Live data from Hacker News

Apple, Epic, and the App Store

stratechery.com

271–280 of 781 posts

Re: Apple, Epic, and the App Store

#271

Earlier quoted context omitted.

> So what? All markets work like this. Food prices go up whenever there fuel prices increase If it were a monopoly then anti-competitive practices, that would result in price increases, would be illegal . > Apple created this entire market It doesn't matter if they created the whole market. That is completely irrelevant to the legality of anti-competitive practices. Now, they are a monopoly, and they are no longer to…

It's not a monopoly. There is an alternative which dominates the market share. This simply is not a monopoly. > Apple absolutely has market dominance over apps that are sold on the iphone. This is just wrong. This would hold true if no alternative exists. There currently is not an app the iPhone offers that isn't matched in functionality anywhere else. This doesn't pass basic legal sniff tests.

> This is just wrong. This would hold true if no alternative exists. There currently is not an app the iPhone offers that isn't matched in functionality anywhere else.

There is no alternative for buying apps on the iPhone.

> It's not a monopoly. There is an alternative which dominates the market share.

Yes it is. There is not a single alternative, for buying apps on the iPhone. They control that market, and have 100% market share over the iPhone app store market.

Re: Apple, Epic, and the App Store

#272
post #236

While I don't like Apple's 30% cut on multiplatform/subscription products, I think Epic's real motivation here is to run their own App Store, build a bigger moat and get the profits themselves (they take 12% cut, 5% if you use Unreal Engine, from developers in their store). They also make exclusive deals, bribing developers with funding/marketing support, so that the games can only bought in their store for 6-12mo. C…

I'm going to heavy push back against both-sides-isms here.

> I think Epic's real motivation here is to run their own App Store

Yeah, you're right. That is the outcome that we want. We want multiple stores on iOS. I thought advocates for this position had been really clear, but maybe we haven't been clear enough.

For the record, we want there to be multiple app stores on iOS.

> build a bigger moat and get the profits themselves

You're worried that Epic's store is going to eventually overrun Apple's and then Epic will somehow prevent other stores from being installed on iOS devices? You're worried that we'll get a bigger moat than literally not being able to run any code on the device that doesn't pass through Apple's review process?

What on earth would that theoretical bigger moat even look like?

> and get the profits themselves (12% cut, 5% if you use Unreal Engine)

I want to follow up on this in the context of your worry about moats. We live in a world where Apple has complete control over the app ecosystem, and you're frightened that another company might get control and... offer better terms than we have right now?

What specifically is the horror scenario that you're frightened of?

> They also make exclusive deals, where the games can only bought in their store for 6-12mo.

I can only imagine how upset you're going to be when you learn about how Apple Arcade works.

> Tencent is also 40% shareholder in Epic

Apple actively censors thousands of apps in China from the app store right now. You are worried about accidentally funding censorship through indirect means, and your response to that is to directly take the side of one of the censors.

Re: Apple, Epic, and the App Store

#273

Earlier quoted context omitted.

> That doesn't address the issue: those who would can't. Then buy any other general computing product on the market. I'd be more sympathetic to this concern if Android didn't exist. Meanwhile it does, and the users who picked Apple did it because they don't care about this, they don't care very much about this, or because they actively want the App Store restrictions and the ecosystem that they create. > You don't lo…

>Changes to rules change how actors behave in a system. The way software developers and publishers behave on iOS could change in ways that I don't like Probably most apps would still be on store and hopefully you would get a cheaper version from the developer website. What is clear but you probably don't want to admit is Apple is not fighting here for your safety but for extracting mroe money, if they were not that g…

> What is clear but you probably don't want to admit is Apple is not fighting here for your safety but for extracting mroe money, if they were not that greedy Epic,Spotify would not have started this wars and you would have been safe in the wallgarden and extremely satisfied that the other people inside can't escape either.

Why wouldn't I admit that? Of course the situation benefits them. I just doubt there's a way to give me all the aspects of their devices & ecosystem that I value, that doesn't also benefit them. I'd love to see them drop the cut they take, for instance. That being so high benefits me not at all, so far as I can tell.

... and if someone comes out with devices that actually compete with the specific sort of product they offer, including the integrated & closed app store and restrictions on what apps are allowed to do, and takes a lower cut of app store sales, then Apple might have to reduce their cut, too. Or this current scuffle might end up not changing the app store rules much, but dropping the cut they take substantially—personally, that's an outcome I'd love.

Re: Apple, Epic, and the App Store

#274

Earlier quoted context omitted.

