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>> Secondly, Apple doesn't make that much money off app store sales, they make by far the most money off of the hardware. Do you know this for a fact, or are y
by portman 16y ago
>> Secondly, Apple doesn't make that much money off app store sales, they make by far the most money off of the hardware.
Do you know this for a fact, or are you speculating? They don't break out app store sales in their 10-K, but consider quarterly hardware sales from Q4 2009:
- 3 million Macs
- 9 million iPhones
- 21 million iPods
In the same period, users downloaded 400 million apps, although it's unclear how many were paid. App sales are almost 100% profit, compared to the 20% net margins on hardware.
- boucher 16y agoOf those 400 million apps, the best guesses suggest that fewer than 10% of downloads are paid. Estimates have put the values at about 10-20 cents per dollar app. The costs are fixed though, so they do make much higher profits on more expensive apps. But the app store ecosystem hasn't made that a huge factor. Even under optimistic assumptions: 100% profit, average sale price of $5, 15% paid downloads, the numbers are not good: 400,000,000*0.15*5*0.3 = 90,000,000 That's nothing compared to the billions they are posting in profit each quarter. The hardware margins are also almost certainly much higher than 20%, probably over 30% on a lot of the higher end hardware.
- portman 16y agoWell, now we now. At WWDC 2010, Jobs announced that Apple has paid out over $1 billion to app developers. That means Apple has pocketed $428.6 million from their 30/70 revenue split. A small amount of their total margins since the App Store was introduced in 2008.