The Leadership Letter

Real correspondence from the people running real companies — and what it reveals about leadership.

Reframe Your Product as a Bundle, Not a Fee

When someone attacks your price, don't defend the price — redefine what they're actually paying for.

The App Store is not simply a marketplace -- it is part of a larger bundle of tools, technologies and services that Apple makes available to developers to develop and create great applications for iPhone, iPad and other Apple products. Epic has made great use of Apple-provided tools, such as TestFlight, VOIP, Stickers, iCloud document storage, ARKit, Messages Extension, ReplayKit, and Push Notifications.

Epic requests the right to offer a 'competing Epic Games Store app' through the App Store that would seemingly allow iOS device users to install apps from Epic directly. And Epic wants to offer 'competing payment processing options' in Fortnite and other Epic apps instead of using Apple's in-app purchase (IAP) system. As you know, Apple has never allowed this. Not when we launched the App Store in 2008. Not now.

Apple strongly believes these rules are vital to the health of the Apple platform and carry enormous benefits for both consumers and developers. The guiding principle of the App Store is to provide a safe, secure and reliable experience for users and a great opportunity for all developers to be successful but, to be clear, when it comes to striking the balance, Apple errs on the side of the consumer.

IAP is the App Store's centralized payment system. It lets users purchase digital goods and services within apps without the inconvenience and security risks of registering their payment information with each developer. To take advantage of Apple's App Store, the bargain is simple: if you charge for software purchased through the App Store, Apple takes a percentage of the charge as commission. This business model has remained unchanged since the App Store launched.

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Court Exhibit
Epic Games, Inc. v. Apple Inc.
4:20-cv-05640 (CAND), Doc. 66-3, filed 2020-09-08
September 8, 2020
Public domain
View the primary source →