[HN Gopher] Apple's profit is always the priority-no matter the ...
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       Apple's profit is always the priority-no matter the cost
        
       Author : carlycue
       Score  : 84 points
       Date   : 2022-02-09 18:21 UTC (4 hours ago)
        
 (HTM) web link (www.macworld.com)
 (TXT) w3m dump (www.macworld.com)
        
       | hughrr wrote:
       | As an end user and developer I don't care. They produce a huge
       | market customers care about, high quality experience on the
       | software and hardware front and mostly do the right thing.
       | 
       | You can always choose not to participate if these things are a
       | problem for you. They are not a monopoly in their sector nor are
       | they required to participate in society.
        
         | kelnos wrote:
         | > _You can always choose not to participate if these things are
         | a problem for you._
         | 
         | Not always. Consider what would happen in the US if Uber
         | decided they didn't want to participate anymore. Uber fails,
         | and Lyft wins. This holds for companies like Spotify, Yelp, any
         | messaging platform, food delivery, video streaming...
         | 
         | Sure, if you're an indie developer whose revenue doesn't depend
         | on being on mobile platforms, this might not be a problem for
         | you. But anything where a mobile experience is important to
         | your revenue (or even your continued existence), you must be in
         | the App Store (and the Play Store).
        
       | makecheck wrote:
       | Apple likes to highlight all the ways their actions benefit
       | developers, while ignoring all the ways their actions harm
       | developers.
       | 
       | Well if you get to _add_ money to your bottom line for all the
       | great stuff you do, you should also have to _subtract_ money for
       | all the crappy things you do.
       | 
       | Off the top of my head:
       | 
       | - Developers should get a "cut" whenever Apple makes arbitrary
       | changes that completely break 3rd-party apps. If the app's code
       | doesn't change but Apple _does_ change something, their behavior
       | is literally creating problems for developers with no cost to
       | Apple. Let's charge them!
       | 
       | - Developers should get a "cut" whenever Apple is _literally the
       | reason for delay_ when trying to deliver things like critical
       | fixes to customers. Let's charge them!
       | 
       | - Developers should get a "cut" whenever their reputation is
       | completely trashed by users because Apple refuses to acknowledge
       | their own mistakes. In other words, Apple is perfectly happy to
       | let users think apps are trash, even if the _reason_ for the
       | problem is Apple. Let's charge them!
       | 
       | Apple doesn't get to have only the good parts. I personally am
       | sick and tired of all the ways they get to hide their awful
       | behavior, and forcing developers to take the brunt of it.
        
         | [deleted]
        
         | donquixote25 wrote:
         | None those will ever happen unless developers/app companies for
         | a union of some sort.
        
           | pooper wrote:
           | I see no way Facebook, Google, Microsoft, Netflix, Uber, ...
           | would join such a union. And if they did, would they have way
           | too much influence on the union?
        
         | lelandfe wrote:
         | Charging for API compatibility issues sounds like a dangerous
         | precedent.
        
           | blowski wrote:
           | It exists in enterprise. You can have SLAs that an API will
           | be supported for 5 years, for example.
        
             | e4e78a06 wrote:
             | And enterprise apps are notorious for being stagnant and
             | difficult to use. Not the newfangled SaaS stuff but the
             | legacy stuff that has the SLAs you're talking about.
             | 
             | Apple's decision to break apps that don't update is a user-
             | centric decision. Just like deciding against GC and forcing
             | automatic reference counting for more consistent UX
             | performance is a user-centric, developer-hostile decision.
        
               | bduerst wrote:
               | >Apple's decision to break apps that don't update is a
               | user-centric decision.
               | 
               | Is it _really_ though? Users are then stuck with their
               | favorite apps being broken and unusable.
               | 
               | We're not talking just about mandatory security updates
               | here, some of the breaking changes are mundane.
        
               | e4e78a06 wrote:
               | In the long run, it frees up the hardware manufacturer to
               | make big changes that benefit the user. For example one
               | of the reasons Apple was able to pull off the Arm
               | transition was because they didn't have years of backward
               | compatibility to deal with. They didn't have to deal with
               | 32 bit apps, because those had been banned by Apple in a
               | prior OS version. No super old legacy APIs, because they
               | all were already removed in prior OS versions.
               | 
               | Just compare the cluster-fuck that Windows on Arm is to
               | the great experience of running x86 apps on an Arm Mac.
               | 
               | > Users are then stuck with their favorite apps being
               | broken and unusable.
               | 
               | Yes, and they get mad at developers and the developers
               | have to fix it when they otherwise wouldn't have. That
               | means Apple can credibly roll out new APIs and features
               | that are _better_ and force developers to adopt them.
               | That's incredibly positive for users in the long run.
               | Things like HW accelerated machine learning (still not
               | available on Windows!), ARKit (Android equivalent is
               | garbage), GPU accelerated UI (a dumpster fire on Android
               | that no developer uses), etc.
               | 
               | Think about this: if you're an AR app developer and Apple
               | suddenly rolls out a new update that massively boosts
               | performance IF you use the new API, are you going to use
               | the new API and spend time porting over your existing
               | functionality? Hell no. But if Apple forces you to, in
               | the long run users get a way faster app, in exchange for
               | some short run inconveniences because the app broke.
               | 
               | A famous example that the Android community gripes about
               | is Google's Camera2 API. It gives much better image
               | quality but Snapchat refuses to use it. So Android image
               | quality in Snapchat continues to suck because Google
               | doesn't have the cajones to outright remove old APIs and
               | force app developers onto new ones.
        
           | saurik wrote:
           | The point that I am reading isn't to say "this should happen"
           | but to argue that such things sound about as reasonable as
           | Apple's attempt at a moral framework for their enforced
           | platform fees.
        
