Apple’s ballsy move

16 Feb
2011

If you’re not living in the Apple Bubble, you can boost your knowledge about Apple’s latest ballsy move.

In a nutshell, Apple now wants 30% of everything you purchase or use with an iOS device. And you are not allowed to make it more expensive to compensate the losses. If your margin is less than those magic 30%, you’re screwed.

Yes, for customers (short thought) it’s a good thing. You no longer have to give away your details (like name, address, credit card) and instead can use a payment provider you already trust (Apple) which handles everything and does not give away your contact details.

“Our philosophy is simple—when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing,” – Steve Jobs

To keep a 70/30 cut for selling apps is one thing – here Apple offers service, like reviewing (hoho), distributing the app through their high-speed network, advertisement (if you’re lucky) and the whole AppStore-Infrastructure.

What do they do with In-App purchases? Handling your payments. No hosting, no additional service. That’s just not worth 30%. Google today launched Google One Pass, a solution for offering digital content – they take much more reasonable 10%. Paypal takes 3%.

Everyone’s talking about ‘publishers’ with these new App Store rules. What about vendors? They’re the ones getting royally screwed. – Jim Dovey, former developer of Kobo Books.

Many publishers and developers are screaming now, that Apple destroys their whole business. It’s because most businesses don’t have a 30% span they can share. So Apple is, in fact, asking them to lose money.

It’s also about process. Setting up IAP is a pain. Keeping it in sync with your library is even worse. And there are also limits – IAP allows up to 3500 items – Amazon Kindle currently has about 2,5 MILLION items.

I don’t see Amazon giving Apple 30% for just being on the iPad/iPhone. Furthermore, they would have to offer IAP at the same price to just stay in the store. Their current solution, which is offering a link to the Amazon Store that opens in Safari, is no longer allowed. (No external linking to the site shop).

So their only viable option: remove the App from the AppStore. Same for Netflix, Hulu, Pandora, Kobo, Zinio Magazines and many other services. This is bad for customers, and bad for Apple. And it makes me angry and sad. Damn it, it’s my device, I paid $$$ on it, and now they are taking away my apps. Not fair. It’s also utmost greedy – Apple’s not the company that would in any way need this extra money.

I genuinely hope that they end this madness.

1 Response to Apple’s ballsy move

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Tweets that mention » Apple’s ballsy move petersteinberger.com -- Topsy.com

February 16th, 2011 at 10:15 pm

[...] This post was mentioned on Twitter by Jim Dovey and Peter Steinberger, Peter Steinberger. Peter Steinberger said: New Blog Post: Apple's ballsy move http://is.gd/vEmgl0 [...]

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