Apple crosses the line again - UPDATE - Feds getting involved!

[Ns1]

But they SHOULD force publishers to do this in order to increase their own profits.

Again, you are approaching this business decision irrationally as if it is natural or justified that Apple should reduce their own profits in order for other players to increase theirs.

That - will you fail to get you into business school.

:thumbsup:

 

[Tegeril]

They should not force publishers to make available subscriptions on Itunes (to scalp profit) vs. having the option of paying for them at the publishers website (no extra profit for Apple). The will either increase costs for consumers as publishers raise prices to compensate, or reduce profits for cash strapped publishers trying to reach this market.

Publishers have the option to not have an app on Apple's App Store. I remain amazed at how anti-capitalist people are. Apple is not saying they cannot handle subscriptions outside of the store, they are saying that if you want to play ball you should follow their rules, any other course is above and beyond the requirements.

It is still worth reiterating that the in-app purchase mechanism is incredibly more convenient for iOS users. Credit card information is only stored in one location and purchases can be made from a variety of vendors. It's a safer strategy with excellent integration all tied to only one account - easy to remember for Apple's customers. Part of the draw of the iPhone is the consistent user experience.

Why else do you think Android users and developers have been clamoring for in-app purchase functionality and are now getting it?

 

[FelixDeCat]

I remain amazed at how anti-capitalist people are.

It is not "anti-capitalist" to oppose abuse of power.

 

[aphex]

First of all, I dont and never will own any Apple products. I dont know why but everything they do pisses me off. Im not going to recount every last thing since everyone knows what they do. The lastest manuever by those money grubbers (as if the $26,980,000,000 in cash they already have isnt enough per Yahoo Finance) is to force publishers to pay for subscriptions at the Itunes store as opposed to directly from content makers. Why the move? Apple wants a cut of the subscription proft. If you dont offer subscriptions, you cant sell there. In the past, you could buy single editions.

You seem to forget one key fact - Apple is a business. Businesses are designed to create a profit and maximize shareholder value. Short of a non-profit, ALL successful businesses do what they can to maximize profits. Your hatred for apple is clouding your better judgement.

 

[FelixDeCat]

You seem to forget one key fact - Apple is a business. Businesses are designed to create a profit and maximize shareholder value. Short of a non-profit, ALL successful businesses do what they can to maximize profits. Your hatred for apple is clouding your better judgement.

I wouldnt call it "hatred" per se, just displeasure. But you do have a point. I am in favor of capitalism and invest in successful companies in the stock market. Apple is not one of those companies, however.

I still remember the day almost a decade ago when Apple stock crashed from I think the mid 30s down to 19, an almost 50% loss on one day. Everyone who was short came to gloat and bash them for screwing up big time. It took awhile and they did turn things around. Now they are second only Exxon Mobile in market cap. Talk about a come back.

We must remain vigilant however and not be lulled by our appreciation for certain companies either.

 

[JSt0rm]

Not only all of this but they also charge money for computers!! a lot of money too! and people pay!

 

[TheStu]

Not only all of this but they also charge money for computers!! a lot of money too! and people pay!

Psh, that's fine. But you know what they do that is really nefarious?! They then charge you if you want to get the new version of iLife! Something that was free when you got the computer, now they want money, what a bunch of money-grubbing bastards!

 

[Tegeril]

It is not "anti-capitalist" to oppose abuse of power.

So that's the only counterpoint you have to my response? So we're done with this thread then? Your definition of abuse is not everyone's definition and you've left everything else uncontested.

/thread

 

[Kaido]

Your hatred for apple is clouding your better judgement.

But Obi-Wan! :awe:

 

[alkemyst]

Oh noes not making teh monies!

 

[Kmax82]

I'm happy that they're making this transition. I hate having to jump out of apps to make purchases.

A part of me wonders if this will extend to external services that are a monthly charge. I think this is just one small step to the NFC that is rumored to be coming. One account for everything. Not sure I feel completely safe with my iTunes account being used as a global payment system, but we shall see.

 

[Kaido]

I'm happy that they're making this transition. I hate having to jump out of apps to make purchases.

Yeah, I really like the Kindle app on iOS, but hate that I can't do an in-app purchase like my actual Kindle

 

[theeedude]

Yeah, I really like the Kindle app on iOS, but hate that I can't do an in-app purchase like my actual Kindle

Would you pay 30% more to give Apple it's cut for in-app purchases?

 

[Kaido]

Would you pay 30% more to give Apple it's cut for in-app purchases?

No. But I've never heard of that being done anywhere else in business, so it's not really a valid argument - pricing tends to equalize throughout ecosystems. For example, for movies: Amazon Unbox, iTunes Movies & TV Shows, and Vudu. Everybody gets a cut one way or another!

 

[ChAoTiCpInOy]

What does Apple use that 30% for? Are iTunes costs, Credit Card costs, and costs like that taken from that 30%?

 

[TheStu]

What does Apple use that 30% for? Are iTunes costs, Credit Card costs, and costs like that taken from that 30%?

Server operating costs, salaries for the app reviewers, credit card fees, all kinds of stuff is paid for with the 30%. And of course, an obviously tidy profit.

 

[FelixDeCat]

No. But I've never heard of that being done anywhere else in business, so it's not really a valid argument - pricing tends to equalize throughout ecosystems. For example, for movies: Amazon Unbox, iTunes Movies & TV Shows, and Vudu. Everybody gets a cut one way or another!

Thats not true. If one airline raises prices, not all of them do and the leader is forced to cut again to remain competitive because the others didnt follow.

And furthermore, just because vendors pay to participate in a platform (the "cut" as you described it) does not mean that they also share revenue from secondary streams such as subscriptions - especially if it wasnt even offered before but are now forced to so they can remain in that platform. This is bullying tactics and it needs to stop. Now.

 

[Kaido]

If one airline raises prices, not all of them do and the leader is forced to cut again to remain competitive because the others didnt follow.

...pricing tends to equalize throughout ecosystems.

:awe:

 

[ChAoTiCpInOy]

Server operating costs, salaries for the app reviewers, credit card fees, all kinds of stuff is paid for with the 30%. And of course, an obviously tidy profit.

How much of that 30% is profit though?

 

[FelixDeCat]

:awe:

His supposition was that a price increase from one player is followed by all. I argued otherwise. But Itunes is different. They are currently unrivaled so a price increase is not easily challenged.

 

[TheStu]

How much of that 30% is profit though?

I don't know if there are numbers on that.

 

[ChAoTiCpInOy]

I don't know if there are numbers on that.

But we can speculate.

 

[TheStu]

But we can speculate.

Then my guess is that the cut of the 30% that is profit is around 30% :sneaky:

 

[ChAoTiCpInOy]

I think people don't understand that Google is in the Advertising business which means they'd probably sell your data for a profit.

 

[theeedude]

No. But I've never heard of that being done anywhere else in business, so it's not really a valid argument - pricing tends to equalize throughout ecosystems. For example, for movies: Amazon Unbox, iTunes Movies & TV Shows, and Vudu. Everybody gets a cut one way or another!

Someone gotta pay Apple's cut. And it's going to be the consumer.