         | [deleted]
        
         | MichaelBurge wrote:
         | "Sure - we've discounted the 'Apple Tax' from 40% to 30% to
         | account for all these costs we've been inflicting on you.
         | 
         | No actual changes to your fees - we've been thinking of our
         | precious developers and giving you that 10% discount since the
         | very beginning."
        
         | arcticbull wrote:
         | > - Developers should get a "cut" whenever Apple makes
         | arbitrary changes that completely break 3rd-party apps. If the
         | app's code doesn't change but Apple does change something,
         | their behavior is literally creating problems for developers
         | with no cost to Apple. Let's charge them!
         | 
         | So when Apple introduces new features and frameworks, should
         | developers then pay Apple? This doesn't seem to make sense.
        
           | latexr wrote:
           | > So when Apple introduces new features and frameworks,
           | should developers then pay Apple?
           | 
           | They already do, in the form of a couple subscriptions. A
           | fixed one of $99/year and another one which is a tax of 30%
           | on their revenue.
        
             | gowld wrote:
             | And they could pay more if Apple never made breaking
             | changes.
        
           | pooper wrote:
           | >> - Developers should get a "cut" whenever Apple makes
           | arbitrary changes that completely break 3rd-party apps. If
           | the app's code doesn't change but Apple does change
           | something, their behavior is literally creating problems for
           | developers with no cost to Apple. Let's charge them!
           | 
           | > So when Apple introduces new features and frameworks,
           | should developers then pay Apple? This doesn't seem to make
           | sense.
           | 
           | I thought so too at first but that brings back one idea I had
           | that most independent software vendors will probably hate and
           | puts more control in Apple's hands but here it is anyway:
           | 
           | Apple can add a way for developers to submit source code,
           | assets, and machine readable build instructions in an Apple
           | supplied format. Apple then builds the bits that goes on the
           | App Store. Developers already pay USD 100 a year for the
           | privilege of being on the App Store anyway, right?
           | 
           | This way, if Apple introduces new features and frameworks,
           | they can automatically update the code as needed and push
           | updates to the users?
        
             | gowld wrote:
             | Then Apple could steal dev IP.
        
           | [deleted]
        
           | [deleted]
        
       | rhelzerman wrote:
       | You say "profit is always the priority" like its a _bad_ thing.
       | Aren 't we all maximizing our profit? Isn't that kind of the
       | point of being in business?
        
         | kevingadd wrote:
         | If my profit comes at the cost of your profit eventually things
         | are going to disintegrate. If you optimize for profit
         | aggressively you can end up making decisions that maximize
         | short term profit but destroy the long term viability of your
         | business (or the entire market)
         | 
         | For example, Zynga's leadership eventually realized they were
         | salting the earth and ensuring that in the future their
         | genre/model wouldn't work anymore. They did it anyway. They've
         | owned up to this
        
         | pfortuny wrote:
         | Nope.
         | 
         | Lots of people stay in business because they just like it AND
         | it gives enough money for a reasonable life.
        
           | djbebs wrote:
           | What makes you think their enjoyment isn't profit?
        
             | trinsic2 wrote:
             | I think the point of all this is, don't put the cart before
             | horse. Money is a byproduct of what you do to enrich
             | peoples lives. If you put money first, people suffer, and
             | businesses end up suffering in the long run. If you put
             | enriching lives first, real people want to compensate you,
             | hell its kind of unspoken/unconscious law not to take
             | advantage of people that create things that improve life. I
             | can't count how many times I decided to compensate people
             | that made software that enriched my life, not because the
             | asked for it, but because they made something that deserves
             | compensation.
        
             | spiderice wrote:
             | No one is saying it isn't. But that's clearly not what is
             | being discussed here. This is just changing the definition
             | mid argument.
        
         | simion314 wrote:
         | >Aren't we all maximizing our profit? Isn't that kind of the
         | point of being in business?
         | 
         | The full sentence is maximize profit no matter anything else,
         | like profit first , honesty later, family later, friends later,
         | happiness later , health later.
         | 
         | Not everyone gets off by increasing some numbers, sometime
         | there is enough.
        
           | nomel wrote:
           | > family later, friends later, happiness later , health
           | later.
           | 
           | For these, it's the employee taking the stance of "profits at
           | all cost".
        
           | throw14082020 wrote:
           | But once a company is public, then maximising profit is
           | really the only goal. If you don't do that as a CEO, aren't
           | you being negligent (doing something illegal).
        
             | flyinglizard wrote:
             | There are many faces to profit. Amazon didn't turn a profit
             | for twenty years but no one would say Jeff Bezos was
             | negligent. It is more accurate to say that CEOs need to
             | create _value_. Even then, value can be at one point
             | (liquidate all company assets) or oriented towards the
             | distant future (invest in nuclear fusion tech).
        
             | cromka wrote:
             | > But once a company is public, then maximising profit is
             | really the only goal.
             | 
             | You may want to research the growing trend of measuring
             | companies against their impact, sustainability, etc., as
             | well as increasingly popular indices that track companies
             | based on that.
        
               | colinmhayes wrote:
               | All of these measures are just trying to instrument on
               | long term profitability. The idea being that sustainable
               | companies are less likely to be abandoned in the future.
        
               | cromka wrote:
               | The point was made as to what Apple currently maximizes
               | for, and explained as "no matter anything else, like
               | profit first , honesty later". This is what we're arguing
               | about.
               | 
               |  _Long term_ profitability that involves thinking ahead
               | of time of what would become unsustainable is, logically,
               | speaking not maximizing for profit _NOW_. Honesty (ethics
               | in business) will become increasingly important for the
               | next generations. The current generations, however, don
               | 't care that much just yet.
        
             | bruce511 wrote:
             | That really is a myth that needs to die.
        
               | colinmhayes wrote:
               | No it's really not. Thinking that it means "maximising
               | short term profit is really the only goal" is a myth that
               | needs to die, but maximising net discounted profit is
               | really the only goal of public companies.
        
