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It's not a side hustle. It's probably about 20-25% of their profits.

by jsnell 3y ago

SllX 3y ago
Nah. That little slice of their P&L also includes a lot more than App Store revenue. AppleCare, Apple Music/TV purchases, rentals and subscriptions, Books, Apple Pay fees, Google Search revenue and whatever else you can plausibly call a service under umbrella in addition to App Store revenue. They don’t break out the exact mixture, but we know the Google Search deal is an enormous chunk of it.
- madeofpalk 3y ago
  I would guess that the majority of Services revenue is from the App Store, and the majority of that is casino games for children.
  - kemayo 3y ago
    Apple doesn't break it down, so this is all analysts-guessing, but the guesses I've seen for the share of Services revenue that App Store represents have been in the 25-35% range. e.g. https://www.trefis.com/data/companies/AAPL/no-login-required/7JGMQ7wT/Breaking-Down-Apple-s-Services-Revenue- https://www.trefis.com/data/companies/AAPL/no-login-required...
- kjksf 3y ago
  per apple they paid $60 billion to iOS developers. Given 70/30 split, that's $26 billion of revenue to Apple. For context in 2022 Adobe made $17.6 billion. So 30% cut of iOS store is 40% more than Adobe revenue. And I'm guessing the bandwidth + review team overhead is many times lower than, you know, actually paying software developers, marketers, sales people etc. to write and promote software.
  - SllX 3y ago
    For what time period?
    - raydev 3y ago
      Looks like the $60bil number is for 2021. https://www.bnnbloomberg.ca/app-store-developers-made-about-60-billion-in-2021-apple-says-1.1705546 https://www.bnnbloomberg.ca/app-store-developers-made-about-...
      - SllX 3y ago
        Great. AAPL Services revenue for that time period was $68.42B. Apple also launched the Small Business Developer program that year reducing their cut for qualified businesses down to 15% after the first year of an active subscription (it’s stupidly complicated for what it is), but at the high end, under their prior cut of 30%, Apple would have earned between $25B and $26B. If after the small developer program Apple only took home a 25% cut averaged out, then that’s about $20B. If they get 20%, then they get about $15B. Some of that extra cut that developers get comes back to Apple in App Store ad dollars though, so best estimate with available data: between a fifth and a fourth of Apple’s 2021 services revenue of $68.42B was their cut of the App Store + App Store ads which puts it ahout on par with their Google Search money for that year ($18B).

It's not a side hustle. It's probably about 20-25% of their profits.

by jsnell 3y ago

It's not a side hustle. It's probably about 20-25% of their profits.

SllX 3y ago

Nah. That little slice of their P&L also includes a lot more than App Store revenue. AppleCare, Apple Music/TV purchases, rentals and subscriptions, Books, Apple Pay fees, Google Search revenue and whatever else you can plausibly call a service under umbrella in addition to App Store revenue. They don’t break out the exact mixture, but we know the Google Search deal is an enormous chunk of it.

madeofpalk 3y ago
I would guess that the majority of Services revenue is from the App Store, and the majority of that is casino games for children.
- kemayo 3y ago
  Apple doesn't break it down, so this is all analysts-guessing, but the guesses I've seen for the share of Services revenue that App Store represents have been in the 25-35% range. e.g. https://www.trefis.com/data/companies/AAPL/no-login-required/7JGMQ7wT/Breaking-Down-Apple-s-Services-Revenue- https://www.trefis.com/data/companies/AAPL/no-login-required...
kjksf 3y ago
per apple they paid $60 billion to iOS developers. Given 70/30 split, that's $26 billion of revenue to Apple. For context in 2022 Adobe made $17.6 billion. So 30% cut of iOS store is 40% more than Adobe revenue. And I'm guessing the bandwidth + review team overhead is many times lower than, you know, actually paying software developers, marketers, sales people etc. to write and promote software.
- SllX 3y ago
  For what time period?
  - raydev 3y ago
    Looks like the $60bil number is for 2021. https://www.bnnbloomberg.ca/app-store-developers-made-about-60-billion-in-2021-apple-says-1.1705546 https://www.bnnbloomberg.ca/app-store-developers-made-about-...
    - SllX 3y ago
      Great. AAPL Services revenue for that time period was $68.42B. Apple also launched the Small Business Developer program that year reducing their cut for qualified businesses down to 15% after the first year of an active subscription (it’s stupidly complicated for what it is), but at the high end, under their prior cut of 30%, Apple would have earned between $25B and $26B. If after the small developer program Apple only took home a 25% cut averaged out, then that’s about $20B. If they get 20%, then they get about $15B. Some of that extra cut that developers get comes back to Apple in App Store ad dollars though, so best estimate with available data: between a fifth and a fourth of Apple’s 2021 services revenue of $68.42B was their cut of the App Store + App Store ads which puts it ahout on par with their Google Search money for that year ($18B).