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Apple's App Store is not the wildly profitable operation it might seem, but rather does just a little better than breaking even, according to a recent report. In fact, the App Store has accounted for just $189 million -- or about 1 percent -- of Apple's total gross profit since it launched almost two years ago, according to Piper Jaffray analysts Gene Munster, Michael Olson and Andrew Murphy, who released a report on the topic early Wednesday. Total gross profit during that time was $33.7 billion, the analysts noted.
the App store is like Gillette but at inverse the objective is to sell i phones, i touch, etc. the more extensive of inventories you have the more smart machines you are going to sell, smart move by Steve.