Apple's punitive compliance will burn its political and developer goodwill
techcrunch.com
techcrunch.com
The legislation was initially just a list of things that Standard Oil actually did.
America will be just fine. The biggest factor perpetuating the free market and the decline of monopolies is tech progress and the MBA-ification of big companies.
Its really hard to break network effects, especially at Apples scale.
If it was just gonna end with a minor gatekeeping fee, I can see myself (and other) just biting the bullet but history suggests that this is just the beginning of a massive descent.
Descent of the free market - no, this is how it's supposed to work.
Monopolies can be good for a short while for the economy, although they always go sour after a while.
Standard Oil provided clean(er) and safe(r) lighting and fuel for millions around the world, developing ultra efficient refining and distribution techniques. They even saved the whales by accident.
M$ was much-reviled in the 90's, but their PC monopoly helped establish a standard for computing, which almost certainly contributed positively to the rapid development of hardware and the internet in that time.
The same is true for the iPhone ecosystem and the large-country-sized app economy it spawned.
But if Apple doesn't keep innovating (truly new products, not just newer phones and iOS'es), no amount of monopolistic action will keep them afloat and in fact would probably hasten their decline. These big corpo's become the victims of the economic and technical progress they create.
Could you elaborate on this? It's not seen in practice - both tech progress and MBAs are contributors to the condensing of every industry (airlines, banks, supermarkets, office supply stores, appliance manufacurers, food manufacturers, etc.) into fewer and fewer megacorps with monopoly or oligopoly effects.
Take cable companies; they'll probably always be awful, but that also matters less and less. Or Microsoft; we all hate their awful attitude, but that old desktop paradigm just doesn't rule the world of computing anymore. Same with Google and eventually Apple.
For the other industries you mention there's been less innovation and competition. But if they ever build up a true monopoly in one of those, it will lead to higher margins for the monopoly (otherwise it isn't one!). And the higher margins attract competition.
All the industries you mentioned, especially retail and airlines, are very bare-bones industries that barely make any money. Big operators like Southwest Airlines and Walmart make 1-5% profit in good times. (Banks make more, but there are tons of regulations that prevent competition there, but the upside of those regulations might be a good thing overall).
Their attitude of non-compliance with pro-consumer regulations starts to be seen as selfish.
Right now Apple has a positive brand image.
These actions have the ability to tarnish their reputation .. especially if long time developers break out of their enchantment with the ecosystem.
Not using a product as the code initially dictates is not actually a criminal violation, in any sane world. The law is making a fool of itself for backing software-as-law as it does.
EU developers will choose to create an App Store competitor or not based on which option they believe will help them make more money. If they believe the new path mandated by the EU will help them make more money, they will take it. If not, they will continue on the current path.
Developers support iOS and App Store because they make money. They will continue to support iOS and App Store as long as they can make money. If that ceases to be true, developers will reevaluate their support Apple's platform(s).
¹ In aggregate, of course. Some developers have enough money and don't answer to anybody, and so have the luxury of making platform support decisions based on emotional factors.
It has now fully becomes an Operation, Sales and Marketing company.
Thicker devices with better batteries, MacBooks with many ports, iPads with pencils.
> and developers feeling spurned and insulted enough will be more likely to wan too help replicate
Wan too, wan too, testing.
That mistake looks like the result of a voice-to-text conversion; I wouldn't be surprised if it was proof read, but by text-to-speech which would hide that mistake in the other direction, too.
From now on it will be the courts work to figure out whether that is the case. Right now, we don't know for these changes. But the EU has been seen handing out fines before, because of the tech companies malicious interpretations – so I don't think it will be unreasonable to assume it will happen again.
[edit] although for context this team rolls their own engine. If you’re using Unity or Unreal > 5.2 (May 2023) things are slowly improving.
Unlike the devs in the Apple ecosystem who are used to be on the constant treadmill of app updates to accommodate Apple constantly breaking and changing things with every release, this is incompatible with the gaming industry release model, where after the patch cycle the devs can move onto the next project and rely on the backwards compatibility to trust that their released games will keep running for years and decades into the future.
So when Apple broke this unspoken agreement, the game devs have simply left their existing games in whatever broken state they were, and decided against releasing their future projects on macOS, supporting which wasn't financially viable in the long term, given the time needed and the relatively small percentage of playerbase which uses it.
And Intel apps work fine on ARM.
"they are dumb and slow"
And that's if we consider the benchmarks and take all the numbers as truth because in practice real world performance is really not great, even at a very high price.
For example, a 24GB M2 MacBook Pro plays Dota 2 worse than a barely mid-tier AMD APU. Once you realize that, you understand that not only porting will be a lot of work, but porting to the majority of the userbase that is using bottom of the barrel Apple hardware, would be an optimisation nightmare for still a pretty low number of users all things considered.
