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 | 4810 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
iPhone 6 Slow Motion Wine Pour at 240fps [Video]
Check out this slow motion wine pour test of ...
Verizon iPhone 6 and iPhone 6 Plus Users Get Simultaneous Voice and Data
Verizon users who have the iPhone 6 and iPhon...
Apple Lists Out-of-Warranty Prices for Replacing Screen and Battery of the iPhone 6
Alien Blue Reddit Client App Gets Redesigned Inbox/Messages, Hold to Preview, iOS 8 Support
The Weather Channel App Gets Updated With Widget, Weekend Forecast
The Weather Channel app has been updated with...