Could someone Explain the new Macbook port

[silvarios]

The real money is most certainly not in the app store. Large percentage of apps are free, and most of the rest are under $5. Apple makes most of their money on hardware, by an overwhelming percentage in fact.

Wait, I assumed you were referring to both app stores, but even in the case of the Mac app store versus Mac hardware profit margins (obviously the iPhone makes more money than essentially everything else combined), I don't see any numbers to suggest anything other than hardware sales being the big money maker.

[OWC Jamie]

silvarios wrote:
The real money is most certainly not in the app store. Large percentage of apps are free, and most of the rest are under $5. Apple makes most of their money on hardware, by an overwhelming percentage in fact.

Wait, I assumed you were referring to both app stores, but even in the case of the Mac app store versus Mac hardware profit margins (obviously the iPhone makes more money than essentially everything else combined), I don't see any numbers to suggest anything other than hardware sales being the big money maker.

chump change ?

[silvarios]

billb wrote:
[quote=silvarios]
The real money is most certainly not in the app store. Large percentage of apps are free, and most of the rest are under $5. Apple makes most of their money on hardware, by an overwhelming percentage in fact.

Wait, I assumed you were referring to both app stores, but even in the case of the Mac app store versus Mac hardware profit margins (obviously the iPhone makes more money than essentially everything else combined), I don't see any numbers to suggest anything other than hardware sales being the big money maker.

chump change ?
There are almost one billion iOS devices sold to date. $25 billion is the developer cut, so that's about $85 billion in revenue, which means Apple's cut is $60 billion. So Apple is making $60 per iOS device sold minus costs. That seems high to me. I've owned four iOS devices and don't think I've spent even $50 for apps.

Either way, considering a first party iOS charge is $19, I'm seeing more money in hardware than software. 4th quarter 2014 likely saw Apple make $17.5 billion in iPhone profits alone (calculated on estimated 70 million iPhones sold with at least $250 made per phone).