ie8 fix

Apple’s subscription policy convinced me to sell my iPad

By | February 15, 2011, 1:26pm PST

Summary: I have been using my iPad less frequently recently, but have hesitated selling it. That changed today with Apple’s new policy for subscriptions, as I have no desire to give Apple 30 percent of those fees to Cupertino.

I like Apple products, but I don’t patronize them exclusively. I am a firm believer in embracing the technology that does what I need, and I like spreading my money around to keep things even. I bought an iPad when it was first released as I knew it would fit my needs at the time. Late last year I grabbed a smaller tablet that has fit my lifestyle better, and even though the iPad is used less frequently, I hesitated to sell it because I like it. That changed today with Apple’s new policy for subscriptions, as I have no desire to give Apple 30 percent of those fees to Cupertino. My iPad is now for sale.

I won’t rehash the policy as you can find it all over the web, but in a nutshell Apple is forcing all companies that sell subscriptions on iOS devices to give them 30 percent of the loot. That’s significant as subscriptions are not the same as app sales, they are ongoing and often auto-renewed when the subscription period ends. That means Apple can get a healthy cut of each company’s fees ad infinitum.

I like good software, services and subscription content and enjoy rewarding the companies that produce them with my subscription cash. I have a real problem with a company that is simply providing another vehicle for that content to take such a healthy cut, and deny alternate methods of selling the content to the providers.

I pay Pandora for my music subscription because it is a great service, not because it’s available on the iPad. I listen to it everywhere, on all my mobile devices. The same is true of my Kindle ebook library, I buy it because I can read it on anything. I will not give Apple 30 percent of the cost of those ebooks.

So Apple convinced me to sell my iPad, which I intend to do shortly. I won’t miss it, the control Apple is exerting over partners (and they are partners) made up my mind. I won’t be getting an iPad 2, either. I’ll still use some Apple products, but only those I need to get work done.

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Topics

James Kendrick has been using mobile devices since they weighed 30 pounds, and has been sharing his insights on mobile technology for almost that long.

Disclosure

James Kendrick

James Kendrick has no affiliations or relationships that need to be disclosed.

Biography

James Kendrick

James Kendrick has been using mobile devices since they weighed 30 pounds, and has been sharing his insights on mobile technology for almost that long. Prior to joining ZDNet, James was the Founding Editor of jkOnTheRun, a CNET Top 100 Tech Blog that was acquired by GigaOM in 2008 and is now part of that prestigious tech network. James' writing has appeared in many print publications: Smartphone and Pocket PC Magazine, Information Week and Laptop Magazine to name a few. James' coverage of the mobile technology sector has regularly appeared in the New York Times, Salon.com and CNN/ Fortune online. Not just a writer, James has filmed numerous video reviews and how-tos that have garnered well over a million viewers. He has appeared on local news segments and been interviewed by the Associated Press on mobile technology topics. Additionally, James has been podcasting about mobile technology for years.

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RE: Apple's subscription policy convinced me to sell my iPad
FAULKNE 13th Oct
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How much are you selling this for? Since you are ranting so much about it, let me guess - $99 including shipping. Please count me in and provide me your personal email id and we can continue our discussion there. I was looking for a cheap iPad before the second version launches... I am really really glad you are selling yours
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Contributr
Not that cheap for sure. You can contact me via the contact form above.
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Is this ethical?
Tech watcher 15th Feb 2011
@JamesKendrick Are you implicitly using your position as a blogger to conduct a private transaction: selling your unwanted gadget to a captive audience?

It's fine if you tell us why, or how, you are selling your iPad. I just don't think this is an appropriate forum for actually doing so.
@Tech watcher

I think it's called "calling his (the commenter's) bluff".
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Captive? You can leave if you want.
AllKnowingAllSeeing 16th Feb 2011
@Tech watcher
Plus, he didn't make any special offer to his readers, he's saying thru the contact form above.
Would it be different if he bought ad space here?
James Kendrick is a blogger who writes under the "Mobile News" banner. People presume to read his blogs for latest information and commentary on mobile tech.

