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It's not true that Apple is making a killing with the App Store. Where is it visible in their earnings reports? Are you sure that you're not confusing revenue w
by astral303 14y ago
It's not true that Apple is making a killing with the App Store. Where is it visible in their earnings reports? Are you sure that you're not confusing revenue with profit?
The App Store runs at just above break even: http://www.macobserver.com/tmo/article/apple_app_store_runs_just_above_break_even/ http://www.macobserver.com/tmo/article/apple_app_store_runs_... http://news.cnet.com/8301-13579_3-20008540-37.html http://news.cnet.com/8301-13579_3-20008540-37.html -- figures of less than 1% or 2% of gross profit. That is not "a killing."
- smackfu 14y agoPercentage of Apple's overall revenue doesn't matter here. It is amazing Apple somehow spends so much money on reviewing apps and providing the app store that they can't make much money on a 30% cut.
- kapowaz 14y agoWhat I find amazing is that people find it so easy to dismiss the cost of running an online store with almost no downtime, delivering music, television episodes, movies and apps to customers all around the world, with fast download speeds, with all the recovery facilities that iCloud offers for past purchases. Apple's famous North Carolina data centre cost about $1 Bn to construct (http://arstechnica.com/apple/news/2011/02/apples-nc-data-center-coming-online-this-spring.ars http://arstechnica.com/apple/news/2011/02/apples-nc-data-cen...). At that price, you'd need to collect 30% of $3.3 Bn in revenues just to break even.
- smackfu 14y agoYeah, but who spends a billion dollars on a datacenter??? Only a company with more cash than they know what to do with.