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Apple denies App Store profit margin is 75% – claims to have no clue

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Re: Apple denies App Store profit margin is 75% – claims to have no clue

#6
Doesn't courts have the power to ask Apple to actually calculate this number and give the supporting evidence about that? Because judges are not robots and understand that it is really Apple doesn't want to know the number so that it doesn't have to disclose the margin. This is probably not the first a time a company trying this tactic in court. It would be surprising (for me) if not.

Re: Apple denies App Store profit margin is 75% – claims to have no clue

#8
post #6

Doesn't courts have the power to ask Apple to actually calculate this number and give the supporting evidence about that? Because judges are not robots and understand that it is really Apple doesn't want to know the number so that it doesn't have to disclose the margin. This is probably not the first a time a company trying this tactic in court. It would be surprising (for me) if not.

How could they calculate this if they weren't tracking it?

The cost would need to included not just development hours that have gone into creating and maintaining the system, but hours of other employee's used for the project. Also the servers, the network, buildings, etc.

If there were forced to calculate this number, it wouldn't surprise me if they were able to do so in a manner that shows they lose money. At best they could be forced to track the cost going forward using a third party auditor.

Re: Apple denies App Store profit margin is 75% – claims to have no clue

#10

It is difficult for me to believe Apple doesn't have a pretty good idea what the profit margin for the App Store is. When they say that the profit margin isn't 75-78%, I assume that's because it's 79% or more.

The App Store is dependent on the OS. The OS is dependent on the hardware. Are you including the cost of API development, architecture, and hardware R&D into the probability of the app store.

Because that is what Apple is round-a-bout saying. That its such an integrated product, you can't tally the net revenue from one component and call it profit.

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