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by ratg13
794 days ago
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Putting aside the fact that the App Store is profitable.. why does it have to be? Companies are not required to nickel and dime consumers for every offering, and often time goodwill generates more revenue as a whole than squeezing every penny. In most cases consumers are driven away by being squeezed at every turn. The only reason this works for the App Store is that the size of apple’s hand in the cookie jar is obscured from users. |
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Why does it have to be profitable? Because if it isn't it goes into debt and eventually shuts down.
>Companies are not required to nickel and dime consumers for every offering, and often time goodwill generates more revenue as a whole than squeezing every penny.
You are absolutely right. This is one of the reasons there are so many mergers; it allows companies to do this with little to no alternative. See cable companies, Ticketmaster, Facebook, Microsoft, etc. You want to squeeze your customer base without having to worry about them going to your competitor? Buy your competitor!