We missed this when it was posted by Apple last week but here’s a good breakdown of the differences between the CDMA and GSM iPhones:
Apple drew the line in the sand officially today. If you are a merchant who makes money selling anything in the App Store either through subscription or in-app purchases, Apple will be taking a 30% cut. And if you sell anything for use on an app, you now have to sell it for the same price or less in App. You can argue for or against this policy but Apple is going to do this starting at the end of June. There is no arguing that.
Unless the government gets involved that is. The question that likely will be asked: Would you be OK if Microsoft made a mandatory 30% on every purchase made through Windows applications?
I honestly believe a lot of vendors will be exiting. I also don’t think it is a coincidence that Apple owns properties that compete against these vendors either. Netflix and Hulu? Don’t let the door hit you on the way out, welcome to iTunes everyone! Amazon Kindle and Barnes and Noble exit? Welcome to iBookstore. Spotify and Rhapsody? Back to iTunes folks.
The reality is that companies like Netflix and to a lesser extent Amazon can’t afford to give 30% of their revenues to Apple. They just don’t have the cost structure — they would have to raise their prices dramatically just to break even. Apple knows this too. Apple doesn’t want people watching Netflix or buying eBooks from Amazon. It’s Apple’s platform and Apple can take what it wants, right? If Apple wants to raise the rate to 40%, it will do that too. This is Apple’s DisneyWorld and it controls the concessions.
I believe what Apple is saying here is that they’ve created such a good subscription and payments ecosystem coupled with such amazing devices that these companies are privileged to sell things to Apple’s 100 million highly-valued customers and their highly valued credit cards, which they conveniently have on file.
On the flip side, I think Apple is absolutely sure that these companies aren’t going to be able to match their offering in an HTML5 web store either. Read more
The WSJ asks around about the new publisher requirements that Apple is enforcing on June 30th. The move will require content publishers like Netflix, Amazon, Rhapsody, Hulu and others to make content available through in-store purchases. Of course all in-app purchases are subject to pay 30% of their revenues gained through the store to Apple.
“My inclination is to be suspect” about Apple’s new service, said Shubha Ghosh, an antitrust professor at the University of Wisconsin Law School. Two key questions in Mr. Ghosh’s mind: Whether Apple owns enough of a dominant position in the market to keep competitors out, and whether it is exerting “anticompetitive pressures on price.”
Clearly, companies like Amazon who already have some thin margins aren’t set up to do this. In fact, Rhapsody already has a public beef on the matter.
” Millions will be spent litigating how broad the market is,” said Herbert Hovenkamp, an antitrust professor at the University of Iowa College of Law.
Mr. Hovenkamp said digital media is the most plausible market. He said he doubted that Apple, currently, has a sufficiently dominant position in that market to warrant antitrust scrutiny.
But, he said, if Apple gets to a point where it is selling 60% or more of all digital subscriptions through its App Store, “then you might move into territory where an antitrust challenge would seem feasible.”
What do you guys think? Should Apple be able to take 30% of sales made through the store?
What if it means losing Netflix, Amazon and all other booksellers? Read more
MacTrast claims that Apple is set to unveil major upgrades to their MacBook Pro line of notebooks including better displays, better battery life, and updated designs. First the report claims that the entire line will become 15-20% lighter due to a new “stronger, lighter, and more scratch resistant” aluminum material. The new laptops are said to be made through a new build process also that is “similar to injection molding.”
Next, the report’s sources claim that the new MacBook Pros will pack a new battery technology that allows for 20% more battery life all around. They say the new 13 inch will have 12 hours of battery life, 15 inch will have 11 hours of battery life, and the 17 inch will also feature 11 hours of wireless productivity. As for the weight, the report claims the 13 inch will go from the current 4.5 pounds to 3.7 pounds (close to the 13 inch MacBook Air), the 15 inch will drop from 5.8 to 4.6, and the 17 inch will drop from 6.6 to 5.3 pounds.
Next, the report claims that the 13 inch model will have a built-to-order option to allow for a matte display, and a better display at 1440 x 900 resolution will also be an option. The report claims that the 13 inch model will keep the slot loading disc drive in its current location, but they claim the CD drive will be an option on the 15 inch model. Users could choose to use the space for SATA storage or an extra hard drive. They also claim the 15 inch will get a third USB port.
They claim the 17 inch will get a new expansion slot in addition to a new graphics card option. Now pricing.
Base pricing is said to be as follows: $1099 starting for the 13″ MacBook Pro, $1549 for the 15″ MacBook Pro, and $2099 for the 17″ MacBook Pro, with Apple clearly being quite aggressive here on those price points.
Just a note: We find these claims to be pretty extreme/out of the ordinary ($1549 for a Mac?) so we’d recommend not putting any confidence in the report just yet. However, MacTrast has 170K twitter followers…
Maybe those 4Bs that Apple is investing in display technology is what gets them to the edges like that. The current phone is already glass so it would be something in the underlying LCD display that pushes them to the edges. No phone on the market can do this now btw. Read more