Early Frustrations with Apple's App Store Model 00:00
- Initially believed the iPhone would be like previous mobile phones, but realized it was becoming the most important computer for most users globally
- Recognized that software creators now had to go through Apple to reach users, requiring permission before launching any product
- Felt uncomfortable with Apple's control over app distribution and user access
The Hay App Launch and Apple's 30% Cut 00:26
- After two years of development and millions invested, launched the Hay product with apps for both iOS and Android
- Upon submitting bug fixes for the iOS client, Apple flagged the absence of their in-app payment system, demanding a 30% share of business from signups through the iOS app
- Apple threatened to remove Hay from the app store if the 30% cut was not agreed to
Criticisms of App Store Sales and User Control 01:20
- Explained that selling through the App Store means Apple controls the customer relationship: apps are sold to Apple first, then to the end customer
- Noted difficulties in issuing discounts, refunds, and supporting multiplatform users, especially if users switched from iPhone to Android
- Expressed strong reluctance to let Apple control key aspects of the business
Public Battle and Resolution 01:53
- Refused to comply with Apple's demands, stating the terms were unfair and unreasonable
- Escalated conflict by making the dispute public to generate attention and pressure
- Apple eventually relented after a prolonged conflict, allowing Hay to remain in the app store without giving up 30% of revenue, provided they added a "dummy account" feature to meet Apple's requirements
- The compromise was attributed to the substantial negative publicity generated for Apple, making it easier for them to allow the exception than continue the fight