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My thoughts as well. How could Apple's search so bad? If it indeed brings billions a year, why wouldn't they spend that money to improve the functionality of th

My thoughts as well. How could Apple's search so bad? If it indeed brings billions a year, why wouldn't they spend that money to improve the functionality of this revenue powerhouse? Apple tax should be stopped, people are paying penalty to use their sub par software, this is as ridiculous as it gets.

IshKebab 8y ago
Because they don't have to. It may not meet the legal definition of a monopoly but a monopoly it is.
- c3534l 8y ago
  It's kinda like how you can charge obscene amounts of money for popcorn when you own movie theater.
  - deleted 8y ago
    [deleted]
  - sjwright 8y ago
    Or an obscene amount of money for replacement car keys when you make the cars. Sony can decide who's games can be published on the PS4, and they get a cut of every single sale, physical or digital. Incredibly, Miele have a monopoly on the retail sale of their whitegoods. When someone buys from a retailer, the retailer act as mere agents; the actual sale is actually directly between Miele and the customer.
prklmn 8y ago
Have you ever thought about the situation as being analogous to a wholesale market like Costco? Consumers pay for a Costco membership card, similar to the iPhone as it grants access to the store, then sells products in the store at a marked up rate (Apple tax as you call it). Consumers actually choose to shop at Costco because it’s a great experience for them just as consumers choose to buy iPhones and use the App Store as it’s also a great user expiernce (judging by the sales...if the Apple tax was so repulsive to consumers they may not buy as many iPhones). It would be nice if Costco sold everything at cost with no markup, just as it would be nice if I could use my Costco card at Sam’s club, but they don’t, and I can’t, and yet I and millions of others still have Costco cards and quite enjoy the shopping experience.
- tanilama 8y ago
  It is different. When I shop at Costco I know I shop at Costco and that is what I paid for. But when I buy Netflix subscription, I am paying to Netflix, not Apple. Does Apple making Netflix as a service any better? I didn't quite see that. And since this is a recurring fee, which makes it even funnier, that I am constantly paying Apple for to essentially ALLOW me watch Netflix. And don't forget this result in a higher price for customer, while Costco's model save customer money. I am however, see it as less of a problem if they charge fee over one-time purchase and make me aware of whether I am paying it.
  - kshacker 8y ago
    When you shop at Costco, you are buying Kirkland, Samsung, Apple, and 100 other brands. Think of it from the perspective of Danone yoghurt. They are paying Costco 5-10-15% right? Because they sell to Costco at a price cheaper than the sale price. How is it different here? There are other arguments to be made about the store fees, but Costco is pretty much like apple store and vendors don't even have the option of saying "hey they will not stock it but you can pick it there anyways", which is what Apple allows you to do by having an app that can be registered / paid for elsewhere.
    - tanilama 8y ago
      > Because they sell to Costco at a price cheaper than the sale price. How is it different here. Apple Store is no cheaper and 30% is a huge cut, many service providers raise the price for iOS user to compensate this. So customer gets no benefit paying the 30% premium, at least not in Netlfix's case. Watching Netflix on iPhone doesn't necessary make a different experience. This is all because Apple had a monopoly on iOS platforms, had there be another App Store, I am sure many users will go there to avoid the 30% cut on themselves. It is called Apple Tax for a reason.
      - jsjohnst 8y ago
        Virtually every major budget retail store averages 30% margin or more on stuff sold there (Walmart, Target, Amazon, etc), especially for consumer electronics.

IshKebab 8y ago

Because they don't have to. It may not meet the legal definition of a monopoly but a monopoly it is.

c3534l 8y ago
It's kinda like how you can charge obscene amounts of money for popcorn when you own movie theater.
- deleted 8y ago
  [deleted]
- sjwright 8y ago
  Or an obscene amount of money for replacement car keys when you make the cars. Sony can decide who's games can be published on the PS4, and they get a cut of every single sale, physical or digital. Incredibly, Miele have a monopoly on the retail sale of their whitegoods. When someone buys from a retailer, the retailer act as mere agents; the actual sale is actually directly between Miele and the customer.

prklmn 8y ago

Have you ever thought about the situation as being analogous to a wholesale market like Costco? Consumers pay for a Costco membership card, similar to the iPhone as it grants access to the store, then sells products in the store at a marked up rate (Apple tax as you call it). Consumers actually choose to shop at Costco because it’s a great experience for them just as consumers choose to buy iPhones and use the App Store as it’s also a great user expiernce (judging by the sales...if the Apple tax was so repulsive to consumers they may not buy as many iPhones). It would be nice if Costco sold everything at cost with no markup, just as it would be nice if I could use my Costco card at Sam’s club, but they don’t, and I can’t, and yet I and millions of others still have Costco cards and quite enjoy the shopping experience.

tanilama 8y ago
It is different. When I shop at Costco I know I shop at Costco and that is what I paid for. But when I buy Netflix subscription, I am paying to Netflix, not Apple. Does Apple making Netflix as a service any better? I didn't quite see that. And since this is a recurring fee, which makes it even funnier, that I am constantly paying Apple for to essentially ALLOW me watch Netflix. And don't forget this result in a higher price for customer, while Costco's model save customer money. I am however, see it as less of a problem if they charge fee over one-time purchase and make me aware of whether I am paying it.
- kshacker 8y ago
  When you shop at Costco, you are buying Kirkland, Samsung, Apple, and 100 other brands. Think of it from the perspective of Danone yoghurt. They are paying Costco 5-10-15% right? Because they sell to Costco at a price cheaper than the sale price. How is it different here? There are other arguments to be made about the store fees, but Costco is pretty much like apple store and vendors don't even have the option of saying "hey they will not stock it but you can pick it there anyways", which is what Apple allows you to do by having an app that can be registered / paid for elsewhere.
  - tanilama 8y ago
    > Because they sell to Costco at a price cheaper than the sale price. How is it different here. Apple Store is no cheaper and 30% is a huge cut, many service providers raise the price for iOS user to compensate this. So customer gets no benefit paying the 30% premium, at least not in Netlfix's case. Watching Netflix on iPhone doesn't necessary make a different experience. This is all because Apple had a monopoly on iOS platforms, had there be another App Store, I am sure many users will go there to avoid the 30% cut on themselves. It is called Apple Tax for a reason.
    - jsjohnst 8y ago
      Virtually every major budget retail store averages 30% margin or more on stuff sold there (Walmart, Target, Amazon, etc), especially for consumer electronics.