Apple Inc’s App Store had operating margins of almost 78 per cent in fiscal year 2019, according to testimony from an Epic Games Inc expert witness based on documents obtained from the iPhone maker. The figure comes from Ned Barnes, a financial and economics researcher, who said he obtained documents “prepared by Apple’s Corporate Financial Planning and Analysis group and produced from the files of Apple CEO Tim Cook. Apple generates revenue from the App Store by charging either a 15 per cent or 30 per cent commission to developers for paid app downloads, in-app-purchases and subscriptions. Analysts believe that Apple’s margins on the App Store may have grown since 2019. Sensor Tower estimates the App Store generated $22 billion in commissions last year for Apple, while Bernstein analyst Toni Sacconaghi believes Apple will run the App Store this year with a gross profit of 88 per cent.
Source: Hindu Business Line