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The fees are not primarily to pay for payment processing and app delivery, they're for access to the customers. A direct, transactional relationship with custom

The fees are not primarily to pay for payment processing and app delivery, they're for access to the customers. A direct, transactional relationship with customers is the most valuable thing in business. And Apple has the best, most lucrative customers around. As a point of reference, by the way, I sell products on Amazon and Amazon charges 10-15% simply for originating transactions. They would charge more if they could, but retail is low margin and 3rd parties wouldn't be able to sell on their platform if they charged more.

vchak1 7y ago
If the iPhone did not have Netflix and Google Maps then less people would buy iPhones -- so its not really that straightforward. While the argument works for small businesses, larger businesses might be in fact bringing hardware revenue to Apple.
- toasterlovin 7y ago
  Yeah, but it's not like Apple keeps all of the revenue. There are multiple parties bringing value to the App Store. Apple brings customers who are happy to pay for stuff. App providers bring their apps and services. Revenue is consequently split. That Spotify is beholden to another party (record labels) is not really Apple's problem. It's Spotify's problem. And the problem is that they're not really bringing much value to the table. They don't own the content and they don't own the customers. They thing they provide is listening suggestions. Turns out that's not actually all that valuable. If it was valuable, they would be able to negotiate better terms with the labels, since the labels would be worried that customers would stay with Spotify despite not having access to the music from a given label. But customers don't actually give a shit about Spotify, they care about the music. And Spotify doesn't own the music.
- tinus_hn 7y ago
  > If the iPhone did not have [...] Google Maps then less people would buy iPhones Google tried that, that’s why Apple built Apple Maps. If the iPhone did not have Google Maps less people would use Google Maps. That’s why Google makes it available.

vchak1 7y ago

If the iPhone did not have Netflix and Google Maps then less people would buy iPhones -- so its not really that straightforward. While the argument works for small businesses, larger businesses might be in fact bringing hardware revenue to Apple.

toasterlovin 7y ago
Yeah, but it's not like Apple keeps all of the revenue. There are multiple parties bringing value to the App Store. Apple brings customers who are happy to pay for stuff. App providers bring their apps and services. Revenue is consequently split. That Spotify is beholden to another party (record labels) is not really Apple's problem. It's Spotify's problem. And the problem is that they're not really bringing much value to the table. They don't own the content and they don't own the customers. They thing they provide is listening suggestions. Turns out that's not actually all that valuable. If it was valuable, they would be able to negotiate better terms with the labels, since the labels would be worried that customers would stay with Spotify despite not having access to the music from a given label. But customers don't actually give a shit about Spotify, they care about the music. And Spotify doesn't own the music.
tinus_hn 7y ago
> If the iPhone did not have [...] Google Maps then less people would buy iPhones Google tried that, that’s why Apple built Apple Maps. If the iPhone did not have Google Maps less people would use Google Maps. That’s why Google makes it available.