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> It's about selling apps, not hardware. Apple makes very little from app sales, profits from iTunes purchases (including both App Stores) are under $1 billion
by Samuel_Michon 13y ago
> It's about selling apps, not hardware.
Apple makes very little from app sales, profits from iTunes purchases (including both App Stores) are under $1 billion a year. Apple rakes in tens of billions in profits a year from Mac sales, and even that is a minor business compared to profits from iOS device sales.
- mvkel 13y agoApple doesn't offer ios updates for free to sell more idevices. They do it to keep every single device relevant, and able to run the latest apps. It reduces their support burden and increases the value of the app ecosystem, however small its contribution to the bottom line. Yeah it only generates a billion on revenue, but it also DIDNT EXIST 5 years ago. That's a crazy growth curve Apple could replicate in the OS X world if they play their cards right.
- Samuel_Michon 13y agoEven if Apple were to sell 40 million Macs a year (2 times what it sells right now) and the entire installed base of OS X users were to buy 50 $10 apps a year on the Mac App Store, profits from Mac apps would still be less than Apple makes from selling iOS devices.