Now this blog has also become his private garage sale for his gadgets. There is no charge for him: he didn't have to buy ad space. His readers here are tech enthusiasts who are likely to be interested.

We read here all the time about how companies like Apple, Microsoft and Google use their dominant positions in tech to skew trade unfairly in their favor. This abuse of journalistic integrity seems like that, on a small yet noticeable scale.

And why do we need him, when Matthew Miller has been doing a much better job here on ZDNet long before him?
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@JamesKendrick
James you actually offended me with your evil anti-business attitude. I am going to make sure from now on that if i see an article with your name on it, i wont click it.

The fact that you would pay $1 for something conditionally based on who gets that $1 makes me think you are another geek Apple hater with nothing worth living for in life.

So you pick something succesful, like Apple, then you bash it for using basic business principles. That is the typical hallmark sign of a loner loser in life... Just live to find negativy in this world.

But its true, its lonely at the top and the fact that Apple is soo succesful and makes most other companies look like a worthless pile of excrem*ent makes for journalists like you.
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@Bay Area CA Male

Maybe he simply doesn't like subscription hijacks -- or 30% surcharge clips, whether based on principle or practicality - or both. As I see it, both angles seem rather hefty (excessive + questionable) when weighed out.

Good for Apple perhaps (loot is loot, right?), but good for their customers? Ha! You tell me.
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OH...MY...GOD!
trickytom3 Updated - 16th Feb 2011
@Bay Area CA Male

You're not going to read this guy's articles? Holy sh*t! I'm on the phone right now with a bunch of my friends, and I'm going to email my family as soon as I get off this thread.

What is this author going to do now that you have refused to read his articles? How will his family eat? He's probably going to lose his home when the bank hears that he's lost you as a reader.

How do you live with yourself?
@Bay Area CA Male
Are you actually offended because your Apple stock will not increase based on his buying/selling decisions?

I truly don't get you fanatical Apple fanbois. The only logical explanation for your ever-defensive postings of all things Apple is that you personally have something to lose by people having less-than-flattering opinions of Apple actions. I must therefore assume that the never ending rants are directly in defense of your Apple stock.

Perhaps I am wrong, and please do correct me if I am honestly wrong... I just don't understand it. I am an Android and Linux fan; but I have no personal stake in them, and I can accept when they do things that are wrong or that I don't agree with. Why is it so hard for an Apple fanbois to do so, or is it just true that Apple absolutely can do no wrong???
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Why so anti-consumer?
AllKnowingAllSeeing 16th Feb 2011
@Bay Area CA Male
So its fine for Apple to make lots of money, but bad for someone like James Kendrick to want to save money.

Next you'll be complaining about all those anti-business people who bought Priuses because now they're depriving gas station operators from making a living.
In that same press release, Apple said that developers can still offer digital subscriptions for sale *outside* of apps (provided the same option is available within the app for purchase there). So developers still have a way to avoid giving 30% of that revenue to Apple.

You don't even mention this fact in your article. While it may not have factored into your decision, at least mention it since Apple is not forcing in-app purchases as the *only* sales outlet for developers as your article claims.

Also, while I agree that Apple can be draconian in many ways, I think your decision to sell your iPad based on this alone is a bit premature. Why not wait to see how content providers respond first? It could very well turn out that you never have to see Apple get 30% of your subscriptions to Pandora or anything else in the end.
@leelu85 In that same press release, Apple said that developers can still offer digital subscriptions for sale *outside* of apps (provided the same option is available within the app for purchase there). So developers still have a way to avoid giving 30% of that revenue to Apple.

So you're saying Apple will be nice enough to let you get the subscription without paying the Apple tax.. just not in the app... where it should be... how nice of them.
@Badgered Why are you feeling sorry for them? You wanna know why they are really upset? It's not the 30% (after all, Apple are doing ALL the heavy lifting of collecting the money, providing the infrastructure).

