Reply to post: Re: Jeesus

Revenues from in-app purchases swelled 32% to almost $30bn for Q3 2020 – and Apple snaffled most of it

DS999 Silver badge

Re: Jeesus

Profit margin is not the same as retail markup. Apple/Google collects 30% of the revenue from the App/Play Store but doesn't profit by 30%. If Tesco is like most brick and mortar retailers they are marking up retail prices at least 50%, so the wholesaler gets maybe 40% instead of 70% app authors do (obviously a lot goes to stuff like rent, checkout counter employees, loss from theft etc.)

Back when software was shrink wrapped in stores the actual author might collect only 10%, with the retailer grabbing 70% and the distributor (the one who ran off the CDs, shipped them to stores etc.) would get the remaining 20%.

I was that application author once long ago, I would have LOVED to get even 30% let alone 70% of the retail sales of my application! Individual app authors have no idea how good they have it today. Those working for a big company like Epic probably won't share in the windfall if they are successful in making Apple take a smaller share, it will go in the owner's (China's Tencent owns a big chunk of it) pockets instead.

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