Apple releases study defending App Store's 30% cut ahead of testimony
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Re: Apple releases study defending App Store's 30% cut ahead of testimony
#2"Most app stores charge the same 30% cut on digital goods.
Retailers, travel booking services and other marketplaces can charge more than 30% for their services.
Distributing software through an app store is less expensive than distributing through brick-and-mortar retailers.
Other app stores and digital marketplaces often require users to use their in-app payment mechanism and forbid sellers from redirecting buyers to finish the transaction in another venue."
-- Apple's main findings.
The test should be whether Apple is charging a rate that is higher than it would charge under perfect competition. Not whether it's higher than traditional brick and mortar stores that obviously have higher distribution costs.
Indeed, the fact that both Apple and Google charge 30% could suggest collusion.
Re: Apple releases study defending App Store's 30% cut ahead of testimony
#3“Everyone else does it” is an interesting defense.
Personally I don’t think they charge too much, but i still dream of a world where you can sideload apps on iOS with 0 fuss.
I think the bigger argument against the App Store isn’t about the cut Apple takes but the process. The human review process is nice because it helps control the amount of abject garbage on the App Store compared to the Play Store but Apple plays fast and loose with letting certain apps/companies use Private APIs that they’re not supposed to.
Unequal enforcement of their policies is a bigger argument for abuse of their monopoly position than that it’s too expensive.
I assume that they know very little of the arguments against it is centered around the 30% cut but this is a bit strange to see.
Re: Apple releases study defending App Store's 30% cut ahead of testimony
#4The four major findings of the study can be condensed down to two:
1) Our competitors do it too (Google, Amazon)
2) It's cheaper than brick and mortal distribution
Notably absent: How the high fees, and payment restrictions benefit consumers and developers. I guess they couldn't find any solid consumer/developer benefits that would stand up to scrutiny? Not a good look.
Re: Apple releases study defending App Store's 30% cut ahead of testimony
#5"Most app stores charge the same 30% cut on digital goods. Retailers, travel booking services and other marketplaces can charge more than 30% for their services. Distributing software through an app store is less expensive than distributing through brick-and-mortar retailers. Other app stores and digital marketplaces often require users to use their in-app payment mechanism and forbid sellers from redirecting buyers…
I don't think the rates are based on competition. If I make an app, I can publish it on:
- App Store, and get 70% cut of X users
- Play Store, and get 70% cut of Y users
- Both, and get 70% cut of (X+Y) users
So as long as I can cover my development costs for both platforms, it makes sense to publish to both stores.
Let's say Google charged only 10%. Would that change which platforms I publish to? I would say no: I would still want to get 0.7X + 0.9Y.
Re: Apple releases study defending App Store's 30% cut ahead of testimony
#6"Most app stores charge the same 30% cut on digital goods. Retailers, travel booking services and other marketplaces can charge more than 30% for their services. Distributing software through an app store is less expensive than distributing through brick-and-mortar retailers. Other app stores and digital marketplaces often require users to use their in-app payment mechanism and forbid sellers from redirecting buyers…
I don't think the rates are based on competition. If I make an app, I can publish it on: - App Store, and get 70% cut of X users - Play Store, and get 70% cut of Y users - Both, and get 70% cut of (X+Y) users So as long as I can cover my development costs for both platforms, it makes sense to publish to both stores. Let's say Google charged only 10%. Would that change which platforms I publish to? I would say no: I w…
Theoretically at least, Google's App Store would have better pricing, thus giving Android a competitive advantage (unless Apple follows).
Realistically, I'm sure the advantage would be so small so as to not amount to anything.
Re: Apple releases study defending App Store's 30% cut ahead of testimony
#7The big controversy about this disappeared because of WWDC. Has it picked up again, or were devs mollified by the new APIs and improvements?
Re: Apple releases study defending App Store's 30% cut ahead of testimony
#8The four major findings of the study can be condensed down to two: 1) Our competitors do it too (Google, Amazon) 2) It's cheaper than brick and mortal distribution Notably absent: How the high fees, and payment restrictions benefit consumers and developers. I guess they couldn't find any solid consumer/developer benefits that would stand up to scrutiny? Not a good look.
From the study (emphasis mine):
>Many sellers currently sell (or previously sold) their goods through brick-and-mortar stores and marketplaces. We find that sellers generally earn a substantially lower share of total revenue from the distribution through brick-and-mortar stores and marketplaces than through digital marketplaces such as the Apple App Store.
What percentage of developers on the App store also sell through brick and mortar? I can only think of Microsoft and AAA game developers off the top of my head.
I'd hazard to guess it's a fraction of a single percentage point (in number of developers, not sales). It's certainly not "many". This is a perfect example of using weasel words [0] instead of making an actual claim.
Re: Apple releases study defending App Store's 30% cut ahead of testimony
#9As I said in an earlier thread:
Apple pioneered the 30% cut, and it was a massive improvement over the status quo. But they haven't ramped down at all since and that's why these conversations and cases are happening.
Also for game theoretic reasons, they should charge a higher % for in-game purchases and lower their cut for outright purchases.
Re: Apple releases study defending App Store's 30% cut ahead of testimony
#10The four major findings of the study can be condensed down to two: 1) Our competitors do it too (Google, Amazon) 2) It's cheaper than brick and mortal distribution Notably absent: How the high fees, and payment restrictions benefit consumers and developers. I guess they couldn't find any solid consumer/developer benefits that would stand up to scrutiny? Not a good look.
you can look at the 30% in two ways:
1/ the dev is paying
2/ the user is paying
I look at it from 2/ so Apple charges me 30 on top of 70 which is almost 43% extra for consuming a service via their distribution channel, for which I already paid a premium price.