Yes there is.
Yes Mr Anon, if that is your real name, I was talking about the _average_ markup.
If you look at top end choccies, for example, you'll see a massive markup (in the 100s of percent). The average, across the board and inlcuding the very low margin stuff, is really much lower. Apples policy (as I understand it) is to take a 30% of everything, so, this forms the basis of their average.
Again, my point is that Apple must be making a serious profit by taking that kind of cut. The product is truly irrelevant. All that matters is that they buy at ~$0.63 and sell at $0.99. It could be mars bars for all that it matters, only the numbers are important.
So, you ask, cut to markup? A markup is what you add on to the wholesale/ purchase price to get your retail price. A cut is the percent of the whole. They aren't the same thing.
So, since they take a 30% cut, as above, this means that they would buy from the record label at ~$0.63 and sell at $0.99 This is a ~50% increase. Hence a ~50% markup.
Can you prove me wrong yet? I'm still looking for some proof that Apple is not making large profits on their music/ app business. None has presented yet, unless they spend >$100 million a month on datacentre, advertising and staff costs. Even then, I'll be honest, this is all rather amusing.
And no, I don't work for the revenue, I can count, thats all.