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I don't know anything about the app store, but the 70% is purportedly the developer's revenue from someone's app purchase. The 44% profit margin would mean tha
by bgilroy26 14y ago
I don't know anything about the app store, but the 70% is purportedly the developer's revenue from someone's app purchase. The 44% profit margin would mean that about half of Apple's 30% app-revenue-cut goes to the cost of running the store and a little less than half goes to Apple's coffers.
- jaredsohn 14y agoRight. But I think the more significant number is what percentage of a user's purchase becomes profit for Apple. After including expenses for free apps (assuming the numbers in the article are accurate and keeping in mind this is old data), the profit margin on that 30% drops from 44% to around 25% such that Apple nets about 7% of App Store sales.