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jasvncnt

macrumors 6502
Jan 20, 2011
451
112
New Jersey
This news makes me laugh at the naysayer crowd who live in their delusional RDF.

"iTunes is crapware, nobody uses it."

"Apple MUST move to a subscription service to survive."

"Amazon is killing the iTMS."

And of course...

"Android is WINNING!" (apologies to Charlie Sheen)

itunes is crapware..but yes most people use it. they dont know any better
 

basesloaded190

macrumors 68030
Oct 16, 2007
2,693
5
Wisconsin
The title of this is misleading....

Revenue means sales dollars.... this is not profit.

To say they make more from iTunes than other make from phones is a wrong depiction. And this is why people who don't understand financial numbers always get confused.

I'm sure it's comparing revenue to revenue. While not true net income, it's still not misleading.
 

roadbloc

macrumors G3
Aug 24, 2009
8,784
215
UK
Nice to see Nokia are bouncing back upwards. Always had a soft spot for their phones and it is great to see their transition to Windows Phone OS is paying off.

Poor Motorola are on their last 2 Billion.
 

KdParker

macrumors 601
Oct 1, 2010
4,793
998
Everywhere
This news makes me laugh at the naysayer crowd who live in their delusional RDF.

"iTunes is crapware, nobody uses it."

"Apple MUST move to a subscription service to survive."

"Amazon is killing the iTMS."

And of course...

"Android is WINNING!" (apologies to Charlie Sheen)

Well, haters will hate I guess.

Not sure why some people spend so much time putting iTunes down
 

cxny

macrumors 6502
Jan 13, 2004
335
0
New York
...not from me

I haven't spent a nickel in iTMS since Spotify was unleashed. Oops, I lied - wasted $25.00 on iTunes Match.
 

Anonymous Freak

macrumors 603
Dec 12, 2002
5,561
1,252
Cascadia
The title of this is misleading....

Revenue means sales dollars.... this is not profit.

To say they make more from iTunes than other make from phones is a wrong depiction. And this is why people who don't understand financial numbers always get confused.

+1, or even +1,000,000.

Not to mention if you're going to talk about Apple's "music/app store and accessory revenue," then you would have to include other companies' as well. And something tells me Sony will win this argument.
 

basesloaded190

macrumors 68030
Oct 16, 2007
2,693
5
Wisconsin

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Peace

Cancelled
Apr 1, 2005
19,546
4,556
Space The Only Frontier
+1, or even +1,000,000.

Not to mention if you're going to talk about Apple's "music/app store and accessory revenue," then you would have to include other companies' as well. And something tells me Sony will win this argument.

Sorry. Sony Music Group's 2010 revenue was around 5 Billion. that's less than iTunes.
 

basesloaded190

macrumors 68030
Oct 16, 2007
2,693
5
Wisconsin
+1, or even +1,000,000.

Not to mention if you're going to talk about Apple's "music/app store and accessory revenue," then you would have to include other companies' as well. And something tells me Sony will win this argument.

Not sure if you understand what they are comparing here. iTunes sales versus total phone sales of other companies. If we were to include other companies' music and app store as well, then we would have to add in Apple's phone sales to continue to equal the comparison.
 

roland.g

macrumors 604
Apr 11, 2005
7,414
3,152
Revenue and income however are not the same thing. The iTunes Store as a major component to their profit is a myth. iTunes Store inclusive of the app and movie stores is a just better than break even enterprise contributing less than 4% to Apple's bottom line. It is there solely to facilitate the sale of iOS and Mac products from which they make their best margins.
 

Rogifan

macrumors Penryn
Nov 14, 2011
24,124
31,156
The title of this is misleading....

Revenue means sales dollars.... this is not profit.

To say they make more from iTunes than other make from phones is a wrong depiction. And this is why people who don't understand financial numbers always get confused.

Yes I'd love to know the profit figures. Wasn't iTunes once considered a break even business?
 

phillipduran

macrumors 65816
Apr 30, 2008
1,055
607
iTunes. When fandroids or loomies started talking about how great their new phones are going to be and how they are going to be better than the iPhone, I always pointed them to iTunes and how that was the main reason that their phones wont beat the iPhone.
 

ArtOfWarfare

macrumors G3
Nov 26, 2007
9,558
6,058
Would someone please explain why it is that Google will pay Apple for Apple to use their service but if I want to integrate Google searches into my App or Website I have to pay Google. It's the same freaking service, but Apple is able to purchase it for a negative amount of money!
 

fxtech

macrumors 6502
Oct 13, 2008
417
0
Apple earning in Q4 2012 was 36bn dollars in revenue, apple could make 3 A380 projects if they want in just one quarter revenue :D

Except they would be so full of bugs they would all crash and burn and pretty much end those projects. You need real quality control when dealing with airplanes.
 

slu

macrumors 68000
Sep 15, 2004
1,636
107
Buffalo
Finally people will stop with the nonsense that Apple doesn't make anything from iTunes and it only exists to sell hardware. This business has not been a break even business for years.

EDIT:

Revenue and income however are not the same thing. The iTunes Store as a major component to their profit is a myth. iTunes Store inclusive of the app and movie stores is a just better than break even enterprise contributing less than 4% to Apple's bottom line. It is there solely to facilitate the sale of iOS and Mac products from which they make their best margins.

I guess not. I know revenue and net income are not the same, but there is no way that the cost to run iTunes makes it a break even proposition. No way.
 
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Scottama

macrumors newbie
Jan 20, 2012
3
0
Why was Samsung left off this chart?

A much bigger problem; why does the scale of the Y axis fluctuate wildly. Each gap represents $2 billion, $1 billion, $2 billion, and $1 billion respectively.

It takes a special kind of incompetence to pull this off.
 

samcraig

macrumors P6
Jun 22, 2009
16,779
41,982
USA
The math is crazy anyway - and obvious.

They are combining accessories for iPad, iPhone, etc + iTunes and then comparing it how much a company makes on a phone alone. Phones that sell less than the iPhone to begin with?

Well duh. Of course Apple makes more from their ecosystem AND all accessories than most phone manufacturers do on their phone.

In other news - McDonalds makes more money on all their beverages, side orders than Wendys and Burger King does on their burgers. :rolleyes:
 

bjm2660

macrumors 6502
Jun 7, 2011
332
0
Virginia
Sometimes it can be challenging to reconcile charts like these (which present Apple as such a formidable player) with more pessimistic financial reports (which provoke such ire from Wallstreet talking heads).

Which is it? Is Apple a dominant, powerful, effective company or is it a withering, coasting, declining company?

Discuss
 
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