Apple Earned Over $100 Million From Fortnite

[MacRumors]

Apple collected more than $100 million in revenue from the 30 percent cut that it takes from Fortnite in-app purchases, according to testimony provided by App Store gaming business development head Michael Schmid, who shared the detail in the ongoing Epic v. Apple trial.

As noted by Bloomberg, Schmid offered the $100 million figure as a rough estimate, and declined to provide a specific dollar amount because that would be "inappropriate."

Sensor Tower last year estimated that Fortnite players have spent $1.2 billion on in-app purchases in the App Store, which would have netted Apple $354 million. Fortnite has been on the App Store since 2018, and prior to its removal, it was a highly popular iOS game.

According to Schmid, Apple spent $1 million marketing for Fortnite in its last 11 months on the App Store.

Apple software engineering chief Craig Federighi is testifying in the Epic v. Apple trial today, following Phil Schiller's testimony earlier this week. Apple CEO Tim Cook is expected to take the stand on Friday, where he will answer questions for 100 minutes.

Article Link: Apple Earned Over $100 Million From Fortnite

 

[Apple_Robert]

And Apple will spend many times that amount with the lawsuit, unfortunately.

 

[SuprUsrStan]

That's a lot of money earned for so little effort spent specifically on the game. That said, to suggest that its free or undeserved completely discounts the effort that Apple spent on building the ecosystem.

 

[patrickbarnes]

This just shows that Sensor Tower data isn’t based on anything apart from guesses. That’s interesting.

 

[Agit21]

Hope Apples store tax will be reduced or removed. Apples monopoly needs to end.

 

[0924487]

I think the annual royalty payment should have a cap.

 

[thejadedmonkey]

Apple's tithe, apparently.

 

[Anthony Sullivan]

And this is why the current system has to go. Apple doesn’t deserve a fraction of this, whatever nonsense excuses the fanboys grasp for.

 

[ck2875]

Gets out Rough Estimate Calculator:

Apple's 100m = 30/100 = 100m/333m.

333m x 70/100 = 233m.

So if Apple made over $100m from Fortnite on iOS, Epic made over $233m from having their game on iOS.


(Advice to future self: Avoid letting your children anywhere near Free-to-Play money/fire pits.)

 

[Eso]

Totally justified. It's very expensive for Apple for iOS fortnite players to launch the fortnite app, log in to their fortnite account, connect to EPIC's servers, and download virtual content produced by EPIC'S employees that is hosted and distributed by EPIC. After all, Apple has to process the payments for all that digital content purchased from some other company and hosted by someone else's property (due to self self-inposed rules which has apparently netted them a cool $100 million).

 

[I7guy]

So Epic made $300M?

 

[rjohnstone]

This just shows that Sensor Tower data isn’t based on anything apart from guesses. That’s interesting.

No... Apple declined to release the actual figure as they thought it would be inappropriate (a.k.a, look bad for them in court). They just threw the "over $100 million" figure out there as an example of how much they earned.
It will be interesting to see if Epic counters this figure with their own earnings report that Apple provides to Devs.

 

[GizmoDVD]

Hope Apples store tax will be reduced or removed. Apples monopoly needs to end.

Go yell at every other store making money. And target. And Walmart. And grocery stores. And gas stations. And

 

[I7guy]

Totally justified. It's very expensive for Apple for iOS fortnite players to launch the fortnite app, log in to their fortnite account, connect to EPIC's servers, and download virtual content produced by EPIC'S employees that is hosted and distributed by EPIC. After all, Apple has to process the payments for all that digital content purchased from some other company and hosted by someone else's property (due to self self-inposed rules which has apparently netted them a cool $100 million).

Absolutely. Apple built a platform costing how many $$$. For a paltry $99 and blood, sweat and tears, you can publish an app, with a complete management and distribution platform while giving access to the app to over 1 billion devices.

Seems like a fair deal.

 

[GizmoDVD]

Totally justified. It's very expensive for Apple for iOS fortnite players to launch the fortnite app, log in to their fortnite account, connect to EPIC's servers, and download virtual content produced by EPIC'S employees that is hosted and distributed by EPIC. After all, Apple has to process the payments for all that digital content purchased from some other company and hosted by someone else's property (due to self self-inposed rules which has apparently netted them a cool $100 million).

Damn.

Absolutely. Apple built a platform costing how many $$$. For a paltry $99 and blood, sweat and tears, you can publish an app, with a complete management and distribution platform while giving access to the app to over 1 billion devices.

Seems like a fair deal.

It’s like people ignore that. Apple isn’t a charity.

 

[G5isAlive]

So.. 1 million in marketing got Apple 100 million? Not too shabby.

 

[easy4lif]

360 million, that’s before apples 30% cut. That’s not chump change.

 

[MvdM]

Was fortnite free to download? Most articles mention in app purchases.

 

[ArPe]

Epic should donate millions to mental health charities because people gonna grow up messed up on that Fortnite crap. Gangs of neo Nazis and scammers groom kids in those games.

 

[Whathappened]

So Epic made $300M?

How could they of you already know that the 100 million Apple got is 30% of the total revenue?

 

[kennyt72]

So Epic made $300M?

No, $233M

 

[McKodiak]

Apple created a safe ecosystem which costs money to keep up. They're users want that ecosystem. They aren't going to do that for free. They're a business which will try to make a profit for all their products and services. People mention the walled garden. Those walls are Apple's product. They manage those inside and those that want in. If you are in the ecosystem then you are consuming that product. If you don't like the walls, then you can leave.

 

[DeepWebinar]

And this is just one app, it’s absurd corporate greed. Nothing is ever enough. I don’t care about the “work they put into building the ecosystem” or what the industry standards for these fees are. I find the number of people who immediately jump to Apple’s defense to parrot these same talking points baffling. Why? Out of “fairness”? Check your blind spots. Defending these tech companies is anti-productive and weird. Tech corporations are ruthlessly capitalistic and destructive and we should challenge the control they have. Apple has always been a company with the primary concern of figuring out the most aggressive ways to acquire and exert control for the sake of profit and destroy any company who threatens that. Like any of these tech giants, they’re a virus and we should break up their power.

 

[djphat2000]

And this is why the current system has to go. Apple doesn’t deserve a fraction of this, whatever nonsense excuses the fanboys grasp for.

So what do they deserve to get? What's the number? Cause I can almost 100% guarantee that the other business will want it to be zero.
Listen, Apple didn't make the AppStore for free. They didn't make the iPhone for free. They get to charge as much as the market will bare. If they charge too much, people/business will not pay and leave the platform. If they charge the right amount, people/business will continue to pay. This is generally how it works, how it's always worked. There is no monopoly here, they don't own all cell phones, and or appstore's. If any developer does not want to pay the 30% fee. They simply don't have to charge anything for the app. There is like 10's of thousands of apps on the app store that is free. Apple doesn't charge for any of that. Should they?

IAP can be simple to fix. Just a message in the app that says "You can't purchase here". Make an Ad on TV or other media outlets that tells the public how to get your IAP online via the web or other means that will work. And done. Spend millions on those Ads to make sure people get the message. And you owe Apple ZERO DOLLARS.

 

[ggibson913]

Hope Apples store tax will be reduced or removed. Apples monopoly needs to end.

What Monopoly is that? Apple isn't the only Smartphone Maker or App Store around. Apple only supports one device brand that it makes, again how is that a monopoly? Apple is a private company, not a public utility and yet they should let anyone do anything they want on their platform? For free?