               | wtetzner wrote:
               | They're obligated to act in the interest of shareholders.
               | That usually means profits, but could very well be other
               | things.
        
               | foolinaround wrote:
               | this here is the real answer.
               | 
               | So, if a majority of Apple's shareholders feel a
               | different way from just maximizing profits then changes
               | could be underway.
        
             | pixelatedindex wrote:
             | Is it really illegal to not maximize profit? I suppose we
             | have capitalism to thank for that, where companies like
             | PG&E can cut corners on maintenance and yet the C-level
             | executives get to take home millions in bonuses.
             | 
             | Just because it's legal doesn't mean it's the right thing
             | to do, you know? Or perhaps I'm just naive and everyone
             | should be out for themselves, the community/society be
             | damned.
        
               | pc86 wrote:
               | The "illegal" thing they're referring to is fiduciary
               | responsibility. The board and officers of a public
               | corporation have a duty to do what is in the best
               | interest of the shareholders. The question then becomes
               | what horizon is "in the best interest" of the
               | shareholders.
        
           | chronofar wrote:
           | Not every, or even most, individuals no, I would hope not.
           | But every for-profit company surely does. No matter whatever
           | bullshit mission they may plaster on their walls, the moniker
           | "for-profit" tells you what the goal is plain and simple, and
           | any high minded ideals will ultimately become subservient to
           | that.
        
             | kelnos wrote:
             | Sure, and that's the problem. While capitalism may be
             | better than the other systems we've tried, it's still not
             | great. I don't think profit should take precedence over
             | many high-minded ideals, but capitalism guarantees that
             | will be the common case.
        
             | bduerst wrote:
             | One of the (growingly scant) bonus side-effects of having
             | social media is that consumers now tie brands to their
             | identity.
             | 
             | This means that the brands of traditionally _maximize-
             | profits at all cost_ at least have to make efforts to
             | demonstrably align with consumer ideals, if they want to
             | continue to profit. It 's far from perfect but still a far
             | cry better than before.
        
         | bruce511 wrote:
         | It's almost never good business to optimise for profit. Or,
         | perhaps more accurately to optimise for short term profit.
         | 
         | For example I can maximise profit by firing all the staff, but
         | continuing to collect subscription revenue for a couple years.
         | Lots of profit, perhaps even "more profit", but a dead
         | business.
         | 
         | We spend money on all sorts of things, at the cost of immediate
         | profit. Staff bonuses, end-of-year lunch, social donations,
         | R&D, all come off the bottom line.
         | 
         | Now, you can argue that we do it to stay in business, and a
         | business that exists infanitly creates infinite profit, in
         | which case the goal of business is to stay in business. Or
         | perhaps profit is best served by keeping staff forever, in
         | which case the odd benefit increases profit.
         | 
         | Profit is important, without it a business will fail - but if
         | that's the _only_ metric then its a very cold unpleasant place
         | to work.
        
         | jonshariat wrote:
         | It's about shifting the cost of growth to other things like
         | employee health, environment, users, etc that is the problem.
        
         | neolefty wrote:
         | Taken to certain extremes, yes it is a bad thing.
         | 
         | In moderation -- for example if you take a wholistic view that
         | incorporates benefit to the society at large as well, then it
         | can be very good.
        
         | sschueller wrote:
         | Just remember, security is also on the table when it comes to
         | profit. Including rating you out to a fascist state.
        
       | snowwrestler wrote:
       | > When Apple introduced the iPhone, it didn't have an App Store.
       | From the moment the iPhone was announced, everyone speculated
       | that it was only a matter of time until one was created, and a
       | bit more than a year later, Apple announced it would allow
       | developers to create iPhone apps and sell them in the App Store.
       | 
       | This is not exactly accurate. Everyone speculated about an SDK
       | (like for the Mac). When it was finally announced, the locked-
       | down "App Store" aspect of it was a surprise.
       | 
       | And it was generally greeted positively; after all, at the time
       | it was pretty hard and expensive to go to market with new client-
       | side software. Websites were way easier, and in fact that is one
       | reason Apple initially were all-in on web apps for the iPhone.
       | 
       | (There were also honest concerns whether Apple had the chops to
       | adequately secure a phone SDK so that calls would always work.)
       | 
       | The bad feelings about it built over time. One could say that
       | people have started taking the existence of the iOS ecosystem for
       | granted. But the world has changed around Apple. It no longer
       | looks hard to go to market with software, so people no longer
       | think Apple's cut is fair.
       | 
       | And I think the article is correct that Apple has increasingly
       | viewed it as a tax, not pass-thru expense.
        
       | anonymouse008 wrote:
       | Discussion: if the profit is 'monopolistic' and primarily rent
       | seeking, then why hasn't any other company been able to produce
       | hardware at parity while producing developer tools to make apps
       | on par with competent developers on iOS?
       | 
       | It feels like there is so much work that goes into the Apple
       | ecosystem working so cleanly, that most take it for granted
       | without considering what is really an 'alternative' and its
       | costs.
        
         | iqanq wrote:
         | It's a good question. Google should've done it, but they have
         | failed time and time again. Microsoft just gave up.
        
         | onion2k wrote:
         | There's a great article about how hardware companies can't
         | compete with Apple. Apple do things like finding a technology
         | for making better laptop enclosures and buying the company that
         | makes it so no one else can use it. It's a good read.
         | https://beneinstein.medium.com/no-you-cant-manufacture-that-...
        
