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I'd rather analysis includes looking in the opposite direction to understand the pros and cons of each business model: what would Microsoft ecosystem look safet
by loceng 8y ago
I'd rather analysis includes looking in the opposite direction to understand the pros and cons of each business model: what would Microsoft ecosystem look safety and security wise on PCs if they took 30% to have additional resources to review applications for malicious behaviour, and so on?
Fundamentality Apple decided on the 30% model for arguably good reasons.
People are free to purchase other non-Apple laptops and products that use other operating systems. If it was a case where patents or other only allowed for one option, then yes, that's the case for rules to break that monopoly.
And yes, I understand network effects and sunk costs of consumers, however if the value continues to be there for consumers then they will continue to use the ecosystem. If a company selling a premium Calendar app doesn't think 30% cut is fair then they don't have to build an iOS app, and then likely some other company who thinks it is fair will very likely fill in that gap - if not, then the marketplace wouldn't work.
And it's true there's a lot of work to be done if you want to compete with Apple wholly with lesser or no revenue share you need to create the same or better ecosystem as them - perhaps the main differentiation being a lower or no fee for your version of the App Store.
Finally you could argue Apple have enough profit from elsewhere to cover the benefit the App Store provides, however they're not setup as a co-operative to distribute costs and/or make as little profit as possible - though that certainly is an interesting option for a competitive business model, whether there's an appetite from consumers to pay into such a scheme or a path there is another question.