Adobe and the Mac App Store
Adobe's built its business based on relatively high quality, high priced professional graphics software available in expensive bundles that lock you into the company's 18-24 month upgrade cycle.
How will the Mac App Store impact this business model?
It goes without saying that most of Adobe's software have no equal in the professional space (InDesign, Photoshop) but the Mac App Store does make retail problems like distribution costs, shipping and shelf space moot concerns.
How will other Mac developers respond? Could anyone really take on Adobe's lock on the graphics market?
Do you think Adobe will lower its prices on the App Store, or will it even use the Store as a distribution option?
How will the Mac App Store impact this business model?
It goes without saying that most of Adobe's software have no equal in the professional space (InDesign, Photoshop) but the Mac App Store does make retail problems like distribution costs, shipping and shelf space moot concerns.
How will other Mac developers respond? Could anyone really take on Adobe's lock on the graphics market?
Do you think Adobe will lower its prices on the App Store, or will it even use the Store as a distribution option?
Comments
I can't imagine Adobe wanting to rub shoulders with a bunch of small shop single purpose apps, although I imagine that people like Acorn and Pixelmator will jump on it.
One way around this, as I've suggested elsewhere, is for Apple to allow "stores within the store" for some of the bigger software houses. If Adobe (or MS etc) could maintain their own little world within the app store, with just the company name hung out in the general area, then I could see even the big guys getting on board.
I can't imagine Adobe wanting to rub shoulders with a bunch of small shop single purpose apps, although I imagine that people like Acorn and Pixelmator will jump on it.
I don't think many Mac software developers will want to put their apps in the App Store and give away 30% of their revenue. The reason it works for iOS is because consumers can't get apps any other way. The Mac App Store is going to fill up with free demo versions of software that will give the companies advertising and referral traffic. Then they will sell the app direct via their website. Apple pays for the advertising and bandwidth and the developers keep 100% of the revenue.
Big companies like Adobe and Autodesk certainly won't give up 30% of a $2000 sale nor would they bother putting such software in the store because they aren't occasional purchases. I could see Photoshop Elements going in the store as well as LightRoom but that's about it and even Adobe might go the demo route too although I suspect they don't want to piss Apple off any more.
I don't think many Mac software developers will want to put their apps in the App Store and give away 30% of their revenue.
What does it cost now for companies like Adobe to ship products to thousands of stores across the continent?
I'm wondering how Quark will play this. It's not like they have a lot to lose, but I imagine that as a larger company, they would have the same concerns.
I don't think many Mac software developers will want to put their apps in the App Store and give away 30% of their revenue. The reason it works for iOS is because consumers can't get apps any other way. The Mac App Store is going to fill up with free demo versions of software that will give the companies advertising and referral traffic. Then they will sell the app direct via their website. Apple pays for the advertising and bandwidth and the developers keep 100% of the revenue.
Big companies like Adobe and Autodesk certainly won't give up 30% of a $2000 sale nor would they bother putting such software in the store because they aren't occasional purchases. I could see Photoshop Elements going in the store as well as LightRoom but that's about it and even Adobe might go the demo route too although I suspect they don't want to piss Apple off any more.
I suspect it won't be quite as dire as all that-- after all, bandwidth and marketing aren't free.
I suspect that plenty of midsize shops (Omni, the Pixlemator folks, Panic, et al) will be happy to have prominent placement on the Mac App Store. Gives them mindshare and possible sales boost, which are worth paying a percentage of their take for. And, again, they already incur overhead to sell their wares themselves, so Apple's 30% cut isn't against nothing.
What does it cost now for companies like Adobe to ship products to thousands of stores across the continent?
They have downloads on their site already and have had those for a good few years now.
And, again, they already incur overhead to sell their wares themselves, so Apple's 30% cut isn't against nothing.
Not 30% overheads for every sale though. If you setup a website with software costing $100, it doesn't cost you $30 for every sale you make to keep the website running or process the payments. Hosting costs would be $20-30 per month unmetered bandwidth and transaction fees can be just 2% depending on which processing method you go with.
It's not nothing as you say but it's better than 30% per sale.
If you sell just one copy per day = $3000 per month, Apple's method costs you $900. Doing it yourself costs you $90. They may not sell as many apps without Apple's advertising but putting a free version on the store means they do and as a bonus they save $810.
I think the combination of a free app on the store alongside personal sales is going to be popular. One other reason being that the App Store model tends to drive prices way down low. Your example of Transmit is a good one because it will be competing with free Cyberduck. If you see an app at $34 next to an app that's free, it discourages you from getting the paid one if the free one can do the job. On the iOS store, it's usually $1-5 vs free.
Normally, you don't see these apps next to each other. If Panic puts a limited free version of transmit on the store though, they can put messages in the app to get the user to buy the paid version that isn't on the store.
Apple can implement rules to stop this happening though.
I suspect that plenty of midsize shops (Omni, the Pixlemator folks, Panic, et al) will be happy to have prominent placement on the Mac App Store.
Demo versions will give them the same thing though.
Adobe company making software are photo shop, Coral-Draw, page-maker, View-design, Acrobat reader. Mac Apple is American company introduce Electronic, Computer software and personal computer. Apple company original name is Apple Macintosh. Macintosh introduce ipod, the iphone, and ipad.
What are you smoking? Adobe has nothing to do with CorelDRAW. That is Corel. Apple was founded on April 1, 1976 by Steve Jobs, Steve Wozniak and Ron Wayne. This was nearly eight (8) years prior to the Apple Macintosh. The original Macintosh was released on January 24, 1984. Before post any other comments like these, learn some of the history of Apple.