Top of the Great Era

Chapter 1757 Apple Tax

The 30% commission policy is the most precious legacy Jobs left for Apple.

Buffett has never invested in technology companies, so why did he hold Apple heavily?
It is because Buffett has gradually discovered that from the perspective of revenue, Apple is getting more and more out of the category of "technology" and moving closer to "services".

The so-called service refers to the service for developers.

And this service requires a 30% commission from the developer.

This kind of tax-collecting business has low risk, high return, and strong sustainability, which is much more powerful than scientific and technological research and development.Then, all types of investment institutions around the world flocked to Apple, and the market value continued to rise like a day.

Apple is cool, but the developers of the Apple Store are miserable.

A 30% commission is almost like skinning.

It just so happens that Apple's terminal equipment users are the most important group that cannot be ignored.This group, the total number of users in the world is actually only about 30%, which is far less than that of Android.

However, Apple does not have low-end phones, and Apple users are basically high-end users, which leads to a much stronger in-app purchasing power in the Apple Store than Android users.

For example, in the fiscal year of 2021, the annual revenue of the "Apple tax" exceeds 800 billion U.S. dollars.During the same period, Google also launched a mandatory "Google tax" in overseas markets, which is also a 30% commission rate, but its annual revenue is only 120 billion US dollars.

So there is a phenomenon.

Developers all over the world are dissatisfied with Apple's 30% commission and are protesting. The European Union, Australia, South Korea and other places have even launched monopoly lawsuits against Apple.

In particular, South Korea was the most violent. They sent people directly to the Apple headquarters in South Korea and sealed the building, saying that they wanted to seal up the evidence.Such a serious behavior, if Samsung was not instigating it, no one would believe it.

Under this wave of resistance, Apple is under great pressure.

However, it is impossible for Apple to actively and substantially adjust the Apple tax.They would rather suffer a monopoly lawsuit than give in.

Monopoly lawsuits against such super giants cannot be concluded in a few years.

A few years later, it will be enough for Apple to earn hundreds of billions of dollars.

Even if the lawsuit is lost and the monopoly lawsuit is established... how much is the fine?
A few billion dollars would be the sky's the limit.

Of course, with the growing anti-Apple wave worldwide, once the monopoly lawsuit is established, the Apple tax will inevitably be greatly reduced.

But that was ten years later.

Zhou Buqi wants to strive for the best cooperation conditions in the recent ten years.

Apple's terminal equipment is an unavoidable hurdle.

In fact, it's not just Apple, Google and Microsoft are the same.As long as you gain a firm foothold in the market, no matter if it is the Google store or the Microsoft store, the same 30% commission policy must be introduced.

Later, Microsoft also learned the model of the Apple Store and launched the Microsoft App Store on the PC side. One of the policies is to charge a 30% commission for all game developers.

This makes game makers miserable.

Fortunately, there are many ways to play on the PC side, and Microsoft's system is not as strict and closed as Apple's, so PC gamers all go to Steam. (Steam commission is also 30%)

Microsoft looked at it later, this is not okay!

Can't compete!
Then, Microsoft quickly adjusted the policy, adjusting the 30% commission policy to 12%, euphemistically saying: "Give game manufacturers a profit, so that they have the motivation to develop more interesting games."

Because of competition, Microsoft took the initiative to cut prices.

Zhou Buqi further explained this: "The stronger the competition, the lower the fees. If the smartphone market is full of flowers, there are companies such as Apple, Google, Microsoft, Symbian, Blackberry, etc., then I believe Apple's 30% commission policy It will definitely be changed, and it will be lowered under the pressure of competition. If Ziweixing accepts your proposal and rejects Microsoft's system... Once the cooperation is successful and Microsoft is squeezed out of the market, it means Ziweixing assists Apple and completes the mobile terminal The monopolistic layout of the market. The 30% Apple tax will never have a chance to be lowered.”

The meaning of this is very clear.

To cut taxes!
Cook was a little timid and couldn't express his opinion.

Since Apple launched the Apple Store in 08 and then implemented a 30% commission policy, it has been criticized by developers all over the world.

There have also been discussions within Apple many times, should we try to lower it?
However, Jobs was stubborn!
He disagrees!

He insisted that this policy will become Apple's core business of "software services + hardware sales" in the future.

Jobs looked watery, stared at Zhou Buqi for a while, and asked in a deep voice, "What do you want?"

Zhou Buqi said: "Since it is a cooperation, I hope to see Apple's further sincerity. Giving up cooperation with Microsoft, whether it is Ziweixing or Astar, is tantamount to giving up the opportunity to obtain huge benefits from Microsoft. This part of the benefits, It has to be made up by Apple."

Jobs nodded, "That makes sense."

Zhou Buqi did not expect that this stubborn guy would let go, feeling that he saw the dawn, "Netflix, Spotify and Goal, these three products have closed the payment channels on the Apple terminal. Unless Apple changes the policy, the payment channels Will be closed permanently. This is a huge loss for both parties."

Jobs was a little surprised, "I know Netflix, and Spotify is also related to you?"

Zhou Buqi smiled, "Yes, like Netflix, they are my key investment projects."

"What about Goal? What is this?"

"A football community, paying users will become exclusive members of the team. There are now about 107 million paying users, which can generate about 1000 million US dollars in membership fees every month."

"Excellent business layout."

Jobs took a deep breath, and the way he looked at Boss Zhou changed.

This kid is too powerful!

Netflix - Movies and TV

Spotify - Music

Goal—Sports

The entertainment industry is almost covered, so games and reading should be next, right?I don't know if he has a similar layout behind it.

Zhou Buqi said with a smile: "The cooperation between Apple and Ziwei Star can make each other better."

Jobs looked at Cook, "Is there any possibility of lowering it?"

Cook said: "No! No!"

"Ok?"

Zhou Buqi looked unhappy.

Cook explained: "If you want to lower the commission, you must reduce the commission for all developers and all applications. If you only reduce the commission for Ziweixing, Netflix, and Spotify, it will still be 30% for other platforms. commission, it’s too risky.”

Discriminatory treatment is most likely to cause monopoly disputes.

Apple's affiliates can get low commissions, and those who don't care will have to honestly bear a high tax of 30%... This is a typical monopoly behavior using a monopoly position, and one check is accurate.

Fortunately, Cook then added, "The 30% commission will not be reduced. However, we can sign a supplementary agreement, and Apple will use the commission collected in the form of intellectual property rights, technical support, advertising sponsorship, etc. Give it back to you."

Then, he looked at Jobs.

"can."

Jobs accepted the proposal.

Zhou Buqi showed a smile on his face, "Good idea."

(End of this chapter)