No the reason they are so upset is because they don't get your contact details (you actually have to opt-in for that). They used to get all that info which they sold (your name, email address, phone number, address whatever they could get their mitts on) all that to pretty much anyone. This is why they are actually upset. Do you actually as a customer WANT that to happen?! (Without your knowledge or consent)

But no, you go on bashing Apple, forget they are protecting you, that they actually want to improve your experience (sure so they can sell you more devices, but improve is still improve). It makes you happy. Go for it.
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Contributr
@leelu85 As I stated, I am no longer using the iPad much and this pushed me over the edge. While it's true content providers can sell product outside of the app without giving Apple a cut, they cannot link in the app to such sales. That makes it no longer possible to buy Kindle books by launching the in-app browser session. Apple also states that providers must sell content outside the app for the same price they sell it in-app, which is ridiculous without a 30% cut.
@JamesKendrick Never mind they don't need to provide the infrastructure to handle these "in app" sales...

What they are really worried about is not getting your details to sell on to third parties...

But you spin it as you like - whatever get's those pageviews right?
@leelu85
What developers can also do is cancel the ability for subscriptions outside the app. The developers can also change the content that's available to iPad/iPhone customers and charge whatever they want for those services that are 'essentially' the same. If they can prove that they are different, it would be perfectly legal.

Apple seems to be in trouble here, else they would not have implemented this. They are trying to subsidize the "low price" of the iPad by strong-arming developers for that 30%.
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Seriosuly????
Bay Area CA Male 15th Feb 2011
@hoaxoner
Hey where is this strong aring coming from???

Nobody is forcing these publishers to work with Apple.
Let these publishers go to Android where NOBODY pays for ANYTHING!!!!
These guys want to work with Apple because we are the afluent tech gadget users and can afford to pay for content.
If it werent for Apple and the platform the ipad delivers, these guys would not eve have that initial 70% to enjoy.
In fact many of these publishers would go broke, go out of business withint the next few years... So they shold be lining up to give Apple 30%.

The problem is that Americans have become soooo damn greedy that we feel everything we see and touch is our!!!!!

Take $1 million in revenue... 30% goes to Apple, then $700,000 goes to the publisher.... Are you telling me this dollar figure is not big enough? Or are you telling me that dollar figure could be higher and so a revolt against Apple is in order?

Some of you people out there are so logically challenege that all you do is fish for headlines baching Apple!!!
And shame on this author too.
He is a prime example of the Geek world who hates on Apple.
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Seriously???? to both of you
NetAdmin1178 16th Feb 2011
@hoaxoner
Sure, take away the option to make your content available through other avenues (competing mobile platforms, general Internet browsing, etc) and raise your charge to the consumer to make up for the "Apple tax". Yeah, that makes a lot of sense. Otherwise, you can ramp up your prices in general to make up for the 30% tax, and over charge your customers coming through the other avenues (since the Apple in-app price must match or be less). Either way, it sucks for consumers, and it's BS the devs shouldn't put up with. The smart thing is to pull your app.

@Bay Area CA Male (aka Apple fanbois)

"If it werent for Apple and the platform the ipad delivers, these guys would not eve have that initial 70% to enjoy.
In fact many of these publishers would go broke, go out of business withint the next few years... So they shold be lining up to give Apple 30%." - Apple is the savoir to these guys, right? What you fail to mention is that the profit margins on many of these subscription services are razor thin (sometimes teen % or less), taking 30% puts them in the red. And when Apple takes that 30%, its all profit; it doesn't cost them anymore to host an app with a subscription service than it does to host one without - in fact, it is most likely less as sub-based apps pull most content from their own servers rather than being hosted within the app on Apple's. What the dev receives from a subscription purchase is both profit AND content costs. And seriously, many (if not most) of these content providers have been around much longer than the iDevice apps they've released; I somehow doubt not having their app on Apple would kill them.
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He's right!!!
Peter Perry 15th Feb 2011
@leelu85 you should not sell it for this reason alone, you should sell it because it sucks ****!
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@Peter Perry
Child, its dark out. Go to bed.
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Be happy
liamd27 15th Feb 2011
1) The lucky person who gets it cheap will be happy because he/she has what she wants
2) You will be happy because you don't have what you don't want.