There is the Apple Silicon hyper and then there is the reality: outside of power consumption optimisation, not really interesting in itself.
I have had to call apple quite a number of times for product issues. I have almost always left a happier customer.
I know folks who work in CS at Apple. They put up with a lot of nonsense from end users (they have good work stories for sure). They are paid well (living wage), they get stock options, and all of them LOVE their job. Customer support and loving your job is fuckin rare.
I have done CC processing in the past. Candidly the 5-7 percent you pay to do it yourself has the hidden cost of managing charge backs. As a small developer that's NOT something I want to do for a personal/side/small project.
The apple users love it because they KNOW they can call, cancel and get a refund... (and when they dont it's probably because they have been abusing the system, but I digress).
SO here is a company that makes a high quality product, charges obscene margins based on brand, doesn't fuck over it staff (apple employee you pee in a bottle lately, you making good money?), has rabidly loyal customers, and seems intent on not turning them into a product or handing their shit over to the government...
I'm not sure from where I sit, where I have a right to complain about the 30 percent transaction tax.
I didn't choose for Apple to win 50% of US mobile and for the other company to also have draconian rules about deploying software and taxing it.
I don't care how much Apple hand holds grandma. Mobile is a hellscape for developers and other companies. The idea that distributing your software should subjugate you to paying taxes to a private company (one that can compete with you) is surreal.
Moreover, mobile is what most consumers use now. You have to be present on mobile to reach them. Web should have been enough, but it isn't. And to make it worse, it's knee-capped to suck on mobile.
It's impossible to enter this market and compete on hardware, so we won't get any reprieve unless regulators put a stop to this.
We need to be able to deploy software at zero cost. Without scare walls or adversarial advertising. Or mandates to use certain software choices. Or mandatory reviews. I'll stop bitching about Apple and Google when that happens.
As a developer and founder, grandma before developers. Every time. iOS is the first platform my family can just run with safely.
The difference here is the entire map has shifted. Tech is no longer just a niche or a B2B thing. Pretty much everyone in the western world is a stakeholder and they chose piss us all off.
This is not gonna end well for Apple. Such a short sighted move by the leadership that has me doubting their leadership.
https://www.reuters.com/technology/apple-overtakes-samsung-t...
Samsung raw unit sales of smartphones have been decreasing since ... what like 2015 or something? So simply by keeping sales equal, Apple could overtake Samsung in sales. But that wouldn't necessarily indicate an increase in profit.
It's definitely true that services is Apple's biggest income growth right now. And the revenue is already double that of all Macs
Being forced to open up by both the EU and homefront is more than enough a mandate for Tim and the rest of the leadership to make the transition without any trouble from shareholders.
They can use this to really open up the platform and solidify their marketshare.
Now instead you have every major player that doesn't already have its own distribution (Meta, AMZN, NFLX) looking for the exists.
As a side note, this is why I think Zuckerberg burning tens of billions in AR/VR R&D was such a good move. It gave them a foothold in the next thing.
I'll be surprised if the rest of MANGA wont follow suit and double down after what Apple is doing.
Apple does something shitty, they had to because they owe it to the shareholders. The shareholders are protected by the fiduciary protection allotted to their gamble so the company is in no way responsible for having an ethical or socially beneficial business model.
Corporate interests have us all by the balls.
Which is strange, because there's lots of governments in Brussels, and for example the Belgian Federal government doesn't. Belgian Federal employees totally overwhelm local restaurants, and this is Brussels, right, it's perhaps not London, but whatever weird thing you like eating, brussels has 10 choices in the city center. Lebanese, Chinese, 3 generations Italian, Moroccan, Algerian, and of course Belgian fries, whatever you want, square after square full of restaurants ... But at lunch, impossible to get anything around the north or central station. Or NATO people, while they have a very deserved reputation for paranoia don't hate Brussels. (Consultants are driven around on the NATO compound, phones disabled, for minimum 20 minutes, in a bus with no windows, so you never know what is in which building, and that is if you're coming over to help in one of their data centers. If it's actually classified, like a radar system ... it's not fun) EU commissars, even 2nd and 3rd level are constantly protected by large security forces (~10 people constantly surrounding them, even inside EU commission buildings, they regularly clear the entire area around the Berlaymont building to take those "see, we're approachable" interviews outside they love doing, but really they're about as approachable as a US FT100 CEO), despite that even Jens Stoltenberg mostly only has a driver. The EU is totally isolated from everything. It's a huge government, but located on a relatively small area (the "European quarter"), where you won't find many restaurants, or culture, even the metro station is pretty far away from Berlaymont. EU employees eat inside EU buildings, they live outside of Brussels, they never have meetings outside of EU buildings ...
https://www.apple.com/newsroom/2024/01/apple-announces-chang...