However Marco’s argument is spot on. Apple is saying in Senate hearings that App developers are picking up crumbs from the App Store’s floor and should be grateful for what they get, while reassuring devs that they are what makes iPhone so great. Too many of Apples moves against devs on the store recently have bordered on the abusive. Yes they’re greatly trimmed charges for small dev shops, but the rules on that are awkward and are clearly about optics not substance.
To your questions.
1. Then Apple would have failed to offer a compelling product. There are other phones and app stores out there. If Apple can’t compete with Samsung on the quality of their phones, then they’re not the Apple I know and love anymore. It’s up to them to add value, not leech it off others. They do deserve fair recompense for their services, but that’s all.
2. We know very well what their hardware margins are. From their own filings, their phone hardware margins are over 35%.