My discussion around payments was indeed including the worst case scenario of all devs pulling out of stores and going it alone, similar to what we see in the PC world. Example: Malwarebytes, not on the MacOS store, I need to go to their site, use their payment processor. As I posted, they have been hacked, that was just one example. Most people would never need 100 different payment processors for apps but it is the worst case, 10 different stores is far more reasonable a number but I still like 1 store far more.
Well hopefully Apple Pay will become adopted, and solve this conundrum. But then again payment solutions are heavily regulated in EU and holds the same standard so I don’t see a problem.
Why do you think people shop at Amazon, one stop, one pay!
Because they sell Cheap goods. Still no commission on apps tho
Other payment protection layers are indeed availalbe (paypal etc) but they do no good unless the merchant accepts them. In the case of Malwarebytes, they do accept PayPal, but not all merchants accept other processors.
Well that’s the same for any payment layer. Stripe, PayPal, MasterCard, visa, American Express( rare in EU), Apple Pay etc
Definitely a nuanced topic. I'll try something with this analogy:
As it works today:
Walwart builds a retail location
LG sells them TVs, LG makes their cut
Walwart marks up the TV and lists it for sale
A Consumer purchases the TV, Walmart makes their cut
Or in our digital world it works one of two ways:
1) Apple builds the app store (and all its infrastructure for IAP, Upgrades, Listing, Bandwidth, etc)
Epic Games lists Fortnite on the app store for free
Consumers "purchase" the app by downloading it (no money)
Consumers make IAPs and both Epic and Apple make money (70/30)
2) Apple builds the app store (and all its infrastructure for IAP, Upgrades, Listing, Bandwidth, etc)
Epic Games lists Fortnite on the app store for $69.99 (think console game money)
Consumers purchase the game and both Epic and Apple get paid (70/30)
Consumers make IAPs and both Epic and Apple make money (70/30)
Well outside of malls who takes a commission, cellular companies and online stores such as amazon etc
Now if I am understanding your point correctly you feel that Apple does not deserve a cut of IAP, but are ok with them getting a cut of an initial purchase price for an app, correct?
Absolutely not, they have a right to ask, but should not demand it. It should be an option. Just as apple login is in other apps next to using Facebook or twitter etc.
but I 100% think they have a right to ask for a cut of the initial purchase
So you would want this world:
1) Apple builds the app store (and all its infrastructure for IAP, Upgrades, Listing, Bandwidth, etc)
Epic Games lists Fortnite on the app store for free
Consumers "purchase" the app by downloading it (no money)
Consumers make IAPs and Epic makes 100%
Apple makes only $99/yr for all the Fortnite "purchases"
Consumers use their IAPs and Epic makes 100% in their solution and 100% of the responsibility
Or
Consumers use apples IAPs and both Epic and Apple make money (70/30) with zero precent of the responsibility
2) Apple builds the app store (and all its infrastructure for IAP, Upgrades, Listing, Bandwidth, etc)
Epic Games lists Fortnite on the app store for $69.99 (think console game money)
Consumers purchase the game and both Epic and Apple get paid (70/30)
Consumers make IAPs and Epic makes 100%
Consumers make IAPs and Epic makes 100% in their solution
Or
Consumers make IAPs and both Epic and Apple make money (70/30)
My only challenge to you in this is how does Apple recoup the costs of their marketplace when the vast majority of the items for sale in it are free (scanario #1)? How would this work:
Walwart builds a retail location
LG pays Walmart $99/yr to put free TVs on their shelves
Walwart puts the TV on the shelf for free
A consumer takes the TV home and "activates" it online through LG, LG gets all the money
I think it fair to say that Walmart would need to increase their fees in order to be profitable. Are you suggesting that a better alternative would be for Apple to increase the dev fees to the point that the app store is profitable? This might squeeze out indie devs.
Nothing says they can’t take out a service fee, delivery fee, shelf space fees or even purchase the product directly and sell it with a markup, retailer sell things at a loss all the time to lure customers to purchase lucrative products. Apple choose to allow free apps, and camas well chose to go break even or lose money to sell more iPhones.
Even a digital marketplace has costs, programmers, servers, payment processing, customer service, approval/testing, etc. I like Apple products and want them profitable so in your world where Apple is not entitled to a cut of IAP with free apps how does this happen?
The thing is there is no difference between physical and digital market places. Both have costs. And in the end of the day Apple as everyone else distribute goods that are supplied by other companies/developers. And they as everyone else takes a cut as reseller of digital programs.
The problem is apple didn’t distribute the Subscription, they didn’t sell that extra life, they didn’t do anything for the virtual gold to be purchased.
Apple should never be allowed to mandate their IAP solution as th only option.
BUT if the dev wants to use the App Store referral service, payment system and billing charging and pat 30% fees for that … it should be a choice given the principle… not a mandate.
But if developers want to use their own system they should be able to without giving apple a cut. Just a free apps earning money from adds don’t pay apple anything for the add revenue.
But apple can obviously take payment for every download, updating the app etc etc
They could call it service fee and delivery fee even to cover all the cost for free apps, or they could use apple’s system instead of their own. It could perhaps be cheaper and more convenient to use apple’s system.