Incredible vs. iPhone 4
Apple is reportedly changing the game again. But this time, some big names aren’t going to play with them anymore. Effective June 30th 2011, any iPhone or iPad app that sells anything, will be required to sell it within the framework of the application (no more linking to outside sites like Amazon.com). Why? Because Apple takes a 30% cut of all sales made within an iSO app.
What does this mean for the consumer? Some of the things you love doing on your iPhone or iPad may not be available after June 30th. Rhapsody has already said they could not operate under the new demands. Amazon will almost certainly have to pull the Kindle app as well (or raise the rates).
What does this mean big picture? When it’s all said and done, I think Apple will regret this move. Here’s why:
1.) With Android doubling up Apple’s Smartphone market share at the end of 2010, the iPhone isn’t as dominant as it once was. And though the iPad broke new ground, Android now has a line of comparable tablets on the market as well.
2.) Apple has always banked on having the most innovative products. They had the “cool” factor on their side. I’ve never had an iPhone or an iPad, because I have the “school loans” factor on my side—What I do have is a Droid Incredible on Verizon, and it’s pretty cool. My sister, an iPhone user from day one, thinks it’s pretty cool too.
My point is this—If Apple doesn’t have the coolest products anymore, and they don’t have the market share anymore, where will they get the leverage to pull off a bully-move like this? Brand loyalty? Sure some people will blindly follow. But how many other faithful users (like my sister) are already on the fence?
If this change goes down as reported, and Apple loses Rhapsody, Kindle, and countless other apps, they will also lose faithful customers as well as potential new customers. The question is, will they scalp enough profits off the apps that comply to make it worthwhile?
Either way – not cool Apple.
