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| Apple spends $ 50 million annually on hosting WWDC |
Apple tried to convince the judge that he was not really receiving the benefits he deserved in the Apple App Store. Apple has posted numbers in the Apple Store to prove its special status.
Apple says the App Store only made $ 400 billion in physical purchases in 2019, and unlike digital purchases and subscriptions, it generated no revenue from it.
According to Phil Schiller, President of Apple's App Store and Director of Marketing, these numbers also show that the company spends $ 50 million annually on hosting WWDC events.
Apple typically charges developers a fee to attend conferences, which offsets a portion of the cost of hosting WWDC. However, Apple has not charged any fees to access its virtual conferences in the past year and plans to host another conference. Schiller said the WWDC digital event is from June 7-11. .
The company has also created a new development center in its development center at Apple Park headquarters, where developers can work directly with the company's engineers to address their applications and get support and support.
Schiller confirmed that these are not included in the App Store's budget.
Epic Games believes that the App Store's high profit margin is one of the reasons Apple continues to charge a 30% commission on digital transactions, and Apple has failed to demonstrate that the commission rate is reasonable by providing security and privacy, and verifying that the app is quoting the App Store and other operations.
Apple argued that it did not calculate the profitability of the App Store as a whole and that any attempt would be misleading as it ignores Apple's investments in its iOS system such as research and development. Development costs and money you spend on activities such as WWDC.
Schiller also provided some interesting details about the App Store Video Partner Program, which can be used to lower commissions for streaming services.
This program enables eligible applications (such as Amazon Prime Video) to give customers the ability to purchase or rent movies and TV shows using the payment method associated with their current video subscription.
The software includes features like TV app integration, AirPlay 2, extensive search, and single sign-on integration.
Schiller stated in his testimony that the plan is open to all because the partners must maintain their existing service customer base. Apple has agreed and started the Video Partner Program.
Schiller announced that 90% of developers are eligible to participate in the App Store Small Business Program, which reduces App Store commissions to 15%.
Schiller said fears of money laundering and fraud are an obstacle to launching the Small Business Program from the App Store, and the lawsuit against Epic Games helped him gain approval from his colleagues at Apple to launch the program.
The company's annual commission on the App Store is estimated at $ 64 billion, with a profit margin of close to 78%.
And Apple appears to be arguing that the actual profit margin is lower because things like WWDC aren't included in the app store cost.
Schiller found that 84% of all apps in the App Store are completely free and nearly 75% of all games in the App Store are completely free.
Schiller also said: Over the past 15 years, Apple has spent $ 100 billion on research and development, including $ 18 billion in the last year alone.