If Europe wants these regulations and US doesn't, could it be because global rent seeking by US corporations ultimately benefits the US economy at the expense of other countries' economies?
Eh. It is the case that it benefits the US economy at the expense of others. I wouldn't go assuming that the difference in regulations is a precedent or primarily an effect of this. I think the US will catch up.
I expect that when Apple complies, they will see huge market share gains, and they will realize that doing the same thing in the US is a good idea. People who already use Apple, are still going to use Apple, but people who don't because they want the freedom of Android might jump to Apple once that platform is more in line with their wants.
Are you sure? I distinctly remember them boasting in a keynote about how many Android users were using their app to switch to iOS. I could definitely believe that it's not a high strategic priority though.
> It is far more profitable now than it would be in a race to the bottom as a commodity hardware maker.
Agreed, but I don't think it would have to turn into a race to the bottom. Apple is a luxury brand now, and I expect they would continue to maintain that. The Apple logo is very much a status symbol (particularly for the young. My teenagers are literally made fun of at school for having "Androids" instead of iPhones), and I wouldn't expect that to change much. In fact I think as more people adopt it, being an Android user would become more of an aberration from cultural expectations than it already is.
Probably not, and for good reason. If Europe is moving first, it makes sense to wait and see how their approach fairs. We’ve learned a lot about what works and more about what doesn’t with GDPR, a bit more from v2 in California.
I agree, I think it will spill over. It may harm the app store revenue, but it's going to result in a big adoption of Apple hardware by people who previously wouldn't have. When Apple loosening the reins doesn't result in Armageddon like so many people here seem to think it will, US customers will also pressure Apple to similar policies, and they will do it.
It probably will hurt app store revenues, but Apple makes such a premium on hardware that it may make up or even exceed the losses from software competition.
> It probably will hurt app store revenues, but Apple makes such a premium on hardware that it may make up or even exceed the losses from software competition.
Seems very unlikely to me. the profit margin on app store tax is going to be extremely high. The expert witness at the epic games trial estimated an 80% profit margin on 20 billion dollars of revenue. Comes out to $16B profit out of their total 25ish. That doesn't just disappear if apple allows sideloading, but it could easily shrink a great a deal. Even if apple somehow manages to gain greater market share, I just don't see it coming out as a net positive for them.
> Comes out to $16B profit out of their total 25ish
Oh man, that's a high percentage. I was under the impression it was closer to 50%. With those numbers, you may be right.
Although, I assume they will heavily market their own store as the only "true" app store and only secure one, etc, and a large amount of customers will stick with just theirs, so I would expect it wouldn't take too major of a hit, although if big names like Epic boycott the App Store that could definitely mess up that strategy.
It's not that they need to boycott it. It's that they need to offer it from 30% less through their own channels. When there's real competition in the market, apple will likely need to adjust their fee strategy.