Originally Posted by lightknight
He's damn right.
You make it sound like it's stupid, but just think. Whatever the cost to produce the thing, factor in a profit, that's C+P. Add Apple's cut, that's C+P+A, with A= 30% of C+P.
Price can't be higher on the app store per the Apple rule aforementionned, which means inapp = C+P+A < O, with O the outside price.
By pure mathematics, O is now higher than it was earlier.
And since the reseller is NOT going to sell at a loss, and it's highly doubtful P<A with A, remember, equal to 30% of the whole price, you get (C+P+A+O)/2 > original price.
Prices, hence are higher on the iPad because Apple "won't let the publisher charge less on their own web site", Quod Erat Demonstrandum.
Originally Posted by TalkingNewMedia
Thanks, that made it clear.
Not so much. Let's try again.
No, lightknight pulled the logical equivalent of saying 1 == 2 via indirection. In reality C+P+A != O.
C+P+A+AdditionalSales == O. Apple is charging (A) 30% for processing and increased impulse buy opportunities
How much do you think US, People and the Enquirer pay grocery stores to be placed right at the checkout line??? Same principle, drive tons of impulse buys for content that would far sell less otherwise. Premium shelf space (sometimes just regular shelf space) -- wait for it -- COSTS the manufacturer!
Standard everyday retail operating procedure. And no, it wasn't the grocery store that chose what goes there to increase grocery store sales, it was the manufacturers that bought those positions because it maximized their sell through, with the grocer effectively making money twice on every transaction.
I am amazed by how shallow and ignorant of business many of the posters are. Not that I would expect a bunch of MBA's to debate things. But to equivocally state things as above and miss such basic business retail principles is laughably sad.
Corollary -- if you don't have knowledge, training or education and therefore don't "know"
, and then have limited ability to analyze a situation, don't make absolute pronouncements