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Is the iPhone + App Store combo Apple's most profitable things they sell?
- Thread starter Vandam500
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Selling a pair of in-ear headphones for £50 when you can get the same pair off the net for £4.50 had got to be pretty ****ing close.
Accessories certainly have the highest profit margin. So that is "most profitable" if you go by percentage, probably not by dollar amount though.
iPods far outsell iPhones as far as number of units sold.
iPods far outsell iPhones as far as number of units sold.
I"m pretty sure iPods and iTunes has been their big money maker in the past few years.
My understanding is that Apple sees very little money from iTunes music sales. Most of that 99 cents goes to the record labels.
How many songs have they sold? A Billion or more. Even the 2 cents starts to add up pretty quickly.
That is true though. iPods are literally everywhere, its incredible how much they have been spreading. I wonder how much they make off of each one.
Is it actually 20%? I was given a figure MUCH lower, buy someone who owns a record label.
oh, well then maybe they're agreement is different .... maybe you're right.
I know i get .69 pr track. and my distributor takes %10 off the top.
Apple makes far more on iTunes and iPods. They do take a lot of the money. That's why they can get prices so low on iTunes. They force the companies to go their way. Their sales representatives are pretty damn good. From what I hear sometimes, even better than Walmarts.
It's also important to point out that the app store is not that profitable for them. Despite what many people think, there are a lot of costs that go into hosting those apps and stuff, and 30% is pretty low compared to what some other similar services take (around 50%).
iTunes generates a crap load of revenue for Apple. However, after you subtract out their end of the bargain with the record labels in addition to the cost to run and maintain iTunes, it brings very little if any money to the bottom line, hence no profit.
Apple's profit comes from Macs, iPods, and maybe the iPhone.