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by vineyardmike
1006 days ago
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> Walmart, Costco, et al wish they had a 30% profit on everything the sold. Is the work the same for them too? They all charge a percentage of sticker price. Oh and none of those stickers say free. The tension I see is that Apple’s work is correlated with number of developers and number of users. They very much have a long tail of developers and apps with effectively no users or income, but who still cost Apple money. Maybe this is actually covered by the $99/yr fee but maybe not. Then at the other end, the top 0.001% of apps get so much use (downloads, IAP api calls, support requests) that account for the majority of App Store costs. Apple runs a CDN just for apps like facebook and YouTube to make the downloads faster. Support staff will tell you how many people blame Apple for what happens in apps - famously when Snapchat was A/B testing videos Apple support was swamped with FOMO’d teenagers wondering why they couldn’t download the latest update. Apple probably loses money on the facebook app (ignoring downstream revenue). My point is that Walmart costs are pretty linear with the number of boxes on the shelf, and none of them are “free”. As long as we have free apps and it’s cheap to be a developer, companies will need to over compensate by using higher fees. Edit: Spotify is the collateral damages caused by Apple needing Snapchat, but also needing to fund that support costs somehow. Also Spotify - the company in question - has a terrible price structure where they give their first margin to Apple and the rest of their money - and then some - to record labels. That basically means they’ll always lose money to record labels but they also can’t win if they pick a fight with them - just ask Taylor Swift. |
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