Apple Makes More From iTunes and Accessories Than Most Companies Do From Phones

[MacRumors]

An analysis by Asymco of Apple's newly-introduced revenue breakdowns claims that Apple made more money from iTunes and accessories sales alone than all other companies except Samsung made from phone sales during the most recent quarter.

As noted in its latest earnings release for the first fiscal quarter of 2013, Apple's total revenues from iTunes and accessories amounted to over $5.5 billion - ahead of the total phone revenues of each of Nokia, Motorola, Sony, LG, RIM (now rebranded as BlackBerry) and HTC.

Analysis author Horace Dediu also notes that iTunes may be worth more to Apple than its Mac business within the current year.

iTunes+Accessories combined is a bigger business in terms of revenues than any of the other phone vendors except Samsung. iTunes is now Apple's fourth largest business, having overtaken the iPod in revenues two years ago. iTunes growth relative to the Mac means that it could become the third largest business during this year.

The figures also make iTunes bigger than Microsoft's combined Xbox and Windows Phone divisions.

Meantime, Morgan Stanley analyst Scott Devitt (via Business Insider) suggests that Apple receives around a billion dollars a year from Google in return for making Google the default search on iOS devices, up roughly tenfold from just three years ago. It had previously been believed that Apple had a revenue-sharing deal with Google, but Devitt believes Apple would have gone for the neater and less risky option of a flat fee per device sold.

The steep rise in value for the search deal is said to have been driven in part by Microsoft which has been becoming increasingly aggressive about making such deals for its Bing search engine but has yet to secure a partnership with Apple for iOS to make the switch.

Article Link: Apple Makes More From iTunes and Accessories Than Most Companies Do From Phones

[maflynn]

Wow those numbers are mind boggling

The more phones that are sold, the more music/apps will get sold.

[newyorksole]

all that money we should deff have some exciting new products this year..

[wrkactjob]

How about an iWear clothing range?

[Reelknead1]

Why was Samsung left off this chart?

[Death Star]

Brace yourself... iPhone 5s... made out of plastic lol.

[Popeye206]

Originally Posted by Reelknead1

Why was Samsung left off this chart?

Because they made more?

What's amazing is how little Nokia is making.... or not making is more accurate.

[leo.andres.21]

Originally Posted by Reelknead1

Why was Samsung left off this chart?

Because they say iTunes + Accessories revenue is more than 'most' companies, not including Samsung, so there's no need to fit Samsung in this chart.

[bigcat318]

Originally Posted by Reelknead1

Why was Samsung left off this chart?

"iTunes+Accessories combined is a bigger business in terms of revenues than any of the other phone vendors except Samsung."

Because statistics are manipulated to prove the point you are trying to make.

[Meandmunch]

Originally Posted by maflynn

Wow those numbers are mind boggling

The more phones that are sold, the more music/apps will get sold.

And that was the plan all along.

"We want a piece of the MP3 player market, but how do we make ours better, what compelling reason could give the consumer?"

"Lets build are own distribution channel! A legal alternative for downloading music and we'll trap them there for life!"

[Shrink]

Originally Posted by Death Star

Brace yourself... iPhone 5s... made out of plastic lol.

I'm braced!!

And thanks so much for the warning!

[Mad Mac Maniac]

Interesting, but I would rather compare profit than revenue. itunes was once considered breakeven? How do we know it's still not the case? Nearly 6B in revenue... but is that even a net profit? (of course it absolutely is, but I'm just making a point)

Originally Posted by Reelknead1

Why was Samsung left off this chart?

Because it is the only company that would be above iTunes revenue. And far above it too...

[Monkeydude]

Samsung was left out, because then Apple wouldn't be on top.
Even though the text clearly states "more than most" it is a bit ridiculous.

[Tankmaze]

Apple is Big. really big. the budget for the Airbus A380 program was 12bn euros, and it was a make it or break it program for Airbus.

Apple earning in Q4 2012 was 36bn dollars in revenue, apple could make 3 A380 projects if they want in just one quarter revenue

[aziatiklover]

Looks like HTC and Blackberry are in deep crap! Ouch

[japanime]

Wow. Just wow. The foresight and pure genius of Steve Jobs continues to blow my mind. What a legacy.

[LittleStuffBull]

This is the most confusing London Underground map I have ever seen.

[aziatiklover]

Originally Posted by wrkactjob

How about an iWear clothing range?

Because they already do at the apple headquarter with mugs, cards holder etc.....

[SeniorGato1]

people need extra lightning cables and adapters!

[MacAddict1978]

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.

[DipDog3]

Now if they can just translate that into a higher stock price.

[Kabeyun]

That graph was made using Numbers. Nice.

[lkrupp]

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)

[Rocketman]

The article discusses gross revenues, but with Apple's higher margins, I suspect their gross profit on iTunes and accessories is higher than the gross profit of the top 3 or so handset vendors! That would be a good question for Cook at today's meeting.

[Boomchukalaka]

By the end of 2013, the top three revenue streams at Apple will be from iPhone, iPad and iTunes.



This isn't your father's Apple.