[tonyedgecombe]

I assumed Apple's margin was 30%, the difference between what a user pays and what the developer receives. Am I missing something here?

[rahimnathwani]

  Am I missing something here?

You are assuming Apple is a reseller (whose revenue is the full price paid by the end buyer) rather than an agent (whose revenue is only their commission).

You are also ignoring the app store's advertising revenue.

And you're assuming that it costs zero to run the app store.

[tonyedgecombe]

>You are assuming Apple is a reseller (whose revenue is the full price paid by the end buyer) rather than an agent (whose revenue is only their commission).

This isn't an unreasonable assumption, especially considering the invoice for my last App Store purchase has an Apple address and tax identifier (VAT number). Apple is the merchant of record.

[seanmcdirmid]

Apple should have costs they have to pay to maintain the store, vet apps, credit card transaction fees, etc…