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Exactly. In many other markets, the retailer takes a full half of the sales prices. For instance, my parents are professional sculptors, and standard gallery
by hcurtiss 6y ago
Exactly. In many other markets, the retailer takes a full half of the sales prices. For instance, my parents are professional sculptors, and standard gallery commissions are 40-50%.
- blago 6y agoA gallery offers prime-time, often times exclusive, exposure. It puts your work in front of a small, but exclusive, group of high-quality prospects and commands their undivided attention. Apple does no such thing. It offers no exposure in return for their fee. Once published, your app is but an anonymous drop in the sea.
- hcurtiss 6y agoTrue, but the thing they offer doesn't require thousands of humans to administer either. Renting a building downtown and staffing it with a couple sales people is very different than the army of humans curating apps and developing the software requisite to produce the polished, trusted experience people get from Apple's ecosystem.
- blago 6y agoApple's net profit margin is around 23% including hardware and everything else they do. Their app store margins are dramatically higher, possibly as much as 90%. A gallery's 40-50% commission translates to 0-50% margin after expenses and they do much more for you - exposure.
- fiblye 6y agoThere's a considerable difference between galleries holding physical goods with extremely limited space and needing to curate things for a specific market, and one of the largest corporations to ever exist approving software to sell on a virtually limitless marketplace for every niche and need imaginable.
- ThatPlayer 6y agoThen let there be a new retailer that takes less than Apple. If the percentage is truly unsustainable, they'll fail and we'll keep using Apple's App Store anyways. That would still proper competition in the market to set prices rather than whatever Apple's monopoly decides to set prices at.