Hacker News new | ask | show | jobs
by AnthonyMouse 354 days ago
Unlike phone platforms, phone apps are a fairly competitive market, and competitive markets have low margins.

Which means that if you remove 30% of revenue as a cost, one of two things happens. Either the price comes down because the suppliers who lower their price get more business, or the customers aren't very price sensitive in which case developers who use the additional money to improve their apps get more of the market and then users get better apps.

Either of those is better for the customer than having the money go into a megacorp's money bin and have them use it for competition-reducing M&A or unrelated empire-building projects or just have them add it to their cash mountain and have the customer paying that money in exchange for nothing.