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Apple doesn't make that much money directly on the app ecosystem: If they paid 2.5 billion to developers (70%), their revenue is about 1 billion (the remaining
by PanMan 15y ago
Apple doesn't make that much money directly on the app ecosystem: If they paid 2.5 billion to developers (70%), their revenue is about 1 billion (the remaining 30%). For that billon they have to host all apps (also the free ones), manually check all submissions (400.000 apps Excluding upgrades!), and process payments.
Apple is making more on iPad covers this year alone.
However, the app ecosystem is a great lockin for users to keep using iOS instead of other mobile platforms. That's their biggest gain, and with iCloud they embiggen this platform lockin.
- watty 15y agoDo you have a source? I'm not saying you're wrong but it seems crazy that Apple makes more revenue off of iPad covers than all of the app market.
- xuki 15y ago25 million iPad have been sold. Say 30% of them (with the iPad 2 I see more people bought the Smart Cover though) bought Apple's covers, that's about 8.5 million. Accessories' margin is high, let's assume they make $30 per cover. That's $255 million profit. I seriously doubt Apple could break even for the App Store alone (the huge review team and infrastructure cost).
- PanMan 15y agohttp://www.asymco.com/2011/03/13/the-billion-dollar-smart-cover/ http://www.asymco.com/2011/03/13/the-billion-dollar-smart-co... Estimates 1 billion revenue on smart covers this year alone.