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Out of context: Reply #26
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- Amicus0
Lets look outside the world of software.
Apple is essentially setting itself up like a cross between a franchisor and a reseller/retailer.
Like a franchisor they set up all the systems and help with marketing and generally making life easier for everyone in the system.
Like a retailer they actually get people into the store where they stock your product, and they make a 30% markup. They do have their own costs so this isn't pure profit.
If I could choose between selling my product with a limited marketing budget and giving Apple 30% to stock my product in a large, targeted marketplace it's a no brainer. $99 to stock my product is far better than the $1000's that a supermarket will charge to put a cereal packet on the shelf in a decent location.