The Apple Core

Jason D. O'Grady & David Morgenstern

Enough with the cry-baby ‘open letters’ to Apple

By | February 22, 2011, 10:05pm PST

Summary: In the weeks before a major Apple event, such as the annual Worldwide Developers Conference or shareholders meeting, someone tries to rally the developer community with an “open letter” to the Apple or Steve Jobs. Please, please, give it a rest, this tactic won’t sway anyone’s opinion, least of all Apple executives.

In the weeks before a major Apple event, such as the annual Worldwide Developers Conference or shareholders meeting, someone tries to rally the developer community with an “open letter” to the Apple or Steve Jobs. Please, please, give it a rest. This tactic won’t sway anyone’s opinion, least of all Apple executives.

What these letters are good at is creating a hubbub in the blogs and news sites. But it’s all an exercise in futility. And stupidity.

The latest open letter is from Richard Ziade, the founding partner of Arc90 and author of Readability. IT targets Apple’s recent App Store subscription policy. In his blog, Ziade said Apple’s rule — taking 30 percent of App Store subscriptions — “smacks of greed.”

You’ve achieved much of your success in hardware sales by cultivating an incredibly impressive app ecosystem. Every iPad or iPhone TV ad puts the apps developed by companies like ours front and center. It was a healthy and mutually beneficial dynamic: apps like ours get exposure and you get to show the world how these apps make your hardware shine. That’s why we’re a bit baffled here.

It appears that iOS developers didn’t expect Apple to ask them to share a bit of the hefty development and maintenance costs required to create its new digital platform. Ziade mentioned the old PC app and content platform model that we’ve lived with for decades, that “hardware shine” business.

In the old model, Apple makes the hardware, and the IDE, and the OS, and the online store, and markets the platform as well as provides for the maintenance of the platform. Developers get to ride on the platform. This is the way it’s been forever, but maybe not in exactly the same way for the new mobile platforms, or at least not for the Apple platform.

Ziade says that small developers won’t be able to invest in the Apple platform. And that may be true. Of course, that decision must be made when writing for any new platform, weighing costs, the market size and development costs.

To be clear, we believe you have every right to push forward such a policy. In our view, it’s your hardware and your channel and you can put forth any policy you like. But to impose this course on any web service or web application that delivers any value outside of iOS will only discourage smaller ventures like ours to invest in iOS apps for our services. As far as Readability is concerned, our response is fairly straight-forward: go the other way… towards the web.

Here’s one thing I’m sure of:  reaction down in Cupertino was “whatever,” or maybe, “we will see you later.”

Apple has told bigger guys than Richard Ziade to stuff it. And bigger industry players have tried the open letter ploy with similar sucess. A year ago, it was John Warnock and Chuck Geschke, the founders of Adobe, trying to persuade the community that Apple was wrong, wrong, wrong, about Flash on iOS.

We believe that consumers should be able to freely access their favorite content and applications, regardless of what computer they have, what browser they like, or what device suits their needs. No company — no matter how big or how creative — should dictate what you can create, how you create it, or what you can experience on the web.

The outrage expressed at the time appears to have cooled with the continuing failure to get Flash Player to run on mobile devices in an acceptable manner. The player software is “expected” in the spring for the Xoom. Motorola on Monday said it will be available after the launch.

So, please, enough with the open letters.

On the other hand, here’s what we do know on the Apple App Store subscription model: the policy and fees will be refined over the coming months. Some of this clarification is happening daily it appears. Jobs reportedly said on Tuesday that the In-App subscriptions rules don’t apply to software as a service.

Meanwhile, some have questioned the whether certain subscription rules cover file-sharing services such as Dropbox.

This conundrum of rule violations could affect other similar services, such as Dropbox. The file-sharing service currently offer users a free app that lets users access files saved to their online Dropbox storage. Users get 2GB of space for free, but can “buy” more space by paying monthly or yearly fees. That could be construed as offering additional extra functionality for a “limited time.”

My guess is that this will be settled in favor of the service. And so on …

Kick off your day with ZDNet's daily e-mail newsletter. It's the freshest tech news and opinion, served hot. Get it.

Topics

David Morgenstern has covered the Mac market and other technology segments for 20 years.

Disclosure

David Morgenstern

Freelance journalist/blogger David Morgenstern has nothing to disclose.

