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Not saying you are right or wrong in your assumption. But that is not how business works. Let's assume that there is plenty of profit left over to cover all the costs associated with OS / tools development, App Store operations, customer support, legal, billing, G&A, corporate overhead, etc. And you say that Apple should not be able to monetize anything but the hardware. That would make Apple a non-profit. Not really sure that is a viable business model.
You're putting words in my mouth. Look at my posts again. I was just pointing out Apple are very very profitable and make a lot of money on their hardware even when you take away all expenses. Any meaning beyond this is invented by you. I'm just stating facts- no assumptions.
 
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Epic said they lost money because they constantly payed for exclusives, not for having a small fee.
And they give out free games weekly. They are only paying pennies for each copy, but it does cost $10+ million per year in aggregate.
And they have sales with coupons where Epic ends up with a negative cut... yes, they actually end up paying the developer more than the customer pays.
 
Are you confusing my posts with someone else's? I made no error. My professional background is in finance.

Being rude for no reason is a bad look, so I'll have to assume you just got yourself befuddled.
Great! Then tell me:
If the parts to build an iPhone cost Apple $400 and Apple sells it for $1000, what’s the profit?
 
OK, then why did the Judge allow Apple to terminate its agreements with Epic worldwide for breaking the contract?

No, you can't do both in the US unless you want a Judge to slap you down.
That’s why I said EU, and I also said I’m not well versed with US law.

… do you want me to give you a timeline?

  • Cheap or free developer tools - check
Free developer tools was already available and in wide use. Xcode was just a new SDK for iOS, Unreal engine states in the 90s among many other competitors
  • No need to find a distributor to get your product on the shelves
  • Gives you worldwide distribution
Steam existed and gave you world wide distribution, GoG, cydia, play store etc
  • Access to a large and lucrative customer base
That took a long while apples customer base to be relevant, on computers. Just how steam hade a large lucrative customer base and took over the of gaming market for store fronts.
  • Handles all the back end stuff like tax compliance and fees
  • Able to bring your product to market for the cost of a developers account so you can see if the product will sell before investing anything in getting it to market
  • Provides a way to limit piracy without having to use some DMA product which just angers your customers, cost money and often doesn't stop much piracy
  • Handle hosting the apps
All steam have done and catapulted the indie development long before apple did that.
Steam defined the modern video game industry

You are the only one who is engaging in a rewriting of history. Apple did contribute, but they’re were just one of many companies doing it. If Apple had never existed, it wouldn’t have changed. The simple fact was Steam had shown an extremely lucrative business industry that was going to be implemented on smart phones.
 
And they give out free games weekly. They are only paying pennies for each copy, but it does cost $10+ million per year in aggregate.
And they have sales with coupons where Epic ends up with a negative cut... yes, they actually end up paying the developer more than the customer pays.
Yep, but that’s isn’t making the store unprofitable, it’s their tactics to grow explosively and become a threat to steam. They are currently doing predatory pricing (could be) if they sell their service under cost in order to become competitive to steam.

FYI that’s super illegal in EU so lucky for them it’s not based in EU.

The same thing happened when wallmart tried to establish themselves in Germany and getting absolutely chewed out by the culture and the legal system for trying to make their goods cheaper by selling them below cost to attract rival consumers to their store.
 
Depending on their agreement with AMEX they may be violating it; AMEX required (or at least used to) that you charge no more for use of their card. If customers complained AMEX could pull the store's agreement.



No, they make choices based on what they value. No one is forced to buy an iPhone, they can forgo whatever apps it has.



ANd teh store no doubt paid less for it than the selling prices. Stores don't stock products for free.



Commissions or markups are the cost of access to a customer base; it's not unique to Apple.



They built the user base that is lucrative for developers and deserve renumeration for it; and made it a lot less expensive and risky to develop and sell software. Developers can focus on their software and not worry about distribution, payment processing, handling returns of unsold stock, rampant piracy, dealing with various tax laws worldwide, etc.; and small developers can do that for 15%, not 30%. I suspect many developers would love to grow sales to the point Apple ups their cut; and even then if it is a subscription app the fee drops to 15% after year 1.



And Apple lets you use 3rd party chargers without a cut as well. A more apt analogy would be the like of sideloading, but even then cars don't allow you to easily tap into their systems to add features such as new stereos, engine control hardware, etc. You can replace any parts with OEM 3rd party offerings, some of whom may actual license tech from a manufacturer, but you can do that on an iPhone as well.



And to use your analogy, Apple doesn't get a cut from 3rd party accessories not bought from them; but if you buy it from them they get a cut just as if you bought the product from a car manufacturer's network.
YEs, exactly.
If a retail store sells an item for the same as online, they store or retail group bought it significantly less (probably more than 30% less) to stick it on their shelves.

15-30% is a great deal for devs. So much better than retail channels of old. And the few that still exist.
 
I'm a developer, I know what I'm talking about. An entirely offline application cannot access online services. If you're talking about local, on-device services, then guess what? They're free to use, since they're bound to the license of the operating system, a copy of which is owned by every iPhone user (in the EU, in the US it's still a perpetual use license, but my point still stands). Instead of rudely barging in and telling people they "are not totally aware of how computers work", try to understand the context of the post you're replying to.

