Is the iPhone + App Store combo Apple's most profitable things they sell?

Discussion in 'iPhone' started by Vandam500, Apr 3, 2009.

  1. Vandam500 macrumors 68000

    Vandam500

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    Sep 29, 2008
    #1
    I was just wondering if it is. I am pretty sure that the iPhone and App Store are making Apple tons of money but just how much? Is it their most valued? Or the laptops/desktops still #1?
     
  2. koollectablz macrumors 6502

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    #2
    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.
     
  3. fishkorp macrumors 68020

    fishkorp

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    #3
    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.
     
  4. Drumjim85 macrumors 68030

    Drumjim85

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    #4
    I"m pretty sure iPods and iTunes has been their big money maker in the past few years.
     
  5. fishkorp macrumors 68020

    fishkorp

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    #5
    My understanding is that Apple sees very little money from iTunes music sales. Most of that 99 cents goes to the record labels.
     
  6. Drumjim85 macrumors 68030

    Drumjim85

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    i think it's about $.2 out of the $.99
     
  7. pilotError macrumors 68020

    pilotError

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    #7
    How many songs have they sold? A Billion or more. Even the 2 cents starts to add up pretty quickly.
     
  8. Vandam500 thread starter macrumors 68000

    Vandam500

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    #8
    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.
     
  9. Drumjim85 macrumors 68030

    Drumjim85

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    #9
    $.2 not $.02 20 cents adds up even quicker.
     
  10. fishkorp macrumors 68020

    fishkorp

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    Is it actually 20%? I was given a figure MUCH lower, buy someone who owns a record label.
     
  11. Drumjim85 macrumors 68030

    Drumjim85

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    #11
    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.
     
  12. kage207 macrumors 6502a

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    Jul 23, 2008
    #12
    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.
     
  13. ZiggyPastorius macrumors 68040

    ZiggyPastorius

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    Berklee College of Music
    #13
    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%).
     
  14. iKennett macrumors 6502

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    #14
    What about the made for iPod and works with iPhone programs?
     
  15. Drumjim85 macrumors 68030

    Drumjim85

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    #15
    you think they get their most money from licensing they're name/logo?
     
  16. iKennett macrumors 6502

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    #16
    More than the App Store I would say......
     
  17. rednano74 macrumors member

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    Dover, DE
    #17
    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.
     

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