Nope,
you'd have to be working in Apple's financial department to have any real proof.
And of course it isn't easy to estimate the profit you get from a piece of bundled software.
But new version of one component of FCS or totally new component can trigger the sale of 100,000 copies. If average price is $400, they could use 40 million to r&d and still get even. I guess that FCS team isn't that big, so then Apple would make profit with FCS.
Again, baseless speculation w/hypothetical numbers that, of course, support your opinions. I could just as easily say that Apple spends 800 million on R&D and support of the ProApps. The best we can do is look at the trends in Apple's history, the demographic they are selling to, the competition and try to derive something from that. While being in the post production industry for the past 10yrs doesn't make me an expert on business and economics I try to pay attention to what's going on around me and feel I can talk about it in an education fashion. What Apple is currently offering for $999 can't be matched for less than $40k, IMO, and, also IMO, Apple doesn't see the sales volume from Final Cut purchases and upgrades to offset all of that. It took about 8 years or so for FCP to hit the 1 million user mark (not including pirated copies) so thinking that adding a new feature like Color will trigger 100k more sales than if that feature wasn't added is very optimistic, IMO. The ProApps, IMO, hover around the break even point at best. Apple pays the rent selling hardware and uses their software development as a means towards that goal.
Just dropping the price won't necessarily expand the user base and I think this is what they found out w/Shake. When the majority of your user base sees Final Cut Studio (~$1k) as expensive they sure as heck aren't going to bite on a product like Shake that they see as a $500 one-trick pony (even if it does it's trick better than almost anything else out there). It doesn't matter that it went from $10k to $500. All they see is that Final Cut Studio costs twice as much and offers a ton more functionally. The fact that Final Cut Studio is priced way, way, w-a-y below the going rate for what it offers is apparently irrelevant to them.
I think that's why Apple bundled Color w/FCS instead of selling it as a stand alone app. They are hopping the added value of Color will get more people to buy FCS, but the niche for Color is probably smaller than the niche for Shake. How many more copies of Final Cut Studio will have to be sold to make up for the 'free' addition of an otherwise $25k app? And most new users of Color, people that didn't really do video before the advent of DV or HDV, are put off by the fact that you need to invest in $3k, at minimum, worth additional hardware to even make using Color worthwhile. This is in stark contrast to the more experienced pros that see the cost of FCP as a drop in the bucket compared to the rest of their gear, or compared to the gear they used to use. What I think Apple is hopping to do is make desktop color correction as common as they helped make desktop publishing, desktop video editing, and desktop DVD authoring. A big hurdle though is that desktop color correction, like I mentioned before, requires additional hardware that currently costs thousands of dollars, but hopefully that will come down if the makers of said hardware see an increased demand. Classic chicken/egg problem.
So you can make profits with very low price if volume is big. App store is good example of this.
Agreed, but the ProApps have a significantly higher development cost and a significantly smaller audience than a $0.99 widget or game from the App store geared for mass appeal. Even w/in the App store the more niche, and complex the app the higher the cost. Productivity and professional apps can easily be $20-$30 or up. Sure, they could drop their price to $0.99 but is there really a big, pent-up market for storyboard or director's viewfinder software? Even Apple is trying to address the 'race to the bottom' problem the App store has.
Along the same lines, why doesn't Apple make all of it's software cross platform? There are obviously a ton more Windows boxes out there than Mac boxes. Why is iTunes cross platform? Is the difference that FCP for Windows won't sell Mac hardware but iTunes for Windows will? Why did Apple quickly kill the Windows version of Shake and discount the Mac price much lower than the Linux price?
Lethal