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> Given that so much of Apple's profits are from extortionate App Store fees Apple earns ~20% of their revenue from all their services not just App Store [1]

> Given that so much of Apple's profits are from extortionate App Store fees Apple earns ~20% of their revenue from all their services not just App Store [1] Given they don't break out their App Store profit numbers I think you should provide your source. [1] https://www.statista.com/statistics/382260/segments-share-revenue-of-apple/ https://www.statista.com/statistics/382260/segments-share-re...

reissbaker 5y ago
I am responding to a poster claiming 37% of Apple's profits are from the App Store. I'm not sure what their source is; it seems at least somewhat believable to me, since the profit margins for Apple on App Store revenue are extremely high (analysts estimate 78% [1]), so even if App Store revenue is a smaller percentage of total revenue, the other revenue costs more, and those costs cut down their percentage contribution to total profits. Regardless, it's fairly widely reported that the App Store is much more lucrative for Apple than the Play Store is for Google. 1: https://www.marketwatch.com/story/how-profitable-is-apples-app-store-even-a-landmark-antitrust-trial-couldnt-tell-us-11622224506 https://www.marketwatch.com/story/how-profitable-is-apples-a...
concinds 5y ago
I'm the OP and I just compared what Apple gets from the App Store (around $21.7m estimated in 2020 which I saw in Barron's, but it's probably an overestimation since I don't think it takes into account the 15% rate below $1m) to Apple's 2020 profits ($57.4m). It's really a back-of-napkin thing, just meant to show the similarity in scale, and how damaging it would be to companies if this revenue went away.
- oblio 5y ago
  Both those numbers should be billions.
  - concinds 5y ago
    Indeed
- realityking 5y ago
  That also ignores the cost of running the App Store. While certainly not costing 20 billion, storage, bandwidth, credit card fees, payout cost, tax handling (Apple takes care of VAT in Europe), app reviewers and engineering cost will add up. The other thing I fee that‘s often overlooked is that paid app subsidize free apps.
  - concinds 5y ago
    Yeah, that's why I didn't care to correct the Barron's overestimation with an estimation of my own. Apple's still going to spend tons on the App Store even if its revenues dry up.
  - KptMarchewa 5y ago
    The costs are low. https://www.marketwatch.com/story/how-profitable-is-apples-app-store-even-a-landmark-antitrust-trial-couldnt-tell-us-11622224506 https://www.marketwatch.com/story/how-profitable-is-apples-a...
- dillondoyle 5y ago
  * billion. At least I know the profit number is 57 billion
- threeseed 5y ago
  This comment is a mess. (a) Provide a link to the source if you're going to throw numbers around. (b) According to CNBC [1] Apple had App Store revenues of $64 billion in FY2021. Which at 30% = $19.2 billion and at 15% = $9.6 billion. All of which doesn't factor in any of the costs associated with running the store or acquiring all of the customers. [1] https://www.cnbc.com/2021/09/10/apple-vs-epic-70percent-of-app-store-revenue-from-customers-playing-games.html https://www.cnbc.com/2021/09/10/apple-vs-epic-70percent-of-a...

reissbaker 5y ago

I am responding to a poster claiming 37% of Apple's profits are from the App Store. I'm not sure what their source is; it seems at least somewhat believable to me, since the profit margins for Apple on App Store revenue are extremely high (analysts estimate 78% [1]), so even if App Store revenue is a smaller percentage of total revenue, the other revenue costs more, and those costs cut down their percentage contribution to total profits. Regardless, it's fairly widely reported that the App Store is much more lucrative for Apple than the Play Store is for Google. 1: https://www.marketwatch.com/story/how-profitable-is-apples-app-store-even-a-landmark-antitrust-trial-couldnt-tell-us-11622224506 https://www.marketwatch.com/story/how-profitable-is-apples-a...

concinds 5y ago

I'm the OP and I just compared what Apple gets from the App Store (around $21.7m estimated in 2020 which I saw in Barron's, but it's probably an overestimation since I don't think it takes into account the 15% rate below $1m) to Apple's 2020 profits ($57.4m). It's really a back-of-napkin thing, just meant to show the similarity in scale, and how damaging it would be to companies if this revenue went away.

oblio 5y ago
Both those numbers should be billions.
- concinds 5y ago
  Indeed
realityking 5y ago
That also ignores the cost of running the App Store. While certainly not costing 20 billion, storage, bandwidth, credit card fees, payout cost, tax handling (Apple takes care of VAT in Europe), app reviewers and engineering cost will add up. The other thing I fee that‘s often overlooked is that paid app subsidize free apps.
- concinds 5y ago
  Yeah, that's why I didn't care to correct the Barron's overestimation with an estimation of my own. Apple's still going to spend tons on the App Store even if its revenues dry up.
- KptMarchewa 5y ago
  The costs are low. https://www.marketwatch.com/story/how-profitable-is-apples-app-store-even-a-landmark-antitrust-trial-couldnt-tell-us-11622224506 https://www.marketwatch.com/story/how-profitable-is-apples-a...
dillondoyle 5y ago
* billion. At least I know the profit number is 57 billion
threeseed 5y ago
This comment is a mess. (a) Provide a link to the source if you're going to throw numbers around. (b) According to CNBC [1] Apple had App Store revenues of $64 billion in FY2021. Which at 30% = $19.2 billion and at 15% = $9.6 billion. All of which doesn't factor in any of the costs associated with running the store or acquiring all of the customers. [1] https://www.cnbc.com/2021/09/10/apple-vs-epic-70percent-of-app-store-revenue-from-customers-playing-games.html https://www.cnbc.com/2021/09/10/apple-vs-epic-70percent-of-a...