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Not paying 30% fees to apple absolutely helps consumers. If you look at the demand elasticity on mobile payments you'll see that fee's are mostly passed on to c
by colinmhayes 6y ago
Not paying 30% fees to apple absolutely helps consumers. If you look at the demand elasticity on mobile payments you'll see that fee's are mostly passed on to consumers. Developers will be happy to give a 25% discount to get that extra 2-3% after credit card fees.
- Spivak 6y agoIf you can get away with charging $5.99 for an app today why would you charge less on a 3rd party store?
- jdashg 6y agoIf you can drive higher volume due to better margins, of course you would! The curve changes.
- nikitaga 6y agoBecause that's how competitive markets work? Lower costs for suppliers (developers) means lower equilibrium market prices. If some developer can "get away" with not lowering their prices in response to reduced costs, it means they could have "gotten away" with charging a higher price in the first place. So why aren't they charging a higher price now? Probably because they can't actually "get away" with it, i.e. they would lose more volume to make the increase in price unprofitable. Most consumer software has tons of competition, almost nothing is so unique that consumers wouldn't respond to relative price changes.
- hamandcheese 6y agoI would also argue that even if the savings aren’t passed directly to the consumer in the form of money, it’s still better for consumers if that money helps support app developers rather than making Apples stacks of cash a little bit taller.
- jayd16 6y agoBecause you could charge up to 29% less to draw out direct purchases and still make more than an App Store purchase.
- oh_sigh 6y agoBecause you may understand that if you sell 10,000 units at $5.99 you may sell 20,000 units at $4.25.