Comment by trimbo

4 hours ago

In 2008, the app store was launching, and physical software was still sold at Targets, Walmarts and other large retailers. A 30% margin was roughly what retailers would make off of physical software sales. By setting the App Store to be the same, Apple was signaling to retailers that they were not trying to undercut their margin, and keep a healthy relationship with them.

No one was buying boxed software in 2008. The second we had broadband, call it 2002-ish, everyone was downloading everything. For many of us that began in the 90s before we had broadband. Overnight downloads over 56K phone modems was already overtaking boxed purchases. More people downloaded Netscape in 1995 than bought it boxed.

It was 2008; "big box" software was largely seen as obsolete to the vast majority of developers. Marketing was done online, and the benefit of investing in retail had stopped outweighing the consequences. Online updates quickly became the norm, and service features supplanted point-of-sale business model (much like Apple's double-dip into microtransaction profits).

Apple chose 30% because they knew they weren't a retailer. You can hunt for a cheaper Diablo II copy online or at Wal-Mart, but not on iPhone.