I don't agree at all with your reasoning (I love my iPad, am more than happy to give Apple a cut of subscriptions for making it all possible, and will buy an iPad 2 and many other Apple products in the future), but if you'll be happier on a Galaxy Tab, good for you. As I stated above, you'll be happy, and the future buyer of your iPad will be happy. Why complain? There will be more people like you, and I'm sure Apple's aware of that, but there will also be people satisfied with the 'new' policy. I won't be arguing.
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@liamd27 Not sure you get the reasoning perhaps. What he is saying is that now, defacto, the developers have to give up 30% of their revenue to have an app available on the Ipad etc., I guess less innovation if there's no money writing s/w - 30% margin is HUGE!. Imagine if Microsoft charged people monthly for running applications written to run on windows and if you don't pay monthly, the software stops working. No this is all so very wrong.
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@francis.carden@...

I myself can't imagine subscribing to use an application since I can purchase them now. However a service is another thing all together and I think it's a smart move on Apple's part as I've noticed over the years every business is striving to get a steady cash flow that subscriptions represent. Will I be using any of them... Not likely but that is my choice to make as a consumer.

Pagan jim
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@francis.carden@...
Imagine if Apple didnt invent this market which was non existent 4 years ago.

Ask the developers of Angry Birds, or EA Sports if they mind?

Most people against this are anti Apple so their opinions are immediately garbage and worhtless, like the author.
The the others are greedy and hate paying full price for anything.
The last few have some weird justification against standard business practices. When you buy a TV at best buy, how big do you think their margin is? What about MS...? When they sell a copy of Windows, what do yo think their margin is?
10? 20? 50%...? Should MS charge less for windows because of how much it costs them to produce it?

What about Intel... They forced Dell and other PC makers to agree NOT to buy AMD chips... Why no big stink over that?

If you say yes, then just jump off a bridge now because this world is better off with out you.
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Never say never
smulji Updated - 15th Feb 2011
@francis.carden@......I agree that specifically for IN-APP purchases a 30% charge is high. It should be more like 10% to cover expenses for Apple's app-store operations.

As far as MS not charging for apps on Windows - never say never. Remember, MS doesn't have an App-store distribution available for Windows desktop - YET. There's many rumors flying around that Windows 8 (or whatever they call it) will have an app-store for Windows.

Who's to say once that happens, that MS won't charge developers, publishers, content creators, etc. 30% for initial & recurring sales? Digital content distribution is becoming big business and EVERYBODY wants a piece of the pie.

As a side note, Amazon also charges around 30% for all content that's sold on their Kindle reader, so as far as content publishers are concerned, there's no reason for them balk.
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What?
kengillespie 15th Feb 2011
@francis.carden@... Wat are you talking about? Microsoft charges 4 or 500 bucks for their operating system. Apple charges 30. Linux, free. Microsoft office, up to 800 bucks. Apple 70, openoffice free. Microsoft points for xbox end up costing 15 or 20 bucks for a game apple charges 2 and android is free.
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??? easy killers...
UrNotPayingAttention Updated - 15th Feb 2011
@Bay Area CA Male

what?

Apple didn't invent this market. There have long been app (software) stores/repos.

If you're going to call the opinions of the Author and others garbage, at least do it with correct spelling.

Best Buy? Windows? what kind of comparison are you trying to make? does Best Buy get 30% of the programming you pay for after you purchase the tv? does Microsoft get 30% of supplementary software/peripherals you buy after the fact? I'm betting if they did, you would be on these blogs throwing an absolute fit.

what about Intel? I've got several Dell servers and workstations in my shop with AMD processors in them.

and,
@kengillespie
don't skew facts. You can't buy an Apple o/s and put it on any system. you have to already own at least $699 Apple computer to put that "$30" o/s on.

