80% of the smart phone world that is Android, proves “Apple’s dominance” is a delusion. Apple just collects the majority of the profit, but actual market share wise Apple is the under dog. Microsoft dominated global market share wise.
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Spotify on Apple's Response to App Store Dispute: 'Every Monopolist Will Suggest They Have Done Nothing Wrong'
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80% of the smart phone world that is Android, proves “Apple’s dominance” is a delusion. Apple just collects the majority of the profit, but actual market share wise Apple is the under dog. Microsoft dominated global market share wise.
Actually, they would be charging them internally for the service. It doesn’t matter if the overall company is Apple - services aren’t sold for free inside of corporations - money is moving on different general ledgers. Each department has an annual budget; and within that budget they have to cover salaries within it, expenditures, costs, onboarding, project funding, standard operating costs... and many other things. And if they’re lucky, they also have an external income stream. They’re called Cost Centers and Profit Centers internally at corporations.
Spotify, it is just like you come to a country, you have to abide to it’s tax law. If you can’t abide it and feel that it is unfair, you are free to leave the country. Apple users will not abandon iOS because of you, however, you will lose million of users if you leave Apple. Simple as that, stop whining like a small kid.
Size of company is irrelevant, market position is what matters, and Apple has less than 20%.
Exactly what is Apple doing that you think should be considered an illegal anti-competitive practice?
Something egregious like Microsoft Charging PC Vendors for a copy of Windows for every PC they sold, even if it didn't include Windows.
Note that this was just one of Many slimy anti-competitive things Microsoft was doing back when they had ~97% of the market and were in fact ruled a monopoly, by a federal judge. People keep acting like there is a parallel here, when in reality the situations are polar opposites.
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I'm sure Spotify would have a huge chunk of revenue from iOS sign ups if it weren't for the 30%, but it's also highly possible that their company won't go bankrupt if they pulled their iOS app completely and lived off of Windows/Android alone. I'd guess that most of their signups have been done through web regardless.
Yeah. I'm on your side. No monopoly here but that cut is rough. I think we'll see some changes since nothing lasts forever.
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There are more reasons for the App Store than money as hard as that sounds to believe.
In hindsight, I realize, that considering Android has more than 4 times the number of users, and Apple is still managing to collect more profit than them / the App Store is more lucrative than Android’s ...
Apple is actually entitled to charge a premium. They have created a marketplace that no other company has been able to duplicate in terms of profitability. Developers know that they will earn more on the App Store, and Apple customers are willing to pay more for Apps. If they wanted to, Apple would be justified in saying “on our platform we have a higher pool of profit, due to quality over Android’s quantity. Therefore you have to pay a premium over Android’s / Google Play’s 30% store fees, to tap into our pool of customers.”
No other service / company can provide Apple’s level of returns, the App Store collected 93% more revenue than Google Play, using less than 20% of the market. That is no small feat.
https://9to5mac.com/2018/10/11/app-store-massive-revenue-growth-over-google-play/
Apple is actually entitled to charge a premium. They have created a marketplace that no other company has been able to duplicate in terms of profitability. Developers know that they will earn more on the App Store, and Apple customers are willing to pay more for Apps. If they wanted to, Apple would be justified in saying “on our platform we have a higher pool of profit, due to quality over Android’s quantity. Therefore you have to pay a premium over Android’s / Google Play’s 30% store fees, to tap into our pool of customers.”
No other service / company can provide Apple’s level of returns, the App Store collected 93% more revenue than Google Play, using less than 20% of the market. That is no small feat.
https://9to5mac.com/2018/10/11/app-store-massive-revenue-growth-over-google-play/
They’re smaller than Spotify in that market. If anything, Spotify is the anticompetitive entity in the music streaming market by predatory pricing (ie free tier)
The most profit for Apple. Many of you don't seem to realize that a lot of what Apple is doing is short sighted and only working for short term profit. In the end if they continue on the path they are on which is anti consumer, they are going to pay the price. The only reason IOS has done as well as it has so far is that Google has been even more incompetent with Android.
They really need to stop with this 30% extortion because it discourages top quality developers. If they want iPad to be more of a pro device then they need developers such as Autodesk, Corel, Adobe, and countless others. But no way is a company such as Autodesk going put thousands of dollars into developing something such as AutoCad for IOS, only to have a third of their profit taken by Apple.
150%!
Apple is so amazing that they should get all the revenue and a fee just for being next to them and allowed to be in their presence
God they are amazing.
It feels good to even be able to even talk about them without paying a fee.
Apple is so amazing that they should get all the revenue and a fee just for being next to them and allowed to be in their presence
God they are amazing.
It feels good to even be able to even talk about them without paying a fee.
How is Google able to charge the same 30% for a service that is 7% as effective?
Adobe announced photoshop for iOS. Office is on iOS and getting closer to desktop parity all the time.
Developers go where the customers are.
Dude I don’t know.
I don’t even care I’m just so exhausted with everything so pro Apple here..
..makes me wanna barf
I’ve been an Apple fan the majority of my life all the way back to the late 80s and early 90s and hysteria is just getting out of control.
