6 million units at $700 a pop is $4.2 billion in revenue. Much closer to 1/2 of $10 billion than 1/10.

Apple has never made more money from the App Store than from iPhone hardware sales. When the iPhone launched the App Store didn’t exist yet. Over time, Apple’s revenue from services (including the App Store) has grown dramatically to around $26 billion per quarter today, though that is still less than what they earn in iPhone sales (a bit over $50 billion per quarter in 2024).