Profit margin is more useful metric to determine if you're being gouged - Grocery stores: < 3% Profit margin, huge inventory risk. App store: > 70% profit mar

Profit margin is more useful metric to determine if you're being gouged - Grocery stores: < 3% Profit margin, huge inventory risk. App store: > 70% profit margin, zero inventory risk. Put another way: If grocery stores cut gross margin by a couple points they'd be out of business. They are basically charging the absolute bare minimum they need to make a profit. The reason? Competition. Apple could drop their App Store gross margin by 50% and still have one of the most lucrative operations in the world.