CC processing fees may exceed this. Just using Stripe [1] as an example, 2.9% + 0.30 per transaction means $.329 for retail CC pricing. Surely Apple gets a disc

CC processing fees may exceed this. Just using Stripe [1] as an example, 2.9% + 0.30 per transaction means $.329 for retail CC pricing. Surely Apple gets a discount, but it's price of competitive alternative that matters. Part of the problem with this whole market is that we're talking about zero marginal cost goods. Taking away frictional costs of transaction, distribution and support, the economic argument is for prices to trend towards $0. Hence the "race to the bottom" once the App Store made distribution "free" for free apps. [1]: https://stripe.com/pricing https://stripe.com/pricing