They are literally fighting it with this case, no? Exiting if they fail will also be great as it might become more clear to those who can change the system how much of a detriment it is.
If apple's UK iPhone profits really are in the c. 50mil range, then a (5 to 10)bn fee to remain is commercially non-viable.
Note that this is about Apple's ability to sell an iPhone in the UK, and as far as I can see, it wouldnt affect whether the entire company would remain in the UK.
If I were apple, I would withdraw a product from a country which supported this kind of racketeering.
Apple sells 7 million iPhones a year in the UK, Google tells me. Even at just 100 profit a unit, should be way more than 50 million in profit. Ignoring income from other things like accessories, the store etc.
Not to mention, the complementary effects. Someone buying an iPhone today is more likely to choose an Apple device as their laptop. Someone buying an iPhone today is more likely to buy another iPhone in a few years, over an Android phone.
If it's only 7 million, then Apple would definitely leave.
I had no idea it was that low. I would have thought it would be from 10 to 14. To put it in perspective, Apple sells 4 times that many in China. With China and the US being their bread and butter. Also, their marketshare in China and the US has way more upside. (Room for growth.)
I can understand now. You definitely don't want to pay money to stay in a market that has less upside than your money makers. That would mean you're using money from your money makers to fund customers who are not your money makers. From a much smaller businessman's perspective, I'd file that under, "There are some customers out there that are too much trouble."
There are 65 Million people in the UK, China and the United States are significantly larger both in terms of population. I haven't checked the numbers, but it is not unreasonable to assume that there is a similar amount of iPhones sold per year per capita in the UK as compared to those other two markets.
Leaving the UK market won't save them licence fees. They've already been incurred. It would be less like relatiation, more like flouncing off in a huff.
> A court case later in July will determine whether Apple will have to make a legally binding pledge to abide by judge-set payout rates in the July 2022 trial
They haven't paid them yet. And if they leave the market, they have no reason to pay it.
