Let me try again
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This is just twisting the words. Apple hardware + iOS + AppStore is only a platform just exactly like Windows PC-s, Android phones Blackberry phones and any other platforms. It is a hardware running a software which makes it possible for you to run other softwares. It is as simple as that.
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If that’s your understanding, its an outdated one.
Let’s look at Amazon. Amazon started as an online retailer of books. Yet now its building hardware devices ( Kindles) and various software programs. Why did it get into the hardware and software business? Was it so it could sell more books? DING DING DING.
Amazon built the Kindle for one major reason –to sell more ebooks. The Kindle therefore is not just hardware-it’s a store, a very good store, one that runs 24/7/365, that goes most places the customer goes, and that doesn’t require building rents or staffs.
In that same way the Kindle IOS app isn’t “just a software program”- it’s a store, just like the Kindle and just the brick and mortar store in a mall. It’s a retail channel and a profit center for Amazon that exists on an IOS device.
I think a lot of folks here plain just don’t understand the importance of having the right retail channel. It is vital for the success of a business. Businessmen understand that, which is why they are happy to pay for access to the right retail channel .And Apple has proven to be an excellent retail channel, which is why merchants are fighting to get on the IOS platform and why developers are fighting to jump through hoops to get into the App Store.
A lot of people think middlemen like Apple “add nothing” to a business. Just make a good product and people will find their way to the business. That’s just dead wrong. Think of the Nexus One. Remember? Google was going to redefine the cell phone business by selling an unlocked, unbranded cell phone featuring stock Android on its website. Geeks everywhere rejoiced. No branding, no crapware, same day OTA updates unlimited ability to customize your device-what could go wrong? Google opened its website and- nothing. Nobody bought it. The Nexus One was a huge commercial flop.
Now Google is trying again-through partnership with T-Mobile-an established retail channel. Lesson learned.
Apple is “adding something” a providing a smoother retail experience, better privacy and of course the vaunted Apple marketing muscle. Anti-Apple folks who constantly complain of the irresistible Apple marketing machine seem to think that it counts for nothing here. Funny that.
A number of magazines have signed up with Apple and are being pushed front and center in the App Store. I expect shortly there will be commercials ( “Want to read the latest and greatest in fashion in your Ipad? There’s an app for THAT”) If we see a surge in subscriptions, then we will see the 30 per cent model spread. If not , Apple will not extend it to ebook purchases.