"I think for many developers, subscription model is a better way to, go than try to come up with a list of features, and different pricing for upgrade, versus for new customers. I am not saying it doesn't have value for some developers but for most it doesn’t, so that's the challenge. And if you look at the App Store it would take a lot of engineering to do that and so would be at the expense of other features we can deliver."
"For example, the App Store has one price for an app, when you see it, you see if there's a price on it, that's the price. It doesn't have multiple prices for multiple tiers of customers so to engineer that in, it's not impossible, but a lot of work for a small segment of software that we hope for many of them, subscription pricing is a better model, the one where the customers are comfortable with. So we’ll keep talking to developers about what's most important on their list, we want them to keep telling is if that [upgrade pricing] is high on the list or not, and we’ll keep an open mind to it, but it's harder than people realise."
Personally, I think the iPhone 7 is such a great phone, and the 7 Plus in particular has such a great camera, that the quality of the latest iPhone hardware, including how it looks, shows just how much of a problem it is that WeChat, not iOS, is central to the iPhone experience in China.
That’s a real problem for Apple, because even if Thompson is right (and I’m wrong) and Apple does have a boring-looking-hardware problem in China, they can (and seem poised to) remedy that by releasing exciting new iPhone hardware this year. But if the problem is that iOS engenders far less platform loyalty in China because of WeChat’s centrality — or even worse, if WeChat is central and better on Android than it is on iOS — there’s no easy fix for Apple.
Home remodeling and design platform Houzz has launched a feature for its free iPhone and iPad app that lets users preview furniture in their own home before they buy.
Apple not earning enough Service revenue? Buy Netflix.
Apple losing out in the cylinder-in-the-kitchen market? Buy Sonos.
Apple's late in the self-driving next-big-thing car? Buy Tesla.
Apple's stock not expensive enough? Buy Disney.
Hence, the solution to Apple's China WeChat problem is clear: Borrow $50 billion and just do it.
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Thanks for reading.