[mythz]

Of course a competing App Store can offer lower prices, they don't bear any of the costs for developing and managing the iOS ecosystem Apple spent billions over a decade building (that many other companies lost fortunes failing to compete against). They can just popup a virtual store in someone else's successful established platform and access a market of 1B+ credit cards they had no hand in creating where they can dictate their own margins for selling virtual goods - somehow feeling entitled to get a free ride on the massive development & maintenance infrastructure costs that is subsidized by the App Store.

Strange most other markets don't just let everyone to sell their products (physical or virtual) on their markets at no cost [1].

[1] https://www.ign.com/articles/2019/10/07/report-steams-30-cut...

[modeless]

Apple profits handsomely from the iOS ecosystem every time someone buys an iPhone to access it, or buys a Mac because Apple won't allow building iOS apps without one, or pays the annual developer program fee. They don't need to triple or quadruple dip to be the most valuable publicly traded company in the world.

[bwilli123]

Apple here is no different than the Telcos wanting to avoid only being paid for just being dumb pipes. If everybody else is making money building on that basic service they want a piece of that pie too.

[mythz]

iOS is a major cost to develop that's given away for free, continually invested in, advanced, developed & updated. Apple is allowed to have more than one business model on the platform they built, which was their primary focus that reshaped the company at a great opportunity cost to their other businesses. Ultimately the Company bet paid off & became successful against a number of incumbents who lost fortunes trying to compete in Mobile OS's. The App Store is now one of their major sources of revenue for having built a successful platform (a category they helped pioneer).

The nominal annual fee is a cost for accessing the dev tools only, it's in no way a royalty-free cost to sell products on one of the most lucrative markets in the world - that's what their standard royalty % (unchanged from the outset) covers.

[sumedh]

> iOS is a major cost to develop that's given away for free

How is it given for free, you pay for it when you buy the phone.

[orangepanda]

You dont just get the current OS that's on the phone, but also the upcoming ones for the next 5-6 years[0] for free. A phone bought in 2015 still gets updates.

[0] https://i.imgur.com/eS3ifSC.jpg

[Hamuko]

And if my iPhone gets updates in 2025, it doesn't change the fact that I paid 1200 euro for it. How much is the raw manufacturing cost of the 11 Pro (256 GB)?

Also, if the App Store revenue is for iOS development, does that mean that people who buy an iPhone and never pay for an app or an IAP are a net loss to Apple?

[e12e]

By that rationale, windows 10 is free too.

[sumedh]

All those "free" upgrades are part of the phone when you buy it.

You cannot buy just the hardware without the OS at cheaper cost because its a combined hardware/OS cost.

[mythz]

You're paying for the phone, there is no cost nor can you pay for iOS. The current and all future versions is & always has been free.

[modeless]

It's nonsensical to take a product that can't be purchased in pieces and separate the pieces to call one half free. iOS has always been included but it will never be free.

[StavrosK]

You're paying for iOS, the phone is free.

[mythz]

Yeah that's right it costs $1249 for each download of iOS (Beta's are 1/2 price), but Apple gives you as many iPhone Max Pro's as you want, mailed along with your free sim! Which doesn't matter if you lose or break out of warranty you can always get a new replacement Free! Family plans are the best, you can install your 1 iOS purchase on 5 free iPhone's - giving free iPhone's away was truly an ingenious revolutionary business model.

[sumedh]

Can I just buy the hardware at a cheaper price without the OS, if not then its not free, its part of the total cost.

[mythz]

That's nonsensical, if you could buy the hardware cheaper or iOS separate then you would be paying for iOS, you can't, Apple doesn't sell iOS, it gives it away. The cost for new iOS versions is irrelevant to the cost of hardware it's running on, it's free for all their devices for as long as they meet the hardware requirements for running new versions.

You could buy an iPhone and put a jail break OS on it, you're still paying the full amount for the device.

[e12e]

> iOS is a major cost to develop that's given away for free

Are you sure it's free? The only way to buy ios, is to buy a device running it. It would seem reasonable that part of the premium you pay for eg an iPad is equivalent to an oem license for ios?