The App Store has proven to be an extremely lucrative service for Apple.
The fight between Apple and Epic Games continues. The next court hearing will take place on May 3, and while both sides are preparing defense and attack arguments, clarifying various details of transactions and financial transactions. Along the way, various statements are published in order to “hit” the opponent as painfully as possible. So, one of the experts at Epic Games, Ned Barnes, believes that Apple’s operating profit, when the App Store service is running, is about 80%. In other words, the company is making a lot of money at a low cost. By the way, the iPhone sales margin is about 40%.
According to Barnes, which was published by Bloomberg, the operating margin for the App Store was 77.8% in fiscal 2019 and 74.9% in 2018. It is likely that these numbers will be used by Epic to try to convince the court that Apple is generating significant revenue from the App Store at a relatively low cost. This is due to the 30% commission that Apple takes from all developers who submit their apps to the App Store.
