Apple to Allow Media Apps to Link to Own Websites for Payment Options
wsj.com
wsj.com
Japan forces Apple to slightly loosen restrictions on ‘reader’ apps - https://news.ycombinator.com/item?id=28387094
Apple currently taks 100% of profits from Apple Music and takes 30% of their direct competitors, essentially 130% profit. Margins are already very low for a lot of these apps, so its impossible to even compete using Apples payment.
You know what thinking of it, I think instead apple must start adding 30% markup to the consumers explicitly instead of developers and make apple payment option requirement. That way developers don’t have to pay for the convenience, and the consumers can decide if they want thing cheaper or convenient.
Let's do the maths with an example:
A service usually charges $10 a month. Add Apple's 30 percent cut and you end up paying $13 per month for the same service. So instead of paying $120 annually, you end up paying $156 with Apple pay.
It's easy to see why both the developers and the users will be outraged by this - as a developer you are losing money after adding value to Apple's ecosystem, and as a user you are literally paying Apple just for the privilege of using an expensive device that you already paid for and thought that you owned!
(Well, the user would be outraged if they actually knew that 30% of their money is going to Apple. By charging developers instead, Apple keeps its users ignorant and is indirectly exploiting their users, as every developer will just pass on the "Apple Tax" to the user. If it was apparent to the user that they have to pay Apple 30% for every app or subscription they purchase, all Apple users would think twice or thrice before purchasing an Apple device.)
(And not being able to end subscription seems a very American problem.)
I'm not sure if this is a good thing or not. I for one like the fact that I can easily manage my subscriptions from inside the settings app. I cancel a subscription, and I'm guaranteed not to get double charged again. It's as easy as pie.
With every Tom Dick and Harry app linking to their own subscription and payment system, this already becomes incredibly more complex for the consumer (in this case, me).
I have already been avoiding using apps that require me to sign up manually (i.e without the "Log in with Apple" option) because it's simply inconvenient and I know one day or another each of these websites will be compromised, my e-mail leaked, as well as other payment processing info.
This just fragments the ecosystem even more and I'm quite happy to avoid such applications and stick to those that use Apple for payment processing and subscription management (if these are only the Apple related apps, e.g music, TV, etc., so be it).
Everybody but Apple should benefit from this.