Apple apologizes to WordPress, won’t force the free app to add purchases

Re:Apple apologizes to WordPress, won’t force the free app t... by RonanTheGrey on Sunday August 23, 2020 @04:53AM (#24250603)

There's a saying in economics that "in a perfectly competitive market, nobody is making a profit - because if they are, someone is losing customers". In a perfectly competitive market, everyone lowers prices to the point they can't lower them anymore, and that tends to be the same price for all competitors.

In a market where someone is making billions in profit, it's almost de-facto evidence of a lack of competition. Not a priori, obviously, but it gives you a basis for measurement that where you're looking is somewhere on that spectrum.

For big box stores, that razor thin margin is exactly what you would expect from a very competitive market and so it's fair to say that it is one.

Who else can charge 30% on every sale just because?

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Re:Apple apologizes to WordPress, won’t force the free app t... by dylan604 on Sunday August 23, 2020 @10:23AM (#24252158)

> Who else can charge 30% on every sale just because?

Every physical product retailer charges > 30%. This is what I'm suggesting is the confusion point. If an app developer sells an app for $0.99, then the dev gets $0.66 per transaction. If a physical product producer sells something with an MSRP of $0.99, the retailer will be purchasing the item at a wholesale price of closer to 50% of the MSRP (if not a higher percentage) leaving at max $0.50 per item. This shows how much easier the software dev has it.

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