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Chronicles

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Apple initiates mass discontinuation of boxed retail software

Further emphasizing the Mac App Store as the preferred place to get new software for Mac OS X, Apple on Wednesday discontinued a slew of boxed software products.  —  Virtually all of Apple's retail software was declared …

AppleInsider Katie Marsal

Context & Ripple Effects

This is the execution step of a retreat flagged months earlier: reports in February 2011 said Apple planned to eliminate retail box software inventory, and by March it had already cut 32 games and some hardware from store shelves. Wednesday's move makes it official — virtually all of Apple's own boxed Mac software is discontinued.

The timing matters because Mac OS X Lion shipped this week through the Mac App Store rather than on disc, so the storefront now has a marquee product to absorb demand. With Apple's first-party titles pulled from boxes, the Mac App Store becomes not just an option but the company's stated preferred channel for Mac OS X software.

First-order effects

  • Apple's retail stores stop carrying boxed copies of the company's own software, forcing customers who want Apple apps like iWork or Aperture to buy downloads through the Mac App Store instead.
  • Resellers and campus stores that stocked Apple's boxed titles lose their supply overnight and can no longer sell those SKUs at all.

Second-order effects

  • Third-party Mac developers now face a de facto standard: with Apple itself distributing only through the Mac App Store, buyers will expect every Mac app there, pressuring developers into the store's review rules and revenue split.
  • Education and volume buyers who license software physically — a channel Apple's retail pull does not address — are left without a clear path for Apple's own titles, a gap resellers will have to work around.

Third-order effects

  • If the pattern holds, Apple's software catalog migrates entirely behind its own storefront, extending to the Mac the gated-distribution model already established on iOS — and leaving pro applications like Logic, still sold boxed, as the visible exception awaiting the same treatment.

The trend: Apple is consolidating all of its software distribution into its own digital storefronts, converting the Mac App Store from an optional channel into the mandatory one.