An iPhone is as useful as the apps on it. Which can also be said for all the other platforms. What’s stopping Microsoft from letting the Xbox run office? The specs are certainly there.
"On the contrary, though—in its own court filings, Epic says that 12 percent revenue chunk has been "sufficient to cover its costs of distribution and allow for further innovation and investment in EGS."
Context matters. We aren’t talking about computers games with hundreds of ways to distribute the game and compete on one or two platforms. We have one distribution method for one and perhaps two for the other with fundamentals incompatible offerings.
More that people keep their iPhones longer instead of upgrading every year
They completely misunderstood what apple tax is. It’s been established to cover the outlandish costs associated with upgrading the ram or SSD storage is many times more expensive than doing it yoursel
Above Avalon: The "Apple Tax" Died Years Ago
Two weeks ago, Business Insider caused a stir with a video titled, “Why Apple Products Are So Expensive.” The video was part of Business Insider’s “So Expensive” series, which takes a look at why certain items are priced the way they are. The video was troubling for the number of inaccuracies, falwww.aboveavalon.com
I would also like to bring this article to everyone's attention, including the following excerpts that dispel the notion of an "Apple Tax".
Wel already know apples service profits is 70% if not 80% at a minimum if we exclude apple music/tv by their own saying. Effectively putting their theoretically smallest ask at 4%. And. That assumes apple lowers their store margins as well( nobody’s arguing for this)
I hav never heard of Spotify as hated?
Will lobbying is extremely hard to do in EU
you can still order parts from the manufacturer or supplier to any of the Microsoft products they sell. Apple explicitly bann their provider from selling any parts to repair shops
If apples offices are green is of little relevance if all the pollution com from the manufacturing of their products they sell. You can have objective measurements for green actions
The court of Netherlands
He is an independent who on the record say he can do that only because of getting his hands on illegally sold schematics and illegally sold components or using broken devices as a source for parts. And demonstrated apple actively combat’s anyone ability to repair their devices without going to apple directly. And scamming customers
EU parliament passed the DMA with 642 votes in favour, 8 against and 46 abstentionsso yes they have won. And will be implemented in 2023
And nether do you
We don’t live in a perfect world. Regulators always needs to exist.
Well, they are. They declare they have a right to everything. They tried to take a cut from Uber and prohibit Netflix from removing subscriptions. And luckily for us apple lost the race of chicken.
Their own court data disagrees with you. The estimations is profitability by 2023/2024. And their costs is major investments in the platform and exclusivity deals. Not the service itself.
You should report them for fraudulent sales then. I would in EU if I saw it.
So as I said, it’s for profitability and not for making things thinner. It makes it less repairable for no benefits whatsoever but the manufacturerS bottom line. Computers haven’t become cheaper as less repairable they have become. And that’s for two important parts. The RAM and PCIe SSD
If you talked about the MacBook Air I would buy your points completely. Then you come to the iMac and Mac mini… they are re stationary. Sure I can buy the ram but not the SSD in the new M1 models
Nobody seems to have released office or similar software for it. So probably for the same reason office doesn’t run on your calculator.
Perhaps because Nintendo wanted a cut of any revenue making it impossible to provide it. Who knows, it’s sucky
We know that their services segment has had net sales of 68.4 billion USD, operating at a gross margin of 70%.
We know that their services segment has had net sales of 68.4 billion USD, operating at a gross margin of 70%.
Even if we excluded from that figure, as somebody suggested, an estimated 10 billion "free profit" that is estimated Google pays to be the default search engine, that'd leave us at 64% gross margin for the rest of their services (37.7/58.4 billion USD).
Could you provide any insight on how you reconcile these figures from their financial filings with your estimate/claim of a 10% gross margin for running the App Store?
The claim I disagree on is this:
Well I have never seen a license agreement when I purchase a game or app on iTunes or Xbox stor. And EU have already said a downloaded program with a perpetual license is a sale and transfer of ownership and can be ignored, they do not work as licensing. It’s illegal to dictate how consumer use their goods they own.
They must justify their fee to the courts. Same reason.
You understand the argument that is was this or that’s the “standard” isn’t a legal argument many courts entertain. it’s a moral argument, but not a defense for illegal practices
it’s the fact digital and physical are treated differently for no logical reason whatsoever.
Have you tried to use apples latest filing to the FTC? Apple had 17.5 billion in service revenue but “only” 5.3 billion in costs in Q3 2021 that’s 70% gross profit margin of 12.2 billionHere’s the post I made earlier in this thread, reiterating my calculations from a similar thread last year.
Post in thread 'Minnesota and Arizona Bills Aim to Let Developers Skirt Apple's In-App Purchase Rules' https://forums.macrumors.com/thread...s-in-app-purchase-rules.2286379/post-29644575
Apologies, I seem to have made a typo and quoted “10%” when it should have been 40%.
Considering the revenue apple have I wouldn’t be surprised if Apple Pay close to nothing in transaction fees. So just simple bank transfers. In EU consumer cards pay a maximum 0.2-0.3% interchange fee for merchants.Thanks for you reply. 40% is way too low IMO, but not outlandishly so as the 10%
The claim I disagree on is this:
"This includes the money from Google (...), and more lucrative ones like iCloud and AppleCare. So App Store margins would be lower to balance out."
The thing is: iCloud has "real", considerable costs to operate for internet traffic, data centers, administration. So does AppleCare (costs of repairs), though that is obviously hard to estimate (but not that big a business probably).
Contrary to your assumption, I believe that margins on App Store are above average of their services segment. Probably way above that. Even the very CNBC article you quoted has this to say:
"The apps that make the most money on the App Store are usually games, which aren’t subscription-based, but monetize through in-app purchases, which are billed by Apple at 30%"
What do these in-app purchases cost Apple?
Close to nothing.
They just "unlock" the purchase in-app and that's that - the app developer delivers the rest.
Well, to be more specific, it shouldn't cost them much beyond payment processing. For which I believe 2-3% is a reasonable figure. And a bit of VAT paperwork they do for developers - for which costs probably remain basically flat, i.e. that hugely benefits from economies of scale. All in all, the costs shouldn't be more than about 5% of the transaction value.
This translates to margins of more than 80% on in-app purchasing alone.
This figure is of course counterbalanced by all the free apps they're offering in their store (and reviewing) at what would be a operational "loss", if not for the developer subscriptions.
Don‘t forget that interchange fees are only a part (fraction) of card processing fees/costs.
Essentially the answer is no.
Still incorrect. Apple does not manufacture anything.
Can you point to some citation where Apple has been convicted of it?
In other words, these devices can be repaired. Same as Microsoft who has no official program in place.
I'll wait until 2023 then to come back to this.
So why opine on something then?
Yep and at 50,000 feet they should.
Apple didn't really lose anything. They seem to be just fine.
Yes, Steve Jobs, during the keynote where he announced the store. The App Store was designed to be the single, trusted source of apps and app updates.
The Xbox Marketplace, PlayStation Store, or the Nintendo eShop act as gatekeepers to their respective platforms. You cannot sell a console game without going through MS, Sony, or Nintendo - physical or digital. Even if you purchase a digital code, fulfillment happens through the console store. Console makers take a commission on all games on their platform. This is no different from the App Store. If you want to create a console game, you have to go through them. If you are unhappy with the terms offered, you can publish for another platform, same as with the App Store.
Key phrase there is gross profit which is not the same as net profit.
What’s the issue you are trying to surface? According to your recent posts, competition is alive and well in the app market. Apple is entitled to earn every cent it can. Consumers and devs are entitled to use the platforms they want.
Funny as under oath Epic stated EGS would not be profitable by 2027: "By charging 12% commission, the Epic Games Store will not be profitable for at least several years. Current estimates indicate negative overall earnings in the hundreds of millions of dollars through at least 2027." - Case 4:20-cv-05640-YGR Document 812 Filed 09/10/21 which is just 5 months after the above.
Funny, as the 2023 year they expect to be profitable was in the same document (with some reservations).
...und which they also stated, that their current losses were due to minimum guarantee deals.
Apple doesn't "need" more than 12% commission, since they don't have to promote their store in a similar way - cause they're currently the only "monopolist" store for the platform.
No, of course not, game streaming wasn't around when the App Store was launched. Apple does not allow game streaming apps, but worked with developers to enable game streaming though Safari.
In other words, a dev willingly and without coercion entered into a voluntary contract.
Could you provide any insight on how you reconcile these figures from their financial filings with your estimate/claim of a 10% gross margin for running the App Store?