Thursday, July 30, 2009

Apple adds outrage to injury – forced refunds on the removed Google Voice apps

Apple’s handling of the Google Voice iPhone debacle has moved from very disturbing to outrageous (emphases mine) …

Yeah, there's an app for that. But for how long, and at what cost?

As if having to worry whether or not your apps could start disappearing isn't enough, there is another layer of complexity to deal with if a paid app is removed: the users.

… Sure, if a live app is removed, users will likely be upset no matter what happens... but if they've paid for it, and they can't get future upgrades or bug fixes, some of them are going to be wanting their money back. As some developers have already discovered, refunds can get expensive if there are enough of them, because Apple retains its 30% commission, while the developer has to reimburse the full cost of the application to cover the refund -- meaning each refund on an app that is priced $9.99 ends up costing the developer the full $9.99, rather than the $7 in revenue that they actually made from the purchase.

By now, you're probably wondering how the refunds fit in with the Google Voice situation. Simple: Apple is now issuing refunds to users of the VoiceCentral application. That's right, Apple suddenly decided that the application should be removed -- after it had already been approved months ago -- and is now giving out refunds for it when users request them, leaving the developer to foot the bills for both refunds and staffing end-user support to answer questions about what happened to the app. Meanwhile, Apple gets to keep their cut of the profits…

This is Apple’s move, not AT&T’s. My Apple hardware and software purchases are now on hold. If you’re a user of products Apple has unjustly pulled there’s a better approach

… I called up apple corporate offices and told them that I want my money back as “compensation” — NOT as a refund. I was very specific that I did not want a refund on the app; that I wanted APPLE to cover my cost. They ended up crediting my account for 5-free song downloads…

I spoke to Robert Burger @ Apple Corporate care. You can reach him at 512-674-2500 x 40267. Give him a call and let him know how you feel about what happened…

Apple should eat the entire cost of any refunds on these apps.

I’ll be looking for my Windows 7 netbook this fall.

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