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One difference, if I am not mistaken, is that Sony and Microsoft loose money on each console sold, at least on the first years, so they make money by the % to d

One difference, if I am not mistaken, is that Sony and Microsoft loose money on each console sold, at least on the first years, so they make money by the % to developers. Apple makes lots of money on each iPhone sold.

CharlesW 6y ago
Sincere question because I can't connect the dots: How is that relevant? If Apple went to a razor/blades model, would everyone on HN be fine with that? Why?
- toolz 6y ago
  Personally I'd be fine with apple taking any percentage they want if they just opened their phone up to competing app stores.
- ksec 6y ago
  > How is that relevant? It really isn't. Apple could charge as much as they want as long as there are competition. Without it ( As in current App Store ) then the practice of 30% will be in question. The problem then becomes if App Store is part of the total iPhone package, as lot of people and Apple are arguing that to be the case. Today, the iPhone has 66% market share in the United States, 75% of U.S. App Store revenues, and over 80% of time spent on the mobile internet If App Store is inseparable to iPhone, as per Apple's view, with today's Apple market share, will App Store; being part of iPhone cause Anti-Competitive practices to all business that requires for digital access? Since the Apps are solely approved at Apple's discretion. And there are written evidence that Apple could hold or reject Apps that are in direct competition with them. Basically the current model is not sustainable. ( Benedict Evans has written about this since 2016 ) Judging form the new Apple Quarterly Report I would not be surprised if Apple reach 70%+ of US Smartphone Market shares by 2022. At that point whether the App Store has a monopoly on Apps ( so to speak as people often like to say this ) may no long be important. Because Apple will have close to a monopoly on Smartphone in US.
Spivak 6y ago
Would you be okay with Apple taking a 30% cut if they sold iOS devices at a loss? This seems like a really odd argument since it means that you think some fixed per-unit loss is enough to justify taking 30% of all 3rd-party sales in perpetuity.

CharlesW 6y ago

Sincere question because I can't connect the dots: How is that relevant? If Apple went to a razor/blades model, would everyone on HN be fine with that? Why?

toolz 6y ago
Personally I'd be fine with apple taking any percentage they want if they just opened their phone up to competing app stores.
ksec 6y ago
> How is that relevant? It really isn't. Apple could charge as much as they want as long as there are competition. Without it ( As in current App Store ) then the practice of 30% will be in question. The problem then becomes if App Store is part of the total iPhone package, as lot of people and Apple are arguing that to be the case. Today, the iPhone has 66% market share in the United States, 75% of U.S. App Store revenues, and over 80% of time spent on the mobile internet If App Store is inseparable to iPhone, as per Apple's view, with today's Apple market share, will App Store; being part of iPhone cause Anti-Competitive practices to all business that requires for digital access? Since the Apps are solely approved at Apple's discretion. And there are written evidence that Apple could hold or reject Apps that are in direct competition with them. Basically the current model is not sustainable. ( Benedict Evans has written about this since 2016 ) Judging form the new Apple Quarterly Report I would not be surprised if Apple reach 70%+ of US Smartphone Market shares by 2022. At that point whether the App Store has a monopoly on Apps ( so to speak as people often like to say this ) may no long be important. Because Apple will have close to a monopoly on Smartphone in US.

Spivak 6y ago

Would you be okay with Apple taking a 30% cut if they sold iOS devices at a loss? This seems like a really odd argument since it means that you think some fixed per-unit loss is enough to justify taking 30% of all 3rd-party sales in perpetuity.