Monday, 12 May 2014

Apple case study

There is a case against Apple that one parent said that her daughter had spent $2,600 in "Tap Pet Hotel," in which children can build their own pet lodging. The game is free to download and play, but it takes in-app purchases for treats and coins for the pets. Others consumers reported unauthorized purchases by children totaling more than $500 in the apps "Dragon Story" and "Tiny Zoo Friends." The settlement involves all apps in which minors made unauthorized purchases. It addresses the same issue raised in a class-action lawsuit that Apple resolved last year. In that case, Apple agreed to contact 28 million of its app customers to offer them a $5 store credit or a $30 cash refund if their children had spent at least that much money without parental consent. That settlement resulted in about 37,000 claims, according to a memo that Apple CEO Tim Cook sent to company employees. Apple has taken a series of steps in the past few years to ensure its app store is a "safe place for customers of all ages." Apple's app store is a gold mine for software developers and the company, which charges a 30 percent commission on the transactions. Apple says its customers spent more than $10 billion on app transactions last year. That figure includes the price charged by some apps for the software, as well as revenue from purchases while playing a game or for some other extra service. Children's applications sold in Apple's store generated about 44 percent of its revenue from purchases made while using the software during November, according to the latest data from the research firm App Annie. The remaining revenue came from upfront fees required to download some children's apps from Apple's store. In the FTC (Federal Trade Commission) case, the $32.5 million payout is a minimum. As part of the settlement, Apple must pay full refunds to consumers for kids' unauthorized purchases, so that figure could climb. If it doesn't rise to $32.5 million, the difference would be paid to the FTC, Ramirez said. 

Answer the questions:
 1. What is the problem in Apples App systems?
2. Draw the simple Use-case to resolve the problems Apple App systems?
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