Comment by fbelzile | Hacker News Reader

Comment by fbelzile | Hacker News Reader

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People look for analogies to the App Store all the time. You can't compare App Store to anything else. You have a logical argument that frames two companies doing the same thing and pointing out the hypocrisy without taking into account their market shares, value provided for their fees or considered the fact that Apple developers target people that already paid for a device and the developer already pays fees to release apps via the App Store.

I think what developers want is a fair price for what they get out of the App Store and a choice to not use it if they want. Selling a $5 digital good or a $100 dollar digital good costs the exact same to Apple (minus the 2% credit card fee).

Fees aren’t about costs, they are about value.

This is all over the place.

Even with credit cards, it doesn’t cost 3% of something to process the fee. A $100 purchase yields $3 to the credit card and a $1000 purchase yields $30. It’s literally the same size data transfer. There’s some minimal additional cost for fraud/insurance but they don’t base their fees on direct costs.

Also, generally speaking, when there is some regulation forcing cost plus fees it makes things suck more (eg, water and power).

> Fees aren’t about costs, they are about value.

Correct.

The problem is the value is artifically high because it is basically extortion.

It is basically a protection racket: "you pay us and nothing bad happens to your app that you spent x years and y thousand dollars creating".

I'm all about pricing for value without regulation. But did the App Store lose half of it's value to developers when Apple decided to slash fees from 30% to 15% (for smaller companies)? I don't think so. Did a competitor to the App Store appear to try and compete for lower fees? No.

This is just the behaviour of a company that can change prices on a whim because they don't need to compete with other app stores after having established a large share in the market and controlling 100% of all third party app distribution.

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