May 04, 2021 News
Information from Apple's corporate financial planning and analysis team shows that the App Store's operating profit rate in 2019 was 77.8%, and in 2018 It is 74.9%. And this will become the key to the success of Epic's lawsuit.
Witness Ned Barnes testified that these figures are close to his calculation of App Store profits. At the same time, he also refuted the criticism of some Apple expert witnesses that it is impossible to calculate the operating profit margin of the App Store reliably. In addition, he also said that Apple has been tracking its App Store profits for many years.
Apple has strongly questioned this, stating that Epic's witnesses are entirely wrong about the App Store's profit calculations. Earlier, Apple officials also said at a hearing that Apple had no separate profit statistics for the App Store, and Cook made a similar statement.
How much profit Apple can obtain from the App Store can be said to be the core issue of Epic's lawsuit against Apple for monopoly. Epic said that the App Store never provides any actual services but only serves as a channel for Apple to make money from developers.
Earlier, ‘Fortress Night’ was banned by Apple for introducing internal payments that bypassed Apple. Since then, Epic has been suing Apple for the alleged monopoly on these grounds. Apple insists that the App Store review process is an integral part of the extensive platform security workaround iOS. They should not be viewed in isolation. When looking at Apple's entire equipment and service ecosystem, their profit margins will drop to a remarkable level.