App Store: The Schiller Cut

daringfireball.net
7 min read
fairly easy
Like the Apple logo, "developer goodwill" has no price tag. But Phil Schiller's decade-ago idea to start dialing down the revenue split — in favor of developers — comes pretty close to assigning it one.
App Store: The Schiller Cut

The email evidence1 in the Epic v. Apple trial has offered a cornucopia of insight into Apple's internal deliberations over the last 14 years. Juicy stuff always comes to light in a big-money trial like this, but the discovery evidence in Epic v. Apple has struck me as particularly juicy.

On the cusp of WWDC 2021, my thoughts remain focused on one in particular — a 28 July 2011 email from Phil Schiller to Steve Jobs and Eddy Cue. (Jobs, at the time, was a month away from stepping down as CEO; I don't know what to make of the fact that Tim Cook wasn't included on the email.)

The subject of Schiller's email ostensibly was this Wall Street Journal story positing that HTML5 was a threat to both Adobe Flash and Apple's App Store. But, really, the email was about the future of the App Store itself. The entire email (from slide 44 of Epic's Opening Demonstratives:

From: Philip Schiller

Subject: HTML5 Poses Threat to Flash and the App Store

To: Eddy Cue, Steve Jobs

Date: Thu, 28 Jul 2011 09:27:10-0700 Food for thought: Do we think our 70/30 split will last forever? While I am a staunch supporter of the 70/30 split and keeping it simple and consistent across our stores, I don't think that 70/30 will last that unchanged forever. I think someday we will see enough challenge from another platform or web based solutions to want to adjust our model (already Google has rolled out a web in app purchase model at 95/5). If someday down the road we will be changing 70/30, then I think the question moves from "if" to "when" and "how". I'm not suggesting we do anything differently today, only that whenever we make a change we do it from a position of strength rather than weakness. That we use any such change to our advantage if possible. And thinking about this long in advance can only help to look at an eventual change as an opportunity (with developers, press, customers, etc). Just as one thought, once we are making over $1B a year in profit from…
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