There were a few reasons why I started writing on this blog. But one of them was the fact that a lot of the Apple “journalism” was overly skewed towards the developer. Which is a shame because iOS developers should be treated as supplier companies to Apple. Meaning that they are partners, but there will always be an element of adversarial oneupmanship.
The purchasing company (Apple) always wants to pay the lowest price and charge the highest markup. That is universal throughout the retail world. And on the flip side, the suppliers (iOS Developers), always want to charge the highest price available. That is also universal.
But what is different in Apple’s case is this. The developers are not content to let the laws of supply and demand help find an equilibrium. If the developers all decided to go to Android, PC, Xbox, PlayStation, or even Mac, they could bring Apple to it’s knees. There is nothing forcing them to write apps for iOS. They could leave en masse. But they want it both ways, they want to bring Apple to their knees and they don’t want to suffer any personal sacrifice. That’s like going on strike while demanding your full paycheck.
When I worked for Cabela’s, we had all manner of companies trying to get us to carry their coats, beef jerky, or snow boots in our stores. If we couldn’t come to an agreement on price, these vendors simply went to another retailer. That’s how capitalism works. If the vendor had something that we couldn’t get elsewhere, we might be willing to pay a higher price for it. If not, sorry, maybe try Walmart.
In all my years of business, I’ve never seen anything like what Apple is going through. These “suppliers” (iOS Developers) are banding together and trying to call in clueless government officials to force open the gates to Apple’s store. It’s like a bunch of barbarians storming the gate. This is a travesty and iOS developers should be ashamed.
The worst of the lot is Microsoft itself. They literally have a walled garden with their Xbox and charge a 30% fee just like Apple. And yet they want the option of selling via the AppStore without paying a fee to Apple.
So how would regular companies deal with loser suppliers like what Apple is stuck with? They would directly compete. I worked at a company once that was a supplier for the Bayer pharmaceutical company. We squabbled on the price of one of their products which we produced for them for many years. After finally agreeing to paying a higher price, which wasn’t really justified, Bexar later refused to extend the contract and told us our services were no longer needed. They had built out their in-house production capacity to absorb our manufacturing volume. This was devastating to my plant.
This kind of hard-ball squabbling goes on all the time between corporations. And yet, iOS developers act like they are somehow different. As if they deserve Apple to spread flower petals before them and sing their praises. That’s not how the business world works.
If Apple was in any other industry, they’d take aim at a few choice iOS developers and throw a ton of cash at making apps that directly compete. If this was office Furniture or vacuum pumps, Apple would try to put a few choice iOS Developers into bankruptcy.
When I was at the Herman Miller Corporation, we launched an all out war on Haworth when they introduced a new product line at a plump and profitable business segment that we owned. We knew that they must’ve been selling below cost by relying on the profits from a business segment which they owned and we were not in. So how did we respond? We rushed a new product aimed directly at their home base bread-n-butter segment and sold it at a loss. It was a bloodbath for us but the assault worked because Haworth couldn’t take any more red ink and threw up the white flag. Without their subsidizing profits from their home base they were forced to retreat. That’s business folks.
My advice to Apple would be that it’s time to take the gloves off. Start churning out more official Apple apps that are aimed at the most vocal of their critics. Pour obscene amounts of money into making the most amazing apps possible and watch those critics slide into oblivion. Rip off their best features, do them better, and add system level magic. Because up until now, I’ve seen Apple do nothing but bend over and take assault after assault with no response. Sometimes even apologizing. But patience isn’t working. It’s time to end the inaction.
Apple was content to let the laws of supply and demand be the arbiter. But if the iOS developers are intent on storming the front gate via the battering ram of the federal government in whatever country of your choice. Something needs to change.
But what is different in Apple’s case is this. The developers are not content to let the laws of supply and demand help find an equilibrium. If the developers all decided to go to Android, PC, Xbox, PlayStation, or even Mac, they could bring Apple to it’s knees. There is nothing forcing them to write apps for iOS. They could leave en masse. But they want it both ways, they want to bring Apple to their knees and they don’t want to suffer any personal sacrifice. That’s like going on strike while demanding your full paycheck.
When I worked for Cabela’s, we had all manner of companies trying to get us to carry their coats, beef jerky, or snow boots in our stores. If we couldn’t come to an agreement on price, these vendors simply went to another retailer. That’s how capitalism works. If the vendor had something that we couldn’t get elsewhere, we might be willing to pay a higher price for it. If not, sorry, maybe try Walmart.
In all my years of business, I’ve never seen anything like what Apple is going through. These “suppliers” (iOS Developers) are banding together and trying to call in clueless government officials to force open the gates to Apple’s store. It’s like a bunch of barbarians storming the gate. This is a travesty and iOS developers should be ashamed.
The worst of the lot is Microsoft itself. They literally have a walled garden with their Xbox and charge a 30% fee just like Apple. And yet they want the option of selling via the AppStore without paying a fee to Apple.
So how would regular companies deal with loser suppliers like what Apple is stuck with? They would directly compete. I worked at a company once that was a supplier for the Bayer pharmaceutical company. We squabbled on the price of one of their products which we produced for them for many years. After finally agreeing to paying a higher price, which wasn’t really justified, Bexar later refused to extend the contract and told us our services were no longer needed. They had built out their in-house production capacity to absorb our manufacturing volume. This was devastating to my plant.
This kind of hard-ball squabbling goes on all the time between corporations. And yet, iOS developers act like they are somehow different. As if they deserve Apple to spread flower petals before them and sing their praises. That’s not how the business world works.
If Apple was in any other industry, they’d take aim at a few choice iOS developers and throw a ton of cash at making apps that directly compete. If this was office Furniture or vacuum pumps, Apple would try to put a few choice iOS Developers into bankruptcy.
When I was at the Herman Miller Corporation, we launched an all out war on Haworth when they introduced a new product line at a plump and profitable business segment that we owned. We knew that they must’ve been selling below cost by relying on the profits from a business segment which they owned and we were not in. So how did we respond? We rushed a new product aimed directly at their home base bread-n-butter segment and sold it at a loss. It was a bloodbath for us but the assault worked because Haworth couldn’t take any more red ink and threw up the white flag. Without their subsidizing profits from their home base they were forced to retreat. That’s business folks.
My advice to Apple would be that it’s time to take the gloves off. Start churning out more official Apple apps that are aimed at the most vocal of their critics. Pour obscene amounts of money into making the most amazing apps possible and watch those critics slide into oblivion. Rip off their best features, do them better, and add system level magic. Because up until now, I’ve seen Apple do nothing but bend over and take assault after assault with no response. Sometimes even apologizing. But patience isn’t working. It’s time to end the inaction.
Apple was content to let the laws of supply and demand be the arbiter. But if the iOS developers are intent on storming the front gate via the battering ram of the federal government in whatever country of your choice. Something needs to change.
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