Although not a generic value, the App Store is certainly a high source of income for Apple. This focuses on all the apps that iOS users can access, whether free or paid.
With the fight in the courts pitting Apple against Epic, new data is emerging. The game maker has now brought in a witness intending to change the scenario. The data provided reveals that the Apple App Store has a profit margin of 78%.
The App Store is a must-have for Apple
Apple has never used the App Store as a major source of income. He wants to make his store a reason to attract new users to iOS and satisfy those who are already using this OS, in its various aspects.
As such, it has never disclosed in its income statements the direct profits it is getting from selling apps and services in that store. Now, watch my epic Refutes this statement It reveals that Apple will achieve profit margins of 77.8% and 74.9% of operating margin in 2019 and 2018, respectively.
Very high profit margin
This testimony came from Ned Barnes, one of the main witnesses to Epic Games. The data results from evaluating Apple's financial results and is important in this process. Thus the game maker wants to prove his arguments and the basis for his accusation in court.
According to Epic, the App Store does not offer any real services, but simply acts as a way for Apple to extract money from programmers. It wants to lower profit margins and allow other payment systems to be supported by apps.
Epic wants to change the rules for this store
Of course, Apple refutes these values completely and wants to challenge these values in court. It ensures that it does not perform the analysis provided on the App Store earnings and that this separation is meaningless, as it is integrated into its iOS ecosystem.
Given that Apple takes in 15 or 30% of all purchases on the App Store, profit margin in the range of 70-80% doesn't seem impossible. This lawsuit pitting Apple against Epic Games takes a new turn on Monday, with all players taking part in court.
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