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Joined 1 year ago
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Cake day: June 13th, 2023

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  • This means absolutely nothing. How much of their advertising revenue comes from the US.

    To quote the article again, “The U.S. accounted for about 25% of TikTok overall revenues last year, said a separate source with direct knowledge.” Honestly, I think that makes the case for shutting it down even stronger. TikTok isn’t in some growth-at-all-costs phase in the US. It’s likely near its peak potential userbase. If they haven’t been able to make it profitable by now, that doesn’t bode well for it ever becoming significantly profitable. Absent the legal issues, they think it’s still worth at least trying, but as it stands, it’s just a lot of money in and, just as quickly, out, with nothing to show for it at the end of the day.




  • No, we are discussing services not sold through their store and not using their payment provider. That is literally the topic of the post.

    This is about purchases of virtual goods made by users of the app either directly in the app (30% combined commission and payment processing fees), or who click a link in the app to make the purchase using an external payment provider (27% commission). In all cases, these are sales originating from within the app.

    Third party console games don’t literally pay money to not use services.

    I’m not sure if there have been any changes in the last few years (I doubt it), but developers paid Nintendo, Microsoft, or Sony a 15% “licensing” fee for physical media games sold for their consoles. That has been the basic business model for all consoles for decades.



  • That’s why it would need to be a small piece of a greater set of information. Imagine a person walking through an office and into a stairwell. If you know the person is there, and you know the stairwell is darker than the office, you could infer the appropriate location of the person in the building

    That has nothing to do with the technique described in the article. It’s also still quite a stretch. Holding up a piece of paper and casting a shadow on the ambient light sensor will also make it appear darker. Are they in the stairwell or is Bob from accounting stopping by to tell a “funny” anecdote and blocking the afternoon sun? If you’ve managed to compromise a device enough to access sensor data, you’re not bothering trying to make sketchy assumptions based on the light sensor.


  • It’s a commission for access to a lucrative market that Apple created. Apple gives away the developer tools and charges an extremely modest annual App Store fee, which also covers the review process and hosting. It’s been common for platform creators to charge third-party developers in some capacity for many decades. Some do it by charging high costs for the developer tools, others by charging a commission based on sales. I don’t think any strategy is necessarily better or worse than the other on a legal or moral basis; they’re just business decisions. Previously Apple has combined the commission and payment processing costs into one fee. Apple made a decision on what they wanted to offer developers on that platform and Epic wasn’t satisfied with it. They got a court to agree on what is ultimately a minor technical point in how Apple’s deal is packaged so Apple is offering an alternative that they don’t want to but complies with the law. It’s, ultimately, a worse deal for the developer. Developers don’t have a right to demand that some arbitrary percentage is the right one, tough. Apple offered a deal: take it or leave it. Developers are perfectly free to leave it.




  • Why are they just outright stripping this feature instead of just paying the patent fee? (As in literally removing the chips, actually stripping it.)

    They’re not. Despite some misleading press coverage, Apple never remotely suggested they were removing any hardware. They’re just going to start importing them without the “functionality.” They’re disabling it in the US via software while they go through the legal process. When it’s all done, they can activate it for everyone.

    As for why they’re not paying, Apple’s position is that their product does not infringe any patents, and this is not an outlandish position. Apple has already had most of Masimo’s patent claims from a dozen total patents invalidated. The ITC ban is a result of a single patent still currently left standing that Apple believes should never have been issued and is working to have invalidated.

    I think there’s a very good chance Apple succeeds and Masimo is left with no relevant patents. If they go through everything and Masimo is still left with something, at that point Apple can negotiate with them on a reasonable fee, and they’ll be doing so from a position of relative strength. Masimo was obviously hoping an ITC ban would cause Apple to blink and pay whatever Masimo wanted. Clearly that didn’t happen and Apple would prefer go for total vindication.


  • I won’t shed any tears for Amazon etc having to give Apple a huge chunk of cash

    Amazon doesn’t have to give Apple a huge chunk of cash though. Apps don’t pay anything to Apple for real-world stuff being sold. Amazon pays nothing for the tens of billions of dollars purchased every year from iPhones. The only thing they pay Apple for is if someone uses the Prime Video app to buy or rent something or subscribe to Prime Video, but who does not already have an Amazon account (with saved card) that they’re signed into. We’re probably talking a number measured in the thousands of dollars. Uber, for example, pays Apple nothing other than their annual developer account fee (or fees, assuming they have multiple accounts).

    this sounds like a way to frustrate small developers who don’t have a whole team to devote to their finances.

    Nobody is going to actually use this program so there’s no real world extra accounting cost. Previously Apple charged 30% for a combined payment handling and commission. A court determined they had to let developers handle their own payments so Apple complied and said the commission is 27%. It’s invariably cheaper to just stick with Apple’s 30%.

    Everyone always wants more money. Developers would love to pay less; Apple would love to make more. The 30% max fee (in practice less for many developers) has been pretty successful for everyone involved. I think people can quibble over the “right” number, but I don’t think it’s wrong that there’s a sales commission for access to a profitable platform.


  • If you are a developer, what right does Apple have to seeing your finances for all purchases made in the app that they sold on their store?

    It’s a commission for sales that came from the app, meaning from Apple’s platform, where they have roughly one billion above-average income users with a reputation for buying apps and subscriptions.

    It’s also worth keeping in mind that there are different ways of monetizing platforms, none of which are necessarily morally better or worse than the other. Microsoft’s IDE, Visual Studio, is $45 or $250 per user per month (so $4500 annually for a team of ten). Xcode, Apple’s IDE, is free. A business can offer its apps on the App Store, which also serves the files, for a grand total of $99/year.


  • Prior to the App Store, boxed retail software generally had a 50% cut.

    Also, you can call it a duopoly, but Apple didn’t leverage market share into this 30% cut; it started when they were closer to 1% of the phone market, and the policy has only ever gotten cheaper (second year of subscriptions and small business program) and more permissive. They offered a closed platform and competed their way to the top based on the product. Developers are given the chance to sell to a huge market of high-end hardware with aggressive consumer uptake of software updates, making it a very attractive platform. Apple wants a commission. It’s not exactly outrageous of them.


  • Customers pay; consumers use. Sometimes they’re the same, often they are not.

    Ad-supported services: If you search for something on Google, you are a consumer. Google’s customers are the companies paying for sponsored links at the top of your search results.

    Kids toys (and other gifts): The kid in the sandbox playing with a Tonka truck is the consumer of the product but their parents (grandparents, etc.) are the customers.

    “Enterprise” solutions: Corporate IT departments are usually the customer, though they may never use the product. Other employees are the consumer, but they had no choice in buying it so they’re not the customer.




    1. This is advertising. It’s not the most worst example, but it’s still fundamentally an ad.
    2. Revenue is absolutely the wrong metric to use. If you had $100 of revenue and $99 in costs, you have only $1 left to pay your fines. Amazon did not earn enough to pay its fines in 1 hour and 50 minutes because most of that that money was used to buy and deliver the products, plus various other expenses. The blog post is misstating the numbers by over an order of magnitude for some of the companies. If you’re going to do it, do it right at least. The profit numbers are just as easy to come by as revenue.