           | lelandfe wrote:
           | It looks like the article focuses much more on how the
           | processes Apple employs are expensive, laborious, and
           | challenging - which make them difficult to replicate.
           | 
           | > _Pretty much no company, big or small, can afford to do
           | these things. Yes, Apple has done a great job building many
           | of these products and yes, consumers have come to love many
           | of these difficult-to-manufacture features. But you are not
           | Apple_
        
             | stevehawk wrote:
             | It started about fifteen years ago, but Apple discovered
             | that a great use for their extra cash flow was to buy up
             | the processes they (and their competitors) would need in
             | the future. When a screen manufacturer needed money to do
             | the next big thing, then Apple would chip in significant
             | funding and own a percentage of the new joint venture. They
             | would not only get priority and lower prices on orders, but
             | they profited from anyone else buying the same tech. Apple
             | now owns an exclusive license to Liquidmetal, is a
             | significant investor in Corning (Gorilla Glass), invested
             | heavily in a Toshiba LCD plant, paid LG (for LCD) and
             | various SSD manufacturers massive upfront payments for
             | priority and/or exclusivity.
        
               | anko wrote:
               | any idea what liquidmetal is used for?
        
               | ethbr0 wrote:
               | Not just predicting, but driving. With the iPhone market
               | share, Apple has been in a good seat to define what
               | consumers expect from {generation+1} devices.
               | 
               | Which makes it a bit easier to acquire / pre-book the
               | relevant manufacturing capacity, when you know you're
               | going to make a surprise announcement of it as a major
               | feature in the future.
               | 
               | After which, everyone else eventually ends up at the same
               | upstream manufacturers, or trying to duplicate the
               | technology...
        
           | urthor wrote:
           | Has more to do with innate economies of scale than any
           | individual market abuse. Which isn't to say that there is
           | some, but even if you stripped out the market abuse, Apple
           | would still be fine.
           | 
           | Apple is a machine that is fueled by cross subsidizing new
           | platforms (Apple Watch) with their already significant
           | capital investments in the iPhone.
        
         | tolmasky wrote:
         | I don't see how these two things are related, and in fact
         | disagree with both assumptions: 1. that the profit contributes
         | in any meaningful way to the quality of the "hardware", nor
         | that the apps on iOS are some "amazing" bar to live up to. This
         | is all from the perspective of a _user_ , as I haven't had
         | anything on the AppStore in a decade:
         | 
         | 1. I'm not sure I'd describe an ecosystem where Netflix and
         | Amazon get sweetheart reduced revenue cuts while small devs
         | have zero negotiating power is one I'd describe as working
         | "cleanly" FOR USERS. Again, forget the devs here for a second,
         | let's just think of the users. The AppStore is _not just a
         | "monopoly"_, it is a _monopoly enabler_. New platforms are
         | traditionally one of the best places to disrupt the old big
         | players -- and as a user, I 'd _love_ a place that let small
         | upstarts be nimble against the likes of Amazon or Netflix. But
         | if Apple specifically lets Amazon compete at reduced revenue
         | cuts, this becomes impossible. No one can compete in an already
         | difficult space like a Music app (or even a Comic Book app!) if
         | Apple is giving the world 's largest corporations better deals.
         | Forgetting Apple's dominance in phones, they are also helping
         | me have less choice in terms of these other services.
         | 
         | 2. And consider this, 30% revenue split for a small app shop
         | can mean the difference between being able to afford a new dev
         | on your team, or a full time QA person, or full time support
         | person, etc. Literally, if you are a 2 person team, getting
         | that extra 30% would allow you to roughly afford one more hire
         | at the same wage. Those are bug fixes, features, and support _I
         | 'm missing out on as a user_. I sure as hell don't "feel" that
         | 30% from Apple. I already paid them $1000+ for my phone, why do
         | I have to pay them a 30% markup on my ToDo's app? It sure as
         | hell isn't going into writing the 3 lines of code to make even
         | exact string matching work in AppStore search, so I'm fairly
         | certain that money would be better spent by the devs, again,
         | purely from a selfish user perspective.
         | 
         | 3. Which brings us to the larger "ecosystem" and store. They
         | suck. It's hard to find anything on the store, it's full of
         | scams, to the point where I am terrified of my kids someday
         | being given any access to it and the casino-like games they
         | allow. An equally "tyrannical" Apple that was values-based and
         | tried to stop both overt scams but also was more opinionated
         | about the subscription-addiction junk they allow to get sold to
         | children, would be far more defendable in my opinion. I might
         | be like "well, philosophically I disagree with this, but you
         | can't argue with results!". Currently, it's "well, I disagree
         | with this philosophically, and _wow_ is this mismanaged. Like,
         | I think you 'd have a hard time finding someone that could have
         | less pride in what you see when you scroll through the charts."
         | I think Apple's own Phil Schiller put it best in 2012: "Is No
         | One Reviewing These Apps?"
         | 
         | 4. None of the "security" on iOS comes from the 30% cut, or
         | even the AppStore review process. It's all stuff that's built
         | into the sandbox model. If anything, there's an argument that
         | the AppStore makes iOS more insecure since it puts the "Apple
         | Review Seal of Approval" on a bunch of apps that just rip you
         | off.
         | 
         | 5. The apps _themselves_ are pretty meh. I don 't even know how
         | anyone could hold any opinion on native vs. web anymore, unless
         | you're big into games, at which point, sure, some native thing
         | is going to have better graphics. All the things "native does
         | better" these days are mainly because the browser _isn 't
         | allowed_ to do those things, and Apple doesn't allow any
         | competing web engine on iOS. And some things the iOS "wild west
         | web" still does better: like having Picture-in-Picture work
         | everywhere. To be clear: I 100% believe iOS apps _used_ to be
         | clearly better, and they could 100% _still be_ clearly better,
         | but Apple 's dropped the ball on their
         | tooling/frameworks/resources and there's just not much exciting
         | taking place there anymore. The Apple Pencil was a big
         | watershed moment with this: they shipped the thing with barely
         | any developer docs so you had the few key players making some
         | cool apps (like Adobe of course), but otherwise nothing really
         | revolutionary was enabled on the iPad. I think the Pencil
         | _could_ have been a game changer, but Apple was more content
         | with selling a couple $150 trinkets to iPad die-hards vs.
         | really expanding their lead in the tablet space by doing
         | something bold (like just including a Pencil with every iPad to
         | create huge incentives to make every Apple developer make their
         | apps  "Pencil-ready" just like with all the "in device"
         | features like 3D touch or whatever), or by even just
         | integrating the Pencil more meaningfully in their own OS to
         | lead by example. We didn't get the ability to have the Pencil
         | "just work" in any text field until _6 years_ after its initial
         | release.
         | 
         | iOS is increasingly just something I kind of have to use. Or
         | else lose iMessage or whatever. I think the opportunity cost
         | that more interesting is what if things were different than
         | _this_. For the record, I think ironically the result would be
         | that Apple would act more like the old Apple, and be forced to
         | make a compelling case for being on the Store and not using a
         | third party to process payments (and I think there 's lots of
         | interesting stuff Apple could _actually_ do there, as opposed
         | to... nothing). Again, I 'm not arguing about whether they have
         | the right or not to do any of this, just what the consequences
         | would be if they stopped doing it.
        
