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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

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...

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...