[scarface_74]

An Apple CPU is another version of the ARM chip. How do I buy a Whopper at McDonalds?

Pepsi chooses to not serve customers who go to McDonald’s and Costco chooses not to serve Amex customers.

You either choose to work with customers where they are or you don’t. Just like video game makers

[AnthonyMouse]

> An Apple CPU is another version of the ARM chip. How do I buy a Whopper at McDonalds?

It's not that you want to buy a Whopper at McDonalds. It's that you have a Ford and if you try to drive it to Burger King to buy a Whopper they disable your car because Ford owns McDonalds and Chevy owns Burger King.

Which in turn keeps anyone from producing a new make of car or a new brand of food, because no existing source of food will serve you if you're not in the parent company's vehicle and no one can scale a new restaurant or grocery chain enough to make some other brand of vehicles viable when people in existing vehicles can't patronize it.

This kind of tying is meant to be prohibited.

> Pepsi chooses to not serve customers who go to McDonald’s and Costco chooses not to serve Amex customers.

People who want Pepsi can go into McDonalds, come out with a Big Mac, pick up a Pepsi at any vending machine or convenience store and go sit down and have them together. People who buy a washing machine at CostCo on their Visa can go buy detergent for it from Walmart with their Amex.

> You either choose to work with customers where they are or you don’t. Just like video game makers

The same antitrust action should be applied to video game consoles.

[scarface_74]

> It's not that you want to buy a Whopper at McDonalds. It's that you have a Ford and if you try to drive it to Burger King to buy a Whopper they disable your car because Ford owns McDonalds and Chevy owns Burger King.

We are talking about ARM chips, anyone with the money can design their own ARM chips and contract TSMC to manufacturer them. There are at least a dozen companies that do so. No one forces you to buy phones made by Apple just like no one forces you to buy burgers from McDonalds.

If people are willing gk pay more for a gourmet burger at an upscale restaurant (Apple) than McDonalds (Android$ because they feel like the burgers are better, that’s people making an informed choice.

> The same antitrust action should be applied to video game consoles.

Are you saying that video game makers should also be forced to license their IP so other manufacturers can clone their consoles?

[AnthonyMouse]

> We are talking about ARM chips, anyone with the money can design their own ARM chips and contract TSMC to manufacturer them.

So the first step is to have enough capital to design a state of the art microprocessor that can compete with the world's largest corporation. If this is feasible, why hasn't anyone done it? Every other phone chip is slower.

Then they have to make their own phone, and their own app store, and somehow get a critical mass of third party developers to make apps for a platform that has no existing user base or a get a critical mass of users to buy a phone without existing third party apps, and then drive Apple out of the market because even if they achieved 50% market share in phones they still could not distribute their app to half of their app's customer base.

If you want to write a piece of software that Apple doesn't approve, the barrier to entry has gone from "you post it on your website and people install it on their Apple computers" to "you must be a trillion dollar multinational conglomerate who can not only produce your own vertically integrated hardware and software platform but operate at a loss long enough to cause all of your app customers who currently have an iPhone to switch to it so they can install your app."

And that would only work for one entity -- then they're the vertically integrated conglomerate standing between third party developers and users.

This is clearly not a realistic option.

> If people are willing gk pay more for a gourmet burger at an upscale restaurant (Apple) than McDonalds (Android$ because they feel like the burgers are better, that’s people making an informed choice.

The whole point of tying is to take away your choice. Instead of choosing which phone you want and which OS you want and which app store you want, all of these are forced into a single decision that can no longer accurately represent the customer's true preferences. Having the information doesn't let you choose differently because the decision is still coerced to binary.

But if you want to talk about informed, why is the 30% cut hidden from the end user? Shouldn't it be on the statement when they buy something from the store?

It isn't because it would make Apple look bad to be taking such a large percentage from third parties you thought you were supporting, after you've already paid them hundreds of dollars for a piece of hardware you ought to own.

> Are you saying that video game makers should also be forced to license their IP so other manufacturers can clone their consoles?

Nobody wants to clone a console. They're sold at a loss in a dumping scheme to achieve a network effect so they can shake down video game producers.

What they should not is be able to shake down video game producers. Xbox and PlayStation should have Steam and the Epic Games Store. Which would render the dumping scheme non-viable, as intended.

[scarface_74]

> So the first step is to have enough capital to design a state of the art microprocessor that can compete with the world's largest corporation.

> and I can’t create my own car either to compete with a Tesla that doesn’t mean Tesla is being anti competitive.

> If this is feasible, why hasn't anyone done it? Every other phone chip is slower.

Ask Microsoft, Google, Qualcomm etc. Microsoft in particular had a years limb head start on Apple in the phone market. And Apple was still basically coming out of near death at the time. The other companies incompetence doesn’t mean Apple is being anti competitive.

> The whole point of tying is to take away your choice. Instead of choosing which phone you want and which OS you want and which app store you want, all of these are forced into a single decision that can no longer accurately represent the customer's true preferences.

I can’t choose to get a Tesla battery and the Tesla infotainment system on a Ford Mustang. Is Ford being anticompetitive?

The entire point of leverage is that Apple has an integrated experience and people pay a premium for that. If you want a non integrated experience - you can buy an x86 computer or an Android phone - as most of the workd does.

