Epic Games is using a lawsuit against Apple to accuse the iPhone maker of extraordinarily greed. The Verge According to expert witness Eric Barns, Apple expects an App Store operating margin of 77.8 percent in 2019, up from 74.9 percent in 2018. You cannot actually calculate your profit by pointing to the data. From the corporate financial planning and analysis group of the company as evidence
Apple surprisingly disagrees, the technology company says. The Verge The margin calculation is “mere” wrong and plans to fight allegations in the trial, the company’s witness Richard Schmalensee claims Barnes is looking at one of the iOS ecosystem elements that distort the operating margins it sees. Obviously The real numbers are “out of the ordinary,”; he said, adding that you can’t study the App Store’s bottom line without looking at the broader context of devices and services.
The company did not calculate profit and loss on products and services, Schmalensee said.
There is no guarantee that the court will accept Barnes’ actions. Typically, Apple’s overall gross margin is high compared to most industries. But never that high, 42.5 percent, in the company’s latest winter quarter.Apple is likely to show that the App Store is a way to drive hardware sales rather than a money maker in its own right.
The testimony, however, further explains how Epic will pursue Apple’s case against Apple when the court battle begins on May 3. Fortnite The creators don’t just want to show that Apple is against competition. But also misuse the iOS app distribution lock to reap huge profits.
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