Re:Antitrust, the App Store, and Apple
by snowwrestler on Tuesday November 27, 2018 @07:31PM
(#18548222)
Apple’s gross margin is typically around 37% or 38%. I don’t see how charging a 30% service fee is going to improve profitability.
Apple is trying to grow profits via paid services like Apple Music or Apple Pay, but those are optional upsells, not rent seeking.
Services are not rent seeking.
Re:Antitrust, the App Store, and Apple
by clairity on Tuesday November 27, 2018 @03:25PM
(#18546327)
sure, but totally beside the point.
“the point the parent and the article is making is that apple's business model is changing toward services and rent-seeking through its platforms like the app store.”
If you take out the mention of services, this statement becomes false.
> "This just does not match any available data. Look at where Apple gets the bulk of its revenue and profits: hardware products and optional services."
you seem to be looking backwards but the statement you rebut is forward-looking.
yes, apple historically made its profits on hardware, but the point the parent and the article is making is that apple's business model is changing toward services and rent-seeking through its platforms like the app store.
> "Rent payments are not optional..."
the 30% apple charges for apps is not optional. as implied by the article, apple could charge 50% and developers would have no choice but to eat that cost.