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It's somewhat amusing to see Apple throw away market leadership now, just like it did in the 80s

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  • It's somewhat amusing to see Apple throw away market leadership now, just like it did in the 80s

    They never learn.

    Android just surpassed iPhone in marketshare, not only worldwide but in the US as well. And Android is growing FAR faster than iPhone.

    So what does Apple do? Keep setting up rules to piss off developers and publishers, and instituting an Apple Tax on subscription content for iOS devices.



    Apple: if we get you subscribers, we deserve a cut
    By Jacqui Cheng | Last updated about 2 hours ago
    It has been almost two weeks since The Daily made its debut on the iPad, but Apple has finally announced its in-app subscription terms for other offerings in the App Store. The system is open to all publishers of content-based apps—music, newspapers, video, and magazines, but not insurance policies. Anyone who sells subscription-based content outside the App Store must also use Apple's system, giving Apple a 30 percent cut. Hello in-app Netflix subscriptions?

    "Our philosophy is simple—when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing," CEO Steve Jobs said in a statement. "All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app."

    Apple's announcement went on to emphasize that publishers are not limited to using the App Store for subscriptions; they're allowed to use their own websites to sell subs. They can even offer free access via their apps to existing out-of-app subscribers (so, if you subscribe to a magazine in print form and that magazine lets you get iPad subscriptions for free as part of your agreement, that's still allowed). However, companies cannot offer those types of subscriptions as the only options within their iOS apps—just like Apple's newly enforced rule with e-books, publishers must go all-in with Apple's subscriptions and their own, or they can't be on the App Store.

    Oh, and the subscriptions offered within iOS apps must be the same price or less as the company's other offerings, and the apps can no longer link to an outside store where users can purchase content.

    The official terms are hardly surprising, given Apple's recent stance on content sales outside of the App Store. The company rejected the Sony Reader app for giving users access to content outside of the App Store (and apparently not offering that same content for purchase in-app), leaving e-book aficionados wondering what will happen to their other favorite e-book apps (such as the Kindle app or Barnes & Noble app) on iOS devices. That's still up in the air, but Apple's terms for publishers offering newspaper, magazine, music, or video subscriptions is very clear: if Apple helps bring in customers, then Apple gets to take a cut of content sales.
    Now I wonder which platform publishers will end up preferring? Which one will they push users to more, Android (0% tax) or iOS (30% tax)? Accordingly, which one will they put most of their effort and marketing in?

    Apple's business stupidity never ceases to amaze. They never know what to do with a good thing.
    "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
    Ben Kenobi: "That means I'm doing something right. "

  • #2
    Given what we've seen with DRM and iTunes, plus ebooks, this is hardly a surprise. Apple regards the app store as a cash register, and is milking it for all it's worth. You may regard them as idiots, but their shareholders have been pretty happy, even during the economic malaise. From Forbes, yesterday:

    Apple (AAPL) is not only home to the Macintosh computer, but also the iPhone. Technically speaking, the shares of AAPL continue to run higher, gaining more than 11% since the beginning of 2011. In fact, the security has rallied along the support of its 10-week and 20-week moving averages since March 2009, tagging a fresh round of new highs in the $360 area.
    This stock is stupidly high ($360?!?!) and must correct at some point. But I thought that would happen long before now.
    Apolyton's Grim Reaper 2008, 2010 & 2011
    RIP lest we forget... SG (2) and LaFayette -- Civ2 Succession Games Brothers-in-Arms

    Comment


    • #3
      The stock is high because idiots keep buying it. They're going to pay for it sooner or later. All of the AAPL shareholders I know don't know **** all about the stock market, they're Apple fanboys who were told AAPL stock is always going up and since they have unflappable faith in AAPL, they don't sell when they obviously should. As a result, massively overvalued.

      Because they're so inept, once the stock starts crashing, it'll crash really fanboys start freaking out. "I bought at 325! ****, gotta sell now while I still have a profit..." Oh look, it dropped even more. "I bought at 320! ****, gotta sell now while I still have a profit..." ...............
      "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
      Ben Kenobi: "That means I'm doing something right. "

      Comment


      • #4
        The stock is high because idiots keep buying it. They're going to pay for it sooner or later.
        People have been saying that since before it hit 200. Just sayin'.
        Apolyton's Grim Reaper 2008, 2010 & 2011
        RIP lest we forget... SG (2) and LaFayette -- Civ2 Succession Games Brothers-in-Arms

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        • #5
          They will still be right.
          "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
          Ben Kenobi: "That means I'm doing something right. "

          Comment


          • #6
            Onlly after all the "idiots" have gotten rich. So how right can they be?
            Apolyton's Grim Reaper 2008, 2010 & 2011
            RIP lest we forget... SG (2) and LaFayette -- Civ2 Succession Games Brothers-in-Arms

            Comment


            • #7
              They're not rich, they own overvalued stock. If they sold now, they'd be rich. But they're not selling. That's why they're idiots.
              "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
              Ben Kenobi: "That means I'm doing something right. "

              Comment


              • #8
                Most stocks are bought on an institutional level, not by fanboys you've met. The stock could tank 100 points and a lot of investors will still have doubled their money. It's not like it will drop to 150 overnight, no matter how much you wish it would.
                Apolyton's Grim Reaper 2008, 2010 & 2011
                RIP lest we forget... SG (2) and LaFayette -- Civ2 Succession Games Brothers-in-Arms

                Comment


                • #9
                  The whole point for Apple having an app store or iTunes or what not was so that Apple could wall those customers off and then make sure it milked them for as much money as possible. Honestly, I don't think Apple cares if it has the biggest market position or not just as long as they have the biggest profit margin.
                  Try http://wordforge.net/index.php for discussion and debate.

