Regarding third party devaluation, I disagree with the hardware part of
this article but I think the software part is spot on
I know that article, and I disagree with it for the same reasons I've mentioned. What that article actually says is that people are less forgiving to software that doesn't have a great first impression because software has become more competitive and people tend to be invested less in your app.
The software market becoming more competitive isn't a surprise - it's only natural when you've got a single digital storefront for nearly half a billion iOS users around the globe! First impressions have always been important - if your app isn't matching the expectations of users, you'll be ignored.
People put up with all kinds of crap interfaces in the PC days were software was $40, as the article harkens to. Today, people are less forgiving about that stuff because there's an enormous marketplace full of potentially better alternatives.
I've noticed the low price of this software prompt people in to buying apps, but even then most people I know primarily download free apps. They're still very cautious about paying cash money (even a dollar) for an app, and not one of them has ever just binned it casually saying "oh well, it was only a dollar. I won't even give it a chance."
I don't care much about the IP ripoffs than I do about iOS being a budget market. IP ripoffs, cookie cutter software, lowest common denominator apps - they're all staples of a budget market. Those $1-5 software CD's you used to see in the bargain bin at Fry's aren't exactly indicative of quality, but they're now the standard on mobile. So when I hear that iOS or Android has quality software as a standard, I disagree.
If you think it's bad on iOS, don't try Android! I bought a Galaxy Nexus instead of an iPhone 4S because it was cheaper and so I figured it was better value.
I'm constantly browsing the Play store and I think the last thing I downloaded was in October. It's just full of junk. Worse junk than you get on iOS. Weed growing simulators and wallpapers of girls in bikinis. It's a teenager's version of the AppStore (even then, a teenager that hasn't discovered porn or actually smoking weed but just giggles at the idea of them).
"software becomes more of a commodity --> their premium hardware becomes more differentiated"
This is the flaw in the logic.
How does a universe full of cheap crap on the AppStore make Apple's hardware "more differentiated" in any positive way? (as if their big problem is they are perceived too same-ish!).
In contrast, wouldn't an array of high-quality apps make Apple's hardware more differentiated in a positive way? Consider that Apple's hardware is the only hardware that can run these apps, due to them being written for iOS.
Apple doesn't care what the actual price of apps are; it has no specific policy to make all apps free (although I wouldn't put that kind of thing past Google) or some magic price it wants to batter all apps down to. So long as there is a marketplace that promotes and gives rise to high quality (and preferably exclusive, or at least exclusively high quality) apps on the iOS platform.
Also, Apple definitely know the value of having people pay for content. They've been struggling against cheaper or free alternatives since the 80s. They're not going to devalue app developers content. They can't devalue app developers content. Only the developers themselves can do that.