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All your points are fair, but if Apple's value is just 3%, why don't we hear as many stories about other app stores? Android has a much larger userbase, but the

All your points are fair, but if Apple's value is just 3%, why don't we hear as many stories about other app stores? Android has a much larger userbase, but the common wisdom is that actual revenue in that store is much smaller. Beyond the 3% in transactions you're paying for the review process, which while imperfect, makes parents pretty comfortable letting their kids pay $1M/day to the Clash of Clans/Angry Birds folks. While getting featured is rare, you still need to pay the salaries of the editors who pick the best apps, the graphics artists who merchandise the collections, etc. I also look at it as the subsidy that helps offset the cost of developing Objective-C, Swift, etc. You might argue that it's in Apple's best interest to develop that anyway, but I don't fault them for trying to recoup the cost. Look at it this way, it's a progressive 30% tax that you pay if your successful, while keeping the cost of development low for beginners. Really, I think the big thing you're paying for is access to a customer base that is much more likely to pay you. I've had a couple products featured in the iTunes store despite not being super connected and had great success. I understand the frustration, but it's not like you're not getting anything in return.

mikeash 11y ago
Paying for the review process is not a feature! That's the software equivalent of how oppressive governments will execute a prisoner and then send their family a bill for the bullet. Apple is making billions from the App Store. It doesn't cost anything close to that much for Apple to build their developer tools. They were giving those tools away for free long before anyone had even heard of iOS.
- s73v3r 11y ago
  And how much does it cost to maintain the distribution network? For bandwidth? You claim they are making "billions" off their cut. So show it. Most sources show that the revenues are about at the same level as their costs. If you have something different, please feel free to show.
  - mikeash 11y ago
    They're bringing in billions. I don't know what their profits are. But either their profits are huge, or the App Store is ridiculously inefficient in terms of cost, because payment processing and bandwidth just do not cost that much on relative terms. I'm sure the App Store is breathtakingly expensive in absolute terms. But there's no reason it has to cost anything like 30% of sales. This stuff scales up sub-linearly, not super-linearly.
    - s73v3r 11y ago
      So basically you do not have numbers to back up your claims.
      - mikeash 11y ago
        This is an internet discussion, not a scientific paper. I base my claims on long experience. If that's not good enough for you, that's certainly your right, but it's a bit ridiculous of you to complain when you've offered no more support for your side.
- icebraining 11y ago
  Paying for the review process is not a feature! While it might be argued that it doesn't work as well as it should, or that it shouldn't be forced, it's certainly a feature. It's a mechanism that improves user confidence in unknown apps, making them more likely to make a purchase when they are uncertain. No different than having your business certified under some ISO standard, which also costs money, but is essential to getting some clients.
  - mikeash 11y ago
    I'm starting to realize there is a massive disconnect between disparate communities here, sort of like when I came to realize that there are people out there who genuinely believe that the clouds that form behind airliners come from the deliberate spraying of mind-altering chemicals. Apparently there are people out there who genuinely believe that app review is not an anti-developer requirement that Apple uses to further its own goals, but rather a pro-developer feature that's worth paying for. I don't know that I can usefully continue the discussion without spending some time thinking about this state of affairs first.

mikeash 11y ago

Paying for the review process is not a feature! That's the software equivalent of how oppressive governments will execute a prisoner and then send their family a bill for the bullet. Apple is making billions from the App Store. It doesn't cost anything close to that much for Apple to build their developer tools. They were giving those tools away for free long before anyone had even heard of iOS.

s73v3r 11y ago
And how much does it cost to maintain the distribution network? For bandwidth? You claim they are making "billions" off their cut. So show it. Most sources show that the revenues are about at the same level as their costs. If you have something different, please feel free to show.
- mikeash 11y ago
  They're bringing in billions. I don't know what their profits are. But either their profits are huge, or the App Store is ridiculously inefficient in terms of cost, because payment processing and bandwidth just do not cost that much on relative terms. I'm sure the App Store is breathtakingly expensive in absolute terms. But there's no reason it has to cost anything like 30% of sales. This stuff scales up sub-linearly, not super-linearly.
  - s73v3r 11y ago
    So basically you do not have numbers to back up your claims.
    - mikeash 11y ago
      This is an internet discussion, not a scientific paper. I base my claims on long experience. If that's not good enough for you, that's certainly your right, but it's a bit ridiculous of you to complain when you've offered no more support for your side.
icebraining 11y ago
Paying for the review process is not a feature! While it might be argued that it doesn't work as well as it should, or that it shouldn't be forced, it's certainly a feature. It's a mechanism that improves user confidence in unknown apps, making them more likely to make a purchase when they are uncertain. No different than having your business certified under some ISO standard, which also costs money, but is essential to getting some clients.
- mikeash 11y ago
  I'm starting to realize there is a massive disconnect between disparate communities here, sort of like when I came to realize that there are people out there who genuinely believe that the clouds that form behind airliners come from the deliberate spraying of mind-altering chemicals. Apparently there are people out there who genuinely believe that app review is not an anti-developer requirement that Apple uses to further its own goals, but rather a pro-developer feature that's worth paying for. I don't know that I can usefully continue the discussion without spending some time thinking about this state of affairs first.