Funny you mention the most expensive copy of MS Office. Have you priced the most expensive copy of CS5 for Mac lately?

and comparing Xbox games to Apple's $2 app games? seriously? you really think that's oranges to oranges (pun intended)

get real, fanbois.
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@chmod 777... let's not forget either that Bay Area CA Male obviously has been under a rock since AMD had Intel over a barrel in one of the largest public and news worthy anti-trust court trials which resulted in Intel loosing a cool $1.25 BILLION. No stink my bunions.

http://www.phoronix.com/scan.php?page=news_item&px=NzY5Ng
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@liamd27
This is what common sense looks like.

My iPad will be kicked down to my kid sister. Ill buy the new iPad probably on launch day. I will also buy the new iphone when it comes out too. I will buy Apps, I will buy music, books, movies, etc... And I will enjoy it all.
Do I feel Apple deserves %30? YES!!!! Easliy. None of it would be possible if it werent for Apple.

Do I think Apple deserves 100% of all iDevices sold at best buy, or ATT, or Verizon... NO!!!! I think those retailers deserve a cut too. And from the looks of it, they get more than 30% given my 3 iphone 4's will cost me $3000 over two years... And add another $300 for the iPhone 5 I wil buy.
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@Bay Area CA Male : Looks to me like you've been brainwashed. No company gets a 30% cut in any fees. Even TicketBastard ain't that bad.

So tell us WHY does Apple deserve to get 30%? It's a straight fee for the OS.
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@Gis Bun
fr_gough 15th Feb 2011
They deserve it because it's their store. It's not a difficult concept for adults to comprehend. Spoiled, entitlement-minded little brats, however, usually stomp their foot and pitch a fit over the concept.
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Funny,
UrNotPayingAttention 15th Feb 2011
@frough

the same could be said about the people who vehemently defend Apple, as evidenced here when the author questions the practice (not really even questions, just says he's not partaking)

I wonder if you would support the practice if it were, say Google or MS?
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Blind Obediance to the Great Jobs
trickytom3 16th Feb 2011
@Bay Area CA Male

Why do all of you Apple sycophants feel it necessary to tell the World about your future plans to buy Apple products?

I read this all the time. "I will be buying an iPad2". Nobody cares!

Anybody who proclaims that they will be buying a product that they haven't even seen is an idot, I'm sorry.
@Bay Area CA Male
So, you are going to buy every Apple product launched this year, without seeing it?
Um.... yeah... sounds rational to me....
@liamd27

Some people would rather be spied on by Google and think they are getting a bargain in the process. You can pay me now (Apple) or you can pay me later (Google). But, one thing is for sure, you will pay the price for either.

In the meantime, we can all thank Apple for creating the iPad revolution after ten years of failed attempts by Microsoft. As for Google, they just jumped on the bandwagon when they saw how successful the Apple product was going to be.
@jorjitop
"You can pay me now (Apple) or you can pay me later (Google)." - I see this concept argued all the time, please explain it to me. I'm at a loss... I have yet to pay Google anything, and I've been using their services since circa 2000. Are you talking about them collecting data about what I searched for and who my friends are so they can send directed advertising at me? Ask me if I care... Hey everybody, I like electronics - now Google AND everybody else knows it... and I gave it away for free, how absurd. If you've got things you don't want others to know, don't give it out - simple as that.

So, again, when am I going to be paying for it?
@liamd27 (I love my iPad, am more than happy to give Apple a cut of subscriptions for making it all possible

So you're also okay with the publishers raising your rates to cover the Apple tax then? GFY
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I have an iPad. I also have a Galaxy tab.
I find the iPad more useful than the Galaxy tab, as the larger screen is conducive to documents I often read. The Galaxy tab is a very nice device, but I often prefer the larger screen as I never hold any of these for any length of time anyway, and I certainly don't carry it around in a fanny pack (I don't need to be that connected, but can understand how this could be very useful).

I will be one of the first to get the new one also. The present iPad is just a tad slow for internet, and could use a boost.

note: Samsung did a great job with the tab. It fits in my hand perfectly. They got it just right.