         | keleftheriou wrote:
         | Among other reasons, you have to also consider the "winner-
         | takes-all" type of network effect here: any new platform,
         | however great the hardware & tools might be, will today have an
         | _extremely_ hard time luring developers to it's non-existent
         | user base, while at the same time users won't be as attracted
         | to the platform due to the lack of apps.
         | 
         | This is a _vicious_ cycle for newcomers, and at the same time a
         | _virtuous_ cycle for the incumbent(s), further cementing their
         | dominant position.
        
           | [deleted]
        
         | nathan_compton wrote:
         | Network effects. Even if you were the best hardware/software
         | maker in the world it would be difficult to compete with a
         | walled garden that has locked in many customers both
         | technically and culturally.
        
         | anko wrote:
         | I agree.
         | 
         | I think most of arguments against what Apple is doing are based
         | on an incomplete picture of Apple's product. They are based on
         | someone not appreciating an aspect of what Apple is doing.
         | Maybe they don't like the price. Maybe they don't like a lack
         | of complete control over their hardware. The rest of it is
         | always a rant to justify that position.
         | 
         | There is provable value in what Apple is doing, or the app
         | store would not be a success. Some people just want to have
         | their cake and eat it too.
        
           | ethbr0 wrote:
           | > _There is provable value in what Apple is doing, or the app
           | store would not be a success._
           | 
           | There is provable value in what Apple is doing, by curating a
           | higher quality and better integrated ecosystem than
           | Google/Android offers. Polish which is funded by profits from
           | the App Store.
           | 
           | On the other hand, the App Store's success also benefits from
           | full capture of all iOS users and network effects of
           | releasing when it did.
           | 
           | > _Some people just want to have their cake and eat it too._
           | 
           | Some people think you shouldn't be allowed to put cocaine in
           | soda, even if it's tasty. (To use a 1920s metaphor)
        
         | acover wrote:
         | Uneducated answer: it's a natural monopoly. There are economies
         | of scale and any new entrant won't get monopoly profits to
         | justify the required capital and risk.
         | 
         | Why couldn't anyone compete against Bell by building a second
         | phone network?
        
           | arcticbull wrote:
           | Apple isn't anywhere close to a monopoly, though, about a
           | quarter of smartphones. A little more in install base, and a
           | little less in quarterly shipments. [1] Building a phone
           | network has massive capital expenditure costs on
           | infrastructure, building a phone does not.
           | 
           | [1] https://financesonline.com/number-of-smartphone-users-
           | worldw...
        
             | bmarquez wrote:
             | The same article you mentioned says that 56% of US/Canada
             | users and 70% of Japanese users have iPhones.
             | 
             | I'd argue that monopolies should be judged on country and
             | not worldwide. As each country has different iMessage
             | popularity, apps restricted by region, earning power, phone
             | availability, etc.
        
             | bduerst wrote:
             | That's market shifting though.
             | 
             | Apple does have a monopoly on the markets running on all
             | their devices, from apps to media, for ~900 million phones.
             | When Apple doesn't completely own the only available market
             | service to it's hardware (that it exclusively gives
             | itself), it still charges a 30% fee to it's competitors for
             | access to it's markets while actively blocking everyone
             | else.
        
             | 2OEH8eoCRo0 wrote:
             | The judge in the Epic case said that Apple though not a
             | monopoly was acting like one and might be on the way to
             | becoming one.
             | 
             | https://www.cnbc.com/2020/10/06/house-antitrust-
             | subcommittee...
             | 
             | https://www.eff.org/deeplinks/2022/02/eff-appeals-apples-
             | mon...
             | 
             | So sure. Not a monopoly. But also not far from a monopoly
             | as you claim.
        
             | aaomidi wrote:
             | > building a phone does not.
             | 
             | Companies have a limited output of the materials needed to
             | make a computer. If Apple tells one of these companies you
             | now have an exclusive relationship with us, or else, what
             | is that company going to do?
             | 
             | Anyway, Apple has a monopoly of platform, which is measured
             | between its own base, rather than as an absolute number
             | compared of what % devices are iPhones.
        
             | urthor wrote:
             | Apple's primary moat isn't hardware, it's software.
             | 
             | Their software moat with IOS is everything.
             | 
             |  _Software itself_ is innately a hugely monopolistic
             | industry.
        
         | dont__panic wrote:
         | The impact of all of that $$$ and vertical integration on
         | hardware and software quality is not to be ignored. Apple
         | Silicon in particular is an astonishing development after years
         | of Qualcomm/Intel dominance.
         | 
         | The only real issue I have with Apple Silicon is that since it
         | isn't open hardware that anybody can buy, I can't run my own
         | software on A-series chips. At least M-series chips are opening
         | up slowly to Linux, though.
        
       | mensetmanusman wrote:
       | The iPhone is only valuable because of developers. If they all
       | coordinated together, they could get apple to change. Imagine all
       | the apps breaking one day...
        
