4 ms·
Apple didn't become a trillion dollar company by collecting small margins. It's fair to assume that the 30% has a fat profit margin.
by arvinsim 6y ago
Apple didn't become a trillion dollar company by collecting small margins.
It's fair to assume that the 30% has a fat profit margin.
- doctor_eval 6y agoI can see why people may think I’m defending Apple, but I’m not. I made my point badly but I’m trying to say that the way to explain the 30% is not in terms of the low cost of cards etc but in terms of the norms of other retail businesses. 30% is a high number relative to credit card fees, but a quick google (see my previous comment) suggests it would result in a GP in line with supermarkets. I think it’s a good comparison because supermarkets provide retail shelf space and access to consumers for a very large number of barely differentiated goods... Think of the 30% as a retail mark-up rather than fee. If you were to sell cookies at a supermarket you can expect that the supermarket would add 50%. It’s the same in the App Store except that you’re supposed to add the 30% yourself. I guess it scales better that way. In any case, I suspect the 30% has very little to do with Apples costs, and much more to do with retail profit norms. What’s happening with Hey is that they’re setting up a little card table out in the supermarket car park, and trying to sell their stuff. I can’t imagine any supermarket letting that happen for long.