Thanks 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 wa

Thanks 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.