         | geodel wrote:
         | A large number of developers work for companies. They don't
         | need to deal with Apple as their employers/clients take care of
         | all that. On freelance side free apps do not see much issue and
         | paid apps devs are not in position to organize worldwide to
         | make Apple change policy in haste.
        
         | lancesells wrote:
         | It's a symbiotic relationship. They both serve each other.
         | Things could always be better and Apple is not a good guy but I
         | doubt any large app or organization is either.
        
         | jjtheblunt wrote:
         | I feel that's a knee-jerk assertion.
         | 
         | Is no value assigned to the truly amazing custom silicon that
         | sips power while efficiently supporting an instruction set
         | that, in turn, supports developers external and internal?
         | 
         | Is no value assigned to the work that goes into evolving with
         | the wireless network standards? Those are internal people,
         | generally with decade+ hardcore engineering backgrounds.
        
           | adventured wrote:
           | And it's well worth noting that the iPhone came first, not
           | the wave of developers. Apple provided the platform and
           | potential, they put in enormous resources and effort to make
           | the iPhone work out, to deploy a phone in a new manner
           | (bending the telecom providers to their will). What existed
           | for developers before the iPhone (the languishing Windows
           | desktop, much amazing)? If the developers are the primary,
           | why'd they have to wait for Apple to make everything
           | possible?
           | 
           | It's because the developers are secondary. Apple is the
           | primary, the key to it all.
        
             | LouisSayers wrote:
             | Anyone that remembers history correctly will remember when
             | the iPhone was first released Apple wanted to make ALL the
             | apps.
             | 
             | Then developers started jailbreaking the phones, adding
             | their own apps to them.
             | 
             | The Appstore wasn't obvious for Apple, and it was only
             | after developer backlash that they changed their tune.
             | 
             | So you can say that Apple did everything but the truth is
             | that the success of the iPhone is from the COMBINED effort
             | of Apple, and the work of developers in the community.
        
               | imwillofficial wrote:
               | "The Appstore wasn't obvious for Apple, and it was only
               | after developer backlash that they changed their tune."
               | 
               | This is not "remembering history correctly" at all.
               | 
               | Apple didn't have an SDK ready, and tried to sell the
               | shit sandwich of Web Apps as a stopgap.
        
               | LouisSayers wrote:
               | >Apple didn't have an SDK ready, and tried to sell the
               | shit sandwich of Web Apps as a stopgap.
               | 
               | And how exactly do you know that it always was their
               | intent to make an SDK for third party developers?
               | 
               | From https://9to5mac.com/2011/10/21/jobs-original-vision-
               | for-the-...
               | 
               | "The App Store came later and apparently as a reaction to
               | jailbreakers and developer backlash."
        
             | selectodude wrote:
             | I'm not sure how people don't understand this. If certain
             | apps stopped working on my iPhone, I wouldn't get an
             | android. I would just stop using that app.
        
               | random314 wrote:
               | The argument is - what happens when all non apple apps
               | stopped working on the iPhone
        
           | random314 wrote:
           | Of course there is value. That's why iPhones are priced
           | 1000$+
        
         | [deleted]
        
         | asperous wrote:
         | If all apps go on strike, an app that crosses the picket line
         | gets all the revenue in their market. This is related to the
         | economic term "cartel", and why they are unstable in practice.
        
           | Iolaum wrote:
           | in practice?
           | 
           | Instead of posting anecdotal evidence of mine to the
           | contrary, I ll ask the following. If cartels are unstable in
           | practice, then why do states need competition authorities to
           | punish price fixing, and similar practices?
           | 
           | I 'd say cartel's are unstable in theory but not necessarily
           | in practice.
        
             | AtlasBarfed wrote:
             | Yeah, I would argue that almost every market/segment in
             | America is dominated by a cartel or monopoly.
             | 
             | Even things like commodities have hidden cartels and
             | monopolies. Oil may be a commodity, but the refining
             | facilities are most certainly cartel-owned. Agriculture is
             | seemingly not a cartel, but ADM and Cargill dominate
             | certain aspects of the supply chain and processing.
             | 
             | Instead I would argue that iterative game theory of free
             | market economics would stabilize to a cartel or monopoly.
             | Once one of the open competitors determines an advantage,
             | and/or has substantial access to near-free capital (um,
             | what's the interest rate of the last two decades?), then
             | they can acquire their competitors.
             | 
             | Then they can apply barriers to entry such as regulation
             | and lockin contracts with equipment suppliers and the like.
             | Look at the practices of Intel to lockout AMD. Look at how
             | Microsoft exerted power on PC makers. Once you are big, you
             | can influence the suppliers and distributors to lockout
             | competitors.
             | 
             | As long as size is an intimidator (and it almost always
             | will be except to extreme examples of markets), it will be
             | effective. The only time it helps is when it slows response
             | until an upstart using an entirely different supply chain
             | and technology (like Tesla) gains such a fundamental
             | advantage they can't stamp it out.
        
         | ronyfadel wrote:
         | They'll need to go through Apple's approval process first. And
         | if they mention breaking one day in any manner, could get
         | rejected, or worse, booted off the store. Apple has developers
         | by the neck.
        
           | fyzix wrote:
           | Most of the useful apps has to connect to a server, let's say
           | app devs stop serving requests for iOS, Apple would be
           | pressured to come to the table because the iPhone is useless
           | without apps.
        
             | nomel wrote:
             | This would take such a critical mass that it's silly to
             | consider. Without some critical mass, the average consumer
             | would see that the rest of their apps work fine, and
             | probably just give the app a 1 star review "it keeps
             | freezing".
        
               | manquer wrote:
               | Unions are able to organize with similar power inbalance.
               | Collective action is not impossible, just difficult.
               | 
               | Nobody will a join a union just to strike ( a.k.a pull
               | the apps) however making collective to better negotiate
               | with someone with lot of control over your revenue
               | (salary) is not inherently a dumb idea.
        
