[gambiting]

While obviously what Apple is doing is crap, why not just increase their in-app prices only on iOS? That's what Marvel have been doing with their comics. A comic that through their website costs £3, on the Android reader costs £3.29 and on their iOS reader costs £3.49. I always just buy them online and immediately download to my ipad without paying the Apple premium.

Yes, it sucks - but it seems like a relatively easy way out.

[koheripbal]

...because raising the price also reduces demand. This is the nature of the supply-demand curve. So you still end up with less revenues.

Imagine that Hey found the ideal price point on the supply-demand curve. When you factor in Apple's fee - the new optimal price point on the curve may shift higher, but your net revenues will still be lower.