Undercut the competition until there is no competition, then raise prices or have I missed something?
Ah, yes - cross finance your loses by selling compute in your own data centres / hosting service because you can.
Apple doesn't ever need to make much money on this software, when they make money on hardware needed to use it.
Somehow I don't think Apple is going to put Adobe out of business.
What data centers? Does Apple even have data centers? Can people purchase compute on Apple's data centers?
Not an Apple fan at all, but damn, in the views of some of the HN community, one can only do wrong. Pathetic.
Pretty spot on. I think what's new is that Apple is employing this tactic, before they always went with "Our stuff is more expensive because it's better", but as they seem to slightly pivot into other directions now, this choice also seems to align with the new direction.
I would assume it's because younger generations of creatives are using their software less and less, increasing the risk of losing the market completely on the software side. At this pricing, more of them will turn to paying Apple rather than paying for multiple services, keeping them tied into the ecosystem.
Also so many people are paying for Canva, Capcut etc that taking a piece of that cake is quite a low hanging fruit if you have a distribution platform.