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Same as a shopping centre, clothing retailer, or any other non-bazaar marketplace with its own brand and transaction processing.

Apple is selling you a huge lucrative market.

Customers buy Apple’s curated marketplace.

Apple takes a cut for being in the middle and enabling all of this.

Believe me, I would never pay for most of the apps that I did pay for via Apple if it wasn’t via their marketplace and their consumer protections.

There is no counterfactual scenario where you and millions(!) of other ISVs get 100% of the same money without Apple.

What’s difficult to understand about these business relationships?






> Apple takes a cut for being in the middle and enabling all of this.

Enabling this like Ticketmaster enables selling tickets.

In ticketmaster's case I believe they give kickbacks and lucrative exclusive contracts with large venues, to squeeze smaller ones, maybe making whole tours use it but only kicking back to the biggest or select venues on the tour I think.

Apple sometimes does special deals and special rules with important providers, among many other tactics behind their moat. All single signons must also offer apple single sign-on, for instance, and they have even disabled access to customer accounts using their single sign-on for unrelated business disputes, though they walked it back in the big public example I'm aware of, the threat is there if you go against them in any way.


Amazon or Wallmart are much better analogies.

Ticketmaster is in no way comparable, because they gouge customers and provide no protections.

Someone in the music industry explained that both bands and venues like Ticketmaster because then Ticketmaster is the "bad guy" and the band can just shrug their shoulders and pretend to be the victim while profiting enormously from Ticketmaster's evil practices.


The problem is that other payment processors could emerge with the same trust profiles as Apple to facilitate this transaction.

I could see Stripe doing something like this. They protect the consumer and come down hard on the merchants.

Imagine them, and maybe a few other processors, competing for this business. The fee would probably drop below 30%. To a large degree, this is the sort of arrangement credit card processors already have between their merchants and consumers and that rate is single digit percentages. Not hard to imagine Visa or MasterCard running a SaaS transaction service for a 5-10% cut.


5% would be kinda high

Lmao no.

Okay, all the app developers pull out of iOS because they're not actually useful, in fact they should be paying Apple!

How many people do you think would still buy iPhones if there are 0 apps on the app store? Lmaooo, it's almost like it's a co-operative relationship and Apple don't deserve a huge cut because it's the apps that sell their phones.




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