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Apr 12, 2001
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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.

asymco_itunes_phone_revenues.jpg
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

Moderator
Staff member
May 3, 2009
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Wow those numbers are mind boggling

The more phones that are sold, the more music/apps will get sold.
 
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bigcat318

macrumors 6502
Dec 25, 2007
357
83
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.
 
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Meandmunch

macrumors 6502
Jan 3, 2002
496
143
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!"
 
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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)

Why was Samsung left off this chart?

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

macrumors member
May 12, 2011
83
81
Hamburg, Germany
Samsung

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.
 
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Tankmaze

macrumors 68000
Mar 7, 2012
1,691
328
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 :D
 
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japanime

macrumors 68020
Feb 27, 2006
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Japan
Wow. Just wow. The foresight and pure genius of Steve Jobs continues to blow my mind. What a legacy.
 
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MacAddict1978

macrumors 65816
Jun 21, 2006
1,243
425
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.
 
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lkrupp

macrumors 65816
Jul 24, 2004
1,219
2,061
The RDFs we live in...

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)
 
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Boomchukalaka

macrumors regular
Jun 12, 2009
111
4
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.
 
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