So you are saying there is no cost associated to Apple for hosting free apps?
No, it's you apparently saying it's cost Apple roughly $2B a year in overhead costs to operate the App Store, making it a break-even proposition. What do you base that on? Tell me it's not some statement Oppenheimer made years ago when the App Store was still in it's infancy.
No, it's you apparently saying it's cost Apple roughly $2B a year in overhead costs to operate the App Store, making it a break-even proposition.
I'm not saying anything about the cost to run the app store, you are. You are the one doing the math. So, what are Apple's overhead costs for the app store?
I'm not saying anything about the cost to run the app store, you are. You are the one doing the math. So, what are Apple's overhead costs for the app store?
Much less than $13B over the past 7 years IMO, making it "not break-even". What's your guess? I'd imagine it's the same as mine if you were to make one. Personally I think you're arguing just to argue.
I don't know. If they wanted to keep their current level of integration among the three areas, the companies would have to cooperate to a degree where govt agencies would probably charge them with all kinds of collusion. It might make things worse.
Not at all. 'Apple Content' would be fully owned subsidiary of Apple, and the integration will be exactly the same as before. They will be charged an internal transfer price of 30% like everybody else. Companies adopt that type of structure all the time.
This is about monopolies or near monopolies using their control and influence to push others out. This is about protecting consumers and other businesses having fair competition. It serves no one when one corporation has a monopoly and abuses that monopoly. That's what MS did years ago.
Apple is getting into dangerous ground like MS did. They may have an unfair advantage here in the app store by selling the same thing as other services, but undercutting the others.
We all want government out of our lives, but sometimes they have to step in and make sure there is some competition in the market and they are there to come down on others.
It seems some people would not mind if most people use iOS and Apple controlled almost all streaming by charging other services more. Then, as corporations do over time, they up the prices. This is why Comcast and ATT and Verizon (oligopolies and monopolies for all intent and purposes) screw people over. Chase bank just got spanked again for screwing people over.
Maybe the Apple worship needs to end. Maybe people who defend Apple are those who have Apple stock. Apple should stay out of most services. They have not been good at it in the past and now they are creating a conflict of interest.
Large corporations are not people. They create their own "weather systems" that have a huge influence over other businesses. They are often so powerful, it's only the government that can keep them in check. We could go back to a system of Kingdoms and serfs. This is kind of happening in the credit card and student loan business. Creating indentured servants. It could only get worse as these these large corporations wield enormous power through the ownership and control of consumer information.
My own long love affair with Apple is over. I just hope they fix the Apple music app. If you have a poor phone connection, you often can't see your album artwork because Apple is "phoning home". I just have to wait for Apple to phone home over the phone network, or turn on freaking airplane mode. And often I lose my place in music because Apple Music, when you open it, swtiches to streaming music. IS APPLE THINKING IN THE CONSUMER INTEREST HERE? More evidence the company is losing its way, its focus of years of yore. Oh, well.
This sure sounds like Spotify complaining to the eager busybodies in government, eager to make headlines taking on "big, bad Apple". As insanely powerful as the government has become these days, I'd not bet on the outcome of any "investigation" that may follow, however there is something Apple could do to head this off at the pass... Spin off Apple Music as an independent company and let it compete along with everyone else on the same playing field. It would still destroy Spotify.
Apple is only "ripe" for an investigation because of their billions of dollars in cash, not because of anything they have done wrong.
It's only because the competition is beating on the government door. Meanwhile, Amazon continues to have a near monopoly with ebooks, and dominant market share in printed books through predatory pricing as they put bookstores out of business one after the other. The gov needs to get their head out of their ass.
My guess is the Spotify et al will argue that Apple's 30% cut of in-app purchases forced them to charge more to get that 30% back but now that Apple has a similar streaming service will they similarly charge themselves a 30% fee for subscribers who subscribe in the app and if not that's undercutting the market and/or trying to create a monopoly by snuffing out the competition.
Not saying Apple has done anything wrong here at all, just that that may be what Spotify will try to argue.
It's real simple Spotify, quit riding on Apple's back and pull your app from the App Store. You're lucky they let competitors on their platform!
It's only because the competition is beating on the government door. Meanwhile, Amazon continues to have a near monopoly with ebooks, and dominant market share in printed books through predatory pricing as they put bookstores out of business one after the other. The gov needs to get their head out of their ass.
