Apple’s App Store profits on commissions from digital sales Revenue $32 B Operating Costs $7 B [1] Estimated Profit $25 B Operating Margin ~78% [1] R&D, security, hosting, human review, and including building and maintaining developer tools Xcode, APIs, and SDKs. Apple could take just 7% cut and still make 20% profits. Fun Fact: During the Epic trial, it was revealed that Apple's profit margins on the App Store were…
It's a classic direct-indirect management problem. Think about Android for a second. It costs nothing to put an app on their app store. People can make apps for themselves and then just publish because either "why not" or it's an easy way to distribute to friends and family. So basically it is making app creation easy. Meanwhile Apple charges you $100/yr to even put something up on the store, makes it hard to sideload, and consequently people charge for apps, which Apple rejoices as they get a 30% cut (already double dipping: profiting from devs, profiting from the devs' customers).
BUT WE'RE TALKING ABOUT SMARTPHONES
A smartphone is useless without apps! People frustrated they can't find the apps they want on iPhone? They switch to Android. People on Android want to get away from Google but they can't do half the shit they want to on iPhones (and the other half costs $0.99/mo)? They bite their tongue or rage quit to Graphene.
The only reason this "fuck over the user" strategy works is because there's an effective monopoly.
All of this is incredibly idiotic as the point of a smartphone is that it is a computer that also makes phone calls. We have made a grave mistake in thinking they are anything but general purpose computers. All our conversations around them seem really silly or down right idiotic when you recognize they are general purpose computers. And surprise surprise, the result is that seeing how profitable and abusive the smartphone market can be leads to a pretty obvious result: turn your laptops and desktops into smartphone like devices. Where everything must be done through the app stores, where they lock you out of basic functionalities, where they turn the general purpose computer into a locked down for-their-purposes computer.
The thing that made the smartphone and the computer so great was the ability to write programs. The ability to do with it as you want. It's because you can't build a product for everyone. But the computer? It's an environment. You can make an environment that anyone can turn into the thing they want and they need. THAT is the magic of computers. So why are we trying to kill that magic?
It doesn't matter that 90% of people don't use it that way, and all those arguments are idiotic. Like with everything else, it is a small minority of people that move things forward. A small percentage of players account for the majority of microtransactions in videogames. A small percentage of fans buy the majority of merchandise from their favorite musicians. And in just the same way, it is a small number of computer users (i.e. "powerusers") that drive most of the innovation, find most of the bugs, and do most of the things. I mean come on, how long did it take Apple and Google to put a fucking flashlight into the OS? It was the most popular apps on both their stores for a long time before it got built in. Do you really think they're going to be able to do all the things?