Biography

David Morgenstern

David Morgenstern has covered the Mac market and other technology segments for 20 years. In the recent past, he founded Ziff-Davis' Storage Supersite, served as news editor for Ziff Davis Internet and held several executive editorial positions at eWEEK. In the 1990s, David was editor of Ziff Davis' award-winning MacWEEK news publication as well as its successor title, eMediaWEEKly, which focused on multiplatform professional content creation. His byline can be found online and in print publications including CreativePro.com, Peachpit Press' Mac Bible and Popular Photography.

74
Comments

Join the conversation!

Just In

RE: Enough with the cry-baby 'open letters' to Apple
jackson1984-24316069205748857739440257893812 11th Oct
This actually is that this type of the outstanding source that you're supplying for that reason you give lv ******** on sale it absent for utterly no expense.
0 Votes
+ -
open season fanboysm is threatening the integrity of journalism.
@tatiGmail: ... most of the time.
0 Votes
+ -
RE: Enough with the cry-baby 'open letters' to Apple
rparker009 Updated - 23rd Feb 2011
@tatiGmail
What integrity of journalism ? there has not been any in years. Look how the press and mass media treate the war and the pols. They worship the left and demionise the right. Even when both sides are doing the same thing. Case in point. the 2010 elections. MSNBC had 5 punts all fair left wing.
Fox had comentor and 2 dems and 2 rebs. Now which is airing both sides of the talk ?
0 Votes
+ -
@rparker009

Bullhockey! If anything, the media is squarely in the middle, unless you are talking about Fox News, which leans squarely to the right and falls over doing ti.
0 Votes
+ -
@rparker009 Well, for one thing, they usually spell better than you do, and most of them probably don't live in your trailer park. I suggest you put some effort into something more productive for you, like cooking another batch of meth up. Sounds like you need to get to work, boy.
0 Votes
+ -
@Lerianis10 The main stream media squarely in the middle, that's got to be one of the funniest things I have read in a while.

@thetwonkey You are obviously a liberal. How can I tell you ask? It's very simple, rparker009 made an observation which a majority of the country, myself included, agrees with. He did not target anybody in particular just pointed out the slant in the media. Your response is to attack him. No facts or observations of your own to dispute what he said, just attacks. That's all liberals seem to have anymore.
0 Votes
+ -
@tatiGmail ... I think we're way past the "threat" stage. I think journalists have willingly become precisely what is quoted in this article: "good at is creating a hubbub in the blogs and news sites". That's all 90% of the content here amounts to. Very little news, tons of troll bate.
0 Votes
+ -
@tatiGmail
... together is just plain silly.

Remember technology journalists are the absolute bottom of the barrel, as they are mostly second-rate losers who are not thinkers, creators, or makers but have managed to squeak by on using their writing skills to proliferate the often mediocre ideas of others. I know this from having come into personal contact with so many over the last 20 years.

You may now proceed with the spankfest, let's see some self-indulgent indiginity from these parrots who call themselves journalists.
0 Votes
+ -
It's all futile!
General C# 23rd Feb 2011
Dictators will never step down. Stop the revolution!
The lesson learned here is that Mubarak is not the monster the White House told you he was. He stepped down rather than open fire on his citizens. Quadaffi IS the monster the White House is telling you he isn't.
0 Votes
+ -
@frgough@... And the Muslin Brotherhood is an al-Qaeda group. Altough the whitehouse and its leftest media flunkys keep saying how they are wonder and light.
  • Flagged
0 Votes
+ -
@frgough@...

Wasn't it Condi Rice who invited him back into the fold?
  • Flagged
0 Votes
+ -
Speak to Apple the way I do; spend your money on anything other than Apple products. If enough people do this the message will get through...
0 Votes
+ -
Yeah
sportmac 23rd Feb 2011
@lgwhitlock@... I'm sure you don't buy apple because of "message". If the "message" was received you'd ge all over their products.
0 Votes
+ -
@lgwhitlock@... Speak to all manufacturers and carriers with the language of purchase power. They all present one option each ... we're left with many others. Buy what works best for you. The rest is wasted hot air.
@lgwhitlock@... What a retarded mentality. Cut your nose of to spite your face.
0 Votes
+ -
@lgwhitlock@... yes. exactly what I did. Sans Apple desktop, sans iPhone 3G and hello Windows 7, Android 2.2, Samsung Galaxy S and a wide choice of possible Manufacturers. Only use Apple now if a client needs it. So yeah. You can wean yourself off of Apple. Google and Android looking really, really sweet!
0 Votes
+ -
developers can moan groan and threaten to go to android but stats show that droid owners don't buy apps or spend money. It also shows that Apple has much more well oiled retail space.

