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Apple responds: we want a cut of Amazon, Sony e-book sales

arstechnica.com

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Re: Apple responds: we want a cut of Amazon, Sony e-book sales

#71

Post by pedanticfreak »

thestoicattack wrote: post #54
pedanticfreak wrote: post #28

This reminds me of the "no intermediate code" snafu that was later repealed. Apple keeps testing the boundaries of what we will tolerate because it knows it can get away with it while the competition still lags behind. This newest development sets a truly frightening precedent, though. Any subscription service that sees significant growth through their iOS app is vulnerable to Apple's tax collectors. As soon as it lo…

> Apple keeps testing the boundaries of what we will tolerate because it knows it can get away with it while the competition still lags behind. I'm not convinced the competition will lag forever. If Apple were not the market leader, would consumers or developers continue to give them the same leeway?

The point is the competition still lags, so Apple still has a free pass with users and developers. And if the competition suddenly caught up, Apple only needs pull back just enough to make us all forget.

Really, it's stunts like this that shows how much iOS leads the competition. Like electing a convicted murderer to public office because his competition is that incompetent. Android isn't forcing Apple to compete on its terms at all.

Re: Apple responds: we want a cut of Amazon, Sony e-book sales

#72

Post by dhimes »

raganwald wrote: post #10
theBobMcCormick wrote: post #9

Is it just me, or is this every bit as outrageously greedy as consumer ISP's (Comcast, etc) wanting to charge Netflix, Youtube, etc.?

It's not just you, but it is far more reminiscent of being every bit as greedy as console manufacturers demanding licensing fees from cartridge manufacturers (or whatever we call sharecroppers). Remember that if a developer makes an app and sells it for money, Apple gets 30% of their revenue, period, full stop. That's the App Store deal, if you don't like it, you don't develop an iOS app. So what happens when a devel…

So what happens when a developer builds an app that does almost nothing. He givs it away for free. But to use the app, you go to the developer's site, pay money, and download a level or something, like my maze app example above. Presto! The developer has just done an end run around the App Store, and Apple doesn't like that.

The problem I have with this is that it is exactly what Apple said they were supporting when they launched the iphone:

http://www.apple.com/pr/library/2007/06/11iphone.html

http://37signals.com/svn/posts/459-iphone-sdk-its-called-saf...

Now they are positioning themselves to cut off this mode of delivery to the iphone. I understand that this isn't what has happened yet, but it's a troubling step.

Re: Apple responds: we want a cut of Amazon, Sony e-book sales

#73

Post by erikpukinskis »

BigZaphod wrote: post #22

I'm hoping there's more to this than meets the eye right now. Sadly, I suspect we won't know until Thursday. I can think of a couple of scenarios that might fit what we know so far: 1) Apple might simply declare that they want 30% of all in-app purchases. Amazon will likely freak out. This, to me, would seem to be a seriously dangerous move on Apple's part. 2) Apple may drop the 30% cut entirely on in-app purchases.…

Apple may drop the 30% cut entirely on in-app purchases

I think it'd be great if they had some sliding scale for different types of purchases. 30% for virtual goods, 15% for digital media, %7 for physical goods... that kind of thing.

Re: Apple responds: we want a cut of Amazon, Sony e-book sales

#74

Post by tshtf »

relic17 wrote: post #15
juiceandjuice wrote: post #2

It feels like another FTC investigation over App store policies could arise out of this.

I think you may be right. But that would be unfortunate, as I don't think the FTC should meddle in Apple's business. I think Apple's management should have the right to set any policy it considers relevant - after all, this is their platform. So, I hope the FTC takes no action.

The FTC shouldn't meddle in Apple's business? Apple's management should have the right to set any policy it considers relevant?

What do you see the role of the FTC as being, and why should Apple be able to set any policy, even if it may violate the law?

Re: Apple responds: we want a cut of Amazon, Sony e-book sales

#76

Post by barranger »

tomelders wrote: post #64
cletus wrote: post #29

I think we were all afraid of some move like this. Nobody cares about Sony's ebooks. Everybody (me included) cares about Kindle. I can sort of understand where Apple is coming from in this. They provide an ecosystem and apps live within their ecosystem. That being said, I can't see Amazon or any other big player rolling over on a margin of 30%. This is the problem with one fixed margin: it works well for apps and mus…

If Amazon don't roll over, then someone else will and they'll be laughing all the way to the bank.

No they won't.

This isn't something Amazon (or another big player) can do, they simply don't have a large enough profit margin to support giving apple 30% of the full purchase price.

This will end up being nothing more than another straw on the camel's back. When (if?) a true competitor comes out, it seems that the best marketing for the new device will be done by Apple themselves.

Re: Apple responds: we want a cut of Amazon, Sony e-book sales

#79

Post by rewind »

tomh- wrote: post #23

How long till I have to pay Apple 30% for ordering a pizza using an iPhone? How long till I have 30% premium to pay for shopping online using a mac computer?

Don't worry, they'll just put a new clause in the agreement that says you can't charge more to iOS users than non-iOS users. Stores won't raise their prices 30% for all users or they'll go out of business. So they'll either give Apple their 30% or not sell through iOS devices at all. Not necessarily an easy choice, especially if you're already established with millions of iOS users.

That 30% will not come out of your pocket; it will come out of the provider's pocket. Apple will see to that, don't worry.

Apple will amend that agreement as many times as they need to in order to maximize the benefit to them. Let's not kid ourselves and think the benefit is for their users. I think we're all wise to that one by now.

Re: Apple responds: we want a cut of Amazon, Sony e-book sales

#80

Post by octopus »

I think it will be interesting to see how this dispute will end. In any case the user will loose, take Amazon for example, I see two possibilities: 1. Amazon will leave App Store. We loose because we can not use our iPads and iPhones to access Kindle books. 2. Amazon will comply with the Apple demand and they will cut 30% for Apple ... hmmm ... Basically they will be forced to rise the price of their books to allow for some profit. We loose.
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