Epic Games at present is using its lawsuit against Apple just for accusing the iPhone maker of being greedy. According to the reports of The Verge, Eric Barns tests the Apple stores and came to a conclusion App Store operating margin of 77.8 during 2019 and around 74.9 percent during 2018. Eric Barns rejected that Apple witness claims that you cannot calculate the profit perfectly, just by pointing the Corporate Financial Planning and Analysis group as evidence.
Apple has disagreed with everything. The Verge was told by Tech Firm, the margin calculations are very wrong. And this was planned for fighting the allegations at trial. Richard Schmalensee- a witness from Firms says Barnes was looking at one iOS ecosystem. But this distorted the apparent operating margin. According to him, the real figures were unremarkable. As no one cannot study App Store profit without giving a proper look at the broader context of devices and services.
Richard Schmalensee says companies do not calculate the loses and profits based on products and services.
So, there is no guarantee whether the court is going to accept Barnes’ take or not. The overall gross profit margin of Apple company has been so high. But never that much- it was only 42.5 percent during the last quarter of winters. Apart from all this, Apple has tended to portray the App Store as a way to drive their hard sales instead of money-making thing.
However, the testimony does not explain how Epic is going to pursue its case against Apple. The court battle is going to start on May 3rd, which means tomorrow. The Fortnite creator is not only going to portray Apple as anti-competitive but is abusing the lock on iOS app distribution for reaping massive profits.