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It appears Apple doesn't make money from apps, apparently they roughly break even from the app store with a 30% cut of apps: http://news.ycombinator.com/item?i
by patrickk 15y ago
It appears Apple doesn't make money from apps, apparently they roughly break even from the app store with a 30% cut of apps:
http://news.ycombinator.com/item?id=2649475 http://news.ycombinator.com/item?id=2649475
"...Peter Oppenheimer added, “We run the App Store just a little over breakeven,” implicitly making the case that the App Store was not a big profit generator for the company."
http://www.macobserver.com/tmo/article/apple_app_store_runs_just_above_break_even/ http://www.macobserver.com/tmo/article/apple_app_store_runs_...
If Apple can't make money from apps, do you think HP can do better? How viable would it be to sell hardware at a major discount and hope to recoup it from apps (as others here have noted)?
- nkassis 15y agoI wonder why it's so expensive to run the thing? I mean, it should be pretty cheap to deliver small applications like that. Maybe the labor to check all the new apps?
- throwaway32 15y agoi frankly wonder if there isnt some form of holywood accounting going on so their 30% cut can be "justified".
- caf 15y agoAs an example of how this could be done, the App Store business could be internally charged a large license fee for the use of the Apple brand.
- rodh257 15y agoalso to deter competitors from undercutting at hoping to make it up on apps (just as we are discussing about HP here). If they see that even Apple supposedly couldn't make a profit from its app store, they might be deterred.
- jestar_jokin 15y agoProbably licensing for all the ridiculous patents (see: Lodsys et al)