot of things - this Apple store being one of them... for a start a vast majority are on 15% and in the bad old days of CDs / DVDs etc you'd be lucky to take home 30%
 
If you literally do anything to a Tesla in terms of modification you are banned from the charging network. YouTubers who show or modify Teslas are leaned on extremely hard. That is a walled garden.
 
ponzicoinbro said:
He can’t stop lying and abusing.

It’s time to end billionaires and the power they abuse.

Nobody needs to have a billion dollars.

They should be forced to sell assets and pay taxes whenever they hit a $100 million wall.

Even $100 million is mad money and makes the ultra wealthy abusive, dishonest and very corrupt.
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Yeah, that's right. Take their money and give it to the tax collectors. Those folks are just noble good-doers.
Sheesh. As if billionaires have mountains of cash just sitting around. Look up the components of net worth.
 
Onelifenofear said:
Actually they are open to all EVs in Europe and UK now. Think what will be the case in USA soon.

The idea is that the profit is to open up more stalls and Stations - They are empty a great deal of the time outside commuting hours.
Click to expand...

However, Tesla does charge a higher fee for non-Tesla vehicles and it appears only three non-Tesla EVs are compatible with the CCS connector: BMW i3, Kia e-Niro, and Jaguar I-Pace.

So still a walled garden, IMO, even if they have allowed three non-Tesla models the access code for the gate (for a price). :)
 
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Danfango said:
I'm not so sure I agree with you there.

I drive a 7 year old French car without even CarPlay and just a BT receiver and the whole in car entertainment system works better than anyone I know with CarPlay or a Tesla, the first 10 minutes of every car journey which appear to turn into debugging sessions. For me, BT is absolutely entirely flawless.

I just get in it and with no interaction on my part at all whatsoever, can just drive off and say "hey siri, shuffle my music" and sorted. Works every time, no futzing at all of any sort. Navigation works, it reads messages to me, I reply to messages with voice, the media/radio stalk works with it, calls work fine. I get in the car and drive off and the call transfers from my airpods to the car. I get out and it transfers to voice flawlessly.

Edit: Oh and at no point does the car get spooked by something it sees like a friend of mine's Telsa which keeps slamming the brakes on when it rains...
Click to expand...
Bluetooth audio quality is anything but flawless. CarPlay, wireless or wired, sounds far better.
 
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