It's clear that Apple needs to radically increase their lobbying and campaign contributions. Heads will remain firmly where they are, regardless.
Go back 20+\- years. The government was doing the same thing with Microsoft. Think like a consumer and drop your corporation worship. If you have a problem, write your Senator.
How about you get off your high horse instead. The Microsoft case was totally different. MS had almost a total monopoly and was illegally trying to crush competition. Apple on the other hand has allowed, even invited, competitors onto their platform - Spotify, Pandora, Google, and all others in music; amazon and others in ebooks, MS in productivity apps, etc. etc. etc.
Right, and I have to wonder if Disney or Carnival contemplated buying Greece with the Euro being weak . BTW I was staggered to read the entire population is about that of Miami.
I suggested that Apple buy Greece then sell it to the US as a military base to fight ISIS this would be the quickest way to bring that $200B back on shore without having to pay taxes on it.
Go back 20+\- years. The government was doing the same thing with Microsoft. Think like a consumer and drop your corporation worship. If you have a problem, write your Senator.
Mad had 90+% market share. Apple has no where near that % in iPhone share.
I don't know. If they wanted to keep their current level of integration among the three areas, the companies would have to cooperate to a degree where govt agencies would probably charge them with all kinds of collusion. It might make things worse.
Not at all. 'Apple Content' would be fully owned subsidiary of Apple, and the integration will be exactly the same as before. They will be charged an internal transfer price of 30% like everybody else. Companies adopt that type of structure all the time.
All right. I misunderstood what you meant when you wrote "separate companies". I have to wonder, though, if the structure you propose would be enough to insulate Apple from the Denise Cotes of the world.
This sure sounds like Spotify complaining to the eager busybodies in government, eager to make headlines taking on "big, bad Apple". As insanely powerful as the government has become these days, I'd not bet on the outcome of any "investigation" that may follow, however there is something Apple could do to head this off at the pass... Spin off Apple Music as an independent company and let it compete along with everyone else on the same playing field. It would still destroy Spotify.
Spin off Jimmy & Co. as a separate company? I'd be all for that so long as it was a completely independent company and not just some subsidiary of Apple. Take Eddy Cue with them and let him run the company. And then bring in someone who actually gets the cloud to run Apple's internet services business.
Apple has made billions in profit from the App Store, roughly $10B to date minimally by my estimation. They don't operate "near cost".
That's gross profit, not net profit. Out of that comes all the costs associated with developing, maintaining, hosting, processing paying so, etc, over the seven years the App Store has np been in existence. It would not be a stretch to say Apple spent that $10 billion on creating, marketing, and operating the App Store.
That's gross profit, not net profit. Out of that comes all the costs associated with developing, maintaining, hosting, processing paying so, etc, over the seven years the App Store has np been in existence. It would not be a stretch to say Apple spent that $10 billion on creating, marketing, and operating the App Store.
I'll guess you didn't read the link I provided earlier. Here it is again: http://seekingalpha.com/article/1470121-apple-app-store-now-makes-over-1-billion-in-profits-per-year
It's pretty detailed and inclusive, arriving at the conclusion that Apple was seeing profits of $1B a year in 2013. Seeing as App Store revenues and payouts doubled tripled in the two years since it would be reasonable to guess Apple's App Store NET profits to currently be closer to $2-3B or more a year.
Read the article and comment again if you would. Do you honestly believe the App Store is operating at close to break-even? If so where did the article's author go wrong?
Comments
No, it's you apparently saying it's cost Apple roughly $2B a year in overhead costs to operate the App Store, making it a break-even proposition.
I'm not saying anything about the cost to run the app store, you are. You are the one doing the math. So, what are Apple's overhead costs for the app store?
EDIT: This detailed analysis in 2013 estimated Apple was realizing a net profit of $1B a year then. Seeing as the revenues have doubled more or less since it would not be unreasonable to argue Apple is adding closer to $2-3B a year now to the bottom line from App Store revenues.
http://seekingalpha.com/article/1470121-apple-app-store-now-makes-over-1-billion-in-profits-per-year
Not at all. 'Apple Content' would be fully owned subsidiary of Apple, and the integration will be exactly the same as before. They will be charged an internal transfer price of 30% like everybody else. Companies adopt that type of structure all the time.