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                  • #10
                    But we are talking long term vs short term. What good is a golden goose if you kill it
                    Keep on Civin'
                    RIP rah, Tony Bogey & Baron O

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                    • #11
                      Originally posted by Oerdin View Post
                      The whole point for Apple having an app store or iTunes or what not was so that Apple could wall those customers off and then make sure it milked them for as much money as possible. Honestly, I don't think Apple cares if it has the biggest market position or not just as long as they have the biggest profit margin.
                      Of course they value profit over volume. What they've never figured out is profit with a fringe product may be fleeting.

                      Apple scored huge with a bunch of successful products, but their business model is predicated on introducing disruptive technologies. That's the only way they can make their big profits. They did this with the iPod, the iPhone, and the iPad. But where are these now?

                      iPod: Was effectively killed because it was a technology with a built-in end of life
                      iPhone: Was far too pricey and restrictive, Android capitalized on it and now Android has more marketshare and is growing FAR faster. Mac vs PC all over again.
                      iPad: First out of the gate, will hold their lead another year or two but Android is poised to win here as well.

                      What is their next disruptive product? As hard as they try, there's only so much you can do. I don't forsee them having another groundbreaking product anytime soon. There's just not much room to go with the current technology.

                      They've tried hard: Apple TV (bomb) and MacBook Air (quasi-bomb). But they're not getting any traction.

                      And I think they also realize that their business model of profiting off disruptive technologies is coming to an end. To sustain their profit growth to keep their investors happy (who are undeniably valuing the stock over perceived future growth, not actual performance), they're starting to try to grab cash whenever possible. This 30% Apple tax on content is a blatant example, as is their somewhat amusing attempted to compete with Amazon with the iBookstore (which is performing so miserably it's arguably the entire reason Apple wants in on the game of taxing Kindle purchases themselves).

                      No rational person can see the Apple stock above $300 and see it as a good value. It's not even close. All signs are pointing to Apple losing its market-leading position in all of the categories that caused its stock price to stratospherically rise.
                      "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
                      Ben Kenobi: "That means I'm doing something right. "

                      Comment


                      • #12
                        Originally posted by Ming View Post
                        But we are talking long term vs short term. What good is a golden goose if you kill it
                        Would you rather be Hyundai or BMW? Hyundai sells a lot more cars but they're mostly on the low end with low profit margins while BMW sells high end stuff with big fat profit margins. It seems obvious Apple isn't trying to be the sales leader but they are trying to be the leader in profit margin.
                        Try http://wordforge.net/index.php for discussion and debate.

                        Comment


                        • #13
                          Originally posted by Oerdin View Post
                          Would you rather be Hyundai or BMW? Hyundai sells a lot more cars but they're mostly on the low end with low profit margins while BMW sells high end stuff with big fat profit margins. It seems obvious Apple isn't trying to be the sales leader but they are trying to be the leader in profit margin.
                          Hyundai profits (yearly): $4.7B (2010), $2B (2009)
                          BMW profits (yearly): $0.28B (2009, can't find 2010 yet?)

                          http://www.ft.com/cms/s/0/99e69f2a-29f5-11e0-997c-00144feab49a.html
                          http://business2press.com/2010/03/11/bmw-reports-2009-financial-earnings/
                          "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
                          Ben Kenobi: "That means I'm doing something right. "

                          Comment


                          • #14
                            No, not yet BMW reports @ 15.03.2011
                            Curse your sudden but inevitable betrayal!

                            Comment


                            • #15
                              Originally posted by Asher View Post
                              iPod: Was effectively killed because it was a technology with a built-in end of life
                              iPhone: Was far too pricey and restrictive, Android capitalized on it and now Android has more marketshare and is growing FAR faster. Mac vs PC all over again.
                              iPad: First out of the gate, will hold their lead another year or two but Android is poised to win here as well.
                              The other point about those three is that their market leads were for increasingly short periods of time. Their competitors are responding faster, and more intelligently to the problems.

                              And, I'd say, all three have been of unquestionable benefit to all of us, even people like me who've never bought an Apple product. The products I have bought have been better because people have been responding to and competing with what Apple is doing. So it'd be good to have Apple out there still innovating, let the fanboys with more money than sense keep buying their overpriced products and we can benefit picking up the better featured, cheaper devices.
                              Jon Miller: MikeH speaks the truth
                              Jon Miller: MikeH is a shockingly revolting dolt and a masturbatory urine-reeking sideshow freak whose word is as valuable as an aging cow paddy.
                              We've got both kinds

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