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Apple isn't left trying to "milk" the app store fee. That's a small fraction of their business. They're doing $300 billion in sales (and $100 billion in profit)

Apple isn't left trying to "milk" the app store fee. That's a small fraction of their business. They're doing $300 billion in sales (and $100 billion in profit) in just iPhones, it's the most lucrative single product for a private company in world history (Aramco's oil business and Google Search are the only things that match up). The app store is a moat for the iPhone, not their primary financial success. They could make that app store fee 0% and they'd still generate over $100 billion in op income per year. Then they'd get sued by regulators for anti-trust for not charging a fee, claiming they undercut the competition using the iPhone business profits.

FirmwareBurner 2y ago
>They're doing $300 billion in sales (and $100 billion in profit) in just iPhones, it's the most lucrative single product for a private company in world history Yeah, but that slice of the market is in decline for them. "According to Stocklytics.com, iPhone revenue dropped $2.7 billion year-over-year, totaling $85.2 billion in H1 2024." Makes sense since everyone and their dog already has an iPhone and keeps them for longer than ever meaning selling more iPhones now is more challenging compared to monetizing all the stuff people buy and do on them.
- qup 2y ago
  It moved less than 1%, is that what it says?
philistine 2y ago
Services are roughly a third of the revenue at Apple. Most of the services revenue are taxes on third-party developers, and the payola Google pays Apple for the privilege of Google Search being the default, and to prevent Apple from getting in the search market. It's where all the revenue growth is at Apple right now. All their hardware businesses are enormous and safe, but basically stagnant. That the majority of revenue is from hardware doesn't mean the future of the company doesn't lie in its ability to extract ever more blood from a stone.

FirmwareBurner 2y ago

>They're doing $300 billion in sales (and $100 billion in profit) in just iPhones, it's the most lucrative single product for a private company in world history Yeah, but that slice of the market is in decline for them. "According to Stocklytics.com, iPhone revenue dropped $2.7 billion year-over-year, totaling $85.2 billion in H1 2024." Makes sense since everyone and their dog already has an iPhone and keeps them for longer than ever meaning selling more iPhones now is more challenging compared to monetizing all the stuff people buy and do on them.

qup 2y ago
It moved less than 1%, is that what it says?

philistine 2y ago

Services are roughly a third of the revenue at Apple. Most of the services revenue are taxes on third-party developers, and the payola Google pays Apple for the privilege of Google Search being the default, and to prevent Apple from getting in the search market. It's where all the revenue growth is at Apple right now. All their hardware businesses are enormous and safe, but basically stagnant. That the majority of revenue is from hardware doesn't mean the future of the company doesn't lie in its ability to extract ever more blood from a stone.