They’re powerful and they’re asking for too much for what they are providing here and it’s clear as day to me.
I was just joking about the 150% let’s not get going again you and I and take over the thread… Nobody wants it
Barf @ Maybe you shouldn’t be on an Apple-focused site, lol.
But that aside, Google is significantly more powerful. People just are blinded by Apple’s money. Google has much more say in the global market, and more influence in the corporate world.
I have a computer where you can really type
not like those mobile devices that people only type short things like
lol
I have noticed that today generation have a hard time typing or reading more than 3 words
I also love the thoughts
cheers
Absolute nonsense.
Google also charges 30%, Steam also charges 30% (no reason to expect the game console platforms charge less either).
30% store/70% dev cut is not extortion, it's a drop in the buck compared to the physical media days were devs were getting less than than 30% compared to the various app stores 70% they give devs today.
It’s clear as day to YOU but developers have made billions of dollars on this setup, and the one complaining is Spotify, who made its money by not paying artists.
What difference does it make what you think so long as thousands of developers disagree?
Adobe has a subscription service just as Microsoft does. This is why they are not losing out. You buy the subscription through their own site and that is that. On the other side companies such as Affinity are having issues and are trying to deal with it by offering extras only on their web site. This means that a lot of IOS only users are cut off unless they go to Affinity.
Another thing that upsets developers is that Apple does not allow them to charge for updates. This makes it difficult for them to generate enough revenue to continue to update and develop the product. As some point there are not enough "new" users to make it profitable. This is starting become an issue with Procreate. (I am an artist and I use all these apps, that is why I am using them as an example) What Apple is doing is the same as let saying buying an iPhone once and then getting all the upgrades for free.
You might think: "Who cares. It is all about the almighty Apple", but if Apple loses and can't gain developer support it is all for naught. If IOS is where they want to go. They will have to do better.
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Google is only a mobile platform. And Android is not exactly a shining example. They tried to do what Apple has done and it did not work out well. Now they are trying to start again in the tablet space with Chrome OS.
Apple doesn't want this mainly because they want to push recurring revenue because: "services"
This pivot to "services" is essentially the end of the Apple we all knew and loved.
How long before any hardware besides iPhones is in the way?
This is no longer a great product company.
The products are being relegated to ancillary status...all besides the iPhone.
Could be pretty interesting when the world pivots to whatever is next..
Nobody saw the iPhone coming in 2006 either.
I suspect the reason is this.......corporations in today's world make say $50 million is 2017, In 2018 they make $75 million. So now they run around saying that they made a 25% increase in revenue year over year. People come out of the wood work saying that in 2019 they will increase revenue by 40%
If it turns out that they "only" make $80 million, its a ***** disaster. News articles are written, bloggers make post's, talk radio spends hours discussing how they are in BIG TROUBLE as revenue is "down" Well its not down, they are still massively profitable, they brought in $80 million.....but hey their year over year growth hasnt continued on a unstoppable trajectory up up and up. Thats kind of the state of the corporate world today. Spotify's projected subscription numbers probably arent increasing by 50%.
What a bunch of straw man crap.
Everybody is going to subscriptions. So what? As long as the software is available on iOS, we win. Yes developers wish things were different. In any transaction each side wants more. But the fact remains that there are thousands of businesses that wouldn’t exist without the App Store. And without the App Store we’d be living in a Microsoft of the early 2000s world, still, with little in the way of software choice.
it was just a fictional example is not that I'm predicting that is going to happen like that
but really things will begin to slow down until they go down the hill
it might take apple like 20 to 30 to be bankrupt because they have so much money
the only advantage they have is their os not really their hardware
their hardware used to be top notch but not anymore
if another company emerge, who innovate and offer better prices, better quality then might push apple against the wall
as for now they can continue with their cruel tactics until that company dethrone them
it might not happen in 5 years but eventually everything that goes up must come back down
I guess you don't remember when Microsoft bailed out apple in the 90's
who would it thought right
this is the problem when people and companies think they rte invincible and think they will never hit the ground
let's come back here after a few years and see how they still doing
some time a good company can be driven to the ground, not by their products but also by the leadership
in this case apple has both problem, lower product quality, high prices and bad leadership
really hope someone come next after Tim Cook that really fix the products
as right now is a complete disaster, you guys are free to disagree
we I mean I'm still waiting for that Mac Pro, I think is still delay, again , probably by the year 2020
let me see if I remember correctly the last Mac Pro is from 2013, so much for 5 year obsolete rule
right?
not everybody like iPhones, iPads, watches, air pods, there are still some people that likes desktop computer
I'm a computer man not a mobile guy
cheers
@Gogeta-Blue
Well said - Nothing lasts forever, especially companies that get "on top" and start acting like it.
Well said - Nothing lasts forever, especially companies that get "on top" and start acting like it.
As does Spotify. Doesn't that poke a bunch of holes in Spotify's whiny argument?
Are game developers charging less outside of Steam? As far as I know, price is usually the same out of Steam. I'm speaking on retail price, not random sales.
Android platform allows outside app stores and sideloading, so Google is not really a valid comparison.
iOS is really the only platform that's completely locked down, and that does make Spotify's claim more valid.