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They're tacking on a recurring revenue stream (App Store) onto their one-time sale (iPhone). Margins on both fund the innovation machine. Also, with the outrag
by DivisionSol 6y ago
They're tacking on a recurring revenue stream (App Store) onto their one-time sale (iPhone). Margins on both fund the innovation machine.
Also, with the outrage over companies needing to layoff/cut hours during(now) Covid-19 because they didn't have a warchest saved up... Having a cashpile seems like a fiscally responsible thing to do for a company.
- eganist 6y ago> They're tacking on a recurring revenue stream (App Store) onto their one-time sale (iPhone). Margins on both fund the innovation machine. How does Samsung's devices division manage it?
- user5994461 6y agoSamsung put together hardware to make a phone. They don't develop the software (OS, API, directX equivalent, iCloud/GoogleDrive, etc...). It's maybe one tenth of what Apple does all things considered. edit: Samsung does a bit of software, trying to push its own applications with subscriptions and bundling crapware pre installed with the phone.
- eganist 6y ago> Samsung put together hardware to make a phone. They don't develop the software (OS, API, directX equivalent, iCloud/GoogleDrive, etc...). Precisely, and they also profit off the phone. And yet Apple double-profits off both the phone and the apps, and they shovel the cash away. The protest by these companies is entirely sound.
- user5994461 6y agoApple provides the entirety of the operating system, API, directX equivalent for games, complete set of development and debugging tools, authentication and much more. If Samsung were to make a whole development and gaming platform, they would charge developers on their platform too. and they'd really need the money because that's truly a ton of work. The protest is only about the service fee, 30% is too much.
- m4rtink 6y agoIIRC Samsung is the author and main contributor to the F2FS filesystem used on many Android devices, so the do contribute, even to low level core functionality.
- zepto 6y agoNot to mention that their cashpile is a hedge against very serious geopolitical risk, which Apple are taking making and distributing a device globally. Is Epic taking that risk, or doing any of that work to reach this vast market? No.