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The EU Screws iPhone Users for Big Business

12/17/2022

 
The EU Is Corrupt
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​If you follow the business of Apple to any extent at all, then you’ve most likely already heard about Mark Gurman’s bombshell report which stated that Apple is preparing to allow app sideloading in Europe. 
 
Make no mistake, this whole push by the EU to force open iOS is bad for the consumer and only benefits a few huge corporations. If you didn’t know already, online dating websites have revenue streams that would make gambling and porn blush. They can command huge entry fees and have regular recurring fee revenue from messaging and boosting of profiles. And unlike porn or gambling, there are no production costs or payments ever sent to customers. It’s a highly profitable business with a low cost structure. The only thing standing in their way when it comes to the iPhone is Apple.
 
So what do you do when you’re the CEO of a big business and want to increase your profits? You lean on corrupt government officials to pass laws that favor your corporation. Which is exactly what is going on in Europe. 
​What Would Be Lost?
I’ve written about this countless times. But the iOS Appstore is great for consumers because it makes everything simple. You only have to give your credit card info to Apple and it opens up a world of vendors. Also, the AppStore fee structure allows you to vote with your dollars which apps are worthy and which are not. Apple has an incentive to help those apps which bring in lots of revenue. If you were trying to design a safe, simple, and meritorious market system, it would look just like the Apple Appstore.  
 
But Isn’t the Mac AppStore a Good Model?
Time and again developers bring up that it’s possible for Apple to allow sideloading because it’s already done on the Mac. But what they never tell you is this. The Mac AppStore is a deserted wasteland. Larger more popular vendors leave the Appstore so that they won’t have to pay the Appstore fees. If anything, the Mac Appstore is a cautionary warning of what Apple should NOT do with iOS. 
 
Once vendors leave the AppStore, you have to setup accounts and pay for software at their proprietary websites. And guess what that means? Every time you get a new computer you have to visit a bunch of different websites to redownload your software. And God Forbid, you may even need to start saving those dreaded software codes. This is great for the greedy developers. They make more profit and force inconvenience on all their customers. But they don’t care that we like the convience of a centralized Appstore system.
 
 
If It’s So Bad, Why Is the EU Forcing It?
Again, this is about government corruption. There must be bribery or backroom deals going on. Corrupt politicians are getting something in return for passing this bill. And if you don’t think this is possible. Just think about the amount of money which is at stake here. When corporations analyze capital projects they compare the current cost to the future revenue for the next 10 years. And over the next 10 years there will be hundreds of millions of dollars in revenue. A few million in bribes is a drop in the bucket. 
 
Who Loses?
iPhone users will lose. If sideloading ever becomes widespread it is only a matter of time before the larger more successful apps simply leave the Appstore. The Appstore will shrink to become similar to the Mac Appstore.  That means iPhone users will have to setup accounts at a bunch of different websites leaving their credit card info more vulnerable. And all of their software will no longer be store on Apple’s servers but in multiple different places making reloading software a pain. And if Apple loses service revenue, it is likely that they will have to raise prices on hardware. There is nothing but pain for the consumer by this new development. 
 
Who Is Cheering  for This New Law?
If someone is cheering for terrible new law you can bet that they fall into one of two categories. They are a greedy developer or a friend of one. One of the reasons which I started my blog was because the online tech websites were riddled with bias towards developers. Which makes no sense. 
 
Developers are businesses trying to get more money from consumers. The tech websites are not speaking up for the consumer but are trying to enrich their business owner friends.  It’s a shame that websites like 9to5Mac, The Verge, or Ars Technica have incestuous relationships with developers that slant their coverage of news that impacts the consumer negatively. But it’s the truth. 
 
I noticed that Jon Prosser on YouTube is speaking the truth about how the rumored iOS sideloading is. But he has regularly shown that he doesn’t care about making/keeping friends with the Apple community. He says it like it is. I’m in the same situation. I have no ties with iOS developers so I’ll freely tell you, sideloading on the iPhone is bad…bad news. Apple’s “walled garden” is part of makes the iPhone the iPhone. Without it, iOS loses one very important support for safety, security, and convenience. The fall of the walled garden would be a big loss for the iOS community. 
 

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    Robert Perez

    Manufacturing and distribution analysis since 1993.

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