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How and why? There are other apps that do that (Netflix is a great example) and this is just Apple being greedy.

Their distinction between the two is hilarious at best. If Netflix wasn't huge and was just starting they would do the same to them. Apple is wrong here, its just pure greed.
But we know thats whats Apple is all about these days.

The difference is quite simple. If Netflix and Spotify pull out their apps and are only available in competing platforms, then the huge installed base of those platforms might consider migrating to other options where they can use their platforms. If this email reader does so, then no one will flock to Android to get it. It is just Apple bullying the little guy that has no other recourse, while bending to the big guys that could actually hurt their business. Is not about being "reader" app.
 
If this email reader does so, then no one will flock to Android to get it.
I’d assume most folks that would pay $99 for email wouldn’t mind switching to a cheap (or, on some plans, free) Android phone to get it. I’d be interested in seeing Hey attempt that, actually.
 
If Netflix subscription would let you upload your own TV Show or movie, you would have a point.

Regardless of what you think about the rule, it is pretty clear.
Unless all you can do is read emails and not reply to them or compose a new one, it most certainly is not a "Reader" app. Replace "Reader" with "Reader only" if it makes it simpler.

Spotify allows you to create and share playlists. DropBox allows you to upload and share files.
 
Another way to look at this situation:

Apple sells hardware at their own stores as well as other retail stores. They would presumably make more profit by selling the hardware at their own stores, so why do they sell at other retail stores? It is because they see the value in, and are willing to pay the cost for, the additional distribution channels.

In the case of the software, the developer has a direct relationship with Apple, so there are no other expenses besides the 30%. This is reasonable when you compare it to traditional manufacturer - distributor - broker - retailer setups.
 
Nope. That used to be true, but now nearly all features are available for free, including editing. It was opened up about two years ago, thanks to competition from Google.

I wonder when that changed. I signed up for a subscription because I couldn’t do anything but read documents in the app without it.

Ah, now I see. It’s based on screen size. My iPad Pro is bigger than 10 inches.
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No it’s not. It’s considered a cloud service.
But doesn’t it work just like a “reader” app i.e. no IAP required?
 
Spotify allows you to create and share playlists.
But not create or upload songs. You are still basically consuming.
Dropbox does offer in-app purchases, that is exactly the point.

I don't care about the rule either way, just pointing out what they mean with the rule, as it is pretty straightforward I would think.
 
How would charging $0.99 bring it into compliance? Still would be required to offer an IAP.. Still not allowed to put a link in their app directing to Hey’s website.

Because the app would “do something” when purchased. That’s the primary rule Hey is breaking. Adding an In App Purchase is just one of the ways to bring them into compliance and the one generating the most talk because Hey is making is sound like they’re being shaken down. No. There are other solutions that bring them into compliance that doesn’t give Apple those 30% and Phil Schiller suggested a couple of them.

Adding a 99 cent price would make the app work when downloaded which would enable it to pass the rules even though it would stop working after a certain amount of time. Similarly, Hey could just offer a free one week trial and that too would pass the rules.
 
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They don't have to. Many companies/developers would prefer to do it themselves or use the providers of their choice (I am sure they would be able to find pay processors that do not take a 30% fee). In fact they probably would not be able to find a processor with such high fees even if they wanted to.

It's possible that government will relieve Apple from this burden though. They may not have to process those unwanted in-app purchases and subscriptions for much longer.

Many users don’t want to pay someone else. The in-app payment processing brings people with already verified payment info together with developers. Most people don’t want to give their personal info over to yet another random company with questionable security practices. It’s a security risk, every time you give your info to someone else.

Also, Apple is providing marketing for you by having your app listed in the store where people can easily find it.
 
"Only applies to reader apps"...but not an app designed to literally READ EMAIL!!

It's not though. It's not an "email app". The basis for the app is apparently a whole new way to handle email and treats messages like a comprehensive app as opposed to any normal email app.

At least, that's the claim.
 
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They don't have to. Many companies/developers would prefer to do it themselves or use the provides of their choice (I am sure they would be able to find pay processors that do not take a 30% fee). In fact they probably would not be able to find a processor with such high fees even if they wanted to.
Exactly. Stripe charges 2.9% + 30¢ per transaction — for everything over the $0.99 tier, you’re netting more money by going with Stripe if it were allowed by Apple. For a $4.99 purchase, the developer gets more than $1 extra with each transaction, and it only goes up quite a bit from there; for a $19.99 IAP, it’s more than $5 extra. (And for anyone thinking that’s inconsequential, just several purchases at $4.99 and you can buy yourself lunch on the money you saved over Apple’s IAP.)
 
