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Net income is, imo, a better number to use given the sheer amount of R&D that goes into developing Apple hardware that is necessary but unaccounted for in gross
by enragedcacti 4y ago
Net income is, imo, a better number to use given the sheer amount of R&D that goes into developing Apple hardware that is necessary but unaccounted for in gross profit. further, if we are looking at 2021 their App Store gross revenue went to $85 billion.
> That ~19B in 2020 is before CC fees on 64B or internal expenses. App stores have a lot of customer service and charge backs on relatively tiny purchases. Actually reviewing apps isn’t cheap either, and all the relevant IT adds even more expense.
I don't disagree with any of that, but I don't think its anywhere near 2/3 of revenue after developer split. I don't have any evidence for that because Apple is very secretive about those numbers, but I think level with which they protect that information is evidence on its own. if Apple were making a piddly 3-5 billion on $65 billion in gross revenue they would be screaming it from the rooftops to (rightfully) justify their 30% cut as being reasonable.
> Further they upped the developers cut to between 70% and 85% from the flat 70% in 2020.
the app store is extremely top heavy with top devs being responsible for a huge amount of the revenue. The policy is great for small devs but the aggregate split is probably still much closer to 30% than it is to 15%.
- Retric 4y agoDefending their cut based on expenses is a losing strategy because if they 2 billion dollars or 20 Billion anyone would love to have that income stream. Further stating their actual costs simply invite the idea of competition lowering prices. Apple clearly wants to profit from the App Store, but just as important to them is maintaining the ecosystem and the mountains of cash iOS provides when change means risk.