> Then buy any other general computing product on the market That's not how free market works. And it's a very silly objection. Android is a licensed platform.from Google, but Google does not make the majority of devices. Apple manufacturs the devices, but they sell them to me locked in the ecosystem they profit from. Imagine being unable of refueling because your car does not work with standard oil pumps and you had…

> That's not how free market works. It... isn't? How not? > Imagine being unable of refueling because your car does not work with standard oil pumps and you had to go to Apple licensed gas station whom Apple charges 30% to. Then I'd probably buy a competing brand of car, if that bothered me? You know, one of my other choices on the market? Like how there are a bunch of Android device vendors and a couple Linux mobile…

> Then I'd probably buy a competing brand of car, if that bothered me?

But you also bought Apple approved tires, Apple approved child seat, Apple approved free miles on the highway and Apple approved breaking fluid

You can't use them anywhere else, maybe you can sell them, but you have to reset the car to factory settings

Whatever you bought cannot be used anywhere else, except another Apple car

That's how vendor lock in works, I'm European but I know US laws don't appreciate when a company locks users in

Re: Apple, Epic, and the App Store

#275
post #15
post #6

In the spirit of this particular story, I'd like to ask HN the following question: Should closed hardware (that owns its entire stack) even be legal to sell? Yes, it's legal today but should we make it illegal? To try another example besides Apple iPhone, consider the $35000 Prima Cinema movie server to play 1st run movies at home on day of release: https://www.google.com/search?q=%22prima+cinema%22&source=ln... In m…

> Should closed hardware even be legal to sell? I don't see why not. If it's a problem, then either a competitor will emerge, or people won't purchase the product. If it's truly a bad business practice, it'll lose out in the end. Besides that I actually love the closed system of the iPhone + App Store, we can't just go around banning things anytime we think we might not like them. Every time I see this story it just…

Something can be both "good business" that is make you a lot of money, and a terrible thing for society.

There's an incredible amount of effort to prevent that - we can start with obligatory things like slavery, but there's a lot more - safety regulation in cars or airplanes, food safety, various environmental protections, employee protections, and so on.

"I want the iPhone and App Store to be a closed system." is kind of like saying "I want powerful car that doesn't have to follow emission limits." - I believe you that you want it, but you having it might hurt others, and that's why it's not allowed.

Re: Apple, Epic, and the App Store

#276

A pretty well-thought out article, given the inflammatory nature of the subject matter. I think Apple is right on the line. But I don't see a good argument as to what their doing is being anti-competitive. ~2 million apps are on the app store. Charging a fee for giving developers a huge market that spends money is not exactly unfair. And the rules of engagement are generally applied equally to everyone - the exceptio…

actual harm => consumers end up paying more for the apps because the app developers have to increase their price to cover Apple's cut (which is more like a shakedown). I don't see any reason why a company needs to pay any percent of their revenue instead of a flat fee. You pay a % of revenue when someone is your partner or an investor in your company. Apple is neither. In fact, they've shown to be the opposite of a t…

> actual harm => consumers end up paying more for the apps because the app developers have to increase their price to cover Apple's cut (which is more like a shakedown).

Out of all the arguments against Apple's App Store policies, this has always struck me as the weakest. I remember app prices for Palm Pilots, and for that matter, app prices in general before the App Store came along -- and they were way, way higher. In 2005, a program like Pixelmator for iOS would have at least been $40; on iOS, it's $5. And how much do you think LumaFusion, a multitrack video editor, would have gone for in 2005? If it had been under $200 reviews would have been calling it a steal. It's $30. And that seems insanely high.

So the problem with the "Apple's cut artificially inflates prices" argument is that prices have demonstrably been in free fall during the app era. We can argue that LumaFusion would be able to cut their price to $25, or Pixelmator to $4, and that somehow "proves" that developers have to increase their price, but it's not super compelling.

> I don't see any reason why a company needs to pay any percent of their revenue instead of a flat fee. You pay a % of revenue when someone is your partner or an investor in your company. Apple is neither.

Well, Apple is acting as a payment processor, and payment processors charge you a percent of revenue. I don't think anybody's gonna run credit cards for you for a flat $19 a month fee; if Apple charged only what Stripe did (30¢ + 2.9%), LumaFusion's fees would be over $19 on their 11th copy sold per month and Pixelmator would hit it on sale 65.

Re: Apple, Epic, and the App Store

#277

Earlier quoted context omitted.

We're mostly talking about the App Store, but even so I don't think there's much of a meaningful distinction. I can't choose to get a 12 pack of cola that's half Pepsi, 1/4th Mountain Dew, and 1/4 Cherry Coke either. I can't choose to use iMessage with my non-existent Facebook account either. Why? Why are they allowed to lock in their software? Same argument.

