Google and Apple’s app stores are cash machines
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After all these costs are accounted for, their margins often descend to single digits: Walmart’s operating margin this year is about 4 per cent. The ultimate issue is financial: Apple could not have known that its invention would work so well, but it and Google have come to operate two of the most p
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Google and Apple's app stores have become incredibly profitable, with margins often descending to single digits. Apple's original pricing policy of charging developers a 30% fee to sell apps in its store has contributed to its success. Despite the high costs involved in running these app stores, they have become cash machines for both companies.
Top Highlights
- After all these costs are accounted for, their margins often descend to single digits: Walmart’s operating margin this year is about 4 per cent.
- The ultimate issue is financial: Apple could not have known that its invention would work so well, but it and Google have come to operate two of the most profitable stores in history. No matter how they found the gold mine, they run it now.
- Apple came up with its original pricing policy of charging developers a 30 per cent fee to sell apps in its store.
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António Gonçalves
Monopolies Porter's 5 forces Google and Apple's app stores have become incredibly profitable, with margins often descending to single digits. Apple's original pricing policy of charging developers a 30% fee to sell apps in its store has contributed to its success. Despite the high costs involved in running these app stores, they have become cash m...
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