What are you thinking?

View Results

Loading ... Loading ...
1 Star2 Stars3 Stars4 Stars5 Stars (Rate This)
Loading...Loading...

An interesting report from Asymco estimates that it costs Apple US$1.3 billion per year to run the iTunes store and the sum was reached by examining known numbers, like the total number of songs, movies, TV shows and apps that have been downloaded, plus the number of iTunes accounts and how much Apple has paid out to developers…………..

 

Apple spends approximately $1.3 billion per year or $113 million each month to run iTunes and its App Store and Apple probably isn’t making as much money off of all those downloads as you think it is. There are 225 million iTunes account holders, which is an astronomical figure given that the service has only been operating since April 2003. But iTunes is still only at the break-even point. All of those users account for 15 billion song downloads every year. In addition, they buy 130 million books, 14 billion apps and about 100,000 games. That’s a lot of money exchanging hands. Something like $313 million every month. But, given Apple‘s deals with music labels to secure the rights to all of that music it’s offering in the iTunes store and the $2.5 billion we know the company has paid out to developers, a figure that was revealed just last week at the Worldwide Developers Conference, the content margin is only about $113 million.

 

 

That money, the $113 million every month that Apple is bringing in (far more comes from app downloads than music downloads), is spent on support, curation, traffic and payment processing. Whatever is leftover, Asymco suggests, is “invested in capacity increases.” That is, adding to the massive server farms that are required to store all of the available content and acquiring new material. The data that Apple published in the last event included the following:

  • 15 Billion iTunes song downloads
  • 130 million book downloads
  • 14 billion app downloads
  • $2.5 billion paid to developers
  • 225 million accounts
  • 425k apps
  • 90k iPad apps
  • 100k game and entertainment titles
  • 50 million game center accounts

As this data is added to the existing data and cross-referenced additional insight into the economics of iTunes is emerging.

 

Thanks: (1),(2)

Buy Cheapest Related Product From Amazon.com


J.C. Penney Will Be Apple’s Next Chief Executive Officer

Samsung Galaxy Tab 10.1 Will Take Flight On American Airlines
You can also press the left/right arrow key on your keyboard to go to previous/next post
  On June 15, 2011(3 years, 5 months ago.)

Recent Products

Buy Now | Compare  
Buy Now | Compare  
Buy Now | Compare  
Buy Now | Compare  
Compare  

What Do You Think?

Loading Disqus Comments ...
Loading Facebook Comments ...

Recent Search

Recent Tutorials

My tutorial is for those who wants to delete those history partially or fully or to disable those if they want.
This tutorial will show you how to stop those videos in your Android mobile not to play automatically.
This tutorial will help you to Disable Auto-Update Of Android Apps in your Android Device. The steps are quite easy to execute.
This tutorial will help you to clear search history from your Google Play Store in your Android Device. The steps are quite easy to execute.
This tutorial is about restoring your deleted WhatsApp chat history in Android for at most 7 days data.
Today I am going to show you how to save places in Android Google Maps and then retrieving those places in Google Maps from any devices.
Do you know that you can turn a shoe box into a phone projector? Don't believe this? See for yourself inside.
Apple has published a new guide detailing how Android users will be able to switch their contents from Android to iPhone.
The trick will let you to check your Facebook messages in the original app without downloading Messenger and it works with both iPhone or Android phone.
Want to block all disgusting ads from your android device? Read the tutorial to know how you can block ads on your Android and save data.
Close You Have To Login
User:
Pass:
Login With »Login With TwitterLogin With Facebook