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I agree with a lot of this, but one point seems to contradict facts: Even if he's reduced to giving the machines away, as long as he can charge rent for access
by jsm386 16y ago
I agree with a lot of this, but one point seems to contradict facts:
Even if he's reduced to giving the machines away, as long as he can charge rent for access to data (or apps) he's got a business model.
Hasn't Apple repeatedly stated the case that the App Store runs at break even? The whole idea is to drive sales of machines. Now if it is for some cloud based services in the future that might work - still an iPhone unsubsidized is ~$600 so that is a good deal of cloud service revs that need to make up for that.
- tullius 16y agoHow could the app store not be profitable? They are getting at least 30 cents of every dollar at almost zero marginal cost.
- jackmoore 16y agoIf it isn't profitable they are doing something horribly wrong.
- dagw 16y agoThey've said repeatedly that the iTunes music store runs at break even, with basically all their profit going to the record labels. I haven't heard anything about the app store, but I'd be very surprised if at least 27 of the 30 cents they take on each dollar isn't pure profit.