Apple hits a wall

12 Comments

  1. John Butt said:
    It’ll take a little time for investors to absorb the reality under such strong attack from misinformation.
    However, “little” may be a couple of days. It may be too late by Monday to buy the dip.

    2
    September 10, 2021
  2. Ralph McDarmont said:
    I’m a small fry but I bought as much AAPL as I could just before close. Epic is a blip and no big deal. Tim and his team will figure it out. Developers know the Apple kingdom is worth paying for. I say raise ticket prices. On Monday attention will rightly turn to Tuesday’s announcements. Later we will have a great Halloween. Yes I am a fanboy and it has worked out well. Thank you PED for a lot.

    9
    September 10, 2021
  3. Jerry Doyle said:
    Much of the pullback in stock price today had more to do with the overall markets’ reaction to inflation than with the judge’s ruling. Lots of red flashing across all components.

    7
    September 10, 2021
  4. David Drinkwater said:
    I think that this could be argued to be “selling on the news” of the Epic “verdict”.

    However, like most, I am not an anti-trust lawyer. Unlike most, I know it’s nuanced.

    This verdict is by no means the end of the world. I think this will drive changes in the App Store, but many recipients of those changes (e.g. Epic) may not like what they get.

    As Jerry points out, this may also be a coincidence of multiple forces. The whole market got torqued today, so it’s great to observe an Interactive Effect and only cite the Main Effects – to suit your agenda. (These are Design Of Experiment and Six Sigma / Statistical terms, not just generic observations.)

    3
    September 10, 2021
  5. Rodney Avilla said:
    I’m thinking more of a ceiling than a wall. And a glass one at that. And we all know that glass ceilings are made to be broken.

    2
    September 11, 2021
  6. bas flik said:
    besides epic and spotify i have never heard of any complains by other companies. consumers are paying the 30%. this gaming business is not price sensitive. their business model and pricing strategy already contains the 30%. so you have to lower your price for paying outside apple to making it attractive for customers. if you lower the price it should be a lot because this business is price inelastic. to make things worse their is competition forcing you to give away the complete 30%. ending up with zero extra income. but you will loose transactions because people have to go outside the apple payment system. i trust no one my credit card. not even google or apple. if i pay i pay with a voucher. most players are probably kids without access to credt cards and must rely on voucher their parents buying. these vouchers will not work outside apple.

    How we know the success of this whole industry is not based on the simplicity of the apple payment system. that the simplicity and reliability of the apple payment system made it possible that Epic style companies where able to collect tons of cash. why this never happens in the windows ecosystem and even less in the android system. its all about trust on the internet. people trust apple, not windows and even android in a lesser way.

    imo most companies will not take the risk going outside apple because history has proven there is nothing but misery. and Epic will loose money by doing so. they overestimate themselve. Apple made them.

    10
    September 11, 2021
    • Gregg Thurman said:
      Disappointed that I cannot upvote your post more than once.

      Sweeney is about to reap the whirlwind, be careful what you wish for, you might get it.

      2
      September 11, 2021
    • Gregg Thurman said:
      so you have to lower your price for paying outside apple to making it attractive for customers.

      This is one point I think many are overlooking. As a distributor of a product Apple is going to insist on a “best price” policy, meaning that whatever price the developer offers its product for ELSEWHERE, the developer has to offer that product at the same price in the App Store.

      This is a common practice among distributors and is not considered price collusion. It merely says, if you offer me, as Distributor A, a price to distribute your product, you cannot offer Distributor B a lower price.

      3
      September 11, 2021
      • Alan Birnbaum said:
        I think it’s called ‘Most favored Nation clause ‘ by the legal world

        0
        September 11, 2021
  7. bas flik said:
    the limitations chinese government imposed on gaming time for children will have more impact on results of app store than this ruling.
    if Epic ever returns to the App store they will in the end realize that they will make more money via apple than via external payment system. confusing customers with 2 payment system will cost transactions. and a lot. attention span of players is seconds.

    3
    September 11, 2021
  8. Fred Stein said:
    Yes to bas and Gregg, and adding:

    Safety, especially for parents who fund a lot of gaming revenue, which Gene Munster says is 80% of App Store, will keep a lot of revenue through the iOS.

    And many App developers would rather focus on growth as in customer acquisition and adding new games or other content, than on cost optimization.

    1
    September 11, 2021

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