Apple: The App Store has become a multi-million dollar revenue stream, with margins far sharper than the competition. Possible Threats. apples dominance as one of the giants of the technology sector extends to video games as well. They don’t make consoles, they don’t make works, but the App Store has become the goose that lays the golden eggs of those from Cupertino. A report published Oct. 2 by The Wall Street Journal reveals, according to an analysis of the fiscal reports for the 2019 academic year across many companies, that the profits made by Tim Cook’s company during that period are higher than Sony, Nintendo , Activision and Microsoft… together.
An unparalleled distribution showcase, the App Store phenomenon
But how do they do it? During the surveyed period – from April 2018 to 31 March 2019; for the dispute between Apple and epic games—, Apple 30% of all revenue billed by works like Fortnite (Epic Games) or Honor or Kings (Tencent), a high percentage of commission that is almost a third of the total just because it is hosted on your digital store, available on all devices from Company; from iPhone to iPad, even Mac.
With that guaranteed bite, the thousands of video games available on the App Store, whether they’re free or premium, will instantly explode. Apple with their millions of dollars. The result is none other than an operating profit of $8.5 billion for that year alone. To put it in context, Microsoft was covered by half the world for taking ZeniMax Media for $7.5 billion. Apple could buy that Bethesda once a year with this performance.
That $8.5 billion in operating profit was more than the sum of giants like Nintendo, Microsoft, Activision Blizzard and PlayStation in fiscal 2019 combined; according to the figures obtained from the WSJ analysis.