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Apple rewrites rules on selling content via apps

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Apple rewrites rules on selling content via apps

Postby stupha » Tue Feb 01, 2011 12:59 pm

Worth noting, in case you hadn't see it yet: http://dxn.me/rh
Apple has moved to block third party app developers from selling content, such as e-books, outside of the app store, leading to speculation that it wants a cut of digital purchases, even when they are made via apps such as the Kindle app.

The New York Times reports that Apple rejected Sony's iPhone app, which would allow people to buy and read e-books bought from the Sony Reader Store. The move raises speculation Apple is targeting companies such as Amazon, who sell content via their own apps. The fallout could also hit retailers such as W H Smith, or Waterstone's. Apple takes a 30% cut from payments the go through the app store.

Steve Haber, president of Sony's digital reading division, told the New York Times all future in-app purchases would have to go through Apple. He said: "It’s the opposite of what we wanted to bring to the market. We always wanted to bring the content to as many devices as possible, not one device to one store."

Apple and Amazon refused to comment
James McQuivey, consumer electronics analyst at Forrester Research, said: "This sudden shift perhaps tells you something about Apple’s understanding of the value of its platform. Apple started making money with devices. Maybe the new thing that everyone recognizes is the unit of economic value is the platform, not the device."
The TechCrunch blog notes Amazon's e-book offer has much greater flexibility than Apple's, allowing users to read books across numerous devices. It said: "But instead of beating Amazon on price or features, it looks like Apple might just cut them off. Or force them to use in-app payments, which give Apple a 30% cut and would kill Amazon’s margins."
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Re: Apple rewrites rules on selling content via apps

Postby sunny » Tue Feb 01, 2011 2:32 pm

It's just ridiculous, Apple wants to make 30% on everything when other similar services usually make about 3% on the same thing, this may end up badly. Let's see what's gonna happen when Apple will make Mac Store the only way of getting apps (and there they take 30% too of course). All these rules changes and ridiculous fees do not encourage developers, well, at least I'm very disappointed with their floating rules when you have no idea what will come to Apple's mind tomorrow.
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Re: Apple rewrites rules on selling content via apps

Postby stupha » Tue Feb 01, 2011 4:55 pm

What's also interesting (from the ebook front) is today in the UK there's an Office of Fair Trading investigation into the "agency model" that Apple have been pushing publishers into since they started selling books. Looks like Apple want a scrap with Amazon, and I don't believe such a thing is good for the publishing industry either.
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Re: Apple rewrites rules on selling content via apps

Postby HughJohnson » Tue Feb 01, 2011 6:39 pm

I think it's a move to prevent paypal and others from offering an API for in-app purchases that cuts out Apple all together. Which makes sense to me from Apple's point of view.

But where will it end, the new Intiuit commercial on TV say's their app takes credit cards (with a card reader attachment), does Apple expect a 30% cut of that too? My company has a reality app, does Apple want 30% of every house sold?

Apple could (should?) never make the Mac app store the only way to get software for the Mac, as it would kill the market for the expensive apps like Maya and Auto-Cad, even (slightly "less expensive" apps like) Photoshop would never sell with a 30% markup. I could see them doing something like offering a slimmed down version of OS X (cheaper) that only has the ability to install from the app store then offering a pro version upgrade, that allows you to install anything you want.
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Re: Apple rewrites rules on selling content via apps

Postby Diego » Thu May 10, 2012 3:13 pm

I was thinking about add PayPal payments inside an app, any news about it? Did anyone submitted an app with external payments?
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Re: Apple rewrites rules on selling content via apps

Postby llama » Thu May 10, 2012 9:47 pm

When you are in a position of power you often abuse it, when Apple started, I remember them complaining about similiar practices from the likes of Sun, Oracle and Microsoft...

No credible company worth a cent is going to survive on that business model, Nokia were once the kings of mobile, look at blackberry... At some point they will live to regret thier closed Eco system, and a new boy on the block will take their mantle.

What happened to the hippie in Apple , live and let live...
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Re: Apple rewrites rules on selling content via apps

Postby dpepper » Sun May 13, 2012 7:38 pm

If Apple continues its rule "tightening" on apps, it will just accelerate the move to web apps rather than iOS apps. Content delivery via web app is pretty straightforward.
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Re: Apple rewrites rules on selling content via apps

Postby Taim » Tue Jun 26, 2012 5:02 pm

sunny wrote:It's just ridiculous, Apple wants to make 30% on everything when other similar services usually make about 3% on the same thing, this may end up badly.

In such a way Androids and WebOS will replace Apple one day. I`m the only man with Apple device among my friends :?
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