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View Full Version : iTunes is Quite the Profit Generator


Jeff Campbell
07-05-2011, 08:00 PM
<div class='os_post_top_link'><a href='http://www.cultofmac.com/apple-set-to-rake-in-13-billion-from-itunes-in-2013/103390?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+cultofmac/bFow+(Cult+of+Mac)' target='_blank'>http://www.cultofmac.com/apple-set-...w+(Cult+of+Mac)</a><br /><br /></div><p><em>"Thanks to the continued growth of Apple's iOS devices, the iTunes platform that includes the App Store and the iBookstore is set to grow at a rate of 39% over the next three years and rake in a whopping $13 billion in revenue during 2013."</em></p><p><img height="533" src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/at/auto/1309885849.usr105634.jpg" style="float: right;" width="600" /></p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>In a <a href="http://www.cultofmac.com/apples-itunes-ecosystem-costs-1-3b-per-year/100714?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed:+cultofmac/bFow+(Cult+of+Mac)" target="_blank">previous story</a>, it was reported that Apple's iTunes ecosystem has a yearly price tag of $1.3 billion, so a $12 billion profit is no small figure. They also report that students are preferring to use iBook over other apps on their iPads. I am still experimenting with iBook, using it mainly to store PDF files. What are your thoughts, iBook or another app on your iPad?&nbsp;</p>

djdj
07-06-2011, 05:19 AM
This sounds more reasonable than Apple's official line that they only "break even" on the iTunes store. (Link (http://digitalmusicnews.com/stories/012510apple))

They've also claimed that they don't make much money on their App Store either... Quote: "...Peter Oppenheimer added, “We run the App Store just a little over breakeven,” implicitly making the case that the App Store was not a big profit generator for the company." (Link (http://www.macobserver.com/tmo/article/apple_app_store_runs_just_above_break_even/)) This seems incredibly implausible... if they've paid $2.5 billion to developers, that means they've kept just over a billion for themselves. There's no way it cost them a billion dollars to run the App Store...

I say their official word is hogwash. This story seems much more plausible.