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My comments on this were speaking to the consumer price for the iPhone which dropped significantly at the beginning. The price was slashed 33% to 40% within just three months and even more later as already discussed. The iPhone was overpriced out of the gate (Ballmer was riight on that point) and without these notable price drops, the iPhone's long-term future would not have been nearly as good.
I’m just pointing out the difference between a price drop and a subsidy. the price of the iPhone went up, but was subsidized by the carriers for a lower upfront cost.
 
Well almost exactly. Because currently everyone is saying. It should only be to apples advantage. Why not balanced? Or why not in developers faivour?

Epic gives developers the option to pay zero percent or 12% depending if they use their own purchasing mechanism or epics mechanism.

12% is a ripoff if its only for credit card fees.

Apples only charges 15% for devs like me that make less than a million a year.

In return it includes credit card fees, hosting, support, marketing, distribution bandwidth, app review , developer services and dozens of localized stores all over the world.

Apple originally set the 30% to cover costs for 99 cent purchases which cost most of that in credit card fees. I think they have declined to about 12 cents on a 99 cent purchase now.

But the 30% level worked well overall given that most apps are free, and pay apple nothing. Free apps can be expensive, Spotify requires petabytes of monthly bandwidth costing tens of millions a year.

It’s been an amazing market for developers. I remember selling software through retail, where they took about 70% and we had to pay massive printing, duplication and packaging costs on top of that.

Apple has increased the number of developers many times by creating a frictionless direct to customers market with huge revenues.
 
Of course it goes both ways but my response was specifically regarding the statement that "Apple owes nothing to developers." Apple's iPhone may not even exist without developers as consumers would likely go elsewhere, like Android and/or some other mobile OS that could come along, if developers chose not to make apps for iOS. Apple would lose iPhone revenue, App Store revenue, etc.

if developers decided tomorrow to stop making apps for iOS, it would hurt Apple a lot more in the long run than it would the average developer.
Of course this goes both ways, but it’s still apples house. Some devs like flappy birds made a bundle from the iOS App Store. Apple provides the opportunity for nearly a pittance.
 
Before the App Store, taking 30% of anything as a digital platform was unthinkable.
What other platforms dealing entirely in digital goods are you referring to, before the App Store? Steve Jobs got digital music to actually work reasonably with iTunes (before that it was a hodgepodge of companies with unrealistic expectations and draconian policies facing off against a free-for-all of file sharing piracy), and if I understand correctly, iTunes charges something in the neighborhood of 30%. The App Store was going up against physical software sales, where 30% was a bargain.
 
Microsoft actually takes a 12% fee for windows games and 0% fee for everything else.

And why would developers pay 30% + 12% fee? In the epic store you keep 88% of the revenue, steam or Microsoft isn’t taking a cut.

Well to be fair, I don’t Mind if I could use one store for all my games. I would rather have steam on my iPhone or Xbox as I have a big game library. And would no longer need to purchase things twice
It would be 30 + 12 on the xbox if EPIC released their launcher for xbox. Microsoft only recently dropped their fee from 30 to 12 on PC.

If EPIC were allowed to have their launcher on xbox without paying any fees to Microsoft then it would be 12%. As it stands now they would be obliged to pay Microsoft their 30% too.
 
“The app store forces developers to treat their software in a sub-par way to give customers a sub-par experience to charge uncompetitive handling and processing fees to inflate the price of digital goods," the CEO of Epic Games said.”

Has anyone ever shown data to suggest that I could save money because of the lower cost of apps on Android?

Or…… Do they generally cost the same there and this argument doesn’t hold water?

I have a guess as to the answer.
 
“The app store forces developers to treat their software in a sub-par way to give customers a sub-par experience to charge uncompetitive handling and processing fees to inflate the price of digital goods," the CEO of Epic Games said.”

Has anyone ever shown data to suggest that I could save money because of the lower cost of apps on Android?

Or…… Do they generally cost the same there and this argument doesn’t hold water?

I have a guess as to the answer.

I seem to recall that there are some developers who make their apps free with ads on Android while charging a couple dollars for their apps on iOS.

The theory is that most Android users are thrifty (I'm trying to be polite here) and will simply refuse to spend any money on apps, even if it's just a couple dollars.

I remember hearing that somewhere. If anyone can provide some info on this topic, that would be great.

:)
 
The original iPhone wasn’t subsidized. The subsequent iPhones were, so my point was that the comparison wasn’t apples to apples.
Actually... the first few months it wasn't. The first price dropped was rumored to be a push by Apple and AT&T together. Although it wasn't touted that way. I remember just seeing the price drop in an article and people auto-assumed Apple did that.
 
My comments on this were speaking to the consumer price for the iPhone which dropped significantly at the beginning. The price was slashed 33% to 40% within just three months and even more later as already discussed. The iPhone was overpriced out of the gate (Ballmer was riight on that point) and without these notable price drops, the iPhone's long-term future would not have been nearly as good.
Ballmer did get the price point of the iPhone right. He was also right on the email front in the sense that it did not appeal to the Enterprise. Apple had to build Enterprise support in iPhone OS 2 to fix the shortcomings.

Other than that, he simply didn't understand what the iPhone was and how much better it was than WindowsMobile. Due to that bad understanding and poor foresight WindowsMobile and Windows Phone is now dead.
 