This is a bit pedantic on Apple's part considering
the myriad IOS apps that work with subscription services not purchased through iTunes.

Basecamp just needs to update the app to allow 'reading' of Hey email by trial or limited subscribers and nothing else.
 
Because the app would “do something” when purchased. That’s the primary rule Hey is breaking. Adding an In App Purchase is just one of the ways to bring them into compliance and the one generating the most talk because Hey is making is sound like they’re being shaken down. No. There are other solutions that bring them into compliance that doesn’t give Apple those 30% and Phil Schiller suggested a couple of them.

Adding a 99 cent price would make the app work when downloaded which would enable it to pass the rules even though it would stop working after a certain amount of time. Similarly, Hey could just offer a free one week trial and that too would pass the rules.
Apple shouldn’t get to decide Hey’s business model for them.
 
Here’s the thing. Apple is paying for the servers that process the in-app payment, the credit card processing, handling all the charge disputes and chargebacks/fraud requests from the credit card company, etc.

That’s not a $0 Bill for Apple. Credit card chargebacks cost businesses a significant amount of money, as well as employing the iTunes App Store support agents, data center infrastructure, they designed and built Xcode, add new features to iOS that enable new features in the apps, handle push notifications, etc.

And the yearly developer fee of $99 in no way covers all of that. So they have to take a cut somewhere.

...they're not using any of Apple's in-app payment stuff.
 
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Are they required to offer IAP in order to be in the App Store? Regardless, guarantee you they’re not paying 30%.

While they may be receiving a deal, I'm sure Microsoft's business model for Office 365 allows plenty of distributor margin. They push subscriptions in physical stores, Amazon, as bundled item with new PCs, through corporate resellers/integrators, etc. and those people easily are taking 20-30% cuts. Just checked on Newegg and they've discounted the home subscription 15%.

Back in the old days, you walked into CompUSA and bought a boxed copy of Office, they'd be undoubtedly taking 20-30%, so it's all built into their pricing. It's these upstart dot-coms with little actual profit that are crying about it.
 
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ATP podcast had a good discussion on this subject. Marco said what usually happens when Apple changes a rule or interprets it differently is they don’t deal with all the affected apps at once. They deal with it as app updates get submitted. This developer seems large/savvy enough that it seems doubtful they just don’t understand the rules. So there must be other apps doing what they’re app is attempting to do without having IAP. Perhaps those apps haven’t submitted an update recently and when they do they will get rejected too?
 
Many users don’t want to pay someone else. The in-app payment processing brings people with already verified payment info together with developers. Most people don’t want to give their personal info over to yet another random company with questionable security practices. It’s a security risk, every time you give your info to someone else.

Also, Apple is providing marketing for you by having your app listed in the store where people can easily find it.
Absolutely. This is the cold hard truth for developers — most users do not care about you, and they do not need your software. Without the App Store, I would not have downloaded 99% of the apps that I have.
 
The infrastructure is a fixed cost. The CC payments cost max of 5%.

As one whose job is to design/deploy/maintain large scale data center infrastructure, it is by no means a fixed cost. During peak app download times (usually Christmas time to new years) and as demand trends up and down throughout the year, Apple is spinning up and spinning down cloud infrastructure to match demand and save money when possible. Those costs are a function not just of the number of apps in the app store but also the number of active devices around the world, as the number of devices grow so does the demands on the infrastructure.

Also few folks seem to be mentioning the human cost of the app store. I don't know how many people Apple employs on the App review teams, the Xcode Development teams, or on other of the various teams (legal, phone support, etc.) to that work to support the App store, but let's say it's 5,000 people (out of the over 139,000 employees they have) and guessing a fully loaded salary of $300K (salary + benefits + insurance, this is probably a conservative number for California) that's ~$1.5B a year just in human costs.

Not saying Apple still isn't making a lot of money off the App store it's hard to know how much for sure without seeing the real internal numbers, but I think there is a lot more cost that goes in to it than most people think yet that doesn't stop them from judging how much is too much of a fee to charge developers (who by and large seem fine with it).
 
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