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The problem is it's clearly a monopoly (or duopoly). How did they settle on 30%? Why did Apple and Google come to the same 30% number - is that a coincidence? T
by jliptzin 8y ago
The problem is it's clearly a monopoly (or duopoly). How did they settle on 30%? Why did Apple and Google come to the same 30% number - is that a coincidence? They could easily provide the same service for less than 1/3 of the cost, but the percent never budges because it doesn't have to. There's zero competitive pressure. In fact they could move it up to 60% if they want to with nothing stopping them. Some people have managed to build a business on these app stores but in my opinion they should only be leveraged as part of an existing independent business, otherwise you're building a business on quicksand.
- jimbokun 8y ago"Why did Apple and Google come to the same 30% number - is that a coincidence?" Google copied Apple?
- iainmerrick 8y agoRight. If this were a competitive market, they'd both be constantly refining their cut to find the optimal value. In practice the 30% was plucked out of the air and has never been changed.