As the article says the market well work itself out, Apple and developers will work out rates etc., Apple knows it needs developers and vice versa but Apple is well aware of it's retail space advantages (and the costs to keep it running smoothly) and they won't be easily cowed by threats.
@Davewrite

iOS has competition on the way because already some apps are generating more revenue in WP7 than Android so developers fleeing the asinine clutches of Apple would be better off heading to WP7.
@Mythos7 - didn't you read the article? Android has barely any revenue share - so WP7 with some apps earning a tiny bit more than "barely any" is a non starter. With the freeze on interest this year because of the Nokia deal don't expect anything much from WP7 until the re-launch in the fall.
0 Votes
+ -
Nutz and Boltz of App Sales!
i2fun@... Updated - 23rd Feb 2011
@Mythos7 The absolute truth boils down to OS's that don't include some built in features and Apps on purpose. Microsoft is King of this ploy. Even with Windows 7 on Netbooks they sell a crippled OS without the basic features for controlling even an image you customize your desktop on the hardware you're paying for. Basic isn't enough to keep people using it on these cheap netbooks!

CrApple does the same thing, but on the hardware side as well as software. They give you only certain parts they bid on for volume purposes without full features of the competition. They also rely more on selling you fashion over function. Along with no real multi-functional products. Only a whole family of products dependent on you buying more items from them. NO ONE PRODUCT THAT REPLACES MORE THAN ONE CrApple PRODUCT!

Obviously they over charge for these closed ecosystem add on Applications. Some that have been out there for free on the Web available to other platforms for the downloading. Being on only one system does not a market make. Especially when you're getting the same apps (like Angry Birds) on Android for FREE that iCrAppleholics pay for because they are forced to by a system that gives far far far less to the Developers. When a closed market starts trying to make money off Developers that are already working with slim margins just for the right to develop for that platform and sell their products, there comes a point where it makes it obviously a losing proposition.

That CrApple 30% of the 30% of share of prosperous Developers total profits (not all costs yet figured in) when CrApple does not participate in the cost of development is simply outrageous. It's a RACKET..... like the Mafia protection racket. "Pay Us To Protect You From Us and We'll Make Sure Your Products Stay Up for Sale. But.... we can and will allow other Developers who have stolen your hard work in developing those Apps and are offering those Apps for sale in our store too!" ....yeah just to they can double deal and as long as the Devs don't cry too loud CrApple keeps piling in the outrageous cheap shot cash..... that won't last forever!!!

Let's be honest here.... iTunes is not a online payment service itself. They rely on 3rd party banking systems like PayPal, Master Card, Visa and American Express, etc. NO MONEY ever really passes through iTunes, yet they still collect their income from it (minus transaction fees) despite having nothing invested in these payment systems. If you have a problem (even if Apple is the cause) your recourse is really only through the payment system you choose. If Apple allows a corrupt developer have access through their iTunes system to your credit information, you can end up charged for bogus purchases and yet CrApple has no responsibility to make it right even while making money off the deal and them permitting these thieves to steal your money! ....thus what's taken place 1000's of times and you fools still trust CrApple and their GREEDY WAYS!!!

btw... Google = higher growth in gross sales than CrApple has ever dreamed of to attract more Developers than CrApple could ever dream of having working for them. Even with FLASH App Developers alone being 2 Million strong compared to CrApple mere 100,000 (at the most) iOS developers working on it's Garden Walled Controlled Network Device Apps Market!!!

""Though still in fourth place behind Research In Motion's BlackBerry App World and Nokia's Ovi Store, Google's Android Market saw the greatest surge in revenue growth. Sales for the Android Market rose 861.5 percent last year, giving Google a 4.7 percent cut of the market, up from just 1.3 percent in 2009.""

Read more: http://news.cnet.com/8301-13579_3-20032012-37.html#ixzz1EoPrpgww
  • Flagged
0 Votes
+ -
@Mythos7 That's right! Don't wait for pie in the sky when you die bye and bye. Get yours now, with ice cream on top! The Reverend Ike would surely have supported WP7. And his church was not in Harlem. If he was still alive, they could have hired him as a pitch man.
0 Votes
+ -
@Davewrite that is a load of crap, I have bought almost as much on my Galaxy as I have on my iPad with the difference being that Android doesn't have a weekly fire sale of apps by marking them down to 99 cents... Crud, I bought almost every EA game for the iPad for 99 Cents and half of them crashed regularly.
@Peter Perry - Anecdotes about your personal usage patterns don't magically change reality.
0 Votes
+ -
@Davewrite
If Apple wants to change their model and only offer developers 10% instead of 70% they should go ahead and do so because Apple controls the market here and no longer needs the developers.

