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Landguy said:

 

 As we all know, the money is really made off of the apps and content long term in the ecosystem.


Is this really true for the smartphone market? Apple makes over $100 billion revenue on iPhone hardware each year with a great profit margin.

Software revenue is only a fraction (10 - 15 billion) of the hardware revenue and the profit margin is also lower.

Googles AppStore revenue & profits also are only a fraction of their ad revenue & profits.