Interesting to see where this conversation has gone! But I don’t think that Apple cares about revenue from the software apps as they position themselves as the Apple experience when buying an Apple iOS device (with new system only). There could be many reasons why they chose to do that, and one of them may be that sales of new devices in a crowded market needed more than just a device to differentiate. Currently, there are ~600 million iOS devices in the world (best estimate found). Buying the 5 apps today is a total of $40. That’s a $24B total addressable market. Other guesstimates and polls say that ~40% of existing users will upgrade. So if it was about revenue from software, they are leaving a potential $9.6B on the table. Even a 10% penetration into that is close to $1B revenue.
So I am only having fun at trying to second guess Apple which we all know is almost impossible. But based on precedence of having done it for a market that is hundreds of times bigger than niche pro video markets, why would the revenue of software apps matter there?
On the other hand, they could very well take the position of “if they can afford a new MacPro, then they can afford half a grand for the “pro” apps. But let’s play with some numbers here too – let’s say there are 1M pro editors in the world and they spend $500 for all the pro apps. That’s $500M revenue – compared to the estimated $9.6B that is nothing. Even the 10% penetration is 2x revenue. But the marketing and goodness around getting a new MacPro and “that’s all you’ll ever need” message for video (even up to 4K!) and audio creation might be a tempting thing to do. They did it with the 80% off add a few years ago and are doing a subtle version of that with the new iPhone camera showing the camera bad, lenses, light meter, Macbeth chart, etc.
These conversations are really better served with a few rounds of beer. I also reserve the right to have all my numbers and calculations wrong, but something has to be put down on the table in order for a discussion to happen. 🙂
Michael