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Conina said:
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. 

 

Another added thought, Apple isn't much into putting ANY cost into the software they sell.  So, the real margin on their software is close to 100%.  They are just a pass through of other peoples stuff with very little cost to them.



It is near the end of the end....