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It seems OP hasn't quite thought this through...

Apple does not demand 30% of out-of-app sales, just that out-of-app sales are not cheaper than in-app sales.

And as far as I read the release, SaaS is not concerned. Unless you're using Apples subscription mechanism, you're not offering a subscription in-app. So if you simply use a web API, that's not a subscription.

Can Apple change that at any time? Yes. Closed platforms take power from developers and give it to the platform vendor - in exchange for (often) a bigger pie to get your slice from.

Is the OP yet another pageview troll? Yes. Posting blatantly false information in the headline seems to indicate that.




>And as far as I read the release, SaaS is not concerned. Unless you're using Apples subscription mechanism, you're not offering a subscription in-app. So if you simply use a web API, that's not a subscription.

That's the point that you're missing. If you offer subscriptions or purchases out-of-app for use by the app, You are REQUIRED to offer subscriptions or purchases in-app as well for the same price and minus Apple's 30% cut.

Section 11.13 of the approval guidelines read: "Apps can read or play approved content (magazines, newspapers, books, audio, music, video) that is sold outside of the app, for which Apple will not receive any portion of the revenues, provided that the same content is also offered in the app using IAP at the same price or less than it is offered outside the app. This applies to both purchased content and subscriptions."

So the whole question comes down to whether SAAS counts as a subscription, content, or otherwise.


I never even entertained the idea somebody would consider SaaS "content". The thing also lists explicitly what they consider content. There's no "etc."

Yes, you can probably bend it to mean anything, but as is, this really doesn't seem to include SaaS.


"this really doesn't seem to include SaaS"

Today, it doesn't, but based on Apple's ever expanding scope, that's not a bet I'm willing to make. We're sticking to HTML5 web apps and making sure they run on Android browsers as well.


That's probably a sound business strategy if you don't want to (or can't afford to) take the cut.

I'm not saying "this could never happen". I'm saying "the OP is making stuff up to get page views"


"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" -- http://www.apple.com/pr/library/2011/02/15appstore.html

By this rule, all apps that offer subscriptions must additionally implement Apple's subscription mechanism.

This is what the OP (and everyone else) is reacting to.


It would be bad enough if Apple was just demanding a 30% cut of all in-app purchases. Imagine if Visa or Mastercard tried to charge the same rates.


Not really - all apps that offer subscriptions must go through Apple's mechanism anyways. And subscription is (IMHO) well defined as referring to content, with types of content enumerated.

So unless you make the case that SaaS is content, the post is baseless.


Baseless? Because Apple would never try to skim 30% of all the revenue that flows through their devices. That's crazy talk. /sarcasm

The post is absolutely not baseless. Apple hasn't made their intentions clear regarding SaaS subscriptions, and it is likely that they want that money as well.


Making a statement of fact ("Apple is taking 100% of mobile SaaS revenue") with no basis in reality is pretty much the definition of baseless. Unless and until Apple speaks on SaaS, this is a figment of the authors imagination. I'm not saying "it can't happen". I'm saying "not true as of right now"

I'm surprised "making shit up" qualifies as news on HN these days.


The article begins with the premise, "It appears to me that the new "give Apple 30% of revenue" policy will apply to software subscriptions just as well as it appears to content." Assuming that sentence was always part of the article, it seems like you're just reacting to the headline.

SaaS was an angle I hadn't thought of in regard to Apple's new policies, and their decisions there have important implications. I'm glad I saw this article.


Apple has suggested that if you offer subscriptions (or purchases) outside of your app that you need to do it inside your app. At the same price. Hence the whole drama over Kindle--the purchases are done on the Amazon website but Apple has stated they want 30%.


"but Apple has stated they want 30%...." of the revenue from those people who purchase content or subscriptions inside the application.

If you purchase your content on Amazon's website, you can play it on an iOS device and Apple doesn't expect a cent.


Well they do expect a cent. Because they've banned you linking to the website, and they've forced you to use their in-app billing system, and they've banned you from incentivizing customers with a lower price elsewhere and they're taking a huge cut from in-app purchases. So unless you can telepathically control how your customers sign up, Apple's going to be getting quite a few of your cents.

It's a bit more complicated than Apple getting 30% of all your sales, but it's also more complicated than Apple just letting the iOS customers choose how to buy. You'll lose some random part of that 30% depending on your customers buying habits.



If you own an iPhone, you've got a ticket and are inside Apple's themepark. You can't leave until the end of the day, or you get charged extra (ETF). Suddenly, Apple pisses off the vendors by killing off their profits. A couple of the vendors talk about going to a different, more open theme park once its announced. You're stuck inside Apple's park, and you're hungry. But the pretzel guy just left because he can't make a profit selling pretzels in Apple's theme park. Why should I be happy as a customer here again? Because Apple's made it so I can pay the pretzel guy (who is no longer here) slightly easier?


OK, pretzels. Your analogy looks like this to me: Pretzel guy has a stand inside the park, where he gives away pretzel tongs for eating hot pretzels. You want pretzels, he used to give you his mobile phone, you'd make a call, give somebody else your credit card, and the pretzels would be delivered to the park.

Now Apple says that (1) he has to sell the pretzels inside the park if he also sells them outside the park, (2) he has to charge the same price, (3) Apple muscles him for 30% of his action on sales inside the park, and (4) he can't have pretzels from outside the park delivered to you in the park. You actually can buy pretzels by phone from his store in the park, or with your web browser, but he can't put the link to his pretzel store or the phone number of his pretzel store on the pretzel tongs he gives away.

If pretzel guy can't make a profit, he leaves. If enough vendors leave, the park is less attractive and fewer people buy tickets.

So yeah, maybe as a customer you won't be happy if pretzel guy can't figure out how to make money at Apple's expense. And yeah, maybe as a developer you aren't happy if you can't figure out how to exploit Apple's customers without Apple exploiting you. And maybe everybody goes somewhere else.

Seems like the free market at work. So what's the problem here? You have choices, exercise your right to choose.


Well, Apple's play is they just ban Amazon's app if they don't cough up the cash.


Yes. How does 30% of content subscription translate into 100% of SaaS, again?


The original article pointed out that the mobile app doesn't represent all the value the customer gets from the service, then hypothesized that it represents about 30% of it; so 30% of the subscription revenue represents 100% of all the mobile service revenue.

It might be a decent argument, if he hadn't pulled that hypothesized number out of his left nostril.


That, and the fact that it's 30% of the mobile service revenue. If you sign up out-of-app, you don't pay 30%. He hypothesized (out of his right nostril, presumably ;) that all mobile users sign up via the mobile app, even though it only gives them 30% of their usage value.

In other words, "I made up random number A. Then I made up random item B. Together, they prove <really outlandish claim that will drive visitors to my blog, but has no connection to reality whatsoever>." I hear AOL is looking for writers.




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