Comment by khriss

2 days ago

Yes, but most people don't realize it, simply because they have been conditioned from the beginning that the only way to run anything on an iOS device is via the app store.

With Apple customers, a better argument to make is to say that Apple applies a 30% 'tax' on all activity on their phones. That they are being forced to pay more compared to non Apple users in spite of having bought their device fair and square.

Developers may or may not pass on the fees to customers, but as a user I'm not forced to pay anything and it definitely doesn't apply to all activity on the phone. I pay the same for Netflix as any Android user does. My cell bill wouldn't drop 30% by switching to Android. When I buy something at Amazon I'm not paying more than you.

Also, you're overestimating the fees. Few apps or services hit the 30% threshold or stay there for long (the fee for subscriptions drops in the second year).

The real problem IMHO is Apple taking a significant amount out of developer pay checks. Users are fine. The impact is on developers.

I have been using Apple devices for almost 20 years, and I have never been forced to pay a 30% tax on all activity on my phone. I can avoid it by buying directly from the seller's website, and also I just avoid buying software subscriptions in general, but especially from the App Store.

99% of the payment activity I do on my phone (buying retail goods, travel arrangements, paying invoices) has no additional cost.

  • No? Apple charges a fee on every app sale. Where do you think the app makers pay that walled garden tax?

    • Buying apps is hardly "all activity on a phone". It's completely inconsequential to my spend since summer of 2008, when I began using Apple products. Maybe a couple hundred dollars in total app store purchases? It would make no sense for me to base a decision about devices I use day and night over that small amount of money (30% of a couple hundred dollars).

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  • You're correct. You've just paid it on every app store purchase, and every in app purchase. That's because Apple, despite trying, have failed to completely lock in the payment infrastructure.

    They really want to though. Maybe consider that.

    • I consider almost everyone really wants to earn more money, more easily.

      I do not see any indication that Apple wants to get involved in adjudicating payment disputes for physical goods and services. That is high cost, high liability, low margin work. They seem to be perfectly happy letting the existing banks (aka card issuers) handle that, and getting a 0.15% cut for allowing their credit cards to use Apple Pay.

      Apple has restricted themselves to being the payment infrastructure for only digital goods, and I assume that is because that is the cheaper, more scalable option.

      As a side note, in the US, the proportion of sellers willing to eat the credit card fees has gone down every year, and seemingly at an accelerating pace. I have winnowed down my credit card usage to retail goods/restaurants/travel, because almost everyone else wants payment via ACH/Debit/Zelle/other option that avoids credit card fees, so I would be surprised if Apple would ever want to enter this market, given that even the 2% credit card fee transactions are not able to compete.

Flaunting money seems to be a big selling point for many apple drones.