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by ksec 1600 days ago
>both should either charge what the market will bear

This assume the symmetry of power, buying or purchase. Which is not the case here.

1 comments

Apple has the power over the developers, yes. But the developers have the power over the users. And only Apple is strong enough to force the developers to do things that are in the best interests of the users. As one of those users, I choose to have Apple negotiate on my behalf against the developers.
If a developer was charging $2.99 for their app, after 30% cut, they get $2.09.

To get the same amount after the reduction to 15%, they need to charge $2.47.

Apple offers price points at $1.99 (Tier 1) and $2.99 (Tier 2). It does not allow developers to set arbitrary prices.

How do you suggest a developer manages this? Should the developer cut the price down to $1.99, taking home $1.69, and take a 20% pay cut on their total revenue? Or will you continue to begrudge them for not cutting the price, and increasing their total revenue by 21%?

> Aonly Apple is strong enough to force the developers to do things that are in the best interests of the users ... as one of those users, I choose to have Apple negotiate on my behalf against the developers.

Do you recognise that Apple ($123 billion in quarterly revenues) app store policy is the exact reason why you don't see any of that 15% discount trickling down to you, and not greedy (< $1MM annual revenue) developers who are trying to gouge you out of your money?