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You may be strictly technically correct, but it doesn't reflect reality: - iCloud free tier is 5gb -- not enough for even a casual phone user with 1 minute 4k

You may be strictly technically correct, but it doesn't reflect reality: - iCloud free tier is 5gb -- not enough for even a casual phone user with 1 minute 4k 60fps video (option on iPhones for 2-3 years now) takes 400mb. - The alternative to "paid" apps are ad-supported apps. You're paying either with your bank account or your data and attention. I don't think we should call this optional and otherwise encourage ad-based ecosystem. (And, side note, I argue Apple should also tax ad revenue to prevent the current artificial advantage ad revenue has over IAP.) The rent seeking point from Stratechery is taken directly from Apple's own earnings calls where they are now measuring their success based on revenue from this rent-seeking instead of on devices sold. Whatever is measured will drive the company focus. To sell more devices they have to innovate and increase excellence. To increase rents they have to wring more and more $$ from existing users (with a secondary focus on increasing the hassle of switching). Apple themselves explain that they have shifted their focus from the former to the latter.

scarface74 8y ago
And to add on, many of the “free apps” make money via in app consumables - mostly games. There is a reason why the top grossing apps are games like Candy Crush and Clash of Clans.
votepaunchy 8y ago
> - iCloud free tier is 5gb -- not enough for even a casual phone user with 1 minute 4k 60fps video (option on iPhones for 2-3 years now) takes 400mb. To note, there are a plethora of apps offering to backup users' photos and videos ... Google, Dropbox, OneDrive, etc.
IBM 8y ago
>The rent seeking point from Stratechery is taken directly from Apple's own earnings calls where they are now measuring their success based on revenue from this rent-seeking instead of on devices sold. I don't follow how talking about it on earnings calls makes it "rent seeking". The App Store cut has only gone down since it was launched (for subscriptions after a year).
snowwrestler 8y ago
> The rent seeking point from Stratechery is taken directly from Apple's own earnings calls where they are now measuring their success based on revenue from this rent-seeking instead of on devices sold. I challenge you to find one instance of Apple describing their own strategy as “rent seeking”. Again: people are getting confused. Optional paid services are not the same thing as rent seeking.
- scarface74 8y ago
  Rent seeking is the amount that Apple charges for media it sells.

scarface74 8y ago

And to add on, many of the “free apps” make money via in app consumables - mostly games. There is a reason why the top grossing apps are games like Candy Crush and Clash of Clans.

votepaunchy 8y ago

> - iCloud free tier is 5gb -- not enough for even a casual phone user with 1 minute 4k 60fps video (option on iPhones for 2-3 years now) takes 400mb. To note, there are a plethora of apps offering to backup users' photos and videos ... Google, Dropbox, OneDrive, etc.

IBM 8y ago

>The rent seeking point from Stratechery is taken directly from Apple's own earnings calls where they are now measuring their success based on revenue from this rent-seeking instead of on devices sold. I don't follow how talking about it on earnings calls makes it "rent seeking". The App Store cut has only gone down since it was launched (for subscriptions after a year).

snowwrestler 8y ago

> The rent seeking point from Stratechery is taken directly from Apple's own earnings calls where they are now measuring their success based on revenue from this rent-seeking instead of on devices sold. I challenge you to find one instance of Apple describing their own strategy as “rent seeking”. Again: people are getting confused. Optional paid services are not the same thing as rent seeking.

scarface74 8y ago
Rent seeking is the amount that Apple charges for media it sells.