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But the App Store isn’t exclusive. I know that 1Password had multiple version depending on if you download it from the App Store or download it from the web. (i

But the App Store isn’t exclusive. I know that 1Password had multiple version depending on if you download it from the App Store or download it from the web. (ie The license keys were different.) You can always sell the large packages via the web, and the small ones through the App Store.

Spooky23 8y ago
Depending on the app, that's problematic. For a low cost thing like 1Password, you can do that and even benefit as customers who are price sensitive will buy Apple gift cards at a 10-20% discount. A company like Abobe has high value software and large customers who will not accept a single source fulfillment vendor for software. A school district, for example, is usually required to get competitive bids on a state or other contract from multiple resellers. Usually companies drive revenue by bundling, so putting product A with Apple and product B with the channel is complex and doesn't add value, particularly when Apple wants 4-6x more dollars to do that fulfillment.
- jonathankoren 8y ago
  While I understand bundling, what I don't understand is why bundling is relevant here. If you're at the position to be placing bids, you've already chosen a bespoke price for the product (either by explicitly stating a price, or throwing stuff in for "free"). None of the precludes simply selling the very same code product (sans bundle) on the App Store at a price that's higher than your bid price. Doing so, increases sales (perhaps marginally, but more is more, and the opportunity cost is trivial), and it makes your bid price appear even lower. The reason why Adobe doesn't bother is because they're a household name. People that want Photoshop, will just google it and go to their page and download it directly. The 30% acquisition cost simply isn't worth it when you've already cornered the market. But Adobe is an outlier. They own a verb. Most people aren't in that position.

Spooky23 8y ago

Depending on the app, that's problematic. For a low cost thing like 1Password, you can do that and even benefit as customers who are price sensitive will buy Apple gift cards at a 10-20% discount. A company like Abobe has high value software and large customers who will not accept a single source fulfillment vendor for software. A school district, for example, is usually required to get competitive bids on a state or other contract from multiple resellers. Usually companies drive revenue by bundling, so putting product A with Apple and product B with the channel is complex and doesn't add value, particularly when Apple wants 4-6x more dollars to do that fulfillment.

jonathankoren 8y ago
While I understand bundling, what I don't understand is why bundling is relevant here. If you're at the position to be placing bids, you've already chosen a bespoke price for the product (either by explicitly stating a price, or throwing stuff in for "free"). None of the precludes simply selling the very same code product (sans bundle) on the App Store at a price that's higher than your bid price. Doing so, increases sales (perhaps marginally, but more is more, and the opportunity cost is trivial), and it makes your bid price appear even lower. The reason why Adobe doesn't bother is because they're a household name. People that want Photoshop, will just google it and go to their page and download it directly. The 30% acquisition cost simply isn't worth it when you've already cornered the market. But Adobe is an outlier. They own a verb. Most people aren't in that position.