There's a show on CNBC (I think) about writing the iPhone apps. Imagine spending $2.5 million including making promotional videos and getting no news - not a peep of feedback - on approval from Apple a year after submission.
That sounds like a bad idea on their part when they're spending that much money on the assumption of approval from the dictator.
Well, it's actually a pretty good deal for the developers, IMHO. You don't have to do any payment handling, you don't even have to have a web site if you don't want. You are connected with customers, searchable... You don't have any bandwidth costs, etc. etc... And the people that write free apps get all of the above for free. I'm guessing that most of the iOS app developers would have higher costs than 30% on these items. Plus, it's rather easy - Submit app, get paid. Done.
Sure they make it easy and there are advantages for developers, but they also charge you for it. Payment handling is darn simple anyway, you just get a PayPal account and they take their (much smaller) fee. Websites are cheap to do, and I'd guess that a number of apps have websites in addition to using the Apple store. The primary advantage is the fact that it's in the Apple store, which Apple has made the only source of iPhone aps out there. Meanwhile, there are lots of places
I don't see all this justifying the 30% paycut. Of course, Apple is in business to make money, so it's their choice to do what they're doing. Clearly it's working. I'd see 15% being reasonable, but 30%? It's a successful business model of making money off of the backs of the small developers.
CafePress has a similar business model - they'll print your merchandise on a number of items and then sell them. They end up taking what is likely a decent profit (you don't know what it is since that's the base price), and then you can add on however much else. I see two big differences, though. The first one is that you have zero inventory (a big deal for small businesses), and the second is you can add on however much cost you want to it, and they won't take any additional profit away from you for it. We make a very small amount of money off of merchandise sales through CafePress, but that's not how we're trying to make money. If you're selling apps, it is.
Meanwhile for my BlackBerry that everyone will boo-hiss because it's not an iPhone, I've been able to get the apps I want where I want from various sources, and just put them on. I like the model for this thing better, and that's why I'll probably buy another one when it's time for an upgrade. I thought about getting an iPhone, but I don't think I'm interested.