[FoRK] $100M for iPhone Developers
<luis at tieguy.org> on
Fri Mar 7 11:00:32 PST 2008
On Fri, Mar 7, 2008 at 1:48 PM, Jeff Bone <jbone at place.org> wrote:
> >> The key thing here is that even small payments add up quickly in a
> >> mass market. It's conceivable that the iPhone installed base could
> >> quickly get into the 100s of millions of units.
> > I'm very curious to see if that is actually the direction they go;
> > it's not at all clear that they're going to offer the low-cost model
> > that would push them in that direction.
> Who's "they?" Prices are to be set by app developers, and "free" is
> an allowed price (in which case Apple collects its usual 30% --- of
> zero. I.e., if you make your app free, you don't have to pay Apple
> for hosting and distribution.)
Sorry, I meant Apple; to get to 100s of millions of handsets out there
there will need to be a lower-end phone and so far no indication (not
even rumors) they're going in that direction.
> >> FWIW, back when we were attempting to do deals with the Magic Cap
> >> hardware vendors (Sony, Motorola, Phillips, and Panasonic for
> >> starters) it was common for them to want a piece of the action. Our
> >> software had a recurring revenue piece, and they actually wanted *us*
> >> to pay *them* for access to (i.e., bundling the basic apps on) the
> >> device, and they wanted a piece of that recurring revenue. Point
> >> being, this sort of thing isn't uncommon in the consumer device space
> >> --- the economics are completely different from what you see in the
> >> general computer market --- and this isn't at all the surprising /
> >> appalling thing that some folks are making it out to be.
> > It is definitely fairly commonplace; running the tollbooth always
> > looks like a profitable temptation. I don't think it's a coincidence,
> > though, that the one of the vendors brave (foolhardy?) enough to take
> > a pass on this model is the most dominant, durable, and pervasive
> > platform monopoly that the consumer electronics industry has ever
> > seen.
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