Is history repeating? Will developers leave Apple again?

[Mr. Chewbacca]

I was very young when the pc first got popular but to the best of my memory this is a huge oversimplification of what happened.Back in the late 70's or early 80's people were just starting to get home computers. Not surprisingly the mac was a better machine.

Mac charged exorbitant fees to write mac compatible programs and IBM was a lot more open about letting software developers create programs for their machines. Since developers were not able to make near the profit writing Mac programs as they did for the IBM machine they just stopped writing for Mac. Over time, even though Mac was the better machine you couldn't use it to run anything. IBM and Microsoft took over with inferior hardware. Apple became a tool for graphic designers.

Fast forward to now. Apple has created this amazing marketplace teaming up with all kinds of vendors like kindle, tom tom, netflix, movie and music producers, ect ect.

As a result of this marketplace Apple has absolutely skyrocketed. I started with an iPod and have now become something of an Apple fan boy. I am happy for Apple's success and look forward to being a long term customer.

Now I'm worried, Apple is expecting 30% from everyone?! Several of the bigger companies don't even make that much and Apple knows it. They cant afford to pay Apple more than they make. I guess they figure no netflix means we will buy itunes. No kendal? buy iBooks.

What do you think will happen if Apple chokes off all of their vendors, will people stay for long if they can get far better variety elsewhere. I hope Apple doesn't do the same thing again. Am I just being paranoid?

 

[James L]

If we are talking about Mac software, Apple is only "expecting" 30% if the software developer distributes their software through the Mac app store.

By doing this the software developer saves $$$ by not paying for the creation and shipping of physical media.

If this isn't to the developer's liking, however, they are still more than welcome to distribute their software through traditional channels (i.e. boxed software in stores, direct downloads from the developer's site, etc).... and "save" the 30%.

Now, if you are talking about the iOS app store then yes, developers have to pay Apple 30% to distrubute software. Again, however, they don't need to worry at all about the manufacturing and distribution side of the equation. They simply need to develop their application, give it to Apple who worries about the distribution, and price it accordingly. As long as they price their app accordingly this shouldn't be a huge issue.

 

[Mr. Chewbacca]

Now, if you are talking about the iOS app store then yes, developers have to pay Apple 30% to distrubute software. Again, however, they don't need to worry at all about the manufacturing and distribution side of the equation. They simply need to develop their application, give it to Apple who worries about the distribution, and price it accordingly. As long as they price their app accordingly this shouldn't be a huge issue.

That model works great for inhouse apps like angry birds and crossword puzzles that were made for the app store and come with little overhead. Even the iAds is a pretty good and fair system since Apple is doing most of the development work.

My issue is with large sompanies like Amazon (Books) and Netflix. While they can sell outside of the app store they have to offer in app purchace options for the same price. You mention manufacturing and distribution, these companies do not manufacture and distribution is still done through them, the app is just a portal for their service.

Those companies dont own the movies and books, they distribute them and take a small profit that becomes big with volume. My understanding is something like 10%. They cant pay apple 30% which means that all of them will be forced to pull their apps or lose money.

Apple could easly work out a fair pricing compromise based on what they actually make. I get that they dont have time to make deals with everyone but for the top 20ish they can take a moment. It just so happens the ones they are forcing out also compete with iTunes and iBooks.

 

[yg17]

Amazon, Netflix, etc, should tell Apple to shove it and pull their apps from the app store. Apple does not deserve a 30% cut when they play no part in delivering the content.

 

[rhett7660]

That model works great for inhouse apps like angry birds and crossword puzzles that were made for the app store and come with little overhead. Even the iAds is a pretty good and fair system since Apple is doing most of the development work.

My issue is with large sompanies like Amazon (Books) and Netflix. While they can sell outside of the app store they have to offer in app purchace options for the same price. You mention manufacturing and distribution, these companies do not manufacture and distribution is still done through them, the app is just a portal for their service.

Those companies dont own the movies and books, they distribute them and take a small profit that becomes big with volume. My understanding is something like 10%. They cant pay apple 30% which means that all of them will be forced to pull their apps or lose money.

Apple could easly work out a fair pricing compromise based on what they actually make. I get that they dont have time to make deals with everyone but for the top 20ish they can take a moment. It just so happens the ones they are forcing out also compete with iTunes and iBooks.

I wouldn't be surprised if something like this hasn't happened.

 

[Mr. Chewbacca]

I wouldn't be surprised if something like this hasn't happened.

I sure hope so. Its like watching your favorate football on that last drive. You just assume they're going to make that game winning field goal because you want them to so badly.