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Apple doesn't ever need to make much money on this software, when they make money on hardware needed to use it.
by exitb 9mo ago
Apple doesn't ever need to make much money on this software, when they make money on hardware needed to use it.
- sofixa 9mo agoApple hardware has "only" a 36% margin, while their software and services have a 75% margin. They definitely want to make more money on software with absurd margins.
- bombcar 9mo agoA huge portion of that margin is from the 33% App Store cut which is infinite margin for them, effectively. "software and services" really should be broken out from the App Store cut.
- bee_rider 9mo agoIs margin profit/revenue or profit/costs? I think it is the former, so it should be “effectively 100%” right? Anyway, this isn’t really a meaningful quibble argument-wise, it is obvious what you mean!