Comment by exitb
25 days ago
Apple doesn't ever need to make much money on this software, when they make money on hardware needed to use it.
25 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!