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Epic Games CEO Tim Sweeney Criticizes Apple Over App Store Price Increases

I suggest people read this article that lists fee percentages for 11 different stores from Apple to Google / Amazon to Microsoft.

appradar.com

Google and Apple app store fees, (+12 other stores) ?

Let's compare fees for some of the biggest app stores.
appradar.com appradar.com

Just about every item you buy in a physical shop or online has a 33% markup in it or a whole lot more, recommended retail price is only a guide.

Just read the article.
 
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You should see how Epic prices its Fortnite DLC. It prices them in ways where you must get either the more expensive vBucks or purchase two of them in order to add up to the most expensive items. They are still right about Apple but its the pot calling the kettle black. Its digital, it doesn't have to be expensive at all. The problem with Apple is that if one of their units is underperforming it will raise the price of others to cover the shortfall, even if nothing about the one getting higher prices warrants it.
 
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ilikewhey said:
dependent on the genre of app, if its a gaming app, players will still find a way even if it isn't on the app store, payment and support can offload to 3rd party platform for a marginal fee, apple doesn't handle support for you on the technical side, so you still have to hire support or do it yourself.
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I always think it's more once you are known, you can take the extra things out of the app store and people will still know you enough to find it
 
reyesmac said:
You should see how Epic prices its Fortnite DLC. It prices them in ways where you must get either the more expensive vBucks or purchase two of them in order to add up to the most expensive items. They are still right about Apple but its the pot calling the kettle black. Its digital, it doesn't have to be expensive at all. The problem with Apple is that if one of their units is underperforming it will raise the price of others to cover the shortfall, even if nothing about the one getting higher prices warrants it.
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Yea it's been ridiculous even since Everquest and other MMORPGS had a pay shop. It's one thing if it's an item that gives you some advantage to support the game, but cosmetics are a huge ripoff. And everyone has the new one for a week or two then back to BAU
 
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I7guy said:
Oil companies as well - for example.

Said every ceo for a publicly traded for profit consumer oriented company ever.

Surely we need a gallon of gas or a dozen eggs before a new iPhone. Didn’t see much help there. At least I can pay off a new iPhone.
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Exactly we don't need the best cellphone. And gas is like the only thing that is lower here than when the spikes started. Wish groceries would follow down soon. Would rather that than an iPhone not increase in the US.
 
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laptech said:
Apple did not become a trillion dollar company by helping out it's customers when times are hard. Profits need to be maintained no matter what the cost. Could Apple soak up the difference in exchange rates, of course they can but would they? of course not. The situation in Ukraine has caused a knockon effect around the world and it is times like these that people look towards the multi corporations for help but instead of them helping people all they are seeing is the multi corporations increasing their prices.
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This isn't about Apple always raising prices. Apple has also lowered app prices due to currency value changes e.g., 15 months ago, Apple had lowered prices in South Africa, UK, and euro currency countries. It goes both ways.
 
analogy time!

Apple built and runs a Mall.

People come from miles around to their mall.

They charge shops to sell their stuff in their mall. For storage electricity maintenance and future development and profit of course etc.

It’s really popular that hundreds of millions of people buy from this mall.

Apple add load of features year on year to make it better ( analogy sushi bar ) which costs development money.

Then Tim Sweeney come along wants to set up his own market stall for free in the foyer, take all the goodwill and well earned customers and pay nothing at all.

Think it’s easy Tim? Build your own hardware from scratch and see how it goes. And no cheating using Android.
 
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I’m not pro make a trillion dollar richer. But just his example.. Landlord raises prices without the renters having any say, literally all the time. Apple created the device, the software, cultivated the tools, and built the user base. Then these companies made billions building the apps off that structure.

They need to figure out a new strategy, or a new business model. Because this is looking sad.
 
paulovsouza said:
I’m not pro make a trillion dollar richer. But just his example.. Landlord raises prices without the renters having any say, literally all the time. Apple created the device, the software, cultivated the tools, and built the user base. Then these companies made billions building the apps off that structure.

They need to figure out a new strategy, or a new business model. Because this is looking sad.
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And to be clear, Tim Sweeney doesn't run a local small mom and pop store. He is in charge of a multi billion dollar company as well. It sometimes seems like people defending them, think they are helping out the little guy. Epic is far from little.
 
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Onelifenofear said:
analogy time!

Apple built and runs a Mall.

People come from miles around to their mall.

They charge shops to sell their stuff in their mall. For storage electricity maintenance and future development and profit of course etc.

It’s really popular that hundreds of millions of people buy from this mall.

Apple add load of features year on year to make it better ( analogy sushi bar ) which costs development money.
Click to expand...

This isn't really about Apple raising prices to cover costs of improvements. This is about raising prices due to currency fluctuations. The U.S. market saw the same "App Store improvements" over the past year yet prices remain the same. South Africa, UK and euro currency countries were seeing the same "App Store improvements" a couple of years ago yet app prices actually dropped in those countries in August 2021.
 
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Onelifenofear said:
analogy time!

Apple built and runs a Mall.

People come from miles around to their mall.

They charge shops to sell their stuff in their mall. For storage electricity maintenance and future development and profit of course etc.

