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Apple tells court it does not take a cut from everything

by on18 May 2021


It drove $400 billion of physical sales and did not take a cent 

Fruity cargo-cult Apple is trying to convince a judge that it's not milking the App Store for all it's worth and claimed it ignored a cut of $400 billion of physical sales it generates.

For those who came in late, Apple is in court fighting off claims that it is acting like an evil monopolist stinging developers for a third of their payments and setting rules which favour the company. 

However the Jobs' Mob told the court that its App Store drove $400 billion worth of physical purchases in a single year in 2019, and that -- unlike digital purchases and subscriptions -- Apple doesn't take a cent of that money. The idea is that Apple is benevolent and is turning down shedloads of cash it could be making if it were an evil monopoly. 

App Store boss and longtime Apple marketing exec Phil Schiller, testified that the company spends $50 million a year to throw its Worldwide Developer Conference (WWDC) event. The company's also building a new developer centre at its Apple Loop headquarters in Cupertino, he says, though I didn't catch how much the company's investing in that. None of these are included in the App Store's budget, Schiller testified.

Physical purchases include things like Amazon or Uber where the customer used Apple's system. 

This begged the question of why Apple did not try to take any cut of physical purchases

During his testimony, Schiller explained that Apple couldn't guarantee they would actually arrive.

There is also the small matter that Apple would have to prove that those physical sales came through Apple's efforts. For example, did those sales come from the phone or the laptop top.  Did the browser on the user's TV serve it up? It is also unclear where Scheller got his figures from as they surprised the judge too.   

 

Last modified on 18 May 2021
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