But I can choose to make myself a 12 pack of half Pepsi, 1/4th Mountain Dew, and 1/4 Cherry. That's the entire point. There is no artificial restriction that mixing Pepsi with some other soft drink results in a toxic mixture. But that is essentially what's happening on the App store/Phone hardware space. IMessage facebook messenger case is not an artificial lock. They are fundamentally different protocols. It's not l…

> It's not like IMessage supports facebook messenger and Apple just say no you can't use it. There is a real difference here.

You can make a protocol then and Facebook won't allow you to use it. They're definitely artificially locking you in. It's no different.

> Apple is artificially restricting usage of it's phones for no other reason then greed.

Really? That's the only reason? Does it not seem odd to you that iPhones are considered safe devices, and that Apple goes to great lengths to protect them and user data and now companies are complaining about the App Store? Once they can circumvent the App Store, then can put all sorts of garbage tracking and malware into applications. iPhone and the App Store have been around for more than 10 years, and then over the last two years Apple requires no tracking, prompting of data usage, soon a data use "nutrition scorecard" and now just this year all of these companies are complaining about pricing? Give me a break. If you want to call Apple greedy, then it's just a case of pots calling kettles black. Notice how there aren't any customers complaining about this oh so bad and greedy practice? I don't care what developers want here. I want my iPhone the way it is, and changing the App Store is bad in my view. I'll vote with my wallet in this case. If that means fewer applications because they want to circumvent these things that I want Apple to do, then that's fine, good riddance.

These companies can partner with Samsung or something and make their own phones and app stores. That's fine. But this isn't about that. It's about them wanting money and to abuse user data on the platform that Apple built.

Re: Apple, Epic, and the App Store

#278

Okay this is going to sound stupid but maybe someone else feels like me about it: I don't understand why Apple has to take such a big chunk from transactions of in-app purchases? Similarly Google. Why 30%? Why not 5%? That feels like it would be more honest. Is it just because "they can"?

I assume their costs are just, Credit Card Fees, Infrastructure Fees (Bandwidth, Storage), Reviewers Salary. Not sure this adds up to 30%. I think the real reason is that when the Apple store was started, they looked around at the current prices for "software distribution". Retail was like 70%, and other app stores; for example the Danger Hiptop / T-mobile Sidekick charged 60% for their apps store, and the carriers w…

Maintaining XCode, running iCloud app-facing services, building/maintaining SDKs, etc...

Apple has to pay for these somehow. They can either get the money by charging more for each iPhone or they can get the money from the real end-users of these products: Developers.

Re: Apple, Epic, and the App Store

#279
post #236

While I don't like Apple's 30% cut on multiplatform/subscription products, I think Epic's real motivation here is to run their own App Store, build a bigger moat and get the profits themselves (they take 12% cut, 5% if you use Unreal Engine, from developers in their store). They also make exclusive deals, bribing developers with funding/marketing support, so that the games can only bought in their store for 6-12mo. C…

I don't get the whole objection to mutiple app stores.

Instead of clicking icon A, I click icon B and if I get a cheaper game, all power to Epic.

I don't spend time in an app store. I spend time playing the game.

Re: Apple, Epic, and the App Store

#280
post #236

While I don't like Apple's 30% cut on multiplatform/subscription products, I think Epic's real motivation here is to run their own App Store, build a bigger moat and get the profits themselves (they take 12% cut, 5% if you use Unreal Engine, from developers in their store). They also make exclusive deals, bribing developers with funding/marketing support, so that the games can only bought in their store for 6-12mo. C…

I'm going to heavy push back against both-sides-isms here. > I think Epic's real motivation here is to run their own App Store Yeah, you're right. That is the outcome that we want. We want multiple stores on iOS. I thought advocates for this position had been really clear, but maybe we haven't been clear enough. For the record, we want there to be multiple app stores on iOS. > build a bigger moat and get the profits…

> Yeah, you're right. That is the outcome that we want. We want multiple stores on iOS. I thought advocates for this position had been really clear, maybe we haven't been clear enough though.

Right, and the rest of us don't want that, and I also don't want games or apps that don't adhere to Apple's rules. You want another option of App Stores because you want don't want to pay for the user base that Apple created and maintains. You want to embed permanent location tracking in your apps, abuse user data, and not have to have your crappy practices out in the open when Apple shows the "nutrition scorecard" for your app.

That's not what I want on my iPhone. If your app doesn't conform to the App Store, then that's your problem, not mine. I'll vote with my dollars here. I want the iPhone just the way it is, even if that means fewer apps from bad actors.

> We live in a world where Apple has complete control over the app ecosystem, and you're frightened that another company might get control and... offer better terms than we have right now?

Yes that's exactly what I want. I want Apple to have complete control over the ecosystem. They've earned my complete trust.

Post reply on HN