They know some fool will code a new app for them regardless, so telling Apple they are not happy with them is a waste of time because we all know that you should never question your "partners".
0 Votes
+ -
@Davewrite "but stats show that droid owners don't buy apps or spend money."

That's a myth. Android users pay for good apps. They are not the Apple Zombies that pay to the cult like the Scientology fools without making judgement but they are paying when they get value, and they do get value.
0 Votes
+ -
I think facebook is next
p.vinnie@... 23rd Feb 2011
Apple started off with music and newspaper subscriptions, next they will target services like dropbox and then companies like google and facebook to part their revenue with Apple.

Apple believes that it developed entire ecosystem and it has right to ask anyone using that platform to part their revenue with them.

Initially Apple made profit through hardware, then they targeted application developers and now subscription model. End of the day they are answerable to their shareholders. Whenever they come up with new revenue stream they are praised by shareholders. After a while they hit the plateau, hence start searching for next revenue stream and so on... this is never ending cycle.

We started with Internet world which was very open platform, next came Windows OS which was fairly open platform, now we are in mobile devices world where its completely closed platform. I am just wondering what future holds for consumers?
0 Votes
+ -
@p.vinnie@... It is an Android world my friend, the revolution started with the phones and is about to kick off with Tablets. Iphone on Verizon was supposed to be the equalizer, turns out it was never going to be the big sales gorilla everyone thought it might be and many returned theirs.
@Peter Perry Well we need to wait and see, most AT&T iphone users are still under contract till June(3GS) and who would want to buy the iPhone 4 now, when in 6 months there will be the iPhone 5
0 Votes
+ -
All right, I want yourself to give Apple, 30% of your income, see how long you don't complain about it.
0 Votes
+ -
@Cylon Centurion 0005

If my income comes as a check that Apple sends to me, and my entire income relies on Apple distributing my app and bring me clients, then I would say that it's fair for them to ask for their share.
@jbravo556
everybody seems to quickly point out that this is a two way street, but then stop short and says only Apple can do or question whatever they want, the developers have no right to do so.

Is this how "partners" are supposed to act?
0 Votes
+ -
Hmmm. 70% of $100,000 or 100% of $0.
fr_gough 23rd Feb 2011
You do the math.
0 Votes
+ -
So don't question Mighty Apple?
Will Farrell 23rd Feb 2011
@frgough@...
So Apple controls this partnership, and developers should have no say in the matter, just sit back and shut up?
@Will Farrell

"So Apple controls this partnership, and developers should have no say in the matter, just sit back and shut up?"

That is the Apple way.
0 Votes
+ -
Hey Cylon Centurion 0005...
i8thecat 23rd Feb 2011
@Cylon Centurion 0005

What percentage of retail does a developer get for software that we buy off the shelf of a brick and mortar retail store?

I bet you don't have a clue...

There are tons of costs along the way.. Packaging, marketing, distributing, shipping, oh, and at least a 30 to 50% retail markeup for the brick and mortar store...

Apple's 30% cut is a no brainer for developers... In the face of everyone who called them crazy and doomed to fail, Apple is the one that invested in the R&D, created iphones and iPads and itunes and the app store, set up the billing, Spent the money on advertising and marketing, and spent the time and money to make their market safe as well as user and device friendly, invested in the quality control, in the massive data center necessary to run an online store as large as itunes, pay the salaries of employees who keep it all running smooth.

There is a reson there are so many developers for Apple. There is a reason they choose it over Roid, Rim, and WP7. They will make more off Apple than all other platforms combined (even with Apple's 30%). And of course they are going to stomp their feet and pout about the 30%. But it's still the best game in town and they all know it.

As an Apple investor I love Apple. Apple is a business and runs as a business. Right now they happen to be the best business going. And they offer the best products, the best user experience, and the best and most profitable platform to develop for.

I would laugh my ass off if Apple came back and said that because of all the whining and crying, they have decided to ammend their fee to 35% and would be happy to go to 40% if it continues.
0 Votes
+ -
@i8thecat Sniff...!
0 Votes
+ -
Blackmail is allways an exceptable avenue
Will Farrell 23rd Feb 2011
@i8thecat. Happy to know where you stand on the issue.
@i8thecat
Sorry to wake you from your DRM'd (Digital Rectal Manipulation) Dream after intaking so much RDF (Reality Distortion Field) inundated existence as a confirmed iCrAppleholic...... but for your information Market Cap Alone does NOT represent a company's true hard net asset value.... if it was actually up for sale. It is a number that right now is in flux day to day and it just depends on which side of the bed you happen to wake up on. With the utterance of one single truth or myth, the whole value can take a dive one day only to be resurrected the next. But which do you choose to believe will be there in the future lies in flux. Death is always waiting just outside the door and which face you see day to day can never be predicted by what is called Market Cap alone! ....it is the one value that can easily POP like a Bubble... overnight!!!

