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Technology Stocks : Apple Inc.

AAPL 273.85

+0.5%

Dec 24 12:59 PM EST

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To: clean86 who wrote (148575)	1/18/2013 10:29:41 PM
From: slacker711	4 Recommendations Read Replies (3) of 213177

Still iTunes is a huge money maker for Apple and we still fill our iPhones with music, books and Apps we purchase from iTunes. I have made the point a number of times on this thread that iTunes is profitable regardless of Apple's commentary otherwise. It is impossible for me to believe that there is zero scale involved with iTunes. My guess is that they stuff some advertising or development costs under iTunes to keep it at break-even. All of that being said, it is not nearly as profitable as the other segments of Apple's business. The total amount paid out to developers for apps is $7 billion. That means that Apple has collected $3 billion in revenue for apps. That is nothing in the context of their overall business. As for songs, in October 2011 Apple reported 16 billion song downloads along with 300 million iPods sold. That's only $4.2 billion in revenue from songs versus tens of billions from the iPods. Hardware is more profitable than content by a very wide margin. Slacker

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