I seem to recall that there are some developers who make their apps free with ads on Android while charging a couple dollars for their apps on iOS.

The theory is that most Android users are thrifty (I'm trying to be polite here) and will simply refuse to spend any money on apps, even if it's just a couple dollars.

I remember hearing that somewhere. If anyone can provide some info on this topic, that would be great.

:)
Ah, interesting. I may recall having read that as well?

It makes sense, although that seems to attribute more to the user base than the difference in financial burden between the two ecosystems?
 
Ah, interesting. I may recall having read that as well?

It makes sense, although that seems to attribute more to the user base than the difference in financial burden between the two ecosystems?
There was an article on MR a few years ago. In the end it boiled down to the iPhone user base is likely better off financially due to the price differences of Android devices. Hence, people with an iPhone usually have a budget to spend on apps. Androids were sold in markets which are emerging or extreme budget constrained. Mind you this was years ago. Unsure if the article holds up today.
 
The argument that the App Store has helped a lot of developers and the argument that Apple's cut is to high are not mutually exclusive.

Once a certain fraction of all software globally is sold over your platform and you reach an overwhelming market power (a point that Apple and Google have passed a long time ago), you have to accept the responsibility that comes with it. You're not just responsible to your shareholders. You don't get to keep 30% of every transaction ever made just because you own the platform.

Before the App Store, taking 30% of anything as a digital platform was unthinkable. Imagine if Microsoft had done the same with Windows. Imagine if VISA and MasterCard took 30% of every transaction just because they provide the platform. Everything would be a lot more expensive for consumers only for a handful of corporations to get even richer.

It's just greedy, plain and simple.

I really don't understand why people are defending Apple so fervidly on this topic. It's really not good for anyone that Apple takes such a large cut (same goes for Google, etc. of course). It's not good for developers, it's not good for you as the consumer. It's only good for Apple.

All of you people always complain about Apple's prices for their devices being too high (Studio Display, Airpods Max, etc.), but at the same time you're all going head over heels to defend Apple's taking 30% of every transaction.
False. Microsoft is asking for 30% on Xbox Live Store. Sony is doing the same on PlayStation store. All facts, no printers.
 
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The argument that the App Store has helped a lot of developers and the argument that Apple's cut is to high are not mutually exclusive.

Once a certain fraction of all software globally is sold over your platform and you reach an overwhelming market power (a point that Apple and Google have passed a long time ago), you have to accept the responsibility that comes with it. You're not just responsible to your shareholders. You don't get to keep 30% of every transaction ever made just because you own the platform.

Before the App Store, taking 30% of anything as a digital platform was unthinkable. Imagine if Microsoft had done the same with Windows. Imagine if VISA and MasterCard took 30% of every transaction just because they provide the platform. Everything would be a lot more expensive for consumers only for a handful of corporations to get even richer.

It's just greedy, plain and simple.

I really don't understand why people are defending Apple so fervidly on this topic. It's really not good for anyone that Apple takes such a large cut (same goes for Google, etc. of course). It's not good for developers, it's not good for you as the consumer. It's only good for Apple.

All of you people always complain about Apple's prices for their devices being too high (Studio Display, Airpods Max, etc.), but at the same time you're all going head over heels to defend Apple's taking 30% of every transaction.
If I recall correctly, you would be correct that before the App Store, taking 30% of anything as a digital platform was unthinkable, as I recall the seller portions were quite a bit higher back then. I do recall thinking 30% was finally a pretty reasonable cut, and was even happier when they lowered it to 15%. What is Epic charging these days?
 
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Before the App Store... What other significant digital platform existed? As far as I can remember, there was none.

Also, all that VISA and MasterCard have to do is move a transaction from one point to another one. Basically nothing as complex as a software hosting platform and all that's involved around it.
Steam
 
It costs way more to sell on the Epic game store than on the AppStore and Steam. You are listing just one of the fees involved with Epic and ignoring the rest. Epic is the most expensive by far because they don’t do anything for their fee other than let you list on their store. So we have to 12.5% to Epic 2.5% + 30p to the payment gateway, an undiscloseable % to the licensing server, and hosting costs. For Apple we just pay 15% all in and used to pay 30% all in. Even at 30% it was a bargain.
Not at all. 12% is only if you use their payment system. If you use a different payment gate you pay 0%.

Steam takes a 30% fee and allow you to release practically any game you want.

Epic takes 12% and allow you to list a store or use different payment gates for 0% fee.

Microsoft takes 0% for apps, 0% for stores 12% for games
 
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It is funny how it only seems to be the companies that make the most from the App Store that seem to have a problem with the App Store.

I mean, and consumers who are starting to chaff at having their choices restricted and an inability to use hardware now more than capable of more to do more more fully. Plenty of small developers did and do very well on traditional computing platforms, having the ability to sideload apps wont destroy the ability of small companies to make software for phones.
 
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Of course this goes both ways, but it’s still apples house. Some devs like flappy birds made a bundle from the iOS App Store. Apple provides the opportunity for nearly a pittance.

It is Apple’s "house" but because of their dominance in the mobile OS market (at least in some countries), that opens them up to more scrutiny regarding potential anticompetitive business practices.
 
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