Apple doesn't make money off the App Store

I’m really getting fed up of all this bull5h17 about Apple making its billions by taking a 30% cut on all app store sales. That is not what is happening; This is not what Apple wants to happen; And this can be factually proven.

Last week’s iPad 2 announcement had 2 figures thrown out by Steve at the beginning of the event:

• Over $2 Billion given out to iOS Developers
• Over 100 Million iPhones sold

Now, let’s do the math of the first figure: $2 Billion is the 70% which makes, Apple’s 30% cut approx. $857 Million. That’s right people, not even a Billion bucks.

Onto the second figure. Those who have read any of iSuppli’s Bill of Materials reports for the iPhones, would notice that the iPhones (except the original) usually cost less than $200 to manufacture. Rumor has it that Apple gets its carriers to pay them roughly $650 per iPhone. Let’s assume that Apple makes $400 of each iPhone here.

$400 * 100 Million = $40 Billion

That’s right, Apple is making over 40 times on hardware sales compared to its App Store commission. Keep in mind that this doesn’t even include the iPod Touch or the iPad. People, please stop yapping about apple Billions from the App Store!

Note: This doesn’t mean that this is always going to be the case. Just at present.