Apart from quarterly release balance sheets, court filings reveal more details about a company’s performance. For example, in the case of Apple vs. Epic Games, such filings revealed that Apple is a giant in the gaming industry.
As per reports, Apple’s operating profits in 2019 were estimated to be over $8.5 billion, more than that of Sony’s Activision, Nintendo and Microsoft combined. Further, Apple admitted that the exact figure to be even more than what’s mentioned in filings!
Apple is a Gaming Giant
We all knew that Apple is one of the wealthiest companies in the world and is famous for its pricy iPhones. But, who would have expected that Apple earns a considerable amount of its revenue from games!
In the ongoing case of Apple vs. Epic Games, the Cupertino-based company’s filing revealed that it had earned over $8.5 billion in operating profits in 2019! This is nearly $2 billion more than Activision, Nintendo, Sony, and Microsoft combined in the same period.
This is shocking, as Apple surpasses over gaming console giants in revenue without making any noise. Most of its games revenue comes from Appstore, where it houses millions of games for over a billion users. Further, the Appstore’s operating profit in 2019 was implied to be over $12.3 billion, making it almost a fifth of the overall operating profit.
What’s more intriguing is that Apple clarified to be generating more profits than that of $8.5 billion mentioned in the Wall Street Journal’s report. Also, it said that operating margins revealed in the trial are calculated without considering several joint costs associated with the App Store.
Also, a report from Sensor Tower says that Apple’s estimated revenue from Appstore in 2019 was about $15.9 billion, where 69% of that was driven by gaming.