Despite not being a public value, it is certain that the App Store is a source of high income for Apple. This concentrates all the apps that iOS users can access, whether they are free or paid.
With the fight in the courts that takes place, which pits Apple against Epic, new data is emerging. The game creator has now brought a witness who intends to change the scenario. The data presented reveal that the profit margin of Apple’s App Store reaches 78%.
App Store is essential for Apple
Apple never took the App Store as an important and essential source of income. He wants to make his store a reason to attract new users to iOS and to keep those who already use this operating system, in its various aspects, pleased.
As such, it has never disclosed in its income statements the direct profits that it obtains from the sale of apps and services in this store. Now, an Epic witness refutes this statement and reveals that Apple will have had 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 Epic Games' key witnesses. The data results from the assessment of Apple's financial results and is important in this process. The game maker thus wants to prove its arguments and the basis of its accusation in court.
According to Epic, the App Store doesn't offer any real services, but it simply serves 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 of this store
Naturally, Apple completely refutes these values and wants to challenge these values in court. It guarantees that it does not carry out the analysis presented on the App Store's profits and that this separation does not make sense, since it is integrated into its iOS ecosystem.
Given that Apple gets 15 or 30% of all purchases on the App Store, a profit margin in the range of 70-80% does not seem impossible. This lawsuit that pits Apple against Epic Games is taking a new turn this Monday, with all players taking part in court.
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