Besides, that's not even what I was talking about. I was referring to, literally, "setting up a shop", as in, place to download apps.
Sorry. could not find your original post which I thought referenced services
 
And they have stated that they are running it at a loss
...due to exclusivity deals and promotions.
Apple probably ran their store at a loss for a while.

Microsoft are also taking 12-15%.
It's absolutely doable to run it profitably.
 
Then why use the critique that epic won’t pass on the savings? It’s completely fine if they keep the savings to themselves if the customer doesn’t want to pay Apple that fee.

So Apple's greedy bastard if they get 30% but it's OK for Epic to pocket it?

Yea… none of that did Apple provide. That already existed at the time and was moving from computers to the mobile phone devices. There no evidence Apple did do anything unique here.

Apple created that set of circumstances on the App Store; which is the value it provides to developers and customers.

Epic said they lost money because they constantly payed for exclusives, not for having a small fee.

Maybe they pay becasue their App Store never caught on and people only use it for free stuff?

Really? I understand they want customers to have acces to their store WITHOUT USING THE APPSTORE. So Apple can ask for whatever fee they want in their store but shouldn’t ask for anything outside of it if the developer doesn’t want to use anything of apples services.

I agree, but I suspect many want to use Apple's services, including Epic; Epic just doesn't want to pay to use it.

The different schools of economic thought are interesting; my theory is the we heavily influenced by the areas culture; where Europe developed from a feudal culture where the ruler provided for his or her people and the US went of in a different direction as it expanded. So differing views of the role of the state makes sense when viewed from that perspective.
 
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So Apple's greedy bastard if they get 30% but it's OK for Epic to pocket it?



Apple created that set of circumstances on the App Store; which is the value it provides to developers and customers.



Maybe they pay becasue their App Store never caught on and people only use it for free stuff?



I agree, but I suspect many want to use Apple's services, including Epic; Epic just doesn't want to pay to use it.

The different schools of economic thought are interesting; my theory is the we heavily influenced by the areas culture; where Europe developed from a feudal culture where the ruler provided for his or her people and the US went of in a different direction as it expanded. So differing views of the role of the state makes sense when viewed from that perspective.
My friend, if there's still people who believe the Earth is flat and that we never got to the Moon, it's going to be more difficult convince these people.
 
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You can do both. If a contract term is illegal then you always have the right to break it.

True, but if that results in violating other legal terms you can be held accountable for that.

If the parts to build an iPhone cost Apple $400 and Apple sells it for $1000, what’s the profit?

Which one? Gross? Net? Operating? Economic? Considering the rule of thumb is somewhere between 3 to 5x the BOM cost Apple is on the low end of markup if you use your numbers.
 
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True, but if that results in violating other legal terms you can be held accountable for that.



Which one? Gross? Net? Operating? Economic? Considering the rule of thumb is somewhere between 3 to 5x the BOM cost Apple is on the low end of markup if you use your numbers.
That was my point, there's a lot more involved beyond the BOM cost.
 
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That’s why I said EU, and I also said I’m not well versed with US law.

… do you want me to give you a timeline?

  • Cheap or free developer tools - check
Free developer tools was already available and in wide use. Xcode was just a new SDK for iOS, Unreal engine states in the 90s among many other competitors
  • No need to find a distributor to get your product on the shelves
  • Gives you worldwide distribution
Steam existed and gave you world wide distribution, GoG, cydia, play store etc
  • Access to a large and lucrative customer base
That took a long while apples customer base to be relevant, on computers. Just how steam hade a large lucrative customer base and took over the of gaming market for store fronts.
  • Handles all the back end stuff like tax compliance and fees
  • Able to bring your product to market for the cost of a developers account so you can see if the product will sell before investing anything in getting it to market
  • Provides a way to limit piracy without having to use some DMA product which just angers your customers, cost money and often doesn't stop much piracy
  • Handle hosting the apps
All steam have done and catapulted the indie development long before apple did that.
Steam defined the modern video game industry

You are the only one who is engaging in a rewriting of history. Apple did contribute, but they’re were just one of many companies doing it. If Apple had never existed, it wouldn’t have changed. The simple fact was Steam had shown an extremely lucrative business industry that was going to be implemented on smart phones.
If Apple didnt exist, Android wouldnt look and behave like it does (as pre iPhone version was very different).

And App Store wouldnt exist as Google bundled apps into OS before Apple created a separate store...

To play games on mobile really needs hardware buttons.
I'd much rather play a game on Switch than phone unless it is better played by touch than moving cursors.

KHSTMDKOLED512_hero.jpg
 
And you say that Apple should not be able to monetize anything but the hardware. That would make Apple a non-profit. Not really sure that is a viable business model.
I did not say that- in fact I said nothing of the sort. They're a successful business. Incredibly successful. I'm baffled why you would even write the words you did and attribute any of that to me. 👀 They can monetise whatever they want, unless it breaks the law. The EU decided that their App Store can be circumvented, and it doesn't matter if any of us like or dislike that- it is what it is, and Apple will be forced to abide by it.
 
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