> But if you want to talk about informed, why is the 30% cut hidden from the end user? Shouldn't it be on the statement when they buy something from the store?

Does any retailer show the customer the difference between wholesale price and retail price?

> Nobody wants to clone a console. They're sold at a loss in a dumping scheme to achieve a network effect so they can shake down video game producers.

There were at one point reference designs for consoles and the hardware was manufactured by others

https://en.m.wikipedia.org/wiki/3DO_Interactive_Multiplayer

> What they should not is be able to shake down video game producers. Xbox and PlayStation should have Steam and the Epic Games Store. Which would render the dumping scheme non-viable, as intended.

Instead of whining, Steam actually did come out with their console. That’s the same thing any large enough company can do and their are literally hundreds of companies selling their own phone

[AnthonyMouse]

> and I can’t create my own car either to compete with a Tesla that doesn’t mean Tesla is being anti competitive.

Can't you though?

https://performance28.com/modified-tesla/

> Ask Microsoft, Google, Qualcomm etc.

They all have less money -- and that's saying something.

> The other companies incompetence doesn’t mean Apple is being anti competitive.

The problem is not that they made a faster CPU -- that's great. The problem is that they won't sell you the faster CPU unless you buy their phone and their OS and bind yourself to be locked into their app store.

> I can’t choose to get a Tesla battery and the Tesla infotainment system on a Ford Mustang. Is Ford being anticompetitive?

Ford will sell you every separate part of the Mustang. You can buy the frame and put Tesla batteries in it if that's what you want to do.

> The entire point of leverage is that Apple has an integrated experience and people pay a premium for that. If you want a non integrated experience - you can buy an x86 computer or an Android phone - as most of the workd does.

There is nothing wrong with selling an iPhone to customers who want an iPhone. The issue is the tying. Anyone who wants it should be able to get the hardware and the OS without the app store.

I honestly don't understand why you defend them. You would still be able to get the thing that you want, but then other people would too. The availability of more options would make the market more competitive and force even Apple to provide more value for less money -- which you would benefit from even if you continue to use exclusively their products.

Would you not benefit if the 30% they take was less than 10%, and then you paid 10% less and the app developer got 10% more which they could use to make more and better apps?

> Does any retailer show the customer the difference between wholesale price and retail price?

Normal retailers show the customer the price, which they can then compare with other retailers. If they were charging 30% when five other competitors were charging 5%, their prices would be higher. When there are no competing retailers because Apple prohibits them, the only information for the customer to use to evaluate the cost of using Apple's store is the amount they charge to the developer.

> There were at one point reference designs for consoles and the hardware was manufactured by others

Which is fine. But then they still don't need to shake down the game developers because they can charge a license fee to manufacture the hardware in the same way that ARM does.

> Instead of whining, Steam actually did come out with their console. That’s the same thing any large enough company can do and their are literally hundreds of companies selling their own phone

I'm more concerned with what small companies can do.

But even Valve is deploying a mitigation rather than a solution -- if they captured half the market with their console (which they have yet to do), they'd still be paying the monopoly rent on the other half of their sales.

[duskwuff]

> The problem is not that they made a faster CPU -- that's great. The problem is that they won't sell you the faster CPU unless you buy their phone and their OS and bind yourself to be locked into their app store.

You think this is something which only Apple does?

Go try to buy a Snapdragon CPU from Qualcomm. Or an Exynos from Samsung. Or (going a little further afield) a Graviton CPU from Amazon.

There are a lot of components which are only sold to select manufacturing partners, or which are entirely exclusive to a manufacturer. Apple is not doing anything outlandish here.

[scarface_74]

> Can't you though

I can’t use Tesla’s infotainment system in a Ford Mustang. Tesla ties their hardware together to make a complete product.

> They all have less money -- and that's saying something.

Do you really think that those companies couldn’t afford to design a chip? Apple doesn’t have its own factory. TSMC is available to any company.

Microsoft and Google definitely had more money when Apple first started building their own chips.

> The problem is not that they made a faster CPU -- that's great. The problem is that they won't sell you the faster CPU unless you buy their phone and their OS and bind yourself to be locked into their app store.

Should all companies be required to sell their components separately?

> Would you not benefit if the 30% they take was less than 10%, and then you paid 10% less and the app developer got 10% more which they could use to make more and better apps?

Most of the popular services are either already available as subscriptions inside and outside of the App Store or there is not even an option to subscribe through in app purchases.

> Normal retailers show the customer the price, which they can then compare with other retailers. If they were charging 30% when five other competitors were charging 5%, their prices would be higher. When there are no competing retailers because Apple prohibits them, the only information for the customer to use to evaluate the cost of using Apple's store is the amount they charge to the developer.

Before Spotify completely removed in app subscriptions, they in fact did have a cheaper price if you described directly than if you went through the App Store. For awhile CBS All Access (now Paramount+) does the same thing.

> Which is fine. But then they still don't need to shake down the game developers because they can charge a license fee to manufacture the hardware in the same way that ARM does.

Or they can choose to not be in that market and just sell on PCs.

> I'm more concerned with what small companies can do

Small companies also can’t build cars. Does that mean it’s anti competitive? Microsoft wasn’t a small company when it failed and neither was Nokia. Why blame on anti competitiveness when it’s clearly incompetence.