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If you follow Apple's financial reporting, they need to make up for lost revenue from declining iPhone sales growth, and they've stated they will achieve this v
by ken47 6y ago
If you follow Apple's financial reporting, they need to make up for lost revenue from declining iPhone sales growth, and they've stated they will achieve this via service revenue. So if you're in the Apple C-suite right now, why wouldn't you exploit your monopolistic position to impose unpalatable fees such as this 30% cut?
They are trading Apple's reputation in the future (a future in which they will be conveniently uninvolved) for Apple's revenue (and their personal reputations) today. And most Apple shareholders don't care. They'll ride the Apple stock as far as it will go, and then they'll sell as soon as the bottom line begins to reap what is today sown.
Is this not one of the most common refrains among major decision-makers of this era, whether it be business or politics?
In this case, Apple has judged that the consumer doesn't care enough, or doesn't have enough power, to change this calculus. Are they right?