This is about monopolies or near monopolies using their control and influence to push others out. This is about protecting consumers and other businesses having fair competition. It serves no one when one corporation has a monopoly and abuses that monopoly. That's what MS did years ago.
Apple is getting into dangerous ground like MS did. They may have an unfair advantage here in the app store by selling the same thing as other services, but undercutting the others.
We all want government out of our lives, but sometimes they have to step in and make sure there is some competition in the market and they are there to come down on others.
It seems some people would not mind if most people use iOS and Apple controlled almost all streaming by charging other services more. Then, as corporations do over time, they up the prices. This is why Comcast and ATT and Verizon (oligopolies and monopolies for all intent and purposes) screw people over. Chase bank just got spanked again for screwing people over.
Maybe the Apple worship needs to end. Maybe people who defend Apple are those who have Apple stock. Apple should stay out of most services. They have not been good at it in the past and now they are creating a conflict of interest.
Large corporations are not people. They create their own "weather systems" that have a huge influence over other businesses. They are often so powerful, it's only the government that can keep them in check. We could go back to a system of Kingdoms and serfs. This is kind of happening in the credit card and student loan business. Creating indentured servants. It could only get worse as these these large corporations wield enormous power through the ownership and control of consumer information.
My own long love affair with Apple is over. I just hope they fix the Apple music app. If you have a poor phone connection, you often can't see your album artwork because Apple is "phoning home". I just have to wait for Apple to phone home over the phone network, or turn on freaking airplane mode. And often I lose my place in music because Apple Music, when you open it, swtiches to streaming music. IS APPLE THINKING IN THE CONSUMER INTEREST HERE? More evidence the company is losing its way, its focus of years of yore. Oh, well.
It's only because the competition is beating on the government door. Meanwhile, Amazon continues to have a near monopoly with ebooks, and dominant market share in printed books through predatory pricing as they put bookstores out of business one after the other. The gov needs to get their head out of their ass.
It's real simple Spotify, quit riding on Apple's back and pull your app from the App Store. You're lucky they let competitors on their platform!
It's clear that Apple needs to radically increase their lobbying and campaign contributions. Heads will remain firmly where they are, regardless.
How about you get off your high horse instead. The Microsoft case was totally different. MS had almost a total monopoly and was illegally trying to crush competition. Apple on the other hand has allowed, even invited, competitors onto their platform - Spotify, Pandora, Google, and all others in music; amazon and others in ebooks, MS in productivity apps, etc. etc. etc.
I suggested that Apple buy Greece then sell it to the US as a military base to fight ISIS this would be the quickest way to bring that $200B back on shore without having to pay taxes on it.
Mad had 90+% market share. Apple has no where near that % in iPhone share.
All right. I misunderstood what you meant when you wrote "separate companies". I have to wonder, though, if the structure you propose would be enough to insulate Apple from the Denise Cotes of the world.
That's how he'll get to collect *two* paychecks!
Walk into Tescos' "Okay Tescos put up a sign saying you can buy that coffee for the same price at Sainsburys."
I often stop and wonder where Richard would be now had he never bumped into Mike Oldfield.
Spin off Jimmy & Co. as a separate company? I'd be all for that so long as it was a completely independent company and not just some subsidiary of Apple. Take Eddy Cue with them and let him run the company. And then bring in someone who actually gets the cloud to run Apple's internet services business.
Then they'll just be like Google. Gross.
That's gross profit, not net profit. Out of that comes all the costs associated with developing, maintaining, hosting, processing paying so, etc, over the seven years the App Store has np been in existence. It would not be a stretch to say Apple spent that $10 billion on creating, marketing, and operating the App Store.
http://seekingalpha.com/article/1470121-apple-app-store-now-makes-over-1-billion-in-profits-per-year
It's pretty detailed and inclusive, arriving at the conclusion that Apple was seeing profits of $1B a year in 2013. Seeing as App Store revenues and payouts
doubledtripled in the two years since it would be reasonable to guess Apple's App Store NET profits to currently be closer to $2-3B or more a year.Read the article and comment again if you would. Do you honestly believe the App Store is operating at close to break-even? If so where did the article's author go wrong?
(Edited to note revenues tripled,not doubled.)