Tag Archives: creditcards

App Store delivery truck

Charles Perry follows up from Brent’s post on the App Store with this point of view:

“Today, the App Store is basically your delivery truck that takes cash on delivery. We wouldn’t blame a delivery truck for our business failure. It doesn’t make any sense. It’s not a delivery truck’s responsibility to ensure that there’s a market for our products. That’s what market research is for. It’s not a delivery truck’s responsibility to advertise our products or introduce them to customers. That’s what marketing is for.”

I really like this analogy. However, if you take everything Charles says as truth, it reveals an even more serious problem: the 30% that Apple charges for distributing bits on their truck is outrageous. It’s flat-out wrong to charge such a high percentage if they are providing no value above credit card processing and file hosting.