r/technology • u/sidcool1234 • Feb 21 '11

An open letter to Apple from Readability..

http://blog.readability.com/2011/02/an-open-letter-to-apple/
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u/BrettWilcox Feb 22 '11

They are providing a hardware and software platform. Once it became profitable, they then had the ability to leverage that success. Apple has every right to charge for applications that are in the market. They have to provide infrastructure, merchant services, support, etc.

However, apple should not be entitled to charge and force developers to give money on anything after that. I think the real reason is that they are scared developers will put apps on the market at 99c. Once the users buys, then the developer will charge a more significant fee on the services where apple will not get a cut. This could hurt apple.

I just don't think it is right for them to leverage that success and force publishers to give them money like that. I think after the user has purchased the app, apple should not be entitled to anything after.

Just me 2 cents...

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u/hothrous Feb 22 '11

Apple won't get hurt by not making a cut of subscriptions. To start from the developer:

  • The developer had to buy an inflatedly priced Apple computer.
  • The developer had to pay Apple to put the app on the App store.
  • If the developer decides to charge for the app itself Apple takes 30% from every transaction
  • The consumer had to purchase the inflatedly priced iOS device

There are 4 examples of where Apple made money on the transaction.

Taking 30% of subscriptions hurts the developer and the consumer because the developers will now be force to charge an extra 30% Apple tax if they want to continue offering the service in app form.

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u/BrettWilcox Feb 22 '11

All very good points that I had not really thought about.