Hacker News new | past | comments | ask | show | jobs | submit login

Apple doesn’t give a damn about companies with business models that can’t afford a 70/30 split. Apple’s running a competitive business; competition is cold and hard.

These two statements are fundamentally at odds; it's highly unlikely that Apple is making more money from App Store purchases / subscriptions than from iOS hardware sales. Consequently, for Apple to be competitive, they need to offer as much value as possible to the user, so that more users will end up on their platform. Since many of the most popular apps are business models that can't afford a 70/30 split, Apple damn well better care about them. If I can't get Kindle, Netflix, Hulu, Dropbox, etc, etc. on an iPhone/iPad, I won't buy another one. Period.




I think that in their quarterly financial calls they've consistently reported the iTunes store as running "about break even". They don't sound unhappy about it, so presumably they're on the positive side of break even rather than on the negative side.

The following Dickens quote springs to mind: "Income, twenty shillings a week, expenditure, twenty shillings and sixpence; result, misery. Income, twenty shillings a week, expenditure, nineteen shillings and sixpence; result, happiness."

However if Apple cut back to say 25% then it might mean that they are subsidising people's use of the store. This would be bad for Apple because they would be losing money. Boo hoo. On the other hand, if they were losing money with one hand in order to (as you suggest) gain it with the other, then they would open themselves to questions of dumping, price fixing, abuse of monopoly etc.

Selling at below cost is a typical strategy to keep new entrants out of the market, and so would be evil. But apparently taking 30% is evil too, so it doesn't matter what they do, somebody is going to be unhappy with them.




Join us for AI Startup School this June 16-17 in San Francisco!

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: