> Without that App Store revenue, those $999 iPhones would simply see a price increase. Why would that happen instead of Apple taking less profit overall? I s

> Without that App Store revenue, those $999 iPhones would simply see a price increase. Why would that happen instead of Apple taking less profit overall? I suspect that Apple's pricing for phones is based on primarily on what the customer is willing to pay rather than on the amount needed to be profitable.