Wednesday, February 16, 2011

Apple shoots their other foot

I argued with a few b-schoolers earlier this year that Apple's "closed" strategy is just as folly now as it was decades ago when the "open" IBM/PC compatible approach beat the Apple closed approach. Apple iOS faces the same challenge now with Android's "open" approach, and they are shooting themselves in the foot again.

Today, Apple announced its draconian subscription model for publications on the iPhone/iPad. It requires publishers to give an outrageous 30% of revenue to Apple. What is Google's cut for similar publications on Android? Zero. Android OS is already beating iOS on mobile phones with no signs of slowing down, and plenty of competitive Android tablets exist or are on the way. If you were a publisher, what platform would you focus on?

The answer is clear: Apple hasn't learned from their mistakes.

Update: Google introduced their OnePass service shortly after Apple, in which Google charges 10%. (A high rate if you ask me, but still not 30%)

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