It’s really popular that hundreds of millions of people buy from this mall.

Apple add load of features year on year to make it better ( analogy sushi bar ) which costs development money.

Then Tim Sweeney come along wants to set up his own market stall for free in the foyer, take all the goodwill and well earned customers and pay nothing at all.

Think it’s easy Tim? Build your own hardware from scratch and see how it goes. And no cheating using Android.
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you missed out a very very important part of that anology and that is Apple tells the shop owners that for every purchase a customer makes in their shop Apple will automatically take 15% or 33% of the sale, depending on the size of the shop and the shop owner only has two choices, agree to what Apple wants or leave the mall, there is no working out a new deal, no bargining, no contract talks, it's either a take it or leave it deal.

Now you tell me how many brick and mortar mall owners take a percentage of every sale made from a shop in their mall? how many? none and why? because it would be considered 'racketeering'.
 
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webkit said:
This isn't really about Apple raising prices to cover costs of improvements. This is about raising prices due to currency fluctuations. The U.S. market saw the same "App Store improvements" over the past year yet prices remain the same. South Africa, UK and euro currency countries were seeing the same "App Store improvements" a couple of years ago yet app prices actually dropped in those countries in August 2021.
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No way in hell is Apple going to reduce their prices once inflation get's back to normal. Take this tabloid news article for example

www.dailymail.co.uk

Apple raises price of iPhone 14 Pro to £1,099 as inflation hits UK

The iPhone 14 pro, which will be available to order in the UK for the first time tomorrow, will rise to £1,099. This has jumped £150 from last year's iPhone 13 pro launch cost of £949.
www.dailymail.co.uk www.dailymail.co.uk

stating that due to inflation and the dollar to sterling exchange rate it costs an extra £150 more on the price of an iphone 14 than last year. There is no way Apple is going to lose £150 per iphone 14 once inflation starts to drop and the exchange rate improves. Don't be fooled with past price drops, it is not what you think they are.
 
webkit said:
This isn't really about Apple raising prices to cover costs of improvements. This is about raising prices due to currency fluctuations. The U.S. market saw the same "App Store improvements" over the past year yet prices remain the same. South Africa, UK and euro currency countries were seeing the same "App Store improvements" a couple of years ago yet app prices actually dropped in those countries in August 2021.
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Sure. More commenting on his general ethos of demanding access to make money off other people’s work, goodwill and client base.

The developer is obviously still getting 70-85% more too.
 
laptech said:
you missed out a very very important part of that anology and that is Apple tells the shop owners that for every purchase a customer makes in their shop Apple will automatically take 15% or 33% of the sale, depending on the size of the shop and the shop owner only has two choices, agree to what Apple wants or leave the mall, there is no working out a new deal, no bargining, no contract talks, it's either a take it or leave it deal.

Now you tell me how many brick and mortar mall owners take a percentage of every sale made from a shop in their mall? how many? none and why? because it would be considered 'racketeering'.
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Umm... Most malls have revenue sharing agreements with the stores.
 
laptech said:
No way in hell is Apple going to reduce their prices once inflation get's back to normal. Take this tabloid news article for example

www.dailymail.co.uk

Apple raises price of iPhone 14 Pro to £1,099 as inflation hits UK

The iPhone 14 pro, which will be available to order in the UK for the first time tomorrow, will rise to £1,099. This has jumped £150 from last year's iPhone 13 pro launch cost of £949.
www.dailymail.co.uk www.dailymail.co.uk

stating that due to inflation and the dollar to sterling exchange rate it costs an extra £150 more on the price of an iphone 14 than last year. There is no way Apple is going to lose £150 per iphone 14 once inflation starts to drop and the exchange rate improves. Don't be fooled with past price drops, it is not what you think they are.
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Isn’t the whole point of the price rise to ensure that Apple’s profit margin isn’t reduced? Apple hasn’t gained £150 more that it previously would have done, it’s gained £0. If the exchange rate improves Apple can either leave the price where it is (and increase the profit margin) or reduce the price to maintain their existing profit margin.
 
ilikewhey said:
you're saying the developers wouldn't survive without the app store? you guys are giving the app store way too much credit here 😂
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The developers wouldn't exist without the App Store. What are they selling without it? To who?
 
laptech said:
No way in hell is Apple going to reduce their prices once inflation get's back to normal.
Click to expand...

As I pointed out, Apple has already lowered prices in the past (as recently as August 2021 in South Africa, UK and euro currency countries) so there is no reason to think they wouldn’t do it again if currency rate changes warranted. Also, this particular issue (app prices) is not specifically about inflation but rather currency fluctuations.
 
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webkit said:
That's largely because Apple freezes out competition by restricting alternative app stores and sideloading on iOS.
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Why should anyone be able to freely make money from Apple's products? Short answer, they shouldn't.
 
Thehangmn said:
"Imagine if a landlord told their small business tenant they had to increase their prices without any say in the matter or anywhere else to go."

uh... happens all the time Tim. What are you talking about?
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It does? You’re going to let your LANDLORD tell you what to sell your items for? BS 🙄
 
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