)
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Every business I know is trying to get into some form
James Quinn Updated - 15th Feb 2011
of subscription. Why? Cause it's the ultimate. Apple sells a computer it makes good money but that is it cash flow stops. Apple sells an iPhone or iPad or even iPad maybe even a computer and some company gets them to subscribe to their services... BONUS Apple gets a steady cash flow. BRILLIANT! And oh by the way a big DUH!!!

If you don't like it don't subscribe but not because Apple is getting a piece of the pie but rather because the service and the price do not meet your needs you big silly...

Pagan jim
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@James Quinn
Great post! Very nice approach!

I for one am not so nice... lol
@Bay Area CA Male I don't think people realize the overhead that Apple is eating for publishers not to mention the premo shelf space. All considered 30% is nothing.
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@James Quinn I disagree. If you don't like a company's business model then you have every right to CHOOSE not to do business with them over it. You don't have to wish them out of business (something I don't hear Jim doing), but you certainly don't have to give them your money.

If Jim feels that Apple doing this puts his favorite apps at risk, then he SHOULD move on; he'd not be an efficient consumer if he didn't. If he likes the product that the New York Times is selling for instance and he wants to insure that they get as much of his money as possible for selling him what he thinks is a great product so they can continue, then that's certainly his right to both have that opinion and to let his money do the talking.

I plead no contest to whether it's a good business model or not. Frankly, that's for the publishers, since they are the one's paying the price.
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choices
gadgetmerc 15th Feb 2011
I'm really happy Google has pushed Android as far as they have. Android isn't perfect by any means, but could you imagine your choices if Android didn't come along? I think Meego and WebOS would have had a much better chance if Android wasn't around, but i'm not sure if they would have pushed it fast enough to catch up.
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Contributr
The iPad is sold so no need to contact me about it. Those who have done so already consider this your notice. Thanks.
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@JamesKendrick

Otherwise, you would have learned that:

Apple is forcing all companies that sell subscriptions on iOS devices to give them 30 percent of the loot.

is far from a true statement. This is only for in-app subscriptions where Apple is doing the processing (Yes, I think this is high), but the publisher can keep 100% if they do the subscription outside of the app on the web and bring the subscription in.
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@Bruizer... obviously you missed that part about an app can't link to the publisher's method restriction. You can buy a book from the book app of company X in app, but only if you use Apple processing and give up 30%. You can also see the same book that will download to your iApp for 100% of the price, but you can't offer that information or link in the app, even if the link is to a website.

You can take your own time however to fire up Safari, surf to the website, find what you want, buy it for 100% and then go back to the app to consume it.

Apple gets 30% of your money for the convienance of the former and nothing for your annoyance in the later.

So yes, it's not a true statement, but the implication of your reply is just as incorrect. Apple is forcing apps writers to effectively hide methods in app that maximize their revenue.

I, like you, think it's high. It's even higher however since the tables have been turned and you now have a forced partner you might have already been paying for someplace else. Or you might have been paying for in concert with other channels because your app is also on some other devices that don't have this rule. In which case your overhead for everything you sell just went up because you have to spread that higher cost of Apple's way with the volume from the other way which you are still paying for.
which is a poor choice when purchasing a mobile device. I'm sure your Galaxy Tab is 3G capable.
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RE: Apple's subscription policy convinced me to sell my iPad
Bay Area CA Male Updated - 15th Feb 2011
@kenosha7777
I use my iPhone 4 on ATT as a mobile hot spot and in december I used 178 GB of data and paid only $30 data plan.

My WiFi only iPad works great with MyWi....

BTW... The galaxy Tab was a joke. It sold about a quarter million devices to actual people. The 2 million figure meant "SOLD IN" as in sold to distributors.
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@Bay Area CA Male
As James illustrated in a recent video blog posting, the Tab can perform basic smartphone tasks on a 7 inch screen rather well. To each his own. I don't envy or begrudge a person's computer choices. We are, after all, all consumers in the end. But to justify a mere consumerism choice using a dubious political shaded interpretation or belief is highly unusual, to say the least.
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.

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