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It's interesting the extent to which apple is pre-emptively trying to avoid anti-trust actions by allowing apps like opera and gv and backpedaling on ad network
by trotsky 16y ago
It's interesting the extent to which apple is pre-emptively trying to avoid anti-trust actions by allowing apps like opera and gv and backpedaling on ad network competition. I assume that's because they see it as a real possibility that an EU remedy could be something like forcing them to natively support competing app stores. That would be a huge blow to apple revenue.
- roc 16y agoare you suggesting they make a notable amount of direct money off the app store? Or are you suggesting the more indirect: more app stores->less confidence, more confusion, less sales->less device sales->less revenue
- trotsky 16y agoThanks for correcting me in a polite way - I see that analysts place app store profits at only about 1% of apple's gross profits since the store opened. Huge was obviously a poor choice of words, but still the numbers are compelling - $189M in gross profit on ~$1.3B gross revenue (assuming the $1B paid out * 1.3) - 14.5% margins even while including operating costs associated with free apps. One can also assume that the 1% contribution to profit is a growing figure since it includes the entire time the app store has been open but sales have been increasing steadily. While apple calls it "a bit over break-even", that has always been the line with itunes as well yet there are various pieces of evidence that suggest that is somewhat of a fib. I think you make an even better point than I was thinking of though. Apple clearly values the tight control they have over applications highly. Whatever their motivations there - ux, security, platform lock in, vertical integration, control over competitors - they surely believe that ceding that control would have a negative effect on their bottom line.