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I think the math in your linked post is wrong; it looks like you’re confusing App Store revenue and Apple revenue. App Store revenue is the gross sales of the
by snowwrestler 5y ago
I think the math in your linked post is wrong; it looks like you’re confusing App Store revenue and Apple revenue.
App Store revenue is the gross sales of the App Store. Apple takes at most 30% of that as their revenue; the rest goes to the app developers.
So to calculate Apple’s profit margin for the App Store, you would compare only that Apple revenue to Apple’s actual costs of running the App Store.
So their App Store profits are not 78% of $64 billion. They are 78% of at most 30% of $64 billion. So no more than $15 billion, not $50 billion.
- robocat 5y agoThank you - I think you are correct; ~15% profits from the App Store seems much more reasonable (50% seemed wrong but no one corrected me…!) Note, I think this was the source for the gross profit figure I quoted: https://www.cnbc.com/2021/01/08/apples-app-store-had-gross-sales-around-64-billion-in-2020.html https://www.cnbc.com/2021/01/08/apples-app-store-had-gross-s...