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It does sound like poor planning, given the known realities of the app store. But I've never understood why Apple feels entitled to a cut of in-app purchases. T

It does sound like poor planning, given the known realities of the app store. But I've never understood why Apple feels entitled to a cut of in-app purchases. They aren't providing any added value and in some cases (like w/ Kindle) they seem to be begging for an anti-trust suit.

danso 10y ago
> But I've never understood why Apple feels entitled to a cut of in-app purchases. You mean besides maintaining and securing the entire distribution network and ecosystem that makes such apps profitable in the first place?
- kuschku 10y ago
  They may charge for that service, if they wish. But they can’t get a cut of in-app payments, especially for Kindle stuff. Also, what if I say for every user who buys an autogram card they get premium of the app for free? Is that enough to get around them getting a cut? This is a big legal issue.
- mkching 10y ago
  The second half of this is particularly important. Apple keeps iOS desirable to an enormous number of end users who are willing to spend money on apps. They benefit from this by selling a lot of iPhones, but the developers benefit as well by having a market to target.
sokoloff 10y ago
One reason is that without it, there'd be nearly no paid apps. Every app would be free with some minute amount of functionality (to pass the review process) and an in-app purchase to unlock the "pro" version, with Apple getting nothing. Apple built a platform and wants to extract value from that platform. It seems perfectly reasonable to me.
- softbuilder 10y ago
  >Every app would be free with some minute amount of functionality Maybe. But that already happens w/ free and "pro", etc.. I expect that the marketplace would sort that out. When everything is a come-on genuine offerings start to have more appeal. >Apple built a platform and wants to extract value from that platform. Sure. No problems with that as long as there is some value they are providing. At least in the case of a paid app, once that sale is made Apple shouldn't be involved unless they are doing something useful.
- LanceH 10y ago
  Nothing except the very large margins on the hardware.
  - sokoloff 10y ago
    A good rule of thumb is that a consumer electronics product should retail for about 2.5x the COGS (cost of goods sold). That's pretty much where the iPhone sits. I don't see evidence of excessive margins on hardware; I see a company that's planned for and executed on proper margins.
Razengan 10y ago
Uhh hosting your files and providing the bandwidth for potentially millions of downloads?
paulcole 10y ago
Value in my opinion is to the customer. I trust an IAP won't rip me off, do something weird, etc.

danso 10y ago

> But I've never understood why Apple feels entitled to a cut of in-app purchases. You mean besides maintaining and securing the entire distribution network and ecosystem that makes such apps profitable in the first place?

kuschku 10y ago
They may charge for that service, if they wish. But they can’t get a cut of in-app payments, especially for Kindle stuff. Also, what if I say for every user who buys an autogram card they get premium of the app for free? Is that enough to get around them getting a cut? This is a big legal issue.
mkching 10y ago
The second half of this is particularly important. Apple keeps iOS desirable to an enormous number of end users who are willing to spend money on apps. They benefit from this by selling a lot of iPhones, but the developers benefit as well by having a market to target.

sokoloff 10y ago

One reason is that without it, there'd be nearly no paid apps. Every app would be free with some minute amount of functionality (to pass the review process) and an in-app purchase to unlock the "pro" version, with Apple getting nothing. Apple built a platform and wants to extract value from that platform. It seems perfectly reasonable to me.

softbuilder 10y ago
>Every app would be free with some minute amount of functionality Maybe. But that already happens w/ free and "pro", etc.. I expect that the marketplace would sort that out. When everything is a come-on genuine offerings start to have more appeal. >Apple built a platform and wants to extract value from that platform. Sure. No problems with that as long as there is some value they are providing. At least in the case of a paid app, once that sale is made Apple shouldn't be involved unless they are doing something useful.
LanceH 10y ago
Nothing except the very large margins on the hardware.
- sokoloff 10y ago
  A good rule of thumb is that a consumer electronics product should retail for about 2.5x the COGS (cost of goods sold). That's pretty much where the iPhone sits. I don't see evidence of excessive margins on hardware; I see a company that's planned for and executed on proper margins.

Razengan 10y ago

Uhh hosting your files and providing the bandwidth for potentially millions of downloads?

paulcole 10y ago

Value in my opinion is to the customer. I trust an IAP won't rip me off, do something weird, etc.