Epic Games is using its lawsuit against Apple to accuse the iPhone maker of being particularly greedy. Like On the edge reports, expert Eric Barnes testified that Apple assumed it had an App Store operating margin of 77.8% in 2019 and a rise of 74.9% in 2018. It also dismissed Apple’s witness claims. that in practice you cannot calculate a profit, citing information from the corporate financial planning and analysis group of the company as evidence.
Apple is not surprisingly at odds. The technical company said On the edge the margin calculations were “simply” wrong and that she had planned to fight the charges during the trial. The company’s own witness, Richard Schmalensee, claims that Barnes is looking at an element of the iOS ecosystem that violates the obvious operating margin. The real figure was “unremarkable,”
The company does not calculate profits and losses based on products and services, Schmalensee said.
There is no guarantee that the court will accept Barnes’ words. Apple’s total gross profit margin is usually high compared to much of the industry, but never so high – in the last winter quarter of the company was 42.5%. Apple also tends to present the App Store as a way to drive hardware sales, rather than as a money maker in its own right.
However, the testimony further explains how Epic will continue its case against Apple, as the court battle begins on May 3. The Fortnite The creator not only wants to portray Apple as anti-competitive, but is abusing the lock on iOS app distribution to make huge profits.
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