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> the definition of a platform being when revenue generated by software running on the device far outpaces revenue generated by sales of the device itself By t
by gok 7y ago
> the definition of a platform being when revenue generated by software running on the device far outpaces revenue generated by sales of the device itself
By this logic smartphones are not a platform?
- jeethsuresh 7y agoThey absolutely are. Apple makes money from the iOS ecosystem in two ways: through device sales, and through App Store purchases. I'd agree that iOS is an example of a restrictive platform, in that ~30% of all revenue goes to a single gate-keeping party. In any case, I messed up the quote a little, another commenter found the source and real comment: 'Gates said something along the lines of, “That’s a crock of shit. This isn’t a platform. A platform is when the economic value of everybody that uses it, exceeds the value of the company that creates it. Then it’s a platform.”' [1] [1] https://stratechery.com/2018/the-bill-gates-line/ https://stratechery.com/2018/the-bill-gates-line/
- gok 7y agoBut the revenue from hardware is far and away higher than software.
- Jolter 7y agoWhat's the total annual income of the App Store these days?
- ericlewis 7y ago2018: 46 billion. Edit: iPhone does something like that amount per fiscal Q.
- naniwaduni 7y agoThere's a lot of consumer surplus.
- scarface74 7y agoIf that’s the litmus test - that the owner is a gatekeeper that keeps a share of the profit - you have to include all of the console makers and Kindle.
- ric2b 7y agoI would say consoles are definetly a platform, people even call them "gaming platforms". The Kindle as well, but that seems less clear to me.
- scarface74 7y agoI agree. But the litmus test where one gatekeeper takes a fee making it not a platform is nonsensical. That’s what the parent poster said.