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Microsoft Offers Warm Embrace to iOS Developers

2/16/2022

 
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​iOS developers are lying when they make the claim that they have “no where to go”. Microsoft just rolled the red carpet out for them with a neon sign that says “iOS Developers wanted”. What more do iOS developers want?
​Capitalism is a beautiful thing. Microsoft’s Appstore is a distant third compared to the iOS Appstore or the Google Play Store. This is the motivation for Microsoft to pull out all the stops and call out the bluff from iOS developers. In essence, Microsoft said “You guys want the freedom of alternate payment methods? Here you go”. 
 
But the response from iOS developers has been a collective yawn. They don’t want to move because Apple created the best money-making machine on the face of the planet. There are more customers willing to pay for apps on iOS than there is on the Google Play Store or the Microsoft App Store combined. Why is that? 
 
Could it be the fact that people who are willing to pay more for a secure operating system are also more willing to pay for apps?  Could it be that not allowing side-loading is a huge benefit for both developers and consumers? Could it be that once your market trusts you with their credit card, this allows for millions of dollars of impulse purchases? Could it be a privacy-minded operating system attracts billions of users who don’t want to be tracked?
 
All of these benefits are the result of the platform that Apple created. And unlike Google or Microsoft, Apple doesn’t get any revenue from their operating system. They don’t sell the operating system like Microsoft sells Windows and they get no advertising dollars like Google. 
 
iOS is only funded by hardware and Appstore sales. And as I’ve repeated until I’m blue in the face, Appstore commissions are good for the consumer. It allows them to vote with their dollars on which apps deserve more attention from Apple. If you make a popular app that brings in millions of dollars for Apple, then Apple has an incentive to remove any barriers to your income stream. iOS developers want to short circuit this feedback loop and force all hardware buyers to subsidize their apps. This is terrible for the consumer. 
 
But the issue here is this. iOS developers can go develop for Microsoft or anyone else. There is nothing stopping them from sticking to their principles and giving Apple the middle finger. 
 
The excuse that they have too much invested in iOS is a hollow cop-out. What they fail to understand is what they truly are. They are actually independent business owners. And if they say that they lack the funding to invest in new products when their old product streams dry up, then what they are really saying is that they don’t know how to run a business. Or they are saying that they’ve poorly managed their previously earned sales revenue.
 
Because to be in business today means exploring potential new products while you are selling your current ones. It means allocating a percentage of your revenue streams to research and development so that you’re not caught flat footed when market shifts happen. It means investing for tomorrow today. Good business owners don’t eat all of their seed. 
 
This may be part of why I lose my patience with iOS developers in general. I see them as small business owners who don’t take responsibility for mismanaging their business. I work as a financial analyst for large Fortune 500 level companies. It’s my job to explore the potential profitability of new products, to assess the return on investment for capital projects. I generally interact with smart business leaders who don’t cry foul for their own mismanagement of a business. 
 
But iOS developers? They want to blame Apple for their own ignorance in running a business or lack of capital. When they create products with poor gross margins, they expect Apple to give them a handout by cutting their own margin. 
 
They say that they can’t leave because they can’t afford to start over somewhere else. But who does? Most companies don’t have the capital to invest in a new venture up front. They have to raise it. As a business, it is your job to sell your vision to investors to line up capital. If no one wants to hand you money so that you can dive into a new product, take that as a red flag that maybe your vision isn’t as great as you think. 
 
When a company bets the farm on a new product and it doesn’t sell, guess what? That business may go belly up. But they can’t blame Amazon or Walmart for refusing to cut them a favorable deal so they can make a decent margin. Margin is the problem of the producer, not the retail platform. 
 
Most of the tech blogs and websites refuse to call iOS developers what they are. Business owners. And as business owners, they can take their skills and products any where they choose. They can even setup their own platform if they want. The problem is, many of these business owners don’t know how to run a business. They need to quit complaining to Apple or go down to McDonalds and fill out a job application. Because if you can’t run a business, work for someone who does.

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    Robert Perez

    Manufacturing and distribution analysis since 1993.

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