Comment by exitb
2 days ago
Apple doesn't ever need to make much money on this software, when they make money on hardware needed to use it.
2 days ago
Apple doesn't ever need to make much money on this software, when they make money on hardware needed to use it.
Apple hardware has "only" a 36% margin, while their software and services have a 75% margin. They definitely want to make more money on software with absurd margins.
A huge portion of that margin is from the 33% App Store cut which is infinite margin for them, effectively.
"software and services" really should be broken out from the App Store cut.
Is margin profit/revenue or profit/costs? I think it is the former, so it should be “effectively 100%” right?
Anyway, this isn’t really a meaningful quibble argument-wise, it is obvious what you mean!