10yrs ago two gigantic forces in the online world met an immovable force..... a wall of their own making. Those Garden Walled environments died because they could not contain within those walls their customer's desires to get outside their controlled environment. Those Closed Garden Walled Communities no longer exist in their altruistic form like locked in Communistic Communes of the former Soviet Union or China even!

CrApple like AOL HELL and Compuserve's "World Within World" (form of locked in WWW) are NO MORE. We can expect that at some point CrApple will reach a point where they can longer keep this inner Web World under their control and there will be a Revolt and their own users will become disillusioned and frustrated by a system that no longer is able to function on the small closed server system they've created for it! .....there is a point at which every man made system becomes too big for it's britches and busts out at the seams! That's just inevitable for CrApple too!!!
  • Flagged
0 Votes
+ -
We Are Apple
bobiroc 23rd Feb 2011
and resistance is futile.

Apple wants to develop this whole App store and make the people/companies that want to make software for their platform pay for it? I understand that Apple needs revenue to pay for that but they should get it from their own products and according to the fanboys Apple already makes a hefty profit on their products. I also get that Apple should get a small percentage of the App sold in their App store as a fee for hosting it but let's face it if Apple didn't close everything off people could sell their stuff independently so they are being forced in. Now they want to charge 30% of subscription fees? Ridiculous!! They are greedy!!

The sad part is Apple will get defended for it's greedy and closed practices.
Once Steve is gone will Apple will unfortunately start to slide. And that is going to happen sooner rather than later, sorry to say.
@Goldie07

I hope so.. Not that I wish any harm or ill fate to Steve Jobs but I will not miss his ego. I think it is his ego that makes Apple the unreasonable company they are today. While they have done some great and innovative things in technology they have done this at the great expense of the consumers and companies that try and support their platform all while raking in huge profits. If a company or person goes against them they get slammed and Apple gets praised. I don't get it.
0 Votes
+ -
@bobiroc

Sorry, but Tim Cook up there on stage directing Apple looks way better than that overbloated sweatbox Ballmer up there directing Microsoft.

Gates needs to come out of retirement and take the reins again or they need to move someone else into the spot that doesn't look like Cookie Monster on a rampage.
0 Votes
+ -
What does MS have to do with this?
Will Farrell 23rd Feb 2011
@Ron Burgundy
You definately have a Steve Ballmer fetish, you can't help but mention him in almost every blog here.

His feet. You must love his feet.
0 Votes
+ -
What does MS have to do with this?
Will Farrell Updated - 23rd Feb 2011
deleted
0 Votes
+ -
30 percent
lars626 23rd Feb 2011
Too many people seem to be missing the point of the complaints. The problem is not that Apple is taking a percentage. The problem is that they are taking such a large percentage. 30% is a huge bite for developers.
Apple deserves something for creating the platform, but the percentage they want is profit gouging.
If they had taken a 10% cut I doubt that there would be all the complaints.
@lars626

I guess Apple has gotten so used to marking up their products to make huge profits that now they want to make huge profits of other people's work. Sounds like Mafia tactics to me.
0 Votes
+ -
Not so sure.
A Grain of Salt 23rd Feb 2011
@lars626
I think people would have complained no matter what the percentage was. After all, people love complaining; just follow ZDNet for a while.

Also, it's far easier to charge more initially, then pare back later, than it is to charge less and have to raise the percentage later, attracting the ire of the complainers all over again.
0 Votes
+ -
@A Grain of Salt ... perhaps they should change the name to TROLL.NET? happy
Amazon was taking 70% until Apple put price pressure on them.
0 Votes
+ -
RE: Enough with the cry-baby 'open letters' to Apple
jackson1984-24316069205748857739440257893812 11th Oct
This actually is that this type of the outstanding source that you're supplying for that reason you give lv ******** on sale it absent for utterly no expense.

Join the conversation!

Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]
ie8 fix

The best of ZDNet, delivered

ZDNet Newsletters

Get the best of ZDNet delivered straight to your inbox

Facebook Activity

White Papers, Webcasts, & Resources
ie8 fix
ie8 fix