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  • Epic expert estimates Apple's App Store profit to be nearly 80%

    VanillaVanilla
    crowley said:
    The margin will be Apple's (revenue-costs)/revenue.  Payments to app developers will not be considered part of that equation, as it's neither Apple's revenue or cost, it's just developer revenue that Apple are handling and passing along.  

    Apple's App Store margin is (Apple's take of app revenue - cost of running the App Store) / Apple's take of app revenue.

    Wait, why? That's not how profit has been worked out before. In a brick-and-mortar for example, the Cost Of Goods Sold obviously includes the cost of supplying the goods from the publisher, so why not here?

    Apple cannot make a sale without delivering the app licence, and the licence costs them 70%. It seems completely artificial to say that the relevant profit should be based on Apple's 30% cut rather than on total revenue.

    How would it change profits in all other industries if supplier costs could be subtracted before calculating profit? It makes no sense to me.
    spock1234watto_cobra

  • Epic expert estimates Apple's App Store profit to be nearly 80%

    VanillaVanilla
    entropys said:
    Anyway while I suspect the App Store has good margins like all Apple endeavours, I bet there are a few costs conveniently left out to make a highly political headline figure. 

    Yes, very astute. The cost that they are conveniently leaving out is ... the payments to app developers.

    Apple retains only 30% of App Store revenue for purchases and 15% for subs over one year. Even if it cost them nothing to run the App Store, and nobody ever subscribed to anything, that would mean that an ABSOLUTE CEILING on their profits would be ... 30% !! How can they make 75% profit if more than 70% of revenue is immediately returned to developers?

    Take into account subscriptions, costs to run the App Store including the costs to host, transfer and support apps (including free apps which Apple gets nothing for) and the likely true App Store profit is going to be somewhere around 20% and possibly lower.
    baconstanglarryjwspock1234h2pwatto_cobra

  • Judge 'inclined' to grant protection to Unreal Engine, not Fortnite

    VanillaVanilla
    Pascalxx said:
    This sounds like Epic has a separate developer account for their Unreal Engine team which is marketed under a separate entity and Apple has threated to close both accounts, despite only one violating the App Store rules. So maybe they have a case after all?

    They would indeed, if Epic Games International was a genuine, independent third-party. I don't think that EGI is independent of Epic's control, though.

    AppleInsider said:
    Epic's lawyers likened Apple's in-app purchase strategy to Expedia taking 30% of both the hotel rate and room service charges.

    Two problems with this argument - firstly, room service is wholly done by the hotel, Expedia does nothing to help room service, but IAPs are done by Apple, so Apple are providing a service. But more importantly, Expedia has competitors just like Apple does. Expedia would be perfectly within their rights to start charging 30% of room service charges, and if the hoteliers don't like that, they are free to stop using Expedia, and continue using Expedia's competitors (if they want).
    fastasleepkillroyBeatsaderutterretrogustojony0FileMakerFellerwatto_cobra

  • iPhone 7 owners say phones producing 'hissing' sound under heavy task loads

    VanillaVanilla
    Duh, it's the cooling fan.
    tallest skilaaron sorensondysamoriaaldolinixzudoozydozenjony0

  • Apple slapped with class action suit over Touch ID-related 'Error 53' code

    VanillaVanilla
    Uh yeah. There is no way on Earth that the courts are going to force companies to deal with claims arising from devices that have been tampered with. That would open a Pandora's box and is just a ridiculous idea to begin with - "I stuck a screwdriver into my phone and I want you, the manufacturer, to pay for it" - ? There is no way a court could objectively distinguish between unauthorised third-party repair, and tampering. It's the same thing.
    chia