Wired
It’s no secret that Apple makes a lot of money on the App Store, but since the company announces it as sales in the service division together with iCloud and subscription services, how much profit the App Store alone makes. It is not announced whether it is.
However, court testimony for the trial against Epic Games revealed that the App Store’s profit margin in 2019 was 78%.
Was the profit margin 79.6%?
This number was calculated by Epic witness and finance expert Ned Burns. Burns said it was calculated from materials “prepared by Apple’s Corporate Financial Planning and Analysis Group and prepared by Tim Cook, CEO.”
These materials were shared during the information sharing process, but Burns said an Apple employee told him that the materials alone wouldn’t tell the whole story. As a result of recalculation, he said that the profit margins for both 2018 and 2019 were 79.6%, higher than the original figures of 75% and 78%.
Epic is trying to prove that Apple dominates the iPhone and iPad app market and is over-profiting.
Apple claims “calculation is wrong”
Apple, on the other hand, hasn’t broken the fight, saying that Mr. Burns’ calculation is wrong and that he will prove it in court. He also states that his calculations do not include App Store operating costs.
Source: Bloomberg via 9to5Mac
(lunatic)
Source: iPhone Mania