[neallindsay]

Apple should abandon the console model for iPhones (and iPads, etc.). It's corrosive. By my back-of-the napkin math (subtracting an estimate of Google's quarterly search payments from Apple's stated "services" revenue and comparing to iPhone revenue), Apple would make the same amount of money by just charging me an extra 25% when I bought a phone. I would gladly pay that up-front instead of indirectly when I buy apps.

[MarioMan]

A 25% price jump would cause much grumbling. That being said, I’d like to believe that there’s a real market for bootloader unlocked iPhones.

[klabb3]

Its not a dollar value. It’s an ongoing percentage based tax on your business relationships and consumption with other providers.

For instance, say Netflix has an iOS app with 10M installs. Apple wants 30% of the subscription revenue even though their costs are static. The only variable cost is payment infrastructure which to some degree is proportional to amounts (fraud etc). But what is the market value of that? A couple percent at most? Are apple even taking any risk?

And honestly, Apple could easily take 5-10% and I’m sure lots of vendors would still use them due to user preference - it’s trustworthy, provided an overview of ongoing subscriptions, and importantly you can cancel without being on a 30min retention call with absolute garbage companies.

But that needs to be played out by the markets. Competition will make Apples option cheaper and most likely competitors will step up to match the UX at lower prices. Free markets, like democracy, have this paradox of tolerance, ie bad faith players can abuse the very system to destroy it in self-interest.

[neallindsay]

I was looking at quarterly revenue numbers—it seems like a dollar value to me.