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I don't disagree, but I think Apple to could this a lot better than they do. Imagine this alternate universe for a moment, app developers assign Apple, as part
by ChuckMcM 7y ago
I don't disagree, but I think Apple to could this a lot better than they do.
Imagine this alternate universe for a moment, app developers assign Apple, as part of their developer status, a non-expiring option to license in perpetuity their application for one million dollars by Apple Inc.
Apple adds an "application acquisition fee" of $50 on the sale of every iOS device. At the end of each quarter, Apple distributes a fractional share of the acquisition fee amongst all of the developers for whom it has opted to take their application. Those payouts continue until Apple has paid out $1M to the developer.
From the developer's perspective, if their App gets consumed by Apple they now get an infusion of capital to spend the time on the next big thing, so having Apple decide to incorporate their 'feature' into the Apple 'product' is a win.
From Apple's perspective its a win because they have a bunch of developers working for "free" trying to produce the next big thing, and only after the market has said "Hey, this is something worth paying for." Does Apple incur a forward liability which comes out of future revenue, not cash on hand, and without a specific due date. So easy to manage on an earnings call and when planning cash flow.
By "sharing the wealth" in that way, Apple can make better partners out of their developers than they currently do.
- kposehn 7y agoI definitely agree they can handle some things better. After all - why not try and buy out those little app makers to add more great talent? There’s a ton of PR/brand/goodwill to build there and it’s a total lost opportunity. And interesting idea— I’m going to mull that one over!