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0 pointssyzarian3y ago0 comments

What Apple earns from fees from $x per month per user in recurring revenue is greater than the fees for $y per user per upgrade for certain values of x and y depending on the number of users in each category. How do you know what you is true?

0 comments

comte70923y ago

There are two scenarios:

1. Monthly subscriptions earn more revenue for developers compared to pricing sporadic upgrades/updates.

2. The converse of 1.

If 1 is true, then we’d likely end up with subscriptions regardless or apples incentives here. If 2 is true, then Apple is clearly leaving money on the table, because they take a percentage of revenues, and as parent comment states, they take a higher percentage of that revenue in the alternative scenario.

So it doesn’t really matter if they know which drives more revenue. All that matters is that the incentives dictate that Apple benefits the most when developers make more revenues.

syzarianOP3y ago

It matters as it pertains to whether or not the claim that was made is true.

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