iTunes Now Generating Apple Over $2 Billion Per Year in Profit? [Chart]

Posted March 25, 2013 at 2:49pm by iClarified | Please help us and submit a translation by clicking here | 5014 views

Asymco analyst Horace Dediu takes a look at Apple's iTunes business in a new report "iTunes Business Review" which will soon be available for purchase through the Asymco Store.

In a recent blog post, Dediu offers some tidbits from the report. Notably, what's known as iTunes today has quintupled in seven years which is said to have brought some significant economies of scale. However, what has changed iTunes from a 'break-even' business to a profitable one is the inclusion of Apple Software.

My estimate is that Apple’s own software generated $3.6 billion in Revenues in 2012. As you can imagine, this is a high margin business which grows at nearly 20%/yr. Although I estimate that the software business has been overtaken by the Apps and Music businesses in gross revenues, it keeps an operating margin similar to that of Microsoft or about 50%.

This has lead Dediu to estimate a 15% operating margin on gross revenues when including Apple Software, for a profit of over $2 billion per year.

More details at the link below...

Read More


Share
Add Comment
Sqm - March 26, 2013 at 1:49pm
Does this mean that apples downfall has been a gross miscalculation? Lol
Follow iClarified
Apple Offers 19 Productivity Apps at Discounted Prices
Apple has discounted 19 productivity apps for...
Yahoo App Gets Redesigned With Interactive Digital Magazine Features
The Yahoo app for iOS was redesigned today wi...
Apple Releases iTunes 12.1 With New Widget for Notification Center
Apple has released iTunes 12.1 with a new wid...
ProCam 2 is Apple's Free App of the Week
Apple has selected ProCam 2 as its free app o...
Apple Takes iTunes Connect Offline After Issue That Logged Developers Into Random Accounts