               | geodel wrote:
               | Indeed. If some random app does not work I, as a user,
               | would call that app as crap and not Iphone.
        
             | ronyfadel wrote:
             | These apps will be booted off the store (look at Epic),
             | bye-bye revenue
        
             | geodel wrote:
             | Also majority of those serious apps are part of
             | enterprise's digital platform who are not going to
             | knowingly break their Apps.
        
         | qzw wrote:
         | That level of coordination among human beings has only been
         | possible a handful of times in all of recorded history. And
         | most cases involved wars or absolute autocrats, or both. Good
         | luck forming any kind of an agreement between hundreds of
         | thousands of independent companies and individuals across
         | multiple countries. I can't even get my wife to agree on what
         | to order for lunch.
        
         | christophilus wrote:
         | What? I buy iPhones because they work, are simple, are
         | supported for a long, long time, and aren't riddled with
         | trackers, trojans, and whatever the heck Android generally has
         | baked in. I have very few apps on my iPhone other than the ones
         | that come pre-installed (by Apple, not by my cell provider).
         | 
         | I'm sure I'm atypical, but I do wonder how much an app-
         | developer rebellion would really affect folks. I can't imagine
         | my wife or parents switching to Android even if all of the non-
         | Apple apps were to disappear tomorrow.
        
           | kelnos wrote:
           | > _I can 't imagine my wife or parents switching to Android
           | even if all of the non-Apple apps were to disappear
           | tomorrow._
           | 
           | That seems surprising. Do your wife and parents not use
           | Uber/Lyft/etc.? Do they not use any banking apps? Do they not
           | use any social media apps? Yelp? Food delivery apps?
           | Messaging apps aside from iMessage? Video streaming apps? And
           | that's just from looking at _one_ of my home screens!
           | 
           | Do you really believe they'd be happy with a phone that
           | suddenly couldn't do all that anymore? I very much doubt
           | that.
        
           | bhelkey wrote:
           | The App Store supported over half a trillion dollars in
           | billings and sales in 2019[1]. According to Satista, that is
           | more than the global coffee market[2].
           | 
           | [1] https://www.apple.com/newsroom/2020/06/apples-app-store-
           | ecos...
           | 
           | [2] https://www.statista.com/outlook/cmo/hot-
           | drinks/coffee/world....
        
         | bduerst wrote:
         | Tragedy of the commons, in a triple sided market, prevents
         | this.
         | 
         | At the end of the day, these developers are still competing
         | with each other, and rational actors will break from the
         | coordination to profit off the users for themselves.
        
         | nonameiguess wrote:
         | Not third party. You still have a pretty valuable device if you
         | use nothing but apps provided by Apple.
        
           | kelnos wrote:
           | Valuable, yes. Clearly it was valuable enough back in 2007
           | before there was an App Store. But nowadays, would it be
           | valuable enough? I doubt it.
        
         | Grustaf wrote:
         | The original iPhone had quite a cult following, as did the
         | iPod. People were flocking to them without any apps. It's
         | because the iPhone was so cool that developers wanted to make
         | apps for it. So it's pretty reductive to say that it's "only"
         | valuable because of developers. Best regards, mac/iOS developer
        
       | mchaynes wrote:
       | The profit motive corrupts all. We need to kill capitalism in its
       | current form for these companies to stop being terrible and evil.
       | 
       | There are constant articles on HN about why <insert big company>
       | is doing <terrible monopolistic thing>, and we inevitably talk
       | about how these companies are doing horrible things, while others
       | then go on to say "well look at all the value they're bringing".
       | As if both can't be true at once. It's an embarrassingly
       | reductive back and forth.
       | 
       | These companies have a fiduciary responsibility to their
       | shareholders to maximize the stock price. This inevitably leads
       | to this behavior.
       | 
       | Of course, everyone on this site secretly wants to build the
       | "next big thing" so they can get famous and incredibly wealthy.
       | You can only become that rich under the current system, so
       | instead of just understanding the fundamental reasons why we see
       | this behavior again and again and again, we bicker about the
       | finer points of governance of these corporations. It's like
       | arguing about what size bandaid to put over a gaping chest wound.
       | 
       | This site is full of smart people, but our collective greed makes
       | us seem pretty damn stupid
        
         | politician wrote:
         | Can you suggest something less drastic than eliminate
         | capitalism? For example, "enforce existing anti--trust
         | regulation". Tossing out a system that basically works in the
         | hopes that a complete rewrite will solve all of our problems
         | never works.
        
           | neolefty wrote:
           | I agree that throwing out what we have is a recipe for
           | disaster and reconstitution in the same or worse form. But I
           | think we can build anew from within, constructively.
           | 
           | I like the Baha'i view that breaks it down into 3 components:
           | the individual, community, and institutions, and then works
           | on gradually reforming each of them, and recognizing their
           | interactions. Here's my summary; there are undoubtedly better
           | summaries out there too:
           | 
           | * Individual: Empower people to act on ethics first, and
           | material benefit second -- by emphasizing the inherent value
           | of ethics, based on the view of humans as
           | intellectual/spiritual as well as physical. Educate them to
           | be good electors (see Institutions, below).
           | 
           | * Community: This is the one I understand least, but I think
           | it's about the emergent behaviors of groups of people who
           | interact informally. Like a neighborhood or interest group.
           | 
           | * Institutions: Reform their selection process & functioning.
           | There are plenty of people who would make great public
           | servants, but they are precisely the people who avoid our
           | current electoral processes which are so poisonous and dumb.
           | So have elections that focus on the qualities that are good
           | for office -- caring for the well-being of the whole, wisdom,
           | appropriate skills & abilities -- and prohibit all
           | campaigning or discussion of individuals. You'd think it's
           | impossible, but the Baha'i electoral process actually works
           | in practice and people love it.
           | 
           | All of these need reform. A good place to look at current
           | Baha'i thinking is the "Baha'i International Community"
           | website: https://www.bic.org/ which is kind of a public
           | policy outreach site.
        
           | kchameleon1234 wrote:
           | > Tossing out a system that basically works in the hopes that
           | a complete rewrite will solve all of our problems never works
           | 
           | Does it "basically work" though? You are, for example, aware
           | that profit motives have driven things like:
           | 
           | - the water crisis in Flint, Michigan;
           | 
           | - the invasion of Iraq and Afghanistan by the United States
           | and its allies in the early 2000s;
           | 
           | - the ongoing destruction of the Amazon rainforest (and the
           | genocide that continues to go hand in hand with it) by
           | ranchers seeking to increase their bottom line;
           | 
           | - the instance by airlines to continue flying completely
           | empty planes all over the EU "to keep takeoff and landing
           | times";
           | 
           | - the refusal to pass a TRIPS waiver for the mRNA COVID
           | vaccine that prevents much of the world from accessing the
           | most effective vaccines in a timely manner (or at all);
           | 
           | - the ongoing exploitation and perpetuation of underpaid or
           | outright slave labor in many parts of the world by countries
           | proped up by western colonial powers intent on delivering
           | luxury items to their citizens at relatively low costs (while
           | still reaping massive profits off those sales);
           | 
           | - etc, etc, etc.
           | 
           | I don't disagree that we need some intermediate solution like
           | enforcing existing anti-trust legislation, repealing anti-
           | union restrictions that outlaw effective labor organizing
           | techniques, actually enacting harsh and swift consequences on
           | companies that continue to destroy the environment (and the
           | people who live in it).
           | 
           | But those are only short term solutions to immediate harms
           | being perpetuated by a system that has for well over a
           | century brought death and destruction to the earth and its
           | people... not to mention what capitalism's ancestors did in
           | the never-ending, blood-thirsty western colonial expansion
           | throughout the globe.
           | 
           | So yes, let's enforce anti-trust laws... but let's not do
           | that and think that alone will solve the myriad problems that
           | have been thrust upon the peoples of the earth by a small
           | number of extremely rich, profit driven people. And let's
           | definitely not claim that the system that props up and
           | perpetuates that behavior "basically works" when for most of
           | the people of the world it patently does not "basically
           | work".
           | 
           | I don't know what the ideal system is. I have my own utopian
           | visions but I acknowledge they'll likely never come to pass.
           | But we _have_ to try something different than what we're
           | doing now. The current global economic trajectory is a
           | deathwish that most people have not consented to.
           | 
           | (Edited to fix list formatting)
        
             | gowld wrote:
             | > the water crisis in Flint, Michigan;
             | 
             | This was government not putting the effort in, not
             | capitalism.
             | 
             | > the invasion of Iraq and Afghanistan by the United States
             | and its allies in the early 2000s;
             | 
             | Does the Communist invasion of Eastern Europe and
             | Afghanistan count?
             | 
             | > the ongoing destruction of the Amazon rainforest (and the
             | genocide that continues to go hand in hand with it) by
             | ranchers seeking to increase their bottom line;
             | 
             | They are doing that because people want to eat steak.
             | 
             | > - the refusal to pass a TRIPS waiver for the mRNA COVID
             | vaccine that prevents much of the world from accessing the
             | most effective vaccines in a timely manner (or at all);
             | 
             | Your idea is that without getting paid, people will just
             | provide public health work for free, because they .... ?
             | 
             | > the ongoing exploitation and perpetuation of underpaid or
             | outright slave labor in many parts of the world by
             | countries proped up by western colonial powers intent on
             | delivering luxury items to their citizens at relatively low
             | costs (while still reaping massive profits off those
             | sales);
             | 
             | OK at this point it's clear that your problem is with
             | material consumption , not capitalism.
        
         | manquer wrote:
         | It was not like Apple was a good considerate benevolent
         | dictator before power got to their head. They have always been
         | like this.
         | 
         | Apple won't have had the resources to develop something the
         | Apple Silicon or most other products, if they aren't ruthless
         | about their profit.
         | 
         | Is it worth the cost for society ? Depends on the POV, it sucks
         | to be the handicraft producer when a big factory opens up, but
         | more people do get product and benefit from it.
        
         | buscoquadnary wrote:
         | If we talk at that level though there are lots of other
         | terrible things at that level of crime. The alternative to
         | capitalism, meaning private ownership of capital, is collective
         | or state control of capital.
         | 
         | If we start talking about terrible things done by collectively
         | or state owner endeavors we find things just as terrible like
         | the holomdor, the 5 Year Leap. I mean don't get me wrong Apple
         | is doing some seriously terrible things with their power grabs
         | and monopolies, but I don't know if equates to 5 million dead
         | of famine in 5 years, and although Google is violating my
         | privacy and sucking up everyone's data I would prefer that over
         | being loaded on a train to a concentration camp.
         | 
         | My point isn't to exonerate capitalism, because Nestle is a
         | truly despicable company and have committed crimes of close to
         | the same magnitude, but to believe that just changing the
         | system is going to magically make everything better is in my
         | opinion naive, because no matter how great you try and make
         | your system if you fill it entirely with bad people it will
         | result in bad outcomes.
         | 
         | Additionally we often find that during times of large scale
         | change in "systems" it is more often than not the most
         | ruthless, sociopathic, despotic individuals rise to the top
         | because they are most willing to do whatever it takes to retain
         | power. In contrast it seems like the activist investors that
         | amass capital and attempt to force changes in company through
         | monetary means is much less disruptive for the vast majority of
         | people's lives.
         | 
         | EDIT: For some line breaks and missing word.
        
       | systemvoltage wrote:
       | Surprising how little attention this story got:
       | https://www.theinformation.com/articles/facing-hostile-chine...
       | 
       | AFAIK, it was not in the mainstream media. Perhaps The
       | Information credibility is an issue?
        
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