The CTF was never going to hold. It massively puts off smaller devs going it alone.
Apple would be better off making a carrot than a stick.
Apple would be smart to pause all 3rd party app sales to the EU until the threat to their business is eliminated. The concept that they have the right to impose a fine of 10% of their global sales. Here is why Apple may be forced to pull out of the EU over this extreme uncertainty eventually. If not, they will remove many of the features like most new apps and services, maybe just providing updated.
To determine the effect of an EU fine of 10% of global sales on Apple's profits, we need to follow these steps:
1. **Calculate the fine as 10% of global sales.**
2. **Calculate the total profit with a 36% profit margin.**
3. **Determine the new profit after accounting for the fine.**
Let’s break this down with a hypothetical example, assuming Apple’s global sales are \( X \).
1. **Fine Calculation:**
- Fine = 10% of global sales = \( 0.10 \times X \).
2. **Profit Calculation:**
- Profit margin = 36%, so total profit before the fine = \( 0.36 \times X \).
3. **New Profit Calculation:**
- New profit = Total profit before the fine - Fine
- New profit = \( (0.36 \times X) - (0.10 \times X) \)
- New profit = \( 0.36X - 0.10X \)
- New profit = \( 0.26X \).
Thus, the profit after accounting for the fine would be 26% of global sales. The fine would reduce Apple's profit by \( 0.10X \), which corresponds to a reduction in profit from 36% to 26% of global sales. This represents a significant decrease in the profit margin by 10 percentage points or approximately 27.78% of the original profit margin
That means the Fine is more than they make in the EU.
