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Remember, Apple makes a profit on hardware, so every time someone buys an iOS device to use non-Apple content, Apple makes money.
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Apple makes money several other ways. They are now exploring yet another way. I don't think there's anything wrong with that, if they can make it work
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Now since Apple is in business to make money, I can understand that they may want to charge Amazon and B&N for the service of hosting their apps. However, that should be a per app (or download) fee, not a percentage of everything sold through the app. That's grossly disproportionate.
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WEll, what is the real value of an app that serves as a storefront to 160 million IOS device owners. I have a feeling its WAAAAAAY over $99, right? One suggestion I have seen would be to charge like $250,000 for such an app. Would that make you happier? Amazon may like that , but I can see a small scale merchant preferring a percentage sale approach.
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also disagree with your mall analogy from another post.
Yes the mall takes a cut of sales from all the stores in the mall: but they don't ask for a cut of every purchase made on a device purchased in the mall.
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Well, in my analogy
APP Store= Mall
B&N Nook=store
As you have said, malls charge stores a percentage of their sales revenue as rent. Hope that clarifies things.
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However, if Apple makes it impossible for Amazon and B&N to make money on iOS devices they will pull their apps. They can't afford not to.
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Right, which is why I feel that Apple and the booksellers will come to an arrangement that both can live with . Apple WANTS the book sellers on their platform-they just want a cut. For other people on this site, there seems to be a near religious beleif that Apple isn't entitled to a cut, because Amazon etc. is virtually doing